EMBECTA CORP (EMBC) Stock Fundamental Analysis
NASDAQ:EMBC - Nasdaq - US29082K1051 - Common Stock - Currency: USD
EMBC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 191 industry peers in the Health Care Equipment & Supplies industry. EMBC scores excellent on profitability, but 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
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.
Each year in the past 5 years EMBC had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.06%, EMBC belongs to the best of the industry, outperforming 84.82% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.62%, EMBC belongs to the top of the industry, outperforming 97.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EMBC is significantly above the industry average of 7.68%.
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
With a decent Profit Margin value of 5.25%, EMBC is doing good in the industry, outperforming 77.49% of the companies in the same industry.
In the last couple of years the Profit Margin of EMBC has declined.
The Operating Margin of EMBC (20.33%) is better than 93.72% of its industry peers.
In the last couple of years the Operating Margin of EMBC has declined.
EMBC has a Gross Margin of 64.32%. This is in the better half of the industry: EMBC outperforms 65.97% of its industry peers.
EMBC's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, EMBC has more shares outstanding
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 1.58. This is a bad value and indicates that EMBC is not financially healthy and even has some risk of bankruptcy.
EMBC's Altman-Z score of 1.58 is fine compared to the rest of the industry. EMBC outperforms 60.21% of its industry peers.
EMBC has a debt to FCF ratio of 54.58. This is a negative value and a sign of low solvency as EMBC would need 54.58 years to pay back of all of its debts.
The Debt to FCF ratio of EMBC (54.58) is better than 68.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 54.58 | ||
| Altman-Z | 1.58 |
ROIC/WACC2.22
WACC7.95%
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.
EMBC's Current ratio of 2.24 is in line compared to the rest of the industry. EMBC outperforms 41.88% of its industry peers.
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.
The Quick ratio of EMBC (1.67) 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
The Earnings Per Share has grown by an impressive 47.65% over the past year.
Measured over the past years, EMBC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -29.06% on average per year.
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
The Earnings Per Share is expected to grow by 7.96% 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 0.68% on average per year.
EPS Next Y15.79%
EPS Next 2Y11.42%
EPS Next 3Y9.59%
EPS Next 5Y7.96%
Revenue Next Year-2.29%
Revenue Next 2Y-0.66%
Revenue Next 3Y-0.09%
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.
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
With a Price/Earnings ratio of 4.48, the valuation of EMBC can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of EMBC indicates a rather cheap valuation: EMBC is cheaper than 98.95% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.63. EMBC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 3.67 indicates a rather cheap valuation of EMBC.
98.95% of the companies in the same industry are more expensive than EMBC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.85, EMBC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.48 | ||
| Fwd PE | 3.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMBC is valued cheaper than 94.76% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EMBC indicates a rather cheap valuation: EMBC is cheaper than 84.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.63 | ||
| EV/EBITDA | 7.65 |
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)0.28
PEG (5Y)N/A
EPS Next 2Y11.42%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
EMBC has a Yearly Dividend Yield of 5.29%, which is a nice return.
The stock price of EMBC dropped by -42.46% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
EMBC's Dividend Yield is rather good when compared to the industry average which is at 1.94. EMBC pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, EMBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
59.62% of the earnings are spent on dividend by EMBC. This is a bit on the high side, but may be sustainable.
DP59.62%
EPS Next 2Y11.42%
EPS Next 3Y9.59%
NASDAQ:EMBC (4/22/2025, 12:25:37 PM)
11.25
+0.34 (+3.12%)
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 Change0%
Ins Owners0.56%
Ins Owner Change27.21%
Market Cap653.96M
Analysts51.11
Price Target21.47 (90.84%)
Short Float %3.88%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
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)0%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-12%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-8.27%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.48 | ||
| Fwd PE | 3.67 | ||
| P/S | 0.59 | ||
| P/FCF | 22.63 | ||
| P/OCF | 15.03 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.65 |
EPS(TTM)2.51
EY22.31%
EPS(NY)3.07
Fwd EY27.25%
FCF(TTM)0.5
FCFY4.42%
OCF(TTM)0.75
OCFY6.65%
SpS19.06
BVpS-13.23
TBVpS-13.63
PEG (NY)0.28
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 | 1.58 |
F-Score5
WACC7.95%
ROIC/WACC2.22
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 Y15.79%
EPS Next 2Y11.42%
EPS Next 3Y9.59%
EPS Next 5Y7.96%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%-5.55%
Revenue Next Year-2.29%
Revenue Next 2Y-0.66%
Revenue Next 3Y-0.09%
Revenue Next 5Y0.68%
EBIT growth 1Y5.14%
EBIT growth 3Y-16.64%
EBIT growth 5Y-10.7%
EBIT Next Year34.22%
EBIT Next 3Y10.72%
EBIT Next 5Y9.94%
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%