12.57 USD
-1.01 (-7.44%)
12.84 USD
+0.27 (+2.15%)
EMBC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 188 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of EMBC get a neutral evaluation. Nothing too spectacular is happening here. EMBC is cheap, but on the other hand it scores bad on growth. This makes EMBC very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year EMBC was profitable.
EMBC had a positive operating cash flow in the past year.
Of the past 5 years EMBC 4 years were profitable.
Of the past 5 years EMBC 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.22%, EMBC belongs to the best of the industry, outperforming 88.30% of the companies in the same industry.
EMBC has a better Return On Invested Capital (23.87%) than 98.94% 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 8.71%.
| 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
The Profit Margin of EMBC (7.58%) is better than 78.72% of its industry peers.
In the last couple of years the Profit Margin of EMBC has declined.
Looking at the Operating Margin, with a value of 28.66%, EMBC belongs to the top of the industry, outperforming 96.81% of the companies in the same industry.
EMBC's Operating Margin has declined in the last couple of years.
EMBC has a better Gross Margin (63.95%) than 64.89% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EMBC is creating value.
There is no outstanding debt for EMBC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 1.96 indicates that EMBC is not a great score, but indicates only limited risk for bankruptcy at the moment.
EMBC's Altman-Z score of 1.96 is fine compared to the rest of the industry. EMBC outperforms 61.17% of its industry peers.
The Debt to FCF ratio of EMBC is 11.34, which is on the high side as it means it would take EMBC, 11.34 years of fcf income to pay off all of its debts.
EMBC has a Debt to FCF ratio of 11.34. This is in the better half of the industry: EMBC outperforms 71.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.34 | ||
| Altman-Z | 1.96 |
ROIC/WACC3.69
WACC6.46%
2.3 Liquidity
A Current Ratio of 2.47 indicates that EMBC has no problem at all paying its short term obligations.
With a Current ratio value of 2.47, EMBC perfoms like the industry average, outperforming 48.94% of the companies in the same 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 of 1.78. This is comparable to the rest of the industry: EMBC outperforms 45.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
EMBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.24%, which is quite impressive.
EPS 1Y (TTM)20.24%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%11.11%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-7.72%
3.2 Future
Based on estimates for the next years, EMBC will show a small growth in Earnings Per Share. The EPS will grow by 1.45% on average per year.
EMBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.59% yearly.
EPS Next Y1.43%
EPS Next 2Y2.09%
EPS Next 3Y1.45%
EPS Next 5YN/A
Revenue Next Year0%
Revenue Next 2Y0.27%
Revenue Next 3Y0.33%
Revenue Next 5Y1.59%
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.23, the valuation of EMBC can be described as very cheap.
98.94% of the companies in the same industry are more expensive than EMBC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.15, EMBC is valued rather cheaply.
EMBC is valuated cheaply with a Price/Forward Earnings ratio of 4.17.
Based on the Price/Forward Earnings ratio, EMBC is valued cheaply inside the industry as 99.47% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.12. EMBC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.23 | ||
| Fwd PE | 4.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMBC is valued cheaper than 97.87% of the companies in the same industry.
EMBC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EMBC is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.56 | ||
| EV/EBITDA | 5.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EMBC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of EMBC may justify a higher PE ratio.
PEG (NY)2.96
PEG (5Y)N/A
EPS Next 2Y2.09%
EPS Next 3Y1.45%
5. Dividend
5.1 Amount
EMBC has a Yearly Dividend Yield of 4.42%, which is a nice return.
EMBC's Dividend Yield is rather good when compared to the industry average which is at 1.73. EMBC pays more dividend than 99.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, EMBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
5.2 History
EMBC has been paying a dividend for less than 5 years, so it still needs to build a track record.
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 2Y2.09%
EPS Next 3Y1.45%
12.57
-1.01 (-7.44%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.84%
Inst Owner Change-1.95%
Ins Owners0.46%
Ins Owner Change-0.07%
Market Cap735.22M
Revenue(TTM)N/A
Net Income(TTM)83.60M
Analysts51.11
Price Target17 (35.24%)
Short Float %4.97%
Short Ratio7.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.23 | ||
| Fwd PE | 4.17 | ||
| P/S | 0.67 | ||
| P/FCF | 5.56 | ||
| P/OCF | 5.47 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.68 |
EPS(TTM)2.97
EY23.63%
EPS(NY)3.01
Fwd EY23.96%
FCF(TTM)2.26
FCFY17.99%
OCF(TTM)2.3
OCFY18.27%
SpS18.85
BVpS-11.45
TBVpS-11.84
PEG (NY)2.96
PEG (5Y)N/A
Graham NumberN/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%
ROICexgc growth 3Y-18.01%
ROICexgc 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 | 1.96 |
F-Score6
WACC6.46%
ROIC/WACC3.69
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)20.24%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%11.11%
EPS Next Y1.43%
EPS Next 2Y2.09%
EPS Next 3Y1.45%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-7.72%
Revenue Next Year0%
Revenue Next 2Y0.27%
Revenue Next 3Y0.33%
Revenue Next 5Y1.59%
EBIT growth 1Y38.48%
EBIT growth 3Y-16.64%
EBIT growth 5Y-10.7%
EBIT Next Year38.7%
EBIT Next 3Y10.75%
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%
EMBECTA CORP / EMBC FAQ
What is the fundamental rating for EMBC stock?
ChartMill assigns a fundamental rating of 5 / 10 to EMBC.
Can you provide the valuation status for EMBECTA CORP?
ChartMill assigns a valuation rating of 8 / 10 to EMBECTA CORP (EMBC). This can be considered as Undervalued.
What is the profitability of EMBC stock?
EMBECTA CORP (EMBC) has a profitability rating of 6 / 10.
What is the valuation of EMBECTA CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EMBECTA CORP (EMBC) is 4.23 and the Price/Book (PB) ratio is -1.1.
Can you provide the dividend sustainability for EMBC stock?
The dividend rating of EMBECTA CORP (EMBC) is 5 / 10 and the dividend payout ratio is 41.75%.