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 189 industry peers in the Health Care Equipment & Supplies industry. EMBC scores excellent on profitability, but there are some minor concerns on its financial health. EMBC is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
EMBC had positive earnings in the past year.
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
EMBC's Return On Assets of 5.06% is amongst the best of the industry. EMBC outperforms 84.66% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.62%, EMBC belongs to the top of the industry, outperforming 97.35% of the companies in the same industry.
EMBC had an Average Return On Invested Capital over the past 3 years of 24.33%. This is significantly above the industry average of 7.71%.
The last Return On Invested Capital (17.62%) for EMBC is well below the 3 year average (24.33%), which needs to be investigated, but indicates that EMBC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | N/A | ||
| ROIC | 17.62% |
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 5.25%. This is in the better half of the industry: EMBC outperforms 77.25% of its industry peers.
In the last couple of years the Profit Margin of EMBC has declined.
With an excellent Operating Margin value of 20.33%, EMBC belongs to the best of the industry, outperforming 93.65% of the companies in the same industry.
EMBC's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 64.32%, EMBC is doing good in the industry, outperforming 65.08% of the companies in the same industry.
EMBC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.33% | ||
| PM (TTM) | 5.25% | ||
| GM | 64.32% |
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.
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.
EMBC has a better debt/assets ratio than last year.
2.2 Solvency
EMBC has an Altman-Z score of 1.60. This is a bad value and indicates that EMBC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of EMBC (1.60) is comparable to the rest of the industry.
The Debt to FCF ratio of EMBC is 54.58, which is on the high side as it means it would take EMBC, 54.58 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 54.58, EMBC is doing good in the industry, outperforming 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 54.58 | ||
| Altman-Z | 1.6 |
ROIC/WACC2.89
WACC6.1%
2.3 Liquidity
EMBC has a Current Ratio of 2.24. This indicates that EMBC is financially healthy and has no problem in meeting its short term obligations.
EMBC has a Current ratio of 2.24. This is in the lower half of the industry: EMBC underperforms 60.32% of its industry peers.
A Quick Ratio of 1.67 indicates that EMBC should not have too much problems paying its short term obligations.
EMBC has a Quick ratio (1.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 47.65% over the past year.
The earnings per share for EMBC have been decreasing by -29.06% on average. This is quite bad
The Revenue has decreased by -1.31% in the past year.
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)47.65%
EPS 3Y-42.79%
EPS 5Y-29.06%
EPS Q2Q%6.56%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%-5.55%
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 7.96% on average per year.
The Revenue is expected to grow by 0.68% on average over the next years.
EPS Next Y15.79%
EPS Next 2Y11.42%
EPS Next 3Y9.59%
EPS Next 5Y7.96%
Revenue Next Year-2.46%
Revenue Next 2Y-0.75%
Revenue Next 3Y-0.21%
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
EMBC is valuated cheaply with a Price/Earnings ratio of 4.89.
Compared to the rest of the industry, the Price/Earnings ratio of EMBC indicates a rather cheap valuation: EMBC is cheaper than 98.94% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.29, EMBC is valued rather cheaply.
A Price/Forward Earnings ratio of 4.00 indicates a rather cheap valuation of EMBC.
Based on the Price/Forward Earnings ratio, EMBC is valued cheaper than 98.94% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.42. EMBC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.89 | ||
| Fwd PE | 4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMBC is valued cheaper than 93.12% of the companies in the same industry.
83.07% 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 | 24.69 | ||
| EV/EBITDA | 7.94 |
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)0.31
PEG (5Y)N/A
EPS Next 2Y11.42%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
EMBC has a Yearly Dividend Yield of 4.89%, which is a nice return.
The stock price of EMBC dropped by -29.91% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.86, 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 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
EMBC pays out 59.62% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP59.62%
EPS Next 2Y11.42%
EPS Next 3Y9.59%
NASDAQ:EMBC (5/7/2025, 10:40:10 AM)
12.275
+0.06 (+0.53%)
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 Change-0.51%
Ins Owners0.56%
Ins Owner Change27.21%
Market Cap713.55M
Analysts52
Price Target20.24 (64.89%)
Short Float %3.91%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
Yearly Dividend0.6
Dividend Growth(5Y)N/A
DP59.62%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)32.94%
Min EPS beat(2)21.87%
Max EPS beat(2)44.01%
EPS beat(4)4
Avg EPS beat(4)46.61%
Min EPS beat(4)21.87%
Max EPS beat(4)64.22%
EPS beat(8)6
Avg EPS beat(8)20.9%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.05%
Min Revenue beat(2)0.84%
Max Revenue beat(2)1.26%
Revenue beat(4)3
Avg Revenue beat(4)2.09%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)6.37%
Revenue beat(8)7
Avg Revenue beat(8)2.26%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.75%
PT rev (3m)-5.75%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-26.15%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-8.25%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.89 | ||
| Fwd PE | 4 | ||
| P/S | 0.64 | ||
| P/FCF | 24.69 | ||
| P/OCF | 16.4 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.94 |
EPS(TTM)2.51
EY20.45%
EPS(NY)3.07
Fwd EY24.98%
FCF(TTM)0.5
FCFY4.05%
OCF(TTM)0.75
OCFY6.1%
SpS19.06
BVpS-13.23
TBVpS-13.63
PEG (NY)0.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | N/A | ||
| ROCE | 26.45% | ||
| ROIC | 17.62% | ||
| ROICexc | 23.39% | ||
| ROICexgc | 24.27% | ||
| OM | 20.33% | ||
| PM (TTM) | 5.25% | ||
| GM | 64.32% | ||
| FCFM | 2.61% |
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-Score5
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 54.58 | ||
| Debt/EBITDA | 5.98 | ||
| Cap/Depr | 40.11% | ||
| Cap/Sales | 1.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 16.63% | ||
| Profit Quality | 49.66% | ||
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 1.6 |
F-Score5
WACC6.1%
ROIC/WACC2.89
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)47.65%
EPS 3Y-42.79%
EPS 5Y-29.06%
EPS Q2Q%6.56%
EPS Next Y15.79%
EPS Next 2Y11.42%
EPS Next 3Y9.59%
EPS Next 5Y7.96%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y-1.21%
Revenue growth 5Y0.25%
Sales Q2Q%-5.55%
Revenue Next Year-2.46%
Revenue Next 2Y-0.75%
Revenue Next 3Y-0.21%
Revenue Next 5Y0.68%
EBIT growth 1Y5.14%
EBIT growth 3Y-16.64%
EBIT growth 5Y-10.7%
EBIT Next Year34.22%
EBIT Next 3Y10.72%
EBIT Next 5Y9.94%
FCF growth 1Y-90.66%
FCF growth 3Y-63.73%
FCF growth 5Y-46.06%
OCF growth 1Y-86.97%
OCF growth 3Y-57.22%
OCF growth 5Y-41.13%