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EASTERN CO/THE (EML) Stock Fundamental Analysis

NASDAQ:EML - Nasdaq - US2763171046 - Common Stock - Currency: USD

28.19  -0.89 (-3.06%)

After market: 28.19 0 (0%)

Fundamental Rating

3

Taking everything into account, EML scores 3 out of 10 in our fundamental rating. EML was compared to 129 industry peers in the Machinery industry. EML scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. EML is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

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.
In the past 5 years EML has always been profitable.
Of the past 5 years EML 4 years had a positive operating cash flow.
EML Yearly Net Income VS EBIT VS OCF VS FCFEML Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10M 20M

1.2 Ratios

EML's Return On Assets of -2.59% is on the low side compared to the rest of the industry. EML is outperformed by 70.40% of its industry peers.
EML's Return On Equity of -5.30% is on the low side compared to the rest of the industry. EML is outperformed by 68.80% of its industry peers.
The Return On Invested Capital of EML (8.20%) is comparable to the rest of the industry.
EML had an Average Return On Invested Capital over the past 3 years of 5.72%. This is significantly below the industry average of 11.00%.
The 3 year average ROIC (5.72%) for EML is below the current ROIC(8.20%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -2.59%
ROE -5.3%
ROIC 8.2%
ROA(3y)3.87%
ROA(5y)3.66%
ROE(3y)8.1%
ROE(5y)8.42%
ROIC(3y)5.72%
ROIC(5y)5.7%
EML Yearly ROA, ROE, ROICEML Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10

1.3 Margins

In the last couple of years the Profit Margin of EML has declined.
EML has a Operating Margin (7.46%) which is in line with its industry peers.
EML's Operating Margin has declined in the last couple of years.
EML has a Gross Margin of 25.25%. This is in the lower half of the industry: EML underperforms 63.20% of its industry peers.
EML's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 7.46%
PM (TTM) N/A
GM 25.25%
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%
EML Yearly Profit, Operating, Gross MarginsEML Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

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5

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 increased compared to 1 year ago.
EML has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EML has been reduced compared to a year ago.
EML Yearly Shares OutstandingEML Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M
EML Yearly Total Debt VS Total AssetsEML Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

2.2 Solvency

An Altman-Z score of 3.43 indicates that EML is not in any danger for bankruptcy at the moment.
EML has a Altman-Z score of 3.43. This is comparable to the rest of the industry: EML outperforms 56.80% of its industry peers.
The Debt to FCF ratio of EML is 7.30, which is on the high side as it means it would take EML, 7.30 years of fcf income to pay off all of its debts.
EML has a Debt to FCF ratio (7.30) which is in line with its industry peers.
A Debt/Equity ratio of 0.37 indicates that EML is not too dependend on debt financing.
EML has a Debt to Equity ratio (0.37) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF 7.3
Altman-Z 3.43
ROIC/WACC0.79
WACC10.36%
EML Yearly LT Debt VS Equity VS FCFEML Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M 40M 60M 80M 100M

2.3 Liquidity

A Current Ratio of 2.64 indicates that EML has no problem at all paying its short term obligations.
EML has a better Current ratio (2.64) than 69.60% of its industry peers.
A Quick Ratio of 1.42 indicates that EML should not have too much problems paying its short term obligations.
The Quick ratio of EML (1.42) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.64
Quick Ratio 1.42
EML Yearly Current Assets VS Current LiabilitesEML Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

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1

3. Growth

3.1 Past

The earnings per share for EML have decreased strongly by -218.24% in the last 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.
The Revenue has been growing slightly by 1.38% in the past year.
Measured over the past years, EML shows a small growth in Revenue. The Revenue has been growing by 3.14% on average per year.
EPS 1Y (TTM)-218.24%
EPS 3Y17.22%
EPS 5Y-9.86%
EPS Q2Q%-602.04%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y11.44%
Revenue growth 5Y3.14%
Sales Q2Q%8.58%

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.
EML Yearly Revenue VS EstimatesEML Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
EML Yearly EPS VS EstimatesEML Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.5 1 1.5

