EMBECTA CORP (EMBC) Stock Fundamental Analysis
NASDAQ:EMBC - Nasdaq - US29082K1051 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to EMBC. EMBC was compared to 190 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on EMBC.
1. Profitability
1.1 Basic Checks
In the past year EMBC was profitable.
EMBC had a positive operating cash flow in the past year.
EMBC had positive earnings in each of the past 5 years.
EMBC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EMBC (5.06%) is better than 85.11% of its industry peers.
EMBC's Return On Invested Capital of 17.62% is amongst the best of the industry. EMBC outperforms 96.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EMBC is significantly above the industry average of 8.19%.
The last Return On Invested Capital (17.62%) for EMBC is well below the 3 year average (24.33%), which needs to be investigated, but indicates that EMBC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | N/A | ||
| ROIC | 17.62% |
ROA(3y)10.82%
ROA(5y)28.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.33%
ROIC(5y)35.9%
1.3 Margins
EMBC has a better Profit Margin (5.25%) than 76.60% of its industry peers.
In the last couple of years the Profit Margin of EMBC has declined.
EMBC's Operating Margin of 20.33% is amongst the best of the industry. EMBC outperforms 92.55% of its industry peers.
In the last couple of years the Operating Margin of EMBC has declined.
EMBC's Gross Margin of 64.32% is fine compared to the rest of the industry. EMBC outperforms 65.96% of its industry peers.
In the last couple of years the Gross Margin of EMBC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.33% | ||
| PM (TTM) | 5.25% | ||
| GM | 64.32% |
OM growth 3Y-15.62%
OM growth 5Y-10.93%
PM growth 3Y-41.94%
PM growth 5Y-29.11%
GM growth 3Y-1.58%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
EMBC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
EMBC has more shares outstanding than it did 1 year ago.
EMBC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EMBC has an improved debt to assets ratio.
2.2 Solvency
EMBC has an Altman-Z score of 1.64. This is a bad value and indicates that EMBC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.64, EMBC is in line with its industry, outperforming 57.45% of the companies in the same industry.
The Debt to FCF ratio of EMBC is 54.58, which is on the high side as it means it would take EMBC, 54.58 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EMBC (54.58) is better than 67.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 54.58 | ||
| Altman-Z | 1.64 |
ROIC/WACC2.16
WACC8.14%
2.3 Liquidity
EMBC has a Current Ratio of 2.24. This indicates that EMBC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.24, EMBC is doing worse than 60.11% of the companies in the same industry.
EMBC has a Quick Ratio of 1.67. This is a normal value and indicates that EMBC is financially healthy and should not expect problems in meeting its short term obligations.
EMBC has a Quick ratio (1.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
EMBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.65%, which is quite impressive.
The earnings per share for EMBC have been decreasing by -29.06% on average. This is quite bad
EMBC shows a decrease in Revenue. In the last year, the revenue decreased by -1.31%.
The Revenue has been growing slightly by 0.25% on average over the past years.
EPS 1Y (TTM)47.65%
EPS 3Y-42.79%
EPS 5Y-29.06%
EPS Q2Q%6.56%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%-5.55%
3.2 Future
Based on estimates for the next years, EMBC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.77% on average per year.
EMBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.03% yearly.
EPS Next Y16.04%
EPS Next 2Y11.63%
EPS Next 3Y9.77%
EPS Next 5YN/A
Revenue Next Year-0.97%
Revenue Next 2Y0.13%
Revenue Next 3Y0.67%
Revenue Next 5Y1.03%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 5.62 indicates a rather cheap valuation of EMBC.
EMBC's Price/Earnings ratio is rather cheap when compared to the industry. EMBC is cheaper than 99.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of EMBC to the average of the S&P500 Index (29.63), we can say EMBC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.58, the valuation of EMBC can be described as very cheap.
Based on the Price/Forward Earnings ratio, EMBC is valued cheaper than 99.47% of the companies in the same industry.
