EASTERN CO/THE (EML) Stock Fundamental Analysis
USA - NASDAQ:EML - US2763171046 - Common Stock
24.98 USD
-0.41 (-1.61%)
We assign a fundamental rating of 4 out of 10 to EML. EML was compared to 128 industry peers in the Machinery industry. The financial health of EML is average, but there are quite some concerns on its profitability. EML is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
EML had negative earnings in the past year.
In the past year EML had a positive cash flow from operations.
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
EML has a worse Return On Assets (-3.75%) than 75.78% of its industry peers.
The Return On Equity of EML (-6.91%) is worse than 73.44% of its industry peers.
With a Return On Invested Capital value of 6.91%, EML perfoms like the industry average, outperforming 51.56% 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 10.02%.
The 3 year average ROIC (6.90%) for EML is below the current ROIC(6.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.75% | ||
| ROE | -6.91% | ||
| ROIC | 6.91% |
ROA(3y)1.5%
ROA(5y)1.99%
ROE(3y)3.04%
ROE(5y)4.48%
ROIC(3y)6.9%
ROIC(5y)6.48%
1.3 Margins
EML's Operating Margin of 5.96% is on the low side compared to the rest of the industry. EML is outperformed by 60.94% of its industry peers.
EML's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 23.62%, EML is doing worse than 67.19% of the companies in the same industry.
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 | 5.96% | ||
| PM (TTM) | N/A | ||
| GM | 23.62% |
OM growth 3Y1.53%
OM growth 5Y-1.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.29%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EML 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
Compared to 1 year ago, EML has a worse debt to assets ratio.
2.2 Solvency
EML has an Altman-Z score of 3.49. This indicates that EML is financially healthy and has little risk of bankruptcy at the moment.
EML's Altman-Z score of 3.49 is fine compared to the rest of the industry. EML outperforms 61.72% of its industry peers.
The Debt to FCF ratio of EML is 10.73, which is on the high side as it means it would take EML, 10.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.73, EML is doing worse than 60.94% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that EML is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.28, EML is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 10.73 | ||
| Altman-Z | 3.49 |
ROIC/WACC0.69
WACC10.01%
2.3 Liquidity
EML has a Current Ratio of 2.67. This indicates that EML is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.67, EML is doing good in the industry, outperforming 71.88% of the companies in the same industry.
EML has a Quick Ratio of 1.33. 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 (1.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for EML have decreased strongly by -171.82% in the last year.
EML shows a decrease in Revenue. In the last year, the revenue decreased by -0.83%.
The Revenue has been growing slightly by 1.62% on average over the past years.
EPS 1Y (TTM)-171.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y3.43%
Revenue growth 5Y1.62%
Sales Q2Q%-4.08%
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
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
EML reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 9.66, the valuation of EML can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EML is valued cheaper than 94.53% 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 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.66 |
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 84.38% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EML is valued a bit more expensive than 64.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.9 | ||
| EV/EBITDA | 8.64 |
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)N/A
PEG (5Y)N/A
EPS Next 2Y97.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EML has a Yearly Dividend Yield of 1.74%.
Compared to an average industry Dividend Yield of 1.74, EML pays a better dividend. On top of this EML pays more dividend than 80.47% of the companies listed in the same industry.
EML's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of EML is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-31.5%
EPS Next 2Y97.16%
EPS Next 3YN/A
NASDAQ:EML (9/15/2025, 4:10:09 PM)
24.98
-0.41 (-1.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners73.95%
Inst Owner Change-0.53%
Ins Owners6.86%
Ins Owner Change3.76%
Market Cap152.38M
Analysts84
Price Target34.68 (38.83%)
Short Float %0.88%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend0.44
Dividend Growth(5Y)0.21%
DP-31.5%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.02%
Min EPS beat(2)-22.72%
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)-5.62%
Min Revenue beat(2)-12.12%
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)-10.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.66 | ||
| P/S | 0.56 | ||
| P/FCF | 40.9 | ||
| P/OCF | 12.49 | ||
| P/B | 1.22 | ||
| P/tB | 2.81 | ||
| EV/EBITDA | 8.64 |
EPS(TTM)-1.38
EYN/A
EPS(NY)2.59
Fwd EY10.35%
FCF(TTM)0.61
FCFY2.44%
OCF(TTM)2
OCFY8.01%
SpS44.5
BVpS20.4
TBVpS8.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.75% | ||
| ROE | -6.91% | ||
| ROCE | 8.56% | ||
| ROIC | 6.91% | ||
| ROICexc | 7.26% | ||
| ROICexgc | 11.91% | ||
| OM | 5.96% | ||
| PM (TTM) | N/A | ||
| GM | 23.62% | ||
| FCFM | 1.37% |
ROA(3y)1.5%
ROA(5y)1.99%
ROE(3y)3.04%
ROE(5y)4.48%
ROIC(3y)6.9%
ROIC(5y)6.48%
ROICexc(3y)7.36%
ROICexc(5y)6.86%
ROICexgc(3y)13.15%
ROICexgc(5y)12.54%
ROCE(3y)8.55%
ROCE(5y)8.02%
ROICexcg growth 3Y7.26%
ROICexcg growth 5Y2.38%
ROICexc growth 3Y11.8%
ROICexc growth 5Y5.43%
OM growth 3Y1.53%
OM growth 5Y-1.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.29%
GM growth 5Y0.06%
F-Score6
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 10.73 | ||
| Debt/EBITDA | 1.63 | ||
| Cap/Depr | 159.15% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 4.95 | ||
| Cash Conversion | 56.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 3.49 |
F-Score6
WACC10.01%
ROIC/WACC0.69
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)-171.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y245.97%
EPS Next 2Y97.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y3.43%
Revenue growth 5Y1.62%
Sales Q2Q%-4.08%
Revenue Next Year1.56%
Revenue Next 2Y4.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-16.27%
EBIT growth 3Y5.01%
EBIT growth 5Y-0.05%
EBIT Next Year24.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-83.82%
FCF growth 3YN/A
FCF growth 5Y-9.15%
OCF growth 1Y-55.22%
OCF growth 3YN/A
OCF growth 5Y-2.19%