EASTERN CO/THE (EML) Stock Fundamental Analysis
NASDAQ:EML - Nasdaq - US2763171046 - Common Stock - Currency: USD
EML gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 127 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 decent growth rate and is not valued too expensively.
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.
Of the past 5 years EML 4 years had a positive operating cash flow.
1.2 Ratios
EML's Return On Assets of -3.67% is on the low side compared to the rest of the industry. EML is outperformed by 73.23% of its industry peers.
EML has a Return On Equity of -7.05%. This is in the lower half of the industry: EML underperforms 71.65% of its industry peers.
EML has a Return On Invested Capital of 7.70%. This is comparable to the rest of the industry: EML outperforms 51.97% of its industry peers.
EML had an Average Return On Invested Capital over the past 3 years of 6.90%. This is below the industry average of 10.78%.
The last Return On Invested Capital (7.70%) for EML is above the 3 year average (6.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.67% | ||
| ROE | -7.05% | ||
| ROIC | 7.7% |
ROA(3y)1.5%
ROA(5y)1.99%
ROE(3y)3.04%
ROE(5y)4.48%
ROIC(3y)6.9%
ROIC(5y)6.48%
1.3 Margins
With a Operating Margin value of 6.70%, EML perfoms like the industry average, outperforming 44.09% of the companies in the same industry.
In the last couple of years the Operating Margin of EML has declined.
EML has a Gross Margin of 24.03%. This is in the lower half of the industry: EML underperforms 66.93% of its industry peers.
EML's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.7% | ||
| PM (TTM) | N/A | ||
| GM | 24.03% |
OM growth 3Y1.53%
OM growth 5Y-1.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.29%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
EML has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, EML has less shares outstanding
Compared to 5 years ago, EML has less shares outstanding
The debt/assets ratio for EML is higher compared to a year ago.
2.2 Solvency
EML has an Altman-Z score of 3.41. This indicates that EML is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EML (3.41) is comparable to the rest of the industry.
The Debt to FCF ratio of EML is 6.72, which is on the high side as it means it would take EML, 6.72 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.72, EML perfoms like the industry average, outperforming 44.88% of the companies in the same industry.
EML has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
EML has a Debt to Equity ratio (0.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 6.72 | ||
| Altman-Z | 3.41 |
ROIC/WACC0.77
WACC9.97%
2.3 Liquidity
EML has a Current Ratio of 2.77. This indicates that EML is financially healthy and has no problem in meeting its short term obligations.
EML has a Current ratio of 2.77. This is in the better half of the industry: EML outperforms 71.65% of its industry peers.
EML has a Quick Ratio of 1.37. This is a normal value and indicates that EML is financially healthy and should not expect problems in meeting its short term obligations.
EML's Quick ratio of 1.37 is in line compared to the rest of the industry. EML outperforms 58.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
EML shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -187.25%.
EML shows a small growth in Revenue. In the last year, the Revenue has grown by 2.06%.
Measured over the past years, EML shows a small growth in Revenue. The Revenue has been growing by 1.62% on average per year.
EPS 1Y (TTM)-187.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3.23%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y3.43%
Revenue growth 5Y1.62%
Sales Q2Q%-6.8%
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.
EML is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.25% yearly.
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.
EML is valuated reasonably with a Price/Forward Earnings ratio of 9.31.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EML indicates a rather cheap valuation: EML is cheaper than 93.70% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, EML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EML indicates a rather cheap valuation: EML is cheaper than 87.40% of the companies listed in the same industry.
EML's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.87 | ||
| EV/EBITDA | 7.57 |
4.3 Compensation for Growth
EML's 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
With a Yearly Dividend Yield of 1.80%, EML has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.82, EML pays a better dividend. On top of this EML pays more dividend than 83.46% of the companies listed in the same industry.
EML's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
The dividend of EML has a limited annual growth rate of 0.21%.
EML has paid a dividend for at least 10 years, which is a reliable track record.
EML has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.21%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
EML has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of EML is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-31.9%
EPS Next 2Y97.16%
EPS Next 3YN/A
NASDAQ:EML (7/14/2025, 3:33:06 PM)
24.06
-0.18 (-0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.36%
Inst Owner Change0%
Ins Owners6.74%
Ins Owner Change3.01%
Market Cap147.25M
Analysts84
Price Target34.68 (44.14%)
Short Float %0.45%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend0.44
Dividend Growth(5Y)0.21%
DP-31.9%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)N/A
EPS NQ rev (1m)-10%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-15.02%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-1.89%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-4.23%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.31 | ||
| P/S | 0.54 | ||
| P/FCF | 21.87 | ||
| P/OCF | 9.49 | ||
| P/B | 1.22 | ||
| P/tB | 2.93 | ||
| EV/EBITDA | 7.57 |
EPS(TTM)-1.38
EYN/A
EPS(NY)2.59
Fwd EY10.75%
FCF(TTM)1.1
FCFY4.57%
OCF(TTM)2.54
OCFY10.54%
SpS44.84
BVpS19.77
TBVpS8.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.67% | ||
| ROE | -7.05% | ||
| ROCE | 9.54% | ||
| ROIC | 7.7% | ||
| ROICexc | 8.14% | ||
| ROICexgc | 13.28% | ||
| OM | 6.7% | ||
| PM (TTM) | N/A | ||
| GM | 24.03% | ||
| FCFM | 2.45% |
ROA(3y)1.5%
ROA(5y)1.99%
ROE(3y)3.04%
ROE(5y)4.48%
ROIC(3y)6.9%
ROIC(5y)6.48%
ROICexc(3y)7.36%
ROICexc(5y)6.86%
ROICexgc(3y)13.15%
ROICexgc(5y)12.54%
ROCE(3y)8.55%
ROCE(5y)8.02%
ROICexcg growth 3Y7.26%
ROICexcg growth 5Y2.38%
ROICexc growth 3Y11.8%
ROICexc growth 5Y5.43%
OM growth 3Y1.53%
OM growth 5Y-1.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.29%
GM growth 5Y0.06%
F-Score5
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 6.72 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 158.95% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 6 | ||
| Cash Conversion | 64.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 3.41 |
F-Score5
WACC9.97%
ROIC/WACC0.77
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)-187.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3.23%
EPS Next Y245.97%
EPS Next 2Y97.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.06%
Revenue growth 3Y3.43%
Revenue growth 5Y1.62%
Sales Q2Q%-6.8%
Revenue Next Year1.56%
Revenue Next 2Y4.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.4%
EBIT growth 3Y5.01%
EBIT growth 5Y-0.05%
EBIT Next Year44.41%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-61.13%
FCF growth 3YN/A
FCF growth 5Y-9.15%
OCF growth 1Y-27.06%
OCF growth 3YN/A
OCF growth 5Y-2.19%