EMBECTA CORP (EMBC) Stock Fundamental Analysis
USA - NASDAQ:EMBC - US29082K1051 - Common Stock
13.56 USD
-0.13 (-0.95%)
13.56 USD
0 (0%)
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. Both the profitability and the financial health of EMBC get a neutral evaluation. Nothing too spectacular is happening here. EMBC may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make EMBC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
EMBC had positive earnings in the past year.
In the past year EMBC had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 7.22%, EMBC belongs to the top of the industry, outperforming 90.05% of the companies in the same industry.
With an excellent Return On Invested Capital value of 23.87%, EMBC belongs to the best of the industry, outperforming 98.95% 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 8.89%.
| 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 79.58% of its industry peers.
In the last couple of years the Profit Margin of EMBC has declined.
With an excellent Operating Margin value of 28.66%, EMBC belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
EMBC's Operating Margin has declined in the last couple of years.
EMBC's Gross Margin of 63.95% is fine compared to the rest of the industry. EMBC outperforms 66.49% of its industry peers.
EMBC's Gross Margin has declined in the last couple of years.
| 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.
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.
The debt/assets ratio for EMBC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.98 indicates that EMBC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.98, EMBC is doing good in the industry, outperforming 60.73% of the companies in the same industry.
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 has a Debt to FCF ratio of 11.34. This is in the better half 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 | 1.98 |
ROIC/WACC3.64
WACC6.55%
2.3 Liquidity
EMBC has a Current Ratio of 2.47. 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 2.47, EMBC is in line with its industry, outperforming 50.79% 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.
With a Quick ratio value of 1.78, EMBC perfoms like the industry average, outperforming 47.64% of the companies in the same 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.
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 -1.47%.
EMBC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.25% yearly.
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
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
The Price/Earnings ratio is 4.64, which indicates a rather cheap valuation of EMBC.
EMBC's Price/Earnings ratio is rather cheap when compared to the industry. EMBC is cheaper than 97.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.40, EMBC is valued rather cheaply.
The Price/Forward Earnings ratio is 4.50, which indicates a rather cheap valuation of EMBC.
Based on the Price/Forward Earnings ratio, EMBC is valued cheaply inside the industry as 99.48% of the companies are valued more expensively.
EMBC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.64 | ||
| Fwd PE | 4.5 |
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 97.38% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EMBC is valued cheaply inside the industry as 99.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.99 | ||
| EV/EBITDA | 5.86 |
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)0.24
PEG (5Y)N/A
EPS Next 2Y10.44%
EPS Next 3Y7.82%
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 1.82. EMBC pays more dividend than 99.48% of the companies 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 | 4.42% |
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
EMBC pays out 41.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.75%
EPS Next 2Y10.44%
EPS Next 3Y7.82%
13.56
-0.13 (-0.95%)
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 Change0.1%
Ins Owners0.46%
Ins Owner Change0.68%
Market Cap793.12M
Analysts51.11
Price Target17 (25.37%)
Short Float %4.53%
Short Ratio4.45
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)-6.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.41%
EPS NY rev (1m)0%
EPS NY rev (3m)2.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.64 | ||
| Fwd PE | 4.5 | ||
| P/S | 0.72 | ||
| P/FCF | 5.99 | ||
| P/OCF | 5.91 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.86 |
EPS(TTM)2.92
EY21.53%
EPS(NY)3.01
Fwd EY22.22%
FCF(TTM)2.26
FCFY16.68%
OCF(TTM)2.3
OCFY16.93%
SpS18.85
BVpS-11.45
TBVpS-11.84
PEG (NY)0.24
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 | 1.98 |
F-Score6
WACC6.55%
ROIC/WACC3.64
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 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%