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.57, which indicates a correct valuation of EML.
Based on the Price/Earnings ratio, EML is valued a bit cheaper than the industry average as 79.20% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. EML is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 15.57
Fwd PE N/A
EML Price Earnings VS Forward Price EarningsEML Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

EML's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EML is cheaper than 84.80% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EML is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 26.22
EV/EBITDA 7.98
EML Per share dataEML EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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4

5. Dividend

5.1 Amount

EML has a Yearly Dividend Yield of 1.51%.
EML's Dividend Yield is a higher than the industry average which is at 1.65.
EML's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
Industry RankSector Rank
Dividend Yield 1.51%

5.2 History

The dividend of EML decreases each year by -0.34%.
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)-0.34%
Div Incr Years0
Div Non Decr Years34
EML Yearly Dividends per shareEML Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4

5.3 Sustainability

EML has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The Dividend Rate of EML has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-43.42%
EPS Next 2YN/A
EPS Next 3YN/A
EML Yearly Income VS Free CF VS DividendEML Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5M -5M 10M 15M 20M

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EASTERN CO/THE

NASDAQ:EML (2/21/2025, 8:15:42 PM)

After market: 28.19 0 (0%)

28.19

-0.89 (-3.06%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)03-11 2025-03-11
Inst Owners74.06%
Inst Owner Change-1.48%
Ins Owners6.46%
Ins Owner Change1.3%
Market Cap174.21M
Analysts0
Price TargetN/A
Short Float %0.67%
Short Ratio3.32
Dividend
Industry RankSector Rank
Dividend Yield 1.51%
Yearly Dividend0.45
Dividend Growth(5Y)-0.34%
DP-43.42%
Div Incr Years0
Div Non Decr Years34
Ex-Date02-14 2025-02-14 (0.11)
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 15.57
Fwd PE N/A
P/S 0.62
P/FCF 26.22
P/OCF 10.89
P/B 1.46
P/tB 3.68
EV/EBITDA 7.98
EPS(TTM)1.81
EY6.42%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)1.07
FCFY3.81%
OCF(TTM)2.59
OCFY9.18%
SpS45.2
BVpS19.29
TBVpS7.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.59%
ROE -5.3%
ROCE 10.62%
ROIC 8.2%
ROICexc 8.63%
ROICexgc 14.03%
OM 7.46%
PM (TTM) N/A
GM 25.25%
FCFM 2.38%
ROA(3y)3.87%
ROA(5y)3.66%
ROE(3y)8.1%
ROE(5y)8.42%
ROIC(3y)5.72%
ROIC(5y)5.7%
ROICexc(3y)5.96%
ROICexc(5y)6.01%
ROICexgc(3y)11.19%
ROICexgc(5y)11.41%
ROCE(3y)7.41%
ROCE(5y)7.38%
ROICexcg growth 3Y2.5%
ROICexcg growth 5Y-7.11%
ROICexc growth 3Y3.35%
ROICexc growth 5Y-10.27%
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%
F-Score6
Asset Turnover1.14
Health
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF 7.3
Debt/EBITDA 1.64
Cap/Depr 149.28%
Cap/Sales 3.35%
Interest Coverage 6.22
Cash Conversion 58.98%
Profit Quality N/A
Current Ratio 2.64
Quick Ratio 1.42
Altman-Z 3.43
F-Score6
WACC10.36%
ROIC/WACC0.79
Cap/Depr(3y)61.37%
Cap/Depr(5y)60.55%
Cap/Sales(3y)1.69%
Cap/Sales(5y)1.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-218.24%
EPS 3Y17.22%
EPS 5Y-9.86%
EPS Q2Q%-602.04%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.38%
Revenue growth 3Y11.44%
Revenue growth 5Y3.14%
Sales Q2Q%8.58%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y92%
EBIT growth 3Y0.18%
EBIT growth 5Y-3.24%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y201.89%
FCF growth 3Y2.99%
FCF growth 5Y21.83%
OCF growth 1Y602.89%
OCF growth 3Y8.58%
OCF growth 5Y15.51%