EASTERN CO/THE (EML) Stock Fundamental Analysis
USA - NASDAQ:EML - US2763171046 - Common Stock
21.9 USD
+0.44 (+2.05%)
We assign a fundamental rating of 4 out of 10 to EML. EML was compared to 129 industry peers in the Machinery industry. The financial health of EML is average, but there are quite some concerns on its profitability. EML has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year EML has reported negative net income.
EML had a positive operating cash flow in the past year.
EML had positive earnings in 4 of the past 5 years.
EML had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
EML has a worse Return On Assets (-3.75%) than 75.19% of its industry peers.
Looking at the Return On Equity, with a value of -6.91%, EML is doing worse than 73.64% of the companies in the same industry.
EML has a Return On Invested Capital of 8.44%. This is comparable to the rest of the industry: EML outperforms 59.69% of its industry peers.
EML had an Average Return On Invested Capital over the past 3 years of 7.26%. This is below the industry average of 10.01%.
The 3 year average ROIC (7.26%) for EML is below the current ROIC(8.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.75% | ||
| ROE | -6.91% | ||
| ROIC | 8.44% |
ROA(3y)1.5%
ROA(5y)1.99%
ROE(3y)3.04%
ROE(5y)4.48%
ROIC(3y)7.26%
ROIC(5y)6.69%
1.3 Margins
With a Operating Margin value of 7.28%, EML perfoms like the industry average, outperforming 45.74% of the companies in the same industry.
In the last couple of years the Operating Margin of EML has remained more or less at the same level.
The Gross Margin of EML (24.94%) is worse than 65.89% of its industry peers.
In the last couple of years the Gross Margin of EML has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.28% | ||
| PM (TTM) | N/A | ||
| GM | 24.94% |
OM growth 3Y5.56%
OM growth 5Y0.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.54%
GM growth 5Y0.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EML is destroying value.
EML has less shares outstanding than it did 1 year ago.
EML has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EML is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.41 indicates that EML is not in any danger for bankruptcy at the moment.
EML has a Altman-Z score (3.41) which is comparable to the rest of the industry.
The Debt to FCF ratio of EML is 10.73, which is on the high side as it means it would take EML, 10.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.73, EML is in line with its industry, outperforming 41.09% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that EML is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.28, EML is in the better half of the industry, outperforming 63.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 10.73 | ||
| Altman-Z | 3.41 |
ROIC/WACC0.87
WACC9.66%
2.3 Liquidity
EML has a Current Ratio of 2.67. This indicates that EML is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.67, EML is in the better half of the industry, outperforming 71.32% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that EML should not have too much problems paying its short term obligations.
EML has a Quick ratio (1.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for EML have decreased strongly by -171.82% in the last year.
EML shows a decrease in Revenue. In the last year, the revenue decreased by -0.83%.
EML shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.62% yearly.
EPS 1Y (TTM)-171.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y3.43%
Revenue growth 5Y1.62%
Sales Q2Q%-4.08%
3.2 Future
EML is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 97.16% yearly.
The Revenue is expected to grow by 4.25% on average over the next years.
EPS Next Y245.97%
EPS Next 2Y97.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.56%
Revenue Next 2Y4.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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
EML reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 8.47, the valuation of EML can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EML is valued cheaply inside the industry as 96.90% of the companies are valued more expensively.
EML's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.47 |
4.2 Price Multiples
EML's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EML is cheaper than 94.57% of the companies in the same industry.
EML's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.86 | ||
| EV/EBITDA | 6.45 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as EML's earnings are expected to grow with 97.16% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y97.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EML has a Yearly Dividend Yield of 1.97%.
Compared to an average industry Dividend Yield of 1.82, EML pays a better dividend. On top of this EML pays more dividend than 84.50% of the companies listed in the same industry.
EML's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
5.2 History
The dividend of EML has a limited annual growth rate of 0.21%.
EML has been paying a dividend for at least 10 years, so it has a reliable track record.
EML has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.21%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
The earnings of EML are negative and hence is the payout ratio. EML will probably not be able to sustain this dividend level.
The dividend of EML is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-31.5%
EPS Next 2Y97.16%
EPS Next 3YN/A
NASDAQ:EML (10/17/2025, 11:08:59 AM)
21.9
+0.44 (+2.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.03%
Inst Owner Change0%
Ins Owners7.09%
Ins Owner Change3.85%
Market Cap133.59M
Analysts84
Price Target34.68 (58.36%)
Short Float %0.6%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend0.44
Dividend Growth(5Y)0.21%
DP-31.5%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.02%
Min EPS beat(2)-22.72%
Max EPS beat(2)2.68%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)-5.62%
Min Revenue beat(2)-12.12%
Max Revenue beat(2)0.87%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.47 | ||
| P/S | 0.49 | ||
| P/FCF | 35.86 | ||
| P/OCF | 10.95 | ||
| P/B | 1.07 | ||
| P/tB | 2.46 | ||
| EV/EBITDA | 6.45 |
EPS(TTM)-1.38
EYN/A
EPS(NY)2.59
Fwd EY11.81%
FCF(TTM)0.61
FCFY2.79%
OCF(TTM)2
OCFY9.13%
SpS44.5
BVpS20.4
TBVpS8.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.75% | ||
| ROE | -6.91% | ||
| ROCE | 10.46% | ||
| ROIC | 8.44% | ||
| ROICexc | 8.87% | ||
| ROICexgc | 14.56% | ||
| OM | 7.28% | ||
| PM (TTM) | N/A | ||
| GM | 24.94% | ||
| FCFM | 1.37% |
ROA(3y)1.5%
ROA(5y)1.99%
ROE(3y)3.04%
ROE(5y)4.48%
ROIC(3y)7.26%
ROIC(5y)6.69%
ROICexc(3y)7.75%
ROICexc(5y)7.09%
ROICexgc(3y)13.8%
ROICexgc(5y)12.94%
ROCE(3y)8.99%
ROCE(5y)8.29%
ROICexcg growth 3Y11.52%
ROICexcg growth 5Y4.8%
ROICexc growth 3Y16.24%
ROICexc growth 5Y7.92%
OM growth 3Y5.56%
OM growth 5Y0.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.54%
GM growth 5Y0.79%
F-Score6
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 10.73 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 159.15% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 6.05 | ||
| Cash Conversion | 48.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 3.41 |
F-Score6
WACC9.66%
ROIC/WACC0.87
Cap/Depr(3y)104.92%
Cap/Depr(5y)80.09%
Cap/Sales(3y)2.3%
Cap/Sales(5y)1.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-171.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y245.97%
EPS Next 2Y97.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y3.43%
Revenue growth 5Y1.62%
Sales Q2Q%-4.08%
Revenue Next Year1.56%
Revenue Next 2Y4.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.37%
EBIT growth 3Y9.19%
EBIT growth 5Y2.32%
EBIT Next Year11.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-83.82%
FCF growth 3YN/A
FCF growth 5Y-9.15%
OCF growth 1Y-55.22%
OCF growth 3YN/A
OCF growth 5Y-2.19%