EMBECTA CORP (EMBC) Stock Fundamental Analysis
USA - NASDAQ:EMBC - US29082K1051 - Common Stock
14.57 USD
+0.84 (+6.12%)
14.57 USD
0 (0%)
Taking everything into account, EMBC scores 6 out of 10 in our fundamental rating. EMBC was compared to 188 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of EMBC get a neutral evaluation. Nothing too spectacular is happening here. EMBC is valued quite cheap, while showing a decent growth score. This is a good combination! This makes EMBC very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year EMBC was profitable.
EMBC had a positive operating cash flow in the past year.
Each year in the past 5 years EMBC has been profitable.
In the past 5 years EMBC always reported a positive cash flow from operatings.
1.2 Ratios
EMBC has a better Return On Assets (7.22%) than 88.30% of its industry peers.
EMBC has a Return On Invested Capital of 23.87%. This is amongst the best in the industry. EMBC outperforms 98.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMBC is significantly above the industry average of 8.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.22% | ||
| ROE | N/A | ||
| ROIC | 23.87% |
ROA(3y)10.82%
ROA(5y)28.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.33%
ROIC(5y)35.9%
1.3 Margins
The Profit Margin of EMBC (7.58%) is better than 78.19% of its industry peers.
In the last couple of years the Profit Margin of EMBC has declined.
EMBC has a better Operating Margin (28.66%) than 96.81% of its industry peers.
In the last couple of years the Operating Margin of EMBC has declined.
The Gross Margin of EMBC (63.95%) is better than 65.96% of its industry peers.
EMBC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.66% | ||
| PM (TTM) | 7.58% | ||
| GM | 63.95% |
OM growth 3Y-15.62%
OM growth 5Y-10.93%
PM growth 3Y-41.94%
PM growth 5Y-29.11%
GM growth 3Y-1.58%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
EMBC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for EMBC has been increased compared to 1 year ago.
The number of shares outstanding for EMBC has been increased compared to 5 years ago.
The debt/assets ratio for EMBC has been reduced compared to a year ago.
2.2 Solvency
EMBC has an Altman-Z score of 1.99. This is not the best score and indicates that EMBC is in the grey zone with still only limited risk for bankruptcy at the moment.
EMBC has a better Altman-Z score (1.99) than 61.17% of its industry peers.
EMBC has a debt to FCF ratio of 11.34. This is a negative value and a sign of low solvency as EMBC would need 11.34 years to pay back of all of its debts.
The Debt to FCF ratio of EMBC (11.34) is better than 71.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.34 | ||
| Altman-Z | 1.99 |
ROIC/WACC3.81
WACC6.27%
2.3 Liquidity
EMBC has a Current Ratio of 2.47. This indicates that EMBC is financially healthy and has no problem in meeting its short term obligations.
EMBC has a Current ratio of 2.47. This is comparable to the rest of the industry: EMBC outperforms 47.87% of its industry peers.
A Quick Ratio of 1.78 indicates that EMBC should not have too much problems paying its short term obligations.
EMBC has a Quick ratio (1.78) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
EMBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.88%, which is quite good.
EMBC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -29.06% yearly.
EMBC shows a decrease in Revenue. In the last year, the revenue decreased by -1.47%.
Measured over the past years, EMBC shows a small growth in Revenue. The Revenue has been growing by 0.25% on average per year.
EPS 1Y (TTM)11.88%
EPS 3Y-42.79%
EPS 5Y-29.06%
EPS Q2Q%51.35%
Revenue 1Y (TTM)-1.47%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%8.44%
3.2 Future
Based on estimates for the next years, EMBC will show a small growth in Earnings Per Share. The EPS will grow by 5.85% on average per year.
The Revenue is expected to grow by 0.68% on average over the next years.
EPS Next Y19.34%
EPS Next 2Y10.44%
EPS Next 3Y7.82%
EPS Next 5Y5.85%
Revenue Next Year-2.9%
Revenue Next 2Y-1.46%
Revenue Next 3Y-0.8%
Revenue Next 5Y0.68%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 4.99, the valuation of EMBC can be described as very cheap.
Based on the Price/Earnings ratio, EMBC is valued cheaply inside the industry as 97.34% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.07. EMBC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 4.84, which indicates a rather cheap valuation of EMBC.
Based on the Price/Forward Earnings ratio, EMBC is valued cheaper than 99.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, EMBC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.99 | ||
| Fwd PE | 4.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMBC is valued cheaply inside the industry as 96.81% of the companies are valued more expensively.
98.40% of the companies in the same industry are more expensive than EMBC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.44 | ||
| EV/EBITDA | 5.87 |
4.3 Compensation for Growth
EMBC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EMBC may justify a higher PE ratio.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y10.44%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.16%, EMBC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.69, EMBC pays a better dividend. On top of this EMBC pays more dividend than 99.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, EMBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
5.2 History
EMBC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
41.75% of the earnings are spent on dividend by EMBC. This is a bit on the high side, but may be sustainable.
