EMBECTA CORP (EMBC) Stock Fundamental Analysis
USA - NASDAQ:EMBC - US29082K1051 - Common Stock
13.79 USD
+0.33 (+2.45%)
13.79 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to EMBC. EMBC was compared to 189 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.
EMBC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.22%, EMBC belongs to the best of the industry, outperforming 89.95% of the companies in the same industry.
EMBC's Return On Invested Capital of 23.87% is amongst the best of the industry. EMBC outperforms 98.94% 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 9.12%.
| 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 better Profit Margin (7.58%) than 79.37% of its industry peers.
EMBC's Profit Margin has declined in the last couple of years.
EMBC has a better Operating Margin (28.66%) than 96.30% of its industry peers.
EMBC's Operating Margin has declined in the last couple of years.
EMBC has a better Gross Margin (63.95%) than 66.67% 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.
Compared to 1 year ago, EMBC has more shares outstanding
Compared to 5 years ago, EMBC has more shares outstanding
Compared to 1 year ago, EMBC has an improved debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 1.98, EMBC is in line with its industry, outperforming 59.79% of the companies in the same industry.
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 71.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.34 | ||
| Altman-Z | 1.98 |
ROIC/WACC3.69
WACC6.46%
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.
EMBC has a Current ratio of 2.47. This is comparable to the rest of the industry: EMBC outperforms 50.26% of its industry peers.
A Quick Ratio of 1.78 indicates that EMBC should not have too much problems paying its short term obligations.
EMBC has a Quick ratio (1.78) which is in line with 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 11.88%, which is quite good.
EMBC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -29.06% yearly.
EMBC shows a decrease in Revenue. In the last year, the revenue decreased by -1.47%.
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
Based on estimates for the next years, EMBC will show a small growth in Earnings Per Share. The EPS will grow by 5.85% on average per year.
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
With a Price/Earnings ratio of 4.72, the valuation of EMBC can be described as very cheap.
EMBC's Price/Earnings ratio is rather cheap when compared to the industry. EMBC is cheaper than 97.35% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.83. EMBC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 4.58, which indicates a rather cheap valuation of EMBC.
Based on the Price/Forward Earnings ratio, EMBC is valued cheaper than 99.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, EMBC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.72 | ||
| Fwd PE | 4.58 |
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 97.35% of the companies listed in the same industry.
EMBC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EMBC is cheaper than 98.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.1 | ||
| EV/EBITDA | 5.83 |
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)0.24
PEG (5Y)N/A
EPS Next 2Y10.44%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
EMBC has a Yearly Dividend Yield of 4.39%, which is a nice return.
Compared to an average industry Dividend Yield of 1.91, EMBC pays a better dividend. On top of this EMBC pays more dividend than 99.47% of the companies listed in the same industry.
EMBC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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%
13.79
+0.33 (+2.45%)
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 Change0.36%
Ins Owners0.46%
Ins Owner Change0.68%
Market Cap806.58M
Revenue(TTM)1.10B
Net Income(TTM)83.60M
Analysts51.11
Price Target17 (23.28%)
Short Float %4.83%
Short Ratio6.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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)-10.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.98%
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 | 4.72 | ||
| Fwd PE | 4.58 | ||
| P/S | 0.73 | ||
| P/FCF | 6.1 | ||
| P/OCF | 6.01 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.83 |
EPS(TTM)2.92
EY21.17%
EPS(NY)3.01
Fwd EY21.84%
FCF(TTM)2.26
FCFY16.4%
OCF(TTM)2.3
OCFY16.65%
SpS18.85
BVpS-11.45
TBVpS-11.84
PEG (NY)0.24
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 | 1.98 |
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)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%
EMBECTA CORP / EMBC FAQ
What is the fundamental rating for EMBC stock?
ChartMill assigns a fundamental rating of 6 / 10 to EMBC.
Can you provide the valuation status for EMBECTA CORP?
ChartMill assigns a valuation rating of 9 / 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 4.72 and the Price/Book (PB) ratio is -1.2.
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%.