20.46 USD
+1.29 (+6.73%)
We assign a fundamental rating of 6 out of 10 to EML. EML was compared to 132 industry peers in the Machinery industry. EML has an excellent financial health rating, but there are some minor concerns on its profitability. EML scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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
EML's Return On Assets of 3.31% is in line compared to the rest of the industry. EML outperforms 49.24% of its industry peers.
The Return On Equity of EML (5.85%) is comparable to the rest of the industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for EML is below the industry average of 10.27%.
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's Profit Margin of 2.85% is in line compared to the rest of the industry. EML outperforms 42.42% of its industry peers.
EML has a Operating Margin of 7.32%. This is comparable to the rest of the industry: EML outperforms 46.21% of its industry peers.
In the last couple of years the Operating Margin of EML has remained more or less at the same level.
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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EML is destroying value.
Compared to 1 year ago, EML has less shares outstanding
EML has less shares outstanding than it did 5 years ago.
EML has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.46 indicates that EML is not in any danger for bankruptcy at the moment.
EML's Altman-Z score of 3.46 is fine compared to the rest of the industry. EML outperforms 60.61% of its industry peers.
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 71.21% 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.
Looking at the Debt to Equity ratio, with a value of 0.27, EML is in the better half of the industry, outperforming 67.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.84
WACC9.6%
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.
With a decent Current ratio value of 2.99, EML is doing good in the industry, outperforming 77.27% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that EML should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.30, EML perfoms like the industry average, outperforming 55.30% of the companies in the same 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.
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
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
A Price/Earnings ratio of 14.61 indicates a correct valuation of EML.
EML's Price/Earnings ratio is rather cheap when compared to the industry. EML is cheaper than 87.88% of the companies in the same industry.
EML is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.91, which indicates a rather cheap valuation of EML.
Based on the Price/Forward Earnings ratio, EML is valued cheaply inside the industry as 97.73% of the companies are valued more expensively.
EML's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.61 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
96.21% of the companies in the same industry are more expensive than EML, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EML is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.49 | ||
| EV/EBITDA | 6.11 |
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
With a Yearly Dividend Yield of 2.30%, EML has a reasonable but not impressive dividend return.
EML's Dividend Yield is rather good when compared to the industry average which is at 0.98. EML pays more dividend than 86.36% of the companies in the same industry.
EML's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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
NASDAQ:EML (12/26/2025, 4:30:02 PM)
20.46
+1.29 (+6.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.3%
Inst Owner Change2.44%
Ins Owners7.22%
Ins Owner Change3.64%
Market Cap124.19M
Revenue(TTM)255.50M
Net Income(TTM)7.28M
Analysts84
Price Target34.68 (69.5%)
Short Float %0.92%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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)-42.23%
Min EPS beat(2)-87.14%
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 | 14.61 | ||
| Fwd PE | 7.91 | ||
| P/S | 0.49 | ||
| P/FCF | 9.49 | ||
| P/OCF | 7.39 | ||
| P/B | 1 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 6.11 |
EPS(TTM)1.4
EY6.84%
EPS(NY)2.59
Fwd EY12.64%
FCF(TTM)2.16
FCFY10.54%
OCF(TTM)2.77
OCFY13.54%
SpS42.09
BVpS20.47
TBVpS9.01
PEG (NY)0.06
PEG (5Y)N/A
Graham Number25.4
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 | 3.46 |
F-Score9
WACC9.6%
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%.