17.79 USD
-0.21 (-1.17%)
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 may be a bit undervalued, certainly considering the very reasonable score on growth Finally 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.
- Of the past 5 years EML 4 years were profitable.
- Of the past 5 years EML 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of EML (3.31%) is comparable to the rest of the industry.
- EML's Return On Equity of 5.85% is in line compared to the rest of the industry. EML outperforms 46.21% of its industry peers.
- The Return On Invested Capital of EML (8.09%) is better than 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 10.24%.
- 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
- EML has a Profit Margin (2.85%) which is in line with its industry peers.
- EML has a Operating Margin (7.32%) which is in line with its industry peers.
- 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 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.
- EML has less shares outstanding than it did 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 3.36. This indicates that EML is financially healthy and has little risk of bankruptcy at the moment.
- EML has a Altman-Z score (3.36) 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 69.70% 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.
- With a decent Debt to Equity ratio value of 0.27, EML is doing good in the industry, outperforming 65.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.83
WACC9.76%
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 Current ratio of 2.99. This is in the better half of the industry: EML outperforms 77.27% of its industry peers.
- 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.
- The Quick ratio of EML (1.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.99 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
- EML shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 214.26%, which is quite impressive.
- Looking at the last year, EML shows a decrease in Revenue. The Revenue has decreased by -8.54% in the last year.
- Measured over the past years, EML shows a small growth in Revenue. The Revenue has been growing by 1.62% on average per year.
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 12.71, which indicates a correct valuation of EML.
- Based on the Price/Earnings ratio, EML is valued cheaply inside the industry as 94.70% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, EML is valued rather cheaply.
- The Price/Forward Earnings ratio is 6.88, which indicates a rather cheap valuation of EML.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EML indicates a rather cheap valuation: EML is cheaper than 98.48% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. EML is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.71 | ||
| Fwd PE | 6.88 |
4.2 Price Multiples
- 96.97% of the companies in the same industry are more expensive than EML, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EML indicates a rather cheap valuation: EML is cheaper than 95.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.25 | ||
| EV/EBITDA | 5.47 |
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
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
- 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
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 12.71 and the Price/Book (PB) ratio is 0.87.
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.