EASTERN CO/THE (EML) Stock Fundamental Analysis
USA - NASDAQ:EML - US2763171046 - Common Stock
19.49 USD
-0.29 (-1.47%)
19.49 USD
0 (0%)
EML gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. EML is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. A decent growth rate in combination with a cheap valuation! Better keep an eye on EML. Finally EML also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EML was profitable.
In the past year EML had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 3.31%, EML is in line with its industry, outperforming 46.92% of the companies in the same industry.
EML's Return On Equity of 5.85% is in line compared to the rest of the industry. EML outperforms 42.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.09%, EML is in line with its industry, outperforming 60.00% of the companies in the same industry.
EML had an Average Return On Invested Capital over the past 3 years of 7.26%. This is below the industry average of 10.25%.
The 3 year average ROIC (7.26%) for EML is below the current ROIC(8.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 5.85% | ||
| ROIC | 8.09% |
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
EML has a Profit Margin (2.85%) which is in line with its industry peers.
Looking at the Operating Margin, with a value of 7.32%, EML is in line with its industry, outperforming 46.92% of the companies in the same industry.
EML's Operating Margin has been stable in the last couple of years.
EML has a worse Gross Margin (25.78%) than 63.08% 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 | 7.32% | ||
| PM (TTM) | 2.85% | ||
| GM | 25.78% |
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
EML has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for EML has been reduced compared to 1 year ago.
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 3.43. This indicates that EML is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.43, EML is doing good in the industry, outperforming 62.31% of the companies in the same industry.
EML has a debt to FCF ratio of 2.96. This is a good value and a sign of high solvency as EML would need 2.96 years to pay back of all of its debts.
The Debt to FCF ratio of EML (2.96) is better than 70.77% of its industry peers.
EML has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
EML's Debt to Equity ratio of 0.27 is fine compared to the rest of the industry. EML outperforms 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 3.43 |
ROIC/WACC0.83
WACC9.77%
2.3 Liquidity
EML has a Current Ratio of 2.99. This indicates that EML is financially healthy and has no problem in meeting its short term obligations.
EML's Current ratio of 2.99 is fine compared to the rest of the industry. EML outperforms 77.69% of its industry peers.
A Quick Ratio of 1.30 indicates that EML should not have too much problems paying its short term obligations.
EML has a Quick ratio (1.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.99 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
EML shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 214.26%, which is quite impressive.
Looking at the last year, EML shows a decrease in Revenue. The Revenue has decreased by -8.54% in the last year.
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)214.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%103.87%
Revenue 1Y (TTM)-8.54%
Revenue growth 3Y3.43%
Revenue growth 5Y1.62%
Sales Q2Q%-22.36%
3.2 Future
The Earnings Per Share is expected to grow by 97.16% on average over the next years. This is a very strong growth
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 is valuated correctly with a Price/Earnings ratio of 13.63.
86.15% of the companies in the same industry are more expensive than EML, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.89. EML is valued slightly cheaper when compared to this.
EML is valuated cheaply with a Price/Forward Earnings ratio of 7.54.
97.69% of the companies in the same industry are more expensive than EML, based on the Price/Forward Earnings ratio.
EML's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 7.54 |
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 96.15% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EML indicates a rather cheap valuation: EML is cheaper than 94.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.08 | ||
| EV/EBITDA | 5.9 |
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.
EML's earnings are expected to grow with 97.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y97.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EML has a Yearly Dividend Yield of 2.22%. Purely for dividend investing, there may be better candidates out there.
EML's Dividend Yield is rather good when compared to the industry average which is at 1.87. EML pays more dividend than 85.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, EML has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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 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 pays out 37.05% of its income as dividend. This is a sustainable payout ratio.
EML's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.05%
EPS Next 2Y97.16%
EPS Next 3YN/A
19.49
-0.29 (-1.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.03%
Inst Owner Change2.24%
Ins Owners7.09%
Ins Owner Change6.19%
Market Cap118.89M
Revenue(TTM)255.50M
Net Income(TTM)7.28M
Analysts84
Price Target34.68 (77.94%)
Short Float %0.67%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend0.44
Dividend Growth(5Y)0.21%
DP37.05%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-40.3%
Min EPS beat(2)-83.28%
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)-12.24%
Min Revenue beat(2)-25.36%
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 | 13.63 | ||
| Fwd PE | 7.54 | ||
| P/S | 0.47 | ||
| P/FCF | 9.08 | ||
| P/OCF | 7.07 | ||
| P/B | 0.96 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 5.9 |
EPS(TTM)1.43
EY7.34%
EPS(NY)2.59
Fwd EY13.27%
FCF(TTM)2.15
FCFY11.01%
OCF(TTM)2.76
OCFY14.14%
SpS41.88
BVpS20.37
TBVpS8.97
PEG (NY)0.06
PEG (5Y)N/A
Graham Number25.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 5.85% | ||
| ROCE | 10.03% | ||
| ROIC | 8.09% | ||
| ROICexc | 8.52% | ||
| ROICexgc | 14.02% | ||
| OM | 7.32% | ||
| PM (TTM) | 2.85% | ||
| GM | 25.78% | ||
| FCFM | 5.12% |
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%
ROICexgc growth 3Y11.52%
ROICexgc 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-Score9
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.96 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 57.5% | ||
| Cap/Sales | 1.46% | ||
| Interest Coverage | 6.46 | ||
| Cash Conversion | 66.82% | ||
| Profit Quality | 179.96% | ||
| Current Ratio | 2.99 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 3.43 |
F-Score9
WACC9.77%
ROIC/WACC0.83
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)214.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%103.87%
EPS Next Y245.97%
EPS Next 2Y97.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-8.54%
Revenue growth 3Y3.43%
Revenue growth 5Y1.62%
Sales Q2Q%-22.36%
Revenue Next Year1.56%
Revenue Next 2Y4.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.36%
EBIT growth 3Y9.19%
EBIT growth 5Y2.32%
EBIT Next Year11.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-46.07%
FCF growth 3YN/A
FCF growth 5Y-9.15%
OCF growth 1Y-45.13%
OCF growth 3YN/A
OCF growth 5Y-2.19%
EASTERN CO/THE / EML FAQ
What is the ChartMill fundamental rating of EASTERN CO/THE (EML) stock?
ChartMill assigns a fundamental rating of 6 / 10 to EML.
What is the valuation status for EML stock?
ChartMill assigns a valuation rating of 8 / 10 to EASTERN CO/THE (EML). This can be considered as Undervalued.
What is the profitability of EML stock?
EASTERN CO/THE (EML) has a profitability rating of 4 / 10.
What is the expected EPS growth for EASTERN CO/THE (EML) stock?
The Earnings per Share (EPS) of EASTERN CO/THE (EML) is expected to grow by 245.97% in the next year.
How sustainable is the dividend of EASTERN CO/THE (EML) stock?
The dividend rating of EASTERN CO/THE (EML) is 7 / 10 and the dividend payout ratio is 37.05%.