EMBECTA CORP (EMBC)
US29082K1051 - Common Stock
Taking everything into account, EMBC scores 6 out of 10 in our fundamental rating. EMBC was compared to 187 industry peers in the Health Care Equipment & Supplies industry. EMBC has an excellent profitability rating, but there are some minor concerns on its financial health. EMBC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year EMBC was profitable.
EMBC had a positive operating cash flow in the past year.
Each year in the past 5 years EMBC has been profitable.
EMBC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EMBC has a Return On Assets of 6.09%. This is amongst the best in the industry. EMBC outperforms 87.17% of its industry peers.
EMBC's Return On Invested Capital of 16.31% is amongst the best of the industry. EMBC outperforms 96.79% 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 3 year average ROIC (24.33%) for EMBC is well above the current ROIC(16.31%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | N/A | ||
| ROIC | 16.31% |
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
Looking at the Profit Margin, with a value of 6.97%, EMBC is in the better half of the industry, outperforming 78.61% of the companies in the same industry.
EMBC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 19.86%, EMBC belongs to the best of the industry, outperforming 92.51% of the companies in the same industry.
EMBC's Operating Margin has declined in the last couple of years.
EMBC's Gross Margin of 65.46% is fine compared to the rest of the industry. EMBC outperforms 68.45% of its industry peers.
EMBC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.86% | ||
| PM (TTM) | 6.97% | ||
| GM | 65.46% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EMBC is creating value.
The number of shares outstanding for EMBC has been increased compared to 1 year ago.
Compared to 5 years ago, EMBC has more shares outstanding
EMBC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that EMBC is in the distress zone and has some risk of bankruptcy.
EMBC's Altman-Z score of 1.62 is in line compared to the rest of the industry. EMBC outperforms 55.08% of its industry peers.
The Debt to FCF ratio of EMBC is 80.82, which is on the high side as it means it would take EMBC, 80.82 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EMBC (80.82) is better than 66.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 80.82 | ||
| Altman-Z | 1.62 |
ROIC/WACC1.98
WACC8.24%
2.3 Liquidity
EMBC has a Current Ratio of 2.03. This indicates that EMBC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of EMBC (2.03) is worse than 65.78% of its industry peers.
A Quick Ratio of 1.58 indicates that EMBC should not have too much problems paying its short term obligations.
The Quick ratio of EMBC (1.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
EMBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.49%, which is quite impressive.
The earnings per share for EMBC have been decreasing by -29.06% on average. This is quite bad
The Revenue has been growing slightly by 0.21% in the past year.
The Revenue has been growing slightly by 0.25% on average over the past years.
EPS 1Y (TTM)20.49%
EPS 3Y-42.79%
EPS 5Y-29.06%
EPS Q2Q%-23.73%
Revenue 1Y (TTM)0.21%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%1.49%
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 9.74% on average per year.
EMBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.89% yearly.
EPS Next Y15.83%
EPS Next 2Y11.81%
EPS Next 3Y9.74%
EPS Next 5YN/A
Revenue Next Year-0.97%
Revenue Next 2Y0.13%
Revenue Next 3Y0.67%
Revenue Next 5Y0.89%
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
The Price/Earnings ratio is 8.38, which indicates a very decent valuation of EMBC.
Based on the Price/Earnings ratio, EMBC is valued cheaper than 98.93% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, EMBC is valued rather cheaply.
EMBC is valuated cheaply with a Price/Forward Earnings ratio of 7.23.
EMBC's Price/Forward Earnings ratio is rather cheap when compared to the industry. EMBC is 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 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 7.23 |
4.2 Price Multiples
94.65% 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 a bit cheaper than the industry average as 73.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.47 | ||
| EV/EBITDA | 9.81 |
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.
EMBC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y11.81%
EPS Next 3Y9.74%
5. Dividend
5.1 Amount
EMBC has a Yearly Dividend Yield of 2.88%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.65, EMBC pays a better dividend. On top of this EMBC pays more dividend than 97.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, EMBC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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
44.06% of the earnings are spent on dividend by EMBC. This is a bit on the high side, but may be sustainable.
DP44.06%
EPS Next 2Y11.81%
EPS Next 3Y9.74%
EMBECTA CORP
NASDAQ:EMBC (12/27/2024, 8:16:07 PM)
After market: 20.7 0 (0%)20.7
-0.13 (-0.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.39%
Inst Owner Change-1.75%
Ins Owners0.39%
Ins Owner Change23.44%
Market Cap1.20B
Analysts54.55
Price Target21.47 (3.72%)
Short Float %2.13%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Dividend Growth(5Y)N/A
DP44.06%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)39.11%
Min EPS beat(2)21.87%
Max EPS beat(2)56.36%
EPS beat(4)4
Avg EPS beat(4)43.47%
Min EPS beat(4)21.87%
Max EPS beat(4)64.22%
EPS beat(8)6
Avg EPS beat(8)25.74%
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)1
Avg Revenue beat(2)0.58%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)1.26%
Revenue beat(4)3
Avg Revenue beat(4)2.54%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)6.37%
Revenue beat(8)7
Avg Revenue beat(8)2.51%
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)31.02%
PT rev (3m)31.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.43%
EPS NY rev (1m)23.68%
EPS NY rev (3m)23.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.82%
Revenue NY rev (1m)-1.49%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 7.23 | ||
| P/S | 1.07 | ||
| P/FCF | 60.47 | ||
| P/OCF | 33.71 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.81 |
EPS(TTM)2.47
EY11.93%
EPS(NY)2.86
Fwd EY13.82%
FCF(TTM)0.34
FCFY1.65%
OCF(TTM)0.61
OCFY2.97%
SpS19.32
BVpS-12.7
TBVpS-13.11
PEG (NY)0.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | N/A | ||
| ROCE | 24.48% | ||
| ROIC | 16.31% | ||
| ROICexc | 23.08% | ||
| ROICexgc | 23.96% | ||
| OM | 19.86% | ||
| PM (TTM) | 6.97% | ||
| GM | 65.46% | ||
| FCFM | 1.77% |
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-Score4
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 80.82 | ||
| Debt/EBITDA | 6.15 | ||
| Cap/Depr | 43.65% | ||
| Cap/Sales | 1.41% | ||
| Interest Coverage | 1.9 | ||
| Cash Conversion | 13.77% | ||
| Profit Quality | 25.42% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 1.62 |
F-Score4
WACC8.24%
ROIC/WACC1.98
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)20.49%
EPS 3Y-42.79%
EPS 5Y-29.06%
EPS Q2Q%-23.73%
EPS Next Y15.83%
EPS Next 2Y11.81%
EPS Next 3Y9.74%
EPS Next 5YN/A
Revenue 1Y (TTM)0.21%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%1.49%
Revenue Next Year-0.97%
Revenue Next 2Y0.13%
Revenue Next 3Y0.67%
Revenue Next 5Y0.89%
EBIT growth 1Y-16.1%
EBIT growth 3Y-16.64%
EBIT growth 5Y-10.7%
EBIT Next Year14.76%
EBIT Next 3Y12.22%
EBIT Next 5YN/A
FCF growth 1Y-51.7%
FCF growth 3Y-63.73%
FCF growth 5Y-46.06%
OCF growth 1Y-47.27%
OCF growth 3Y-57.22%
OCF growth 5Y-41.13%