11.18 USD
-0.9 (-7.45%)
EMBC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 186 industry peers in the Health Care Equipment & Supplies industry. While EMBC has a great profitability rating, 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.
- In the past year EMBC had a positive cash flow from operations.
- EMBC had positive earnings in each of the past 5 years.
- EMBC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EMBC has a Return On Assets of 8.75%. This is amongst the best in the industry. EMBC outperforms 90.86% of its industry peers.
- EMBC has a better Return On Invested Capital (27.81%) than 98.92% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EMBC is significantly above the industry average of 8.84%.
- The 3 year average ROIC (22.63%) for EMBC is below the current ROIC(27.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.75% | ||
| ROE | N/A | ||
| ROIC | 27.81% |
ROA(3y)6.88%
ROA(5y)18.78%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)22.63%
ROIC(5y)31.94%
1.3 Margins
- The Profit Margin of EMBC (8.83%) is better than 81.72% 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 30.50%, EMBC belongs to the top of the industry, outperforming 97.31% 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 (63.85%) than 66.13% of its industry peers.
- EMBC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.5% | ||
| PM (TTM) | 8.83% | ||
| GM | 63.85% |
OM growth 3Y-5.72%
OM growth 5Y-7.43%
PM growth 3Y-23.59%
PM growth 5Y-25.86%
GM growth 3Y-2.36%
GM growth 5Y-1.89%
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
- EMBC has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for EMBC is higher compared to a year ago.
2.2 Solvency
- EMBC has an Altman-Z score of 2.07. This is not the best score and indicates that EMBC is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.07, EMBC is doing good in the industry, outperforming 60.75% of the companies in the same industry.
- EMBC has a debt to FCF ratio of 7.84. This is a slightly negative value and a sign of low solvency as EMBC would need 7.84 years to pay back of all of its debts.
- EMBC has a better Debt to FCF ratio (7.84) than 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.84 | ||
| Altman-Z | 2.07 |
ROIC/WACC3.35
WACC8.3%
2.3 Liquidity
- A Current Ratio of 2.41 indicates that EMBC has no problem at all paying its short term obligations.
- With a Current ratio value of 2.41, EMBC perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
- EMBC has a Quick Ratio of 1.73. This is a normal value and indicates that EMBC is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.73, EMBC is in line with its industry, outperforming 47.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.73 |
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.
- The earnings per share for EMBC have been decreasing by -26.21% on average. This is quite bad
- Looking at the last year, EMBC shows a decrease in Revenue. The Revenue has decreased by -3.80% in the last year.
- The Revenue has been decreasing by -0.10% on average over the past years.
EPS 1Y (TTM)20.24%
EPS 3Y-25.33%
EPS 5Y-26.21%
EPS Q2Q%11.11%
Revenue 1Y (TTM)-3.8%
Revenue growth 3Y-1.47%
Revenue growth 5Y-0.1%
Sales Q2Q%-7.72%
3.2 Future
- EMBC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.66% yearly.
- The Revenue is expected to grow by 1.59% on average over the next years.
EPS Next Y-0.06%
EPS Next 2Y0.71%
EPS Next 3Y0.66%
EPS Next 5YN/A
Revenue Next Year-0.18%
Revenue Next 2Y0.05%
Revenue Next 3Y0.21%
Revenue Next 5Y1.59%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- EMBC is valuated cheaply with a Price/Earnings ratio of 3.76.
- Based on the Price/Earnings ratio, EMBC is valued cheaper than 98.92% of the companies in the same industry.
- EMBC is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- EMBC is valuated cheaply with a Price/Forward Earnings ratio of 3.77.
- 100.00% of the companies in the same industry are more expensive than EMBC, based on the Price/Forward Earnings ratio.
- EMBC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.76 | ||
| Fwd PE | 3.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EMBC is valued cheaply inside the industry as 98.39% of the companies are valued more expensively.
- 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 | 3.59 | ||
| EV/EBITDA | 5.16 |
4.3 Compensation for Growth
- EMBC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.71%
EPS Next 3Y0.66%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.76%, EMBC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.19, EMBC pays a better dividend. On top of this EMBC pays more dividend than 99.46% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, EMBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
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 36.69% of its income as dividend. This is a sustainable payout ratio.
DP36.69%
EPS Next 2Y0.71%
EPS Next 3Y0.66%
EMBECTA CORP / EMBC FAQ
What is the fundamental rating for EMBC stock?
ChartMill assigns a fundamental rating of 6 / 10 to EMBC.
What is the valuation status for EMBC stock?
ChartMill assigns a valuation rating of 8 / 10 to EMBECTA CORP (EMBC). This can be considered as Undervalued.
Can you provide the profitability details for EMBECTA CORP?
EMBECTA CORP (EMBC) has a profitability rating of 7 / 10.
What are the PE and PB ratios of EMBECTA CORP (EMBC) stock?
The Price/Earnings (PE) ratio for EMBECTA CORP (EMBC) is 3.76 and the Price/Book (PB) ratio is -1.01.
Can you provide the expected EPS growth for EMBC stock?
The Earnings per Share (EPS) of EMBECTA CORP (EMBC) is expected to decline by -0.06% in the next year.