DP41.75%
EPS Next 2Y10.44%
EPS Next 3Y7.82%
14.57
+0.84 (+6.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.84%
Inst Owner Change-1.94%
Ins Owners0.46%
Ins Owner Change0.68%
Market Cap852.20M
Revenue(TTM)1.10B
Net Income(TTM)83.60M
Analysts51.11
Price Target17 (16.68%)
Short Float %4.97%
Short Ratio7.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP41.75%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.83%
Min EPS beat(2)29.98%
Max EPS beat(2)41.68%
EPS beat(4)4
Avg EPS beat(4)34.39%
Min EPS beat(4)21.87%
Max EPS beat(4)44.01%
EPS beat(8)8
Avg EPS beat(8)41.88%
EPS beat(12)10
Avg EPS beat(12)32.96%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.06%
Min Revenue beat(2)-0.01%
Max Revenue beat(2)4.13%
Revenue beat(4)3
Avg Revenue beat(4)1.56%
Min Revenue beat(4)-0.01%
Max Revenue beat(4)4.13%
Revenue beat(8)6
Avg Revenue beat(8)2.11%
Revenue beat(12)10
Avg Revenue beat(12)2.35%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-9.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.29%
EPS NY rev (1m)0%
EPS NY rev (3m)2.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.99 | ||
| Fwd PE | 4.84 | ||
| P/S | 0.77 | ||
| P/FCF | 6.44 | ||
| P/OCF | 6.35 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.87 |
EPS(TTM)2.92
EY20.04%
EPS(NY)3.01
Fwd EY20.68%
FCF(TTM)2.26
FCFY15.52%
OCF(TTM)2.3
OCFY15.76%
SpS18.85
BVpS-11.45
TBVpS-11.84
PEG (NY)0.26
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.22% | ||
| ROE | N/A | ||
| ROCE | 35.84% | ||
| ROIC | 23.87% | ||
| ROICexc | 32.32% | ||
| ROICexgc | 33.49% | ||
| OM | 28.66% | ||
| PM (TTM) | 7.58% | ||
| GM | 63.95% | ||
| FCFM | 12% |
ROA(3y)10.82%
ROA(5y)28.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.33%
ROIC(5y)35.9%
ROICexc(3y)39.2%
ROICexc(5y)44.82%
ROICexgc(3y)41.18%
ROICexgc(5y)47.17%
ROCE(3y)36.53%
ROCE(5y)53.9%
ROICexgc growth 3Y-18.01%
ROICexgc growth 5Y-11.68%
ROICexc growth 3Y-17.5%
ROICexc growth 5Y-11.4%
OM growth 3Y-15.62%
OM growth 5Y-10.93%
PM growth 3Y-41.94%
PM growth 5Y-29.11%
GM growth 3Y-1.58%
GM growth 5Y-1.58%
F-Score6
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.34 | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 5.39% | ||
| Cap/Sales | 0.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 38.03% | ||
| Profit Quality | 158.25% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 1.99 |
F-Score6
WACC6.27%
ROIC/WACC3.81
Cap/Depr(3y)66.88%
Cap/Depr(5y)82.76%
Cap/Sales(3y)1.97%
Cap/Sales(5y)2.62%
Profit Quality(3y)85.85%
Profit Quality(5y)92.96%
High Growth Momentum
Growth
EPS 1Y (TTM)11.88%
EPS 3Y-42.79%
EPS 5Y-29.06%
EPS Q2Q%51.35%
EPS Next Y19.34%
EPS Next 2Y10.44%
EPS Next 3Y7.82%
EPS Next 5Y5.85%
Revenue 1Y (TTM)-1.47%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%8.44%
Revenue Next Year-2.9%
Revenue Next 2Y-1.46%
Revenue Next 3Y-0.8%
Revenue Next 5Y0.68%
EBIT growth 1Y38.48%
EBIT growth 3Y-16.64%
EBIT growth 5Y-10.7%
EBIT Next Year38.7%
EBIT Next 3Y10.75%
EBIT Next 5Y8.14%
FCF growth 1Y88.46%
FCF growth 3Y-63.73%
FCF growth 5Y-46.06%
OCF growth 1Y39.75%
OCF growth 3Y-57.22%
OCF growth 5Y-41.13%
EMBECTA CORP / EMBC FAQ
What is the fundamental rating for EMBC stock?
ChartMill assigns a fundamental rating of 6 / 10 to EMBC.
Can you provide the valuation status for EMBECTA CORP?
ChartMill assigns a valuation rating of 9 / 10 to EMBECTA CORP (EMBC). This can be considered as Undervalued.
What is the profitability of EMBC stock?
EMBECTA CORP (EMBC) has a profitability rating of 6 / 10.
What is the valuation of EMBECTA CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EMBECTA CORP (EMBC) is 4.99 and the Price/Book (PB) ratio is -1.27.
Can you provide the dividend sustainability for EMBC stock?
The dividend rating of EMBECTA CORP (EMBC) is 5 / 10 and the dividend payout ratio is 41.75%.