18.16 USD
+0.11 (+0.61%)
EML gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. EML has only an average score on both its financial health and 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.
- 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
- EML has a Return On Assets (3.31%) which is in line with its industry peers.
- The Return On Equity of EML (5.85%) is comparable to the rest of the industry.
- With a decent Return On Invested Capital value of 8.09%, EML is doing good in 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 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's Profit Margin of 2.85% is in line compared to the rest of the industry. EML outperforms 41.67% of its industry peers.
- Looking at the Operating Margin, with a value of 7.32%, EML is in line with its industry, outperforming 45.45% of the companies in the same industry.
- EML's Operating Margin has been stable in the last couple of years.
- EML has a worse Gross Margin (25.78%) than 63.64% 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.
- Compared to 1 year ago, EML has less shares outstanding
- Compared to 5 years ago, EML has less shares outstanding
- The debt/assets ratio for EML is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.37 indicates that EML is not in any danger for bankruptcy at the moment.
- EML has a Altman-Z score of 3.37. This is comparable to the rest of the industry: EML outperforms 56.82% 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.
- EML has a better Debt to FCF ratio (2.96) than 70.45% of its industry peers.
- A Debt/Equity ratio of 0.27 indicates that EML is not too dependend on debt financing.
- EML has a better Debt to Equity ratio (0.27) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 3.37 |
ROIC/WACC0.83
WACC9.77%
2.3 Liquidity
- A Current Ratio of 2.99 indicates that EML has no problem at all paying 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.
- Looking at the Quick ratio, with a value of 1.30, EML is in line with its industry, 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.
- Looking at the last year, EML shows a decrease in Revenue. The Revenue has decreased by -8.54% in the last 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.
- 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
- Based on the Price/Earnings ratio of 12.97, the valuation of EML can be described as correct.
- Based on the Price/Earnings ratio, EML is valued cheaper than 93.94% of the companies in the same industry.
- EML's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- The Price/Forward Earnings ratio is 7.02, which indicates a rather cheap valuation of EML.
- Based on the Price/Forward Earnings ratio, EML is valued cheaper than 99.24% of the companies in the same industry.
- EML is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 7.02 |
4.2 Price Multiples
- 96.97% 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 94.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 5.53 |
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 1.01, EML pays a better dividend. On top of this EML pays more dividend than 90.15% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, EML pays a bit more dividend than the S&P500 average.
| 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 their dividend for at least 10 years, which is a reliable track record.
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 12.97 and the Price/Book (PB) ratio is 0.89.
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.