EASTERN CO/THE (EML) Stock Fundamental Analysis
USA - NASDAQ:EML - US2763171046 - Common Stock
19.72 USD
+0.65 (+3.41%)
19.72 USD
0 (0%)
Taking everything into account, EML scores 6 out of 10 in our fundamental rating. EML was compared to 130 industry peers in the Machinery industry. While EML has a great health rating, its profitability is only average at the moment. EML may be a bit undervalued, certainly considering the very reasonable score on growth EML also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EML was profitable.
EML had a positive operating cash flow in the past year.
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 has a Return On Assets (3.31%) which is in line with its industry peers.
EML's Return On Equity of 5.85% is in line compared to the rest of the industry. EML outperforms 41.54% of its industry peers.
EML has a Return On Invested Capital of 8.09%. This is comparable to the rest of the industry: EML outperforms 59.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EML is below the industry average of 10.28%.
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
The Profit Margin of EML (2.85%) is worse than 60.00% of its industry peers.
Looking at the Operating Margin, with a value of 7.32%, EML is in line with its industry, outperforming 46.15% of the companies in the same industry.
In the last couple of years the Operating Margin of EML has remained more or less at the same level.
EML has a worse Gross Margin (25.78%) than 63.85% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EML is destroying value.
EML has less shares outstanding than it did 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
An Altman-Z score of 3.41 indicates that EML is not in any danger for bankruptcy at the moment.
The Altman-Z score of EML (3.41) is better than 62.31% 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 70.77% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that EML is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, EML is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 3.41 |
ROIC/WACC0.84
WACC9.69%
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 77.69% 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.
EML has a Quick ratio (1.30) which is in line with its industry peers.
| 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.
EML shows a decrease in Revenue. In the last year, the revenue decreased by -8.54%.
EML shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.62% yearly.
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
The Earnings Per Share is expected to grow by 97.16% on average over the next years. This is a very strong growth
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
EML is valuated correctly with a Price/Earnings ratio of 13.79.
EML's Price/Earnings ratio is rather cheap when compared to the industry. EML is cheaper than 86.15% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. EML is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 7.63, the valuation of EML can be described as very cheap.
97.69% of the companies in the same industry are more expensive than EML, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, EML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 7.63 |
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 95.38% of the companies listed in the same industry.
95.38% of the companies in the same industry are more expensive than EML, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.19 | ||
| EV/EBITDA | 5.8 |
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.
A more expensive valuation may be justified as EML's earnings are expected to grow with 97.16% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y97.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, 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 1.86. EML pays more dividend than 86.15% of the companies in the same industry.
EML's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
The dividend of EML has a limited annual growth rate of 0.21%.
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)0.21%
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.
The dividend of EML is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.05%
EPS Next 2Y97.16%
EPS Next 3YN/A
19.72
+0.65 (+3.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.03%
Inst Owner Change0.06%
Ins Owners7.09%
Ins Owner Change3.85%
Market Cap120.29M
Revenue(TTM)255.50M
Net Income(TTM)7.28M
Analysts84
Price Target34.68 (75.86%)
Short Float %0.67%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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)-40.3%
Min EPS beat(2)-83.28%
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 | 13.79 | ||
| Fwd PE | 7.63 | ||
| P/S | 0.47 | ||
| P/FCF | 9.19 | ||
| P/OCF | 7.15 | ||
| P/B | 0.97 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 5.8 |
EPS(TTM)1.43
EY7.25%
EPS(NY)2.59
Fwd EY13.11%
FCF(TTM)2.15
FCFY10.88%
OCF(TTM)2.76
OCFY13.98%
SpS41.88
BVpS20.37
TBVpS8.97
PEG (NY)0.06
PEG (5Y)N/A
Graham Number25.6
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 | 3.41 |
F-Score9
WACC9.69%
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%.