EASTERN CO/THE (EML) Stock Fundamental Analysis
USA - NASDAQ:EML - US2763171046 - Common Stock
20.68 USD
-0.41 (-1.94%)
EML gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. While EML seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, EML is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
EML had positive 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's Return On Assets of -3.75% is on the low side compared to the rest of the industry. EML is outperformed by 75.38% of its industry peers.
With a Return On Equity value of -6.91%, EML is not doing good in the industry: 73.85% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 8.44%, EML perfoms like the industry average, outperforming 59.23% 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 10.24%.
The last Return On Invested Capital (8.44%) for EML is above the 3 year average (7.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.75% | ||
| ROE | -6.91% | ||
| ROIC | 8.44% |
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 has a Operating Margin (7.28%) which is in line with its industry peers.
EML's Operating Margin has been stable in the last couple of years.
EML has a Gross Margin of 24.94%. This is in the lower half of the industry: EML underperforms 66.92% 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 | 7.28% | ||
| PM (TTM) | N/A | ||
| GM | 24.94% |
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.
The debt/assets ratio for EML is higher compared to a year ago.
2.2 Solvency
EML has an Altman-Z score of 3.40. This indicates that EML is financially healthy and has little risk of bankruptcy at the moment.
EML has a better Altman-Z score (3.40) than 61.54% 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.
With a Debt to FCF ratio value of 10.73, EML is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.28 indicates that EML is not too dependend on debt financing.
EML has a Debt to Equity ratio of 0.28. This is in the better half of the industry: EML outperforms 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 10.73 | ||
| Altman-Z | 3.4 |
ROIC/WACC0.87
WACC9.7%
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.
Looking at the Current ratio, with a value of 2.67, EML is in the better half of the industry, outperforming 71.54% 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.
EML has a Quick ratio (1.33) which is in line with its industry peers.
| 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 -31.31% in the last year.
The Earnings Per Share has been decreasing by -9.98% on average over the past years.
Looking at the last year, EML shows a decrease in Revenue. The Revenue has decreased by -7.32% in the last year.
EML shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.01% yearly.
EPS 1Y (TTM)-31.31%
EPS 3Y16.96%
EPS 5Y-9.98%
EPS Q2Q%N/A
Revenue 1Y (TTM)-7.32%
Revenue growth 3Y9.42%
Revenue growth 5Y2.01%
Sales Q2Q%-22.36%
3.2 Future
The Earnings Per Share is expected to grow by 12.62% on average over the next years. This is quite good.
Based on estimates for the next years, EML will show a small growth in Revenue. The Revenue will grow by 4.62% on average per year.
EPS Next YN/A
EPS Next 2Y5.11%
EPS Next 3Y12.62%
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2Y3.45%
Revenue Next 3Y4.62%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.46, the valuation of EML can be described as correct.
Based on the Price/Earnings ratio, EML is valued cheaper than 82.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of EML to the average of the S&P500 Index (26.13), we can say EML is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | N/A |
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 94.62% of the companies listed 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.86 | ||
| EV/EBITDA | 6.36 |
4.3 Compensation for Growth
A more expensive valuation may be justified as EML's earnings are expected to grow with 12.62% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.11%
EPS Next 3Y12.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.09%, EML has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.83, EML pays a better dividend. On top of this EML pays more dividend than 86.15% of the companies listed in the same industry.
EML's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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 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 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 2Y5.11%
EPS Next 3Y12.62%
NASDAQ:EML (11/5/2025, 4:30:01 PM)
20.68
-0.41 (-1.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.03%
Inst Owner Change-0.21%
Ins Owners7.09%
Ins Owner Change3.85%
Market Cap126.15M
Revenue(TTM)258.86M
Net Income(TTM)-8600800
Analysts84
Price Target34.68 (67.7%)
Short Float %0.67%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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)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 | 14.46 | ||
| Fwd PE | N/A | ||
| P/S | 0.46 | ||
| P/FCF | 33.86 | ||
| P/OCF | 10.34 | ||
| P/B | 1.01 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 6.36 |
EPS(TTM)1.43
EY6.91%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.61
FCFY2.95%
OCF(TTM)2
OCFY9.67%
SpS44.5
BVpS20.4
TBVpS8.89
PEG (NY)N/A
PEG (5Y)N/A
Graham Number25.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.75% | ||
| ROE | -6.91% | ||
| ROCE | 10.46% | ||
| ROIC | 8.44% | ||
| ROICexc | 8.87% | ||
| ROICexgc | 14.56% | ||
| OM | 7.28% | ||
| PM (TTM) | N/A | ||
| GM | 24.94% | ||
| FCFM | 1.37% |
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-Score6
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 10.73 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 159.15% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 6.05 | ||
| Cash Conversion | 48.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 3.4 |
F-Score6
WACC9.7%
ROIC/WACC0.87
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)-31.31%
EPS 3Y16.96%
EPS 5Y-9.98%
EPS Q2Q%N/A
EPS Next YN/A
EPS Next 2Y5.11%
EPS Next 3Y12.62%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.32%
Revenue growth 3Y9.42%
Revenue growth 5Y2.01%
Sales Q2Q%-22.36%
Revenue Next YearN/A
Revenue Next 2Y3.45%
Revenue Next 3Y4.62%
Revenue Next 5YN/A
EBIT growth 1Y2.37%
EBIT growth 3Y9.19%
EBIT growth 5Y2.32%
EBIT Next Year11.17%
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%
EASTERN CO/THE / EML FAQ
What is the ChartMill fundamental rating of EASTERN CO/THE (EML) stock?
ChartMill assigns a fundamental rating of 4 / 10 to EML.
What is the valuation status for EML stock?
ChartMill assigns a valuation rating of 3 / 10 to EASTERN CO/THE (EML). This can be considered as Overvalued.
What is the profitability of EML stock?
EASTERN CO/THE (EML) has a profitability rating of 3 / 10.
How sustainable is the dividend of EASTERN CO/THE (EML) stock?
The dividend rating of EASTERN CO/THE (EML) is 6 / 10 and the dividend payout ratio is -31.5%.