EASTERN CO/THE (EML) Stock Fundamental Analysis
USA - NASDAQ:EML - US2763171046 - Common Stock
18.55 USD
-0.62 (-3.23%)
18.55 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 has an excellent financial health rating, but there are some minor concerns on its profitability. EML is valued quite cheap, while showing a decent growth score. This is a good combination! Finally EML also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EML was profitable.
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
The Return On Assets of EML (3.31%) is comparable to the rest of the industry.
With a Return On Equity value of 5.85%, EML perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
EML has a Return On Invested Capital (8.09%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EML is below the industry average of 10.24%.
The last Return On Invested Capital (8.09%) for EML is above the 3 year average (7.26%), which is a sign of increasing profitability.
| 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 of 2.85%. This is comparable to the rest of the industry: EML outperforms 40.77% of its industry peers.
EML's Operating Margin of 7.32% is in line compared to the rest of the industry. EML outperforms 46.92% of its industry peers.
EML's Operating Margin has been stable in the last couple of years.
EML has a Gross Margin of 25.78%. This is in the lower half of the industry: EML underperforms 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
EML has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.39 indicates that EML is not in any danger for bankruptcy at the moment.
EML has a better Altman-Z score (3.39) than 62.31% of its industry peers.
The Debt to FCF ratio of EML is 2.96, which is a good value as it means it would take EML, 2.96 years of fcf income to pay off all of its debts.
EML's Debt to FCF ratio of 2.96 is fine compared to the rest of the industry. EML outperforms 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 has a better Debt to Equity ratio (0.27) than 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 3.39 |
ROIC/WACC0.84
WACC9.68%
2.3 Liquidity
A Current Ratio of 2.99 indicates that EML has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.99, EML is doing good in the industry, outperforming 77.69% of the companies in the same industry.
EML has a Quick Ratio of 1.30. This is a normal value and indicates that EML is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of EML (1.30) 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.
The Revenue has decreased by -8.54% in the past year.
The Revenue has been growing slightly by 1.62% on average over the past years.
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 12.97, which indicates a correct valuation of EML.
86.15% of the companies in the same industry are more expensive than EML, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EML to the average of the S&P500 Index (25.51), we can say EML is valued slightly cheaper.
EML is valuated cheaply with a Price/Forward Earnings ratio of 7.17.
Based on the Price/Forward Earnings ratio, EML is valued cheaply inside the industry as 97.69% of the companies are valued more expensively.
EML is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 7.17 |
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 95.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.64 | ||
| EV/EBITDA | 5.67 |
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)0.05
PEG (5Y)N/A
EPS Next 2Y97.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EML has a Yearly Dividend Yield of 2.22%.
The stock price of EML dropped by -23.63% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
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.
EML's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| 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 paid a dividend for at least 10 years, which is 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
37.05% of the earnings are spent on dividend by EML. This is a low number and sustainable payout ratio.
The dividend of EML is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.05%
EPS Next 2Y97.16%
EPS Next 3YN/A
18.55
-0.62 (-3.23%)
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 Cap113.16M
Revenue(TTM)255.50M
Net Income(TTM)7.28M
Analysts84
Price Target34.68 (86.95%)
Short Float %0.63%
Short Ratio3.36
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 | 12.97 | ||
| Fwd PE | 7.17 | ||
| P/S | 0.44 | ||
| P/FCF | 8.64 | ||
| P/OCF | 6.73 | ||
| P/B | 0.91 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 5.67 |
EPS(TTM)1.43
EY7.71%
EPS(NY)2.59
Fwd EY13.94%
FCF(TTM)2.15
FCFY11.57%
OCF(TTM)2.76
OCFY14.86%
SpS41.88
BVpS20.37
TBVpS8.97
PEG (NY)0.05
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 | 3.39 |
F-Score9
WACC9.68%
ROIC/WACC0.84
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%.