18.05 USD
-0.35 (-1.9%)
Taking everything into account, EML scores 6 out of 10 in our fundamental rating. EML was compared to 132 industry peers in the Machinery industry. Both the profitability and the financial health of EML get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on EML. 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.
- Of the past 5 years EML 4 years were profitable.
- EML had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of EML (3.31%) is comparable to the rest of the industry.
- EML's Return On Equity of 5.85% is in line compared to the rest of the industry. EML outperforms 46.21% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.09%, EML is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for EML is below the industry average of 10.24%.
- 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
- With a Profit Margin value of 2.85%, EML perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- EML's Operating Margin of 7.32% is in line compared to the rest of the industry. EML outperforms 45.45% of its industry peers.
- EML's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 25.78%, EML is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
- EML's Gross Margin has been stable in the last couple of years.
| 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.
- EML has less shares outstanding than it did 1 year ago.
- EML has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, EML has a worse debt to assets ratio.
2.2 Solvency
- EML has an Altman-Z score of 3.38. This indicates that EML is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.38, EML is in line with its industry, outperforming 56.82% 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.
- With a decent Debt to FCF ratio value of 2.96, EML is doing good in the industry, outperforming 70.45% of the companies in the same industry.
- A Debt/Equity ratio of 0.27 indicates that EML is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.27, EML is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 3.38 |
ROIC/WACC0.82
WACC9.9%
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 has a Current ratio of 2.99. This is in the better half of the industry: EML outperforms 77.27% 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
- The Earnings Per Share has grown by an impressive 214.26% over the past year.
- EML shows a decrease in Revenue. In the last year, the revenue decreased by -8.54%.
- EML shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.62% yearly.
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
- The Price/Earnings ratio is 12.89, which indicates a correct valuation of EML.
- Compared to the rest of the industry, the Price/Earnings ratio of EML indicates a rather cheap valuation: EML is cheaper than 93.94% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. EML is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 6.98, the valuation of EML can be described as very cheap.
- Based on the Price/Forward Earnings ratio, EML is valued cheaper than 99.24% of the companies in the same industry.
- EML's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 6.98 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EML is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, EML is valued cheaply inside the industry as 94.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.37 | ||
| EV/EBITDA | 5.61 |
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)0.05
PEG (5Y)N/A
EPS Next 2Y97.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- EML has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.98, EML pays a better dividend. On top of this EML pays more dividend than 90.15% of the companies listed in the same industry.
- EML's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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
- 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
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 of EASTERN CO/THE (EML) stock?
ChartMill assigns a valuation rating of 9 / 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.
Can you provide the PE and PB ratios for EML stock?
The Price/Earnings (PE) ratio for EASTERN CO/THE (EML) is 12.89 and the Price/Book (PB) ratio is 0.88.
What is the earnings growth outlook for EASTERN CO/THE?
The Earnings per Share (EPS) of EASTERN CO/THE (EML) is expected to grow by 245.97% in the next year.