EMBECTA CORP (EMBC) Stock Fundamental Analysis
USA - NASDAQ:EMBC - US29082K1051 - Common Stock
15.08 USD
+0.07 (+0.47%)
15.8288 USD
+0.75 (+4.97%)
Taking everything into account, EMBC scores 6 out of 10 in our fundamental rating. EMBC was compared to 191 industry peers in the Health Care Equipment & Supplies industry. EMBC has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on EMBC. This makes EMBC very considerable for value investing!
1. Profitability
1.1 Basic Checks
EMBC had positive earnings in the past year.
EMBC had a positive operating cash flow in the past year.
In the past 5 years EMBC has always been profitable.
EMBC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EMBC's Return On Assets of 7.22% is amongst the best of the industry. EMBC outperforms 89.53% of its industry peers.
EMBC's Return On Invested Capital of 23.87% is amongst the best of the industry. EMBC outperforms 99.48% of its industry peers.
EMBC had an Average Return On Invested Capital over the past 3 years of 24.33%. This is significantly above the industry average of 8.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.22% | ||
| ROE | N/A | ||
| ROIC | 23.87% |
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 Profit Margin of 7.58%. This is in the better half of the industry: EMBC outperforms 79.06% of its industry peers.
EMBC's Profit Margin has declined in the last couple of years.
The Operating Margin of EMBC (28.66%) is better than 96.34% of its industry peers.
In the last couple of years the Operating Margin of EMBC has declined.
EMBC has a Gross Margin of 63.95%. This is in the better half of the industry: EMBC outperforms 66.49% of its industry peers.
In the last couple of years the Gross Margin of EMBC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.66% | ||
| PM (TTM) | 7.58% | ||
| GM | 63.95% |
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.
Compared to 1 year ago, EMBC has more shares outstanding
The number of shares outstanding for EMBC has been increased compared to 5 years ago.
EMBC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.01 indicates that EMBC is not a great score, but indicates only limited risk for bankruptcy at the moment.
EMBC has a better Altman-Z score (2.01) than 61.78% of its industry peers.
EMBC has a debt to FCF ratio of 11.34. This is a negative value and a sign of low solvency as EMBC would need 11.34 years to pay back of all of its debts.
EMBC's Debt to FCF ratio of 11.34 is fine compared to the rest of the industry. EMBC outperforms 72.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.34 | ||
| Altman-Z | 2.01 |
ROIC/WACC3.54
WACC6.74%
2.3 Liquidity
A Current Ratio of 2.47 indicates that EMBC has no problem at all paying its short term obligations.
The Current ratio of EMBC (2.47) is comparable to the rest of the industry.
EMBC has a Quick Ratio of 1.78. 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 (1.78) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.88% over the past year.
EMBC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -29.06% yearly.
Looking at the last year, EMBC shows a decrease in Revenue. The Revenue has decreased by -1.47% in the last year.
The Revenue has been growing slightly by 0.25% on average over the past years.
EPS 1Y (TTM)11.88%
EPS 3Y-42.79%
EPS 5Y-29.06%
EPS Q2Q%51.35%
Revenue 1Y (TTM)-1.47%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%8.44%
3.2 Future
EMBC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.85% yearly.
The Revenue is expected to grow by 0.68% on average over the next years.
EPS Next Y19.34%
EPS Next 2Y10.44%
EPS Next 3Y7.82%
EPS Next 5Y5.85%
Revenue Next Year-2.9%
Revenue Next 2Y-1.46%
Revenue Next 3Y-0.8%
Revenue Next 5Y0.68%
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
With a Price/Earnings ratio of 5.16, the valuation of EMBC can be described as very cheap.
Based on the Price/Earnings ratio, EMBC is valued cheaper than 97.38% of the companies in the same industry.
When comparing the Price/Earnings ratio of EMBC to the average of the S&P500 Index (27.27), we can say EMBC is valued rather cheaply.
EMBC is valuated cheaply with a Price/Forward Earnings ratio of 5.01.
