EASTERN CO/THE (EML) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:EML • US2763171046

18.71 USD
+0.01 (+0.05%)
Last: Feb 2, 2026, 10:46 AM
Fundamental Rating

6

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 an average financial health and profitability rating. EML is valued quite cheap, while showing a decent growth score. This is a good combination! EML also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • EML had positive earnings in the past year.
  • EML had a positive operating cash flow in the past year.
  • 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.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M 20M

1.2 Ratios

  • EML has a Return On Assets (3.31%) which is comparable to the rest of the industry.
  • With a Return On Equity value of 5.85%, EML perfoms like the industry average, outperforming 46.21% of the companies in the same industry.
  • EML's Return On Invested Capital of 8.09% is fine compared to the rest of the industry. EML outperforms 60.61% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for EML is below the industry average of 10.18%.
  • 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 RankSector 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%
EML Yearly ROA, ROE, ROICEML Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10

1.3 Margins

  • The Profit Margin of EML (2.85%) is comparable to the rest of the industry.
  • 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.
  • In the last couple of years the Operating Margin of EML has remained more or less at the same level.
  • EML's Gross Margin of 25.78% is on the low side compared to the rest of the industry. EML is outperformed by 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 RankSector 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%
EML Yearly Profit, Operating, Gross MarginsEML Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15 20 25

6

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
  • Compared to 1 year ago, EML has a worse debt to assets ratio.
EML Yearly Shares OutstandingEML Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M
EML Yearly Total Debt VS Total AssetsEML Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

2.2 Solvency

  • An Altman-Z score of 3.39 indicates that EML is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of EML (3.39) is comparable to the rest of the industry.
  • The Debt to FCF ratio of EML is 2.96, which is a good value as it means it would take EML, 2.96 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 2.96, EML is doing good in the industry, outperforming 70.45% of the companies in the same industry.
  • A Debt/Equity ratio of 0.27 indicates that EML is not too dependend on debt financing.
  • The Debt to Equity ratio of EML (0.27) is better than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 2.96
Altman-Z 3.39
ROIC/WACC0.83
WACC9.81%
EML Yearly LT Debt VS Equity VS FCFEML Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M 100M

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 77.27% of the companies in the same industry.
  • EML has a Quick Ratio of 1.30. 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 of 1.30. This is comparable to the rest of the industry: EML outperforms 55.30% of its industry peers.
Industry RankSector Rank
Current Ratio 2.99
Quick Ratio 1.3
EML Yearly Current Assets VS Current LiabilitesEML Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 214.26% over the past year.
  • The Revenue has decreased by -8.54% in the past 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

  • The Earnings Per Share is expected to grow by 97.16% on average over the next years. This is a very strong growth
  • EML is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.25% yearly.
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.
EML Yearly Revenue VS EstimatesEML Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M 250M
EML Yearly EPS VS EstimatesEML Yearly EPS VS EstimatesYearly EPS VS Estimates 2023 2025 2026 0.5 1 1.5 2 2.5

9

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.36, the valuation of EML can be described as correct.
  • Based on the Price/Earnings ratio, EML is valued cheaper than 91.67% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.32. EML is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 7.24 indicates a rather cheap valuation of EML.
  • Based on the Price/Forward Earnings ratio, EML is valued cheaper than 98.48% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. EML is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 13.36
Fwd PE 7.24
EML Price Earnings VS Forward Price EarningsEML Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • EML's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EML is cheaper than 96.97% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, EML is valued cheaper than 93.94% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.67
EV/EBITDA 5.69
EML Per share dataEML EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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.
  • 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

8

5. Dividend

5.1 Amount

  • EML has a Yearly Dividend Yield of 2.44%. Purely for dividend investing, there may be better candidates out there.
  • 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 1.83.
Industry RankSector Rank
Dividend Yield 2.44%

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
EML Yearly Dividends per shareEML Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4

5.3 Sustainability

  • 37.05% of the earnings are spent on dividend by EML. This is a low number and 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
EML Yearly Income VS Free CF VS DividendEML Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5M -5M 10M 15M 20M
EML Dividend Payout.EML Dividend Payout, showing the Payout Ratio.EML Dividend Payout.PayoutRetained Earnings

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 13.36 and the Price/Book (PB) ratio is 0.91.


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.