EASTERN CO/THE (EML)
US2763171046 - Common Stock
EML gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. EML has an average financial health and profitability rating. EML has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year EML was profitable.
EML had a positive operating cash flow in the past year.
Each year in the past 5 years EML has been profitable.
EML had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.70%, EML is in line with its industry, outperforming 56.69% of the companies in the same industry.
EML's Return On Equity of 8.82% is in line compared to the rest of the industry. EML outperforms 57.48% of its industry peers.
With a Return On Invested Capital value of 7.09%, EML perfoms like the industry average, outperforming 54.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EML is significantly below the industry average of 10.97%.
The last Return On Invested Capital (7.09%) for EML is above the 3 year average (5.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.7% | ||
| ROE | 8.82% | ||
| ROIC | 7.09% |
ROA(3y)3.87%
ROA(5y)3.66%
ROE(3y)8.1%
ROE(5y)8.42%
ROIC(3y)5.72%
ROIC(5y)5.7%
1.3 Margins
EML has a Profit Margin of 4.40%. This is comparable to the rest of the industry: EML outperforms 48.82% of its industry peers.
In the last couple of years the Profit Margin of EML has declined.
With a Operating Margin value of 7.05%, EML perfoms like the industry average, outperforming 46.46% of the companies in the same industry.
EML's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 25.11%, EML is doing worse than 60.63% of the companies in the same industry.
EML's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.05% | ||
| PM (TTM) | 4.4% | ||
| GM | 25.11% |
OM growth 3Y-10.1%
OM growth 5Y-6.18%
PM growth 3Y4.73%
PM growth 5Y-12.69%
GM growth 3Y-0.81%
GM growth 5Y-1.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EML is destroying value.
The number of shares outstanding for EML has been increased compared to 1 year ago.
EML has more shares outstanding than it did 5 years ago.
EML has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.32 indicates that EML is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.32, EML is in line with its industry, outperforming 54.33% of the companies in the same industry.
EML has a debt to FCF ratio of 2.72. This is a good value and a sign of high solvency as EML would need 2.72 years to pay back of all of its debts.
EML has a Debt to FCF ratio of 2.72. This is in the better half of the industry: EML outperforms 74.02% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that EML is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.29, EML is doing good in the industry, outperforming 65.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 3.32 |
ROIC/WACC0.81
WACC8.71%
2.3 Liquidity
A Current Ratio of 2.60 indicates that EML has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.60, EML is in the better half of the industry, outperforming 68.50% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that EML should not have too much problems paying its short term obligations.
EML has a Quick ratio (1.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.32% over the past year.
Measured over the past years, EML shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.86% on average per year.
Looking at the last year, EML shows a decrease in Revenue. The Revenue has decreased by -2.79% in the last year.
The Revenue has been growing slightly by 3.14% on average over the past years.
EPS 1Y (TTM)26.32%
EPS 3Y17.22%
EPS 5Y-9.86%
EPS Q2Q%40%
Revenue 1Y (TTM)-2.79%
Revenue growth 3Y11.44%
Revenue growth 5Y3.14%
Sales Q2Q%7.04%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.94, which indicates a correct valuation of EML.
Based on the Price/Earnings ratio, EML is valued cheaper than 80.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of EML to the average of the S&P500 Index (29.20), we can say EML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | N/A |
4.2 Price Multiples
EML's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EML is cheaper than 89.76% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EML is valued cheaper than 92.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.4 | ||
| EV/EBITDA | 7.28 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
EML has a Yearly Dividend Yield of 1.61%. 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 1.52. EML pays more dividend than 83.46% of the companies in the same industry.
EML's Dividend Yield is slightly below the S&P500 average, which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of EML decreases each year by -0.34%.
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)-0.34%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
22.98% of the earnings are spent on dividend by EML. This is a low number and sustainable payout ratio.
EML's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP22.98%
EPS Next 2YN/A
EPS Next 3YN/A
EASTERN CO/THE
NASDAQ:EML (11/12/2024, 4:03:01 PM)
After market: 26.76 0 (0%)26.76
-0.49 (-1.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap165.38M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.7% | ||
| ROE | 8.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.05% | ||
| PM (TTM) | 4.4% | ||
| GM | 25.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)26.32%
EPS 3Y17.22%
EPS 5Y
EPS Q2Q%
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.79%
Revenue growth 3Y11.44%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y