Based on the Price/Forward Earnings ratio, EMBC is valued cheaper than 99.48% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, EMBC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.16 | ||
| Fwd PE | 5.01 |
4.2 Price Multiples
97.91% of the companies in the same industry are more expensive than EMBC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EMBC is valued cheaply inside the industry as 98.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.67 | ||
| EV/EBITDA | 6.1 |
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)0.27
PEG (5Y)N/A
EPS Next 2Y10.44%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
EMBC has a Yearly Dividend Yield of 3.92%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.69, EMBC pays a better dividend. On top of this EMBC pays more dividend than 99.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, EMBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
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 Years0
Div Non Decr Years2
5.3 Sustainability
41.75% of the earnings are spent on dividend by EMBC. This is a bit on the high side, but may be sustainable.
DP41.75%
EPS Next 2Y10.44%
EPS Next 3Y7.82%
15.08
+0.07 (+0.47%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners99.41%
Inst Owner Change1.22%
Ins Owners0.46%
Ins Owner Change-3.3%
Market Cap882.03M
Analysts51.11
Price Target17 (12.73%)
Short Float %5.11%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP41.75%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.83%
Min EPS beat(2)29.98%
Max EPS beat(2)41.68%
EPS beat(4)4
Avg EPS beat(4)34.39%
Min EPS beat(4)21.87%
Max EPS beat(4)44.01%
EPS beat(8)8
Avg EPS beat(8)41.88%
EPS beat(12)10
Avg EPS beat(12)32.96%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.06%
Min Revenue beat(2)-0.01%
Max Revenue beat(2)4.13%
Revenue beat(4)3
Avg Revenue beat(4)1.56%
Min Revenue beat(4)-0.01%
Max Revenue beat(4)4.13%
Revenue beat(8)6
Avg Revenue beat(8)2.11%
Revenue beat(12)10
Avg Revenue beat(12)2.35%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-9.09%
PT rev (3m)-6.58%
EPS NQ rev (1m)-11.29%
EPS NQ rev (3m)-26.48%
EPS NY rev (1m)2.48%
EPS NY rev (3m)2.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.35%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.16 | ||
| Fwd PE | 5.01 | ||
| P/S | 0.8 | ||
| P/FCF | 6.67 | ||
| P/OCF | 6.57 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.1 |
EPS(TTM)2.92
EY19.36%
EPS(NY)3.01
Fwd EY19.98%
FCF(TTM)2.26
FCFY15%
OCF(TTM)2.3
OCFY15.23%
SpS18.85
BVpS-11.45
TBVpS-11.84
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.22% | ||
| ROE | N/A | ||
| ROCE | 35.84% | ||
| ROIC | 23.87% | ||
| ROICexc | 32.32% | ||
| ROICexgc | 33.49% | ||
| OM | 28.66% | ||
| PM (TTM) | 7.58% | ||
| GM | 63.95% | ||
| FCFM | 12% |
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-Score6
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.34 | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 5.39% | ||
| Cap/Sales | 0.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 38.03% | ||
| Profit Quality | 158.25% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 2.01 |
F-Score6
WACC6.74%
ROIC/WACC3.54
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)11.88%
EPS 3Y-42.79%
EPS 5Y-29.06%
EPS Q2Q%51.35%
EPS Next Y19.34%
EPS Next 2Y10.44%
EPS Next 3Y7.82%
EPS Next 5Y5.85%
Revenue 1Y (TTM)-1.47%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%8.44%
Revenue Next Year-2.9%
Revenue Next 2Y-1.46%
Revenue Next 3Y-0.8%
Revenue Next 5Y0.68%
EBIT growth 1Y38.48%
EBIT growth 3Y-16.64%
EBIT growth 5Y-10.7%
EBIT Next Year36.59%
EBIT Next 3Y10.36%
EBIT Next 5Y8.14%
FCF growth 1Y88.46%
FCF growth 3Y-63.73%
FCF growth 5Y-46.06%
OCF growth 1Y39.75%
OCF growth 3Y-57.22%
OCF growth 5Y-41.13%