EMBECTA CORP (EMBC)
US29082K1051 - Common Stock
We assign a fundamental rating of 6 out of 10 to EMBC. EMBC was compared to 187 industry peers in the Health Care Equipment & Supplies industry. While EMBC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EMBC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year EMBC was profitable.
In the past year EMBC had a positive cash flow from operations.
EMBC had positive earnings in each of the past 5 years.
In the past 5 years EMBC always reported a positive cash flow from operatings.
1.2 Ratios
EMBC has a Return On Assets of 5.50%. This is amongst the best in the industry. EMBC outperforms 86.02% of its industry peers.
EMBC's Return On Invested Capital of 19.56% is amongst the best of the industry. EMBC outperforms 98.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMBC is significantly above the industry average of 8.19%.
The 3 year average ROIC (40.27%) for EMBC is well above the current ROIC(19.56%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | N/A | ||
| ROIC | 19.56% |
ROA(3y)26.35%
ROA(5y)39.01%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.27%
ROIC(5y)49.09%
1.3 Margins
Looking at the Profit Margin, with a value of 6.23%, EMBC is in the better half of the industry, outperforming 76.88% of the companies in the same industry.
EMBC's Profit Margin has declined in the last couple of years.
EMBC's Operating Margin of 20.40% is amongst the best of the industry. EMBC outperforms 92.47% of its industry peers.
EMBC's Operating Margin has declined in the last couple of years.
EMBC has a Gross Margin of 66.42%. This is in the better half of the industry: EMBC outperforms 70.97% of its industry peers.
In the last couple of years the Gross Margin of EMBC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.4% | ||
| PM (TTM) | 6.23% | ||
| GM | 66.42% |
OM growth 3Y-23.62%
OM growth 5YN/A
PM growth 3Y-45.78%
PM growth 5YN/A
GM growth 3Y-1.62%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EMBC is creating value.
Compared to 1 year ago, EMBC has more shares outstanding
The debt/assets ratio for EMBC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.55, we must say that EMBC is in the distress zone and has some risk of bankruptcy.
EMBC's Altman-Z score of 1.55 is in line compared to the rest of the industry. EMBC outperforms 54.30% of its industry peers.
EMBC has a debt to FCF ratio of 119.28. This is a negative value and a sign of low solvency as EMBC would need 119.28 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 119.28, EMBC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 119.29 | ||
| Altman-Z | 1.55 |
ROIC/WACC2.22
WACC8.8%
2.3 Liquidity
EMBC has a Current Ratio of 2.11. This indicates that EMBC is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.11, EMBC is not doing good in the industry: 65.59% of the companies in the same industry are doing better.
EMBC has a Quick Ratio of 1.61. This is a normal value and indicates that EMBC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of EMBC (1.61) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
EMBC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.14%.
The earnings per share for EMBC have been decreasing by -45.17% on average. This is quite bad
EMBC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.48%.
The Revenue has been growing slightly by 1.06% on average over the past years.
EPS 1Y (TTM)-1.14%
EPS 3Y-45.17%
EPS 5YN/A
EPS Q2Q%184.62%
Revenue 1Y (TTM)0.48%
Revenue growth 3Y1.06%
Revenue growth 5YN/A
Sales Q2Q%-4.75%
3.2 Future
The Earnings Per Share is expected to grow by 4.90% on average over the next years.
Based on estimates for the next years, EMBC will show a small growth in Revenue. The Revenue will grow by 3.31% on average per year.
EPS Next Y18.72%
EPS Next 2Y6.23%
EPS Next 3Y4.9%
EPS Next 5YN/A
Revenue Next Year0.26%
Revenue Next 2Y0.4%
Revenue Next 3Y0.64%
Revenue Next 5Y3.31%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.16 indicates a rather cheap valuation of EMBC.
Based on the Price/Earnings ratio, EMBC is valued cheaply inside the industry as 99.46% of the companies are valued more expensively.
EMBC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.61.
The Price/Forward Earnings ratio is 8.08, which indicates a very decent valuation of EMBC.
EMBC's Price/Forward Earnings ratio is rather cheap when compared to the industry. EMBC is cheaper than 99.46% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.24. EMBC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.16 | ||
| Fwd PE | 8.08 |
4.2 Price Multiples
EMBC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EMBC is cheaper than 97.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EMBC indicates a somewhat cheap valuation: EMBC is cheaper than 74.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.76 | ||
| EV/EBITDA | 8.29 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EMBC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y6.23%
EPS Next 3Y4.9%
5. Dividend
5.1 Amount
EMBC has a Yearly Dividend Yield of 4.29%, which is a nice return.
Compared to an average industry Dividend Yield of 1.67, EMBC pays a better dividend. On top of this EMBC pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.19, EMBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
5.2 History
EMBC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
49.35% of the earnings are spent on dividend by EMBC. This is a bit on the high side, but may be sustainable.
DP49.35%
EPS Next 2Y6.23%
EPS Next 3Y4.9%
EMBECTA CORP
NASDAQ:EMBC (11/26/2024, 7:32:15 PM)
After market: 18.7 0 (0%)18.7
+4.29 (+29.77%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.16 | ||
| Fwd PE | 8.08 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.4% | ||
| PM (TTM) | 6.23% | ||
| GM | 66.42% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-1.14%
EPS 3Y-45.17%
EPS 5Y
EPS Q2Q%
EPS Next Y18.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.48%
Revenue growth 3Y1.06%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y