EMBC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.62 | ||
| Fwd PE | 4.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EMBC indicates a rather cheap valuation: EMBC is cheaper than 96.81% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EMBC is valued cheaply inside the industry as 82.98% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.36 | ||
| EV/EBITDA | 8.43 |
4.3 Compensation for Growth
EMBC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EMBC may justify a higher PE ratio.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y11.63%
EPS Next 3Y9.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.16%, EMBC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.67, EMBC pays a better dividend. On top of this EMBC pays more dividend than 99.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, EMBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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
EMBC pays out 59.62% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP59.62%
EPS Next 2Y11.63%
EPS Next 3Y9.77%
14.1
-0.31 (-2.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.94%
Inst Owner Change2.14%
Ins Owners0.56%
Ins Owner Change29.65%
Market Cap819.63M
Analysts78.18
Price Target21.47 (52.27%)
Short Float %2.36%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP59.62%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)32.94%
Min EPS beat(2)21.87%
Max EPS beat(2)44.01%
EPS beat(4)4
Avg EPS beat(4)46.61%
Min EPS beat(4)21.87%
Max EPS beat(4)64.22%
EPS beat(8)6
Avg EPS beat(8)20.9%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.05%
Min Revenue beat(2)0.84%
Max Revenue beat(2)1.26%
Revenue beat(4)3
Avg Revenue beat(4)2.09%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)6.37%
Revenue beat(8)7
Avg Revenue beat(8)2.26%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)31.02%
EPS NQ rev (1m)-12.08%
EPS NQ rev (3m)-7.05%
EPS NY rev (1m)0.18%
EPS NY rev (3m)23.9%
Revenue NQ rev (1m)-8.29%
Revenue NQ rev (3m)-9.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.62 | ||
| Fwd PE | 4.58 | ||
| P/S | 0.74 | ||
| P/FCF | 28.36 | ||
| P/OCF | 18.84 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.43 |
EPS(TTM)2.51
EY17.8%
EPS(NY)3.08
Fwd EY21.83%
FCF(TTM)0.5
FCFY3.53%
OCF(TTM)0.75
OCFY5.31%
SpS19.06
BVpS-13.23
TBVpS-13.63
PEG (NY)0.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | N/A | ||
| ROCE | 26.45% | ||
| ROIC | 17.62% | ||
| ROICexc | 23.39% | ||
| ROICexgc | 24.27% | ||
| OM | 20.33% | ||
| PM (TTM) | 5.25% | ||
| GM | 64.32% | ||
| FCFM | 2.61% |
ROA(3y)10.82%
ROA(5y)28.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.33%
ROIC(5y)35.9%
ROICexc(3y)39.2%
ROICexc(5y)44.82%
ROICexgc(3y)41.18%
ROICexgc(5y)47.17%
ROCE(3y)36.53%
ROCE(5y)53.9%
ROICexcg growth 3Y-18.01%
ROICexcg growth 5Y-11.68%
ROICexc growth 3Y-17.5%
ROICexc growth 5Y-11.4%
OM growth 3Y-15.62%
OM growth 5Y-10.93%
PM growth 3Y-41.94%
PM growth 5Y-29.11%
GM growth 3Y-1.58%
GM growth 5Y-1.58%
F-Score5
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 54.58 | ||
| Debt/EBITDA | 5.98 | ||
| Cap/Depr | 40.11% | ||
| Cap/Sales | 1.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 16.63% | ||
| Profit Quality | 49.66% | ||
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 1.64 |
F-Score5
WACC8.14%
ROIC/WACC2.16
Cap/Depr(3y)66.88%
Cap/Depr(5y)82.76%
Cap/Sales(3y)1.97%
Cap/Sales(5y)2.62%
Profit Quality(3y)85.85%
Profit Quality(5y)92.96%
High Growth Momentum
Growth
EPS 1Y (TTM)47.65%
EPS 3Y-42.79%
EPS 5Y-29.06%
EPS Q2Q%6.56%
EPS Next Y16.04%
EPS Next 2Y11.63%
EPS Next 3Y9.77%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%-5.55%
Revenue Next Year-0.97%
Revenue Next 2Y0.13%
Revenue Next 3Y0.67%
Revenue Next 5Y1.03%
EBIT growth 1Y5.14%
EBIT growth 3Y-16.64%
EBIT growth 5Y-10.7%
EBIT Next Year32.12%
EBIT Next 3Y12.22%
EBIT Next 5YN/A
FCF growth 1Y-90.66%
FCF growth 3Y-63.73%
FCF growth 5Y-46.06%
OCF growth 1Y-86.97%
OCF growth 3Y-57.22%
OCF growth 5Y-41.13%