EMBECTA CORP (EMBC) Stock Fundamental Analysis
NASDAQ:EMBC - Nasdaq - US29082K1051 - Common Stock - Currency: USD
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. EMBC has an average financial health and profitability rating. EMBC is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make EMBC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year EMBC was profitable.
In the past year EMBC had a positive cash flow from operations.
EMBC had positive earnings in each of the past 5 years.
EMBC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EMBC (4.71%) is better than 82.98% of its industry peers.
EMBC has a better Return On Invested Capital (22.56%) than 99.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMBC is significantly above the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | N/A | ||
| ROIC | 22.56% |
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
EMBC has a Profit Margin of 4.89%. This is in the better half of the industry: EMBC outperforms 77.66% of its industry peers.
EMBC's Profit Margin has declined in the last couple of years.
EMBC has a Operating Margin of 27.01%. This is amongst the best in the industry. EMBC outperforms 95.74% of its industry peers.
EMBC's Operating Margin has declined in the last couple of years.
EMBC's Gross Margin of 64.61% is fine compared to the rest of the industry. EMBC outperforms 67.02% of its industry peers.
In the last couple of years the Gross Margin of EMBC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.01% | ||
| PM (TTM) | 4.89% | ||
| GM | 64.61% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EMBC is creating value.
Compared to 1 year ago, EMBC has more shares outstanding
EMBC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EMBC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.82 indicates that EMBC is not a great score, but indicates only limited risk for bankruptcy at the moment.
EMBC has a Altman-Z score (1.82) which is comparable to the rest of the industry.
The Debt to FCF ratio of EMBC is 39.08, which is on the high side as it means it would take EMBC, 39.08 years of fcf income to pay off all of its debts.
EMBC has a Debt to FCF ratio of 39.08. This is in the better half of the industry: EMBC outperforms 69.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 39.08 | ||
| Altman-Z | 1.82 |
ROIC/WACC3.77
WACC5.98%
2.3 Liquidity
A Current Ratio of 2.48 indicates that EMBC has no problem at all paying its short term obligations.
EMBC has a Current ratio of 2.48. This is comparable to the rest of the industry: EMBC outperforms 46.81% of its industry peers.
EMBC has a Quick Ratio of 1.83. This is a normal value and indicates that EMBC is financially healthy and should not expect problems in meeting its short term obligations.
EMBC has a Quick ratio (1.83) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.25% over the past year.
EMBC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -29.06% yearly.
Looking at the last year, EMBC shows a decrease in Revenue. The Revenue has decreased by -4.68% in the last year.
EMBC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.25% yearly.
EPS 1Y (TTM)19.25%
EPS 3Y-42.79%
EPS 5Y-29.06%
EPS Q2Q%4.48%
Revenue 1Y (TTM)-4.68%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%-9.82%
3.2 Future
The Earnings Per Share is expected to grow by 7.96% on average over the next years.
EMBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.68% yearly.
EPS Next Y16.29%
EPS Next 2Y9.47%
EPS Next 3Y8.46%
EPS Next 5Y7.96%
Revenue Next Year-2.81%
Revenue Next 2Y-1.37%
Revenue Next 3Y-0.77%
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.
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
EMBC is valuated cheaply with a Price/Earnings ratio of 4.11.
Compared to the rest of the industry, the Price/Earnings ratio of EMBC indicates a rather cheap valuation: EMBC is cheaper than 98.40% of the companies listed in the same industry.
EMBC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.29.
EMBC is valuated cheaply with a Price/Forward Earnings ratio of 3.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EMBC indicates a rather cheap valuation: EMBC is cheaper than 99.47% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EMBC to the average of the S&P500 Index (22.17), we can say EMBC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.11 | ||
| Fwd PE | 3.53 |
4.2 Price Multiples
97.34% of the companies in the same industry are more expensive than EMBC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EMBC is valued cheaper than 90.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.38 | ||
| EV/EBITDA | 5.99 |
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)0.25
PEG (5Y)N/A
EPS Next 2Y9.47%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
EMBC has a Yearly Dividend Yield of 5.74%, which is a nice return.
Compared to an average industry Dividend Yield of 1.89, EMBC pays a better dividend. On top of this EMBC pays more dividend than 100.00% of the companies listed in the same industry.
EMBC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
5.2 History
EMBC has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
EMBC pays out 65.91% of its income as dividend. This is not a sustainable payout ratio.
DP65.91%
EPS Next 2Y9.47%
EPS Next 3Y8.46%
10.45
-0.08 (-0.76%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.94%
Inst Owner Change2.25%
Ins Owners0.56%
Ins Owner Change7.27%
Market Cap610.70M
Analysts52
Price Target20.24 (93.68%)
Short Float %5.08%
Short Ratio4.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP65.91%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.99%
Min EPS beat(2)29.98%
Max EPS beat(2)44.01%
EPS beat(4)4
Avg EPS beat(4)38.05%
Min EPS beat(4)21.87%
Max EPS beat(4)56.36%
EPS beat(8)7
Avg EPS beat(8)31.1%
EPS beat(12)10
Avg EPS beat(12)33.36%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-0.01%
Max Revenue beat(2)0.84%
Revenue beat(4)2
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)1.26%
Revenue beat(8)6
Avg Revenue beat(8)1.84%
Revenue beat(12)10
Avg Revenue beat(12)2.26%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-5.75%
EPS NQ rev (1m)-3.49%
EPS NQ rev (3m)-3.49%
EPS NY rev (1m)0.43%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.11 | ||
| Fwd PE | 3.53 | ||
| P/S | 0.57 | ||
| P/FCF | 15.38 | ||
| P/OCF | 11.97 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.99 |
EPS(TTM)2.54
EY24.31%
EPS(NY)2.96
Fwd EY28.33%
FCF(TTM)0.68
FCFY6.5%
OCF(TTM)0.87
OCFY8.35%
SpS18.47
BVpS-12.6
TBVpS-12.99
PEG (NY)0.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | N/A | ||
| ROCE | 33.87% | ||
| ROIC | 22.56% | ||
| ROICexc | 29.81% | ||
| ROICexgc | 30.9% | ||
| OM | 27.01% | ||
| PM (TTM) | 4.89% | ||
| GM | 64.61% | ||
| FCFM | 3.68% |
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%
ROICexcg growth 3Y-18.01%
ROICexcg 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-Score4
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 39.08 | ||
| Debt/EBITDA | 4.71 | ||
| Cap/Depr | 32.1% | ||
| Cap/Sales | 1.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 15.61% | ||
| Profit Quality | 75.19% | ||
| Current Ratio | 2.48 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 1.82 |
F-Score4
WACC5.98%
ROIC/WACC3.77
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)19.25%
EPS 3Y-42.79%
EPS 5Y-29.06%
EPS Q2Q%4.48%
EPS Next Y16.29%
EPS Next 2Y9.47%
EPS Next 3Y8.46%
EPS Next 5Y7.96%
Revenue 1Y (TTM)-4.68%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%-9.82%
Revenue Next Year-2.81%
Revenue Next 2Y-1.37%
Revenue Next 3Y-0.77%
Revenue Next 5Y0.68%
EBIT growth 1Y47.42%
EBIT growth 3Y-16.64%
EBIT growth 5Y-10.7%
EBIT Next Year39.71%
EBIT Next 3Y10.43%
EBIT Next 5Y9.94%
FCF growth 1Y-65.11%
FCF growth 3Y-63.73%
FCF growth 5Y-46.06%
OCF growth 1Y-63.1%
OCF growth 3Y-57.22%
OCF growth 5Y-41.13%