18 USD
-0.16 (-0.88%)
18 USD
0 (0%)
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 is valued quite cheap, while showing a decent growth score. This is a good 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.
- 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
- Looking at the Return On Assets, with a value of 3.31%, EML is in line with its industry, outperforming 48.48% of the companies in the same industry.
- EML has a Return On Equity of 5.85%. This is comparable to the rest of the industry: EML outperforms 46.21% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for EML is below the industry average of 10.24%.
- 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
- Looking at the Profit Margin, with a value of 2.85%, EML is in line with its industry, outperforming 41.67% of the companies in the same industry.
- EML has a Operating Margin of 7.32%. This is comparable to the rest of the industry: EML outperforms 45.45% of its industry peers.
- EML's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 25.78%, EML is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
- EML's Gross Margin has been stable in the last couple of years.
| 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.
- 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
- The debt/assets ratio for EML is higher compared to a year ago.
2.2 Solvency
- EML has an Altman-Z score of 3.37. This indicates that EML is financially healthy and has little risk of bankruptcy at the moment.
- EML has a Altman-Z score (3.37) which is comparable to the rest of the industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 2.96, EML is in the better half of the industry, outperforming 70.45% of the companies in the same industry.
- EML has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
- 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
WACC9.75%
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 better Current ratio (2.99) than 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.
- EML has a Quick ratio of 1.30. This is comparable to the rest of the industry: EML outperforms 55.30% of 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
- Based on estimates for the next years, EML will show a very strong growth in Earnings Per Share. The EPS will grow by 97.16% on average per year.
- 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
- The Price/Earnings ratio is 12.86, which indicates a correct valuation of EML.
- Based on the Price/Earnings ratio, EML is valued cheaper than 93.94% of the companies in the same industry.
- When comparing the Price/Earnings ratio of EML to the average of the S&P500 Index (28.87), we can say EML is valued rather cheaply.
- The Price/Forward Earnings ratio is 6.96, which indicates a rather cheap valuation of EML.
- 99.24% of the companies in the same industry are more expensive than EML, based on the Price/Forward Earnings ratio.
- EML's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 6.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EML is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
- 94.70% 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 | 8.34 | ||
| EV/EBITDA | 5.56 |
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)0.05
PEG (5Y)N/A
EPS Next 2Y97.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.39%, 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 1.01. EML pays more dividend than 90.15% of the companies in the same industry.
- EML's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| 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 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 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
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 12.86 and the Price/Book (PB) ratio is 0.88.
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.