EMBECTA CORP (EMBC) Stock Fundamental Analysis
NASDAQ:EMBC - Nasdaq - US29082K1051 - Common Stock - Currency: USD
EMBC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 187 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on EMBC. 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.
EMBC had positive earnings in each of the past 5 years.
In the past 5 years EMBC always reported a positive cash flow from operatings.
1.2 Ratios
EMBC's Return On Assets of 4.71% is amongst the best of the industry. EMBC outperforms 82.89% of its industry peers.
EMBC has a Return On Invested Capital of 22.56%. This is amongst the best in the industry. EMBC outperforms 99.47% of its industry peers.
EMBC had an Average Return On Invested Capital over the past 3 years of 24.33%. This is significantly above the industry average of 7.89%.
| 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
The Profit Margin of EMBC (4.89%) is better than 78.07% of its industry peers.
In the last couple of years the Profit Margin of EMBC has declined.
EMBC has a Operating Margin of 27.01%. This is amongst the best in the industry. EMBC outperforms 95.72% of its industry peers.
In the last couple of years the Operating Margin of EMBC has declined.
Looking at the Gross Margin, with a value of 64.61%, EMBC is in the better half of the industry, outperforming 67.38% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EMBC is creating value.
EMBC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EMBC has more shares outstanding
Compared to 1 year ago, EMBC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.83 indicates that EMBC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.83, EMBC perfoms like the industry average, outperforming 56.68% of the companies in the same 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.
Looking at the Debt to FCF ratio, with a value of 39.08, EMBC is in the better half of the industry, outperforming 69.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 39.08 | ||
| Altman-Z | 1.83 |
ROIC/WACC3.73
WACC6.05%
2.3 Liquidity
EMBC has a Current Ratio of 2.48. This indicates that EMBC is financially healthy and has no problem in meeting its short term obligations.
EMBC has a Current ratio of 2.48. This is comparable to the rest of the industry: EMBC outperforms 47.06% of its industry peers.
A Quick Ratio of 1.83 indicates that EMBC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.83, EMBC perfoms like the industry average, outperforming 48.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
EMBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.25%, which is quite good.
The earnings per share for EMBC have been decreasing by -29.06% on average. This is quite bad
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 6.11% 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 Y16.45%
EPS Next 2Y8.17%
EPS Next 3Y6.98%
EPS Next 5Y6.11%
Revenue Next Year-2.81%
Revenue Next 2Y-1.64%
Revenue Next 3Y-0.92%
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
With a Price/Earnings ratio of 4.46, the valuation of EMBC can be described as very cheap.
EMBC's Price/Earnings ratio is rather cheap when compared to the industry. EMBC is cheaper than 98.40% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.93, EMBC is valued rather cheaply.
EMBC is valuated cheaply with a Price/Forward Earnings ratio of 3.92.
Based on the Price/Forward Earnings ratio, EMBC is valued cheaply inside the industry as 99.47% of the companies are valued more expensively.
EMBC is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.46 | ||
| Fwd PE | 3.92 |
4.2 Price Multiples
EMBC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EMBC is cheaper than 97.33% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EMBC indicates a rather cheap valuation: EMBC is cheaper than 89.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.68 | ||
| EV/EBITDA | 6.13 |
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.
EMBC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y8.17%
EPS Next 3Y6.98%
5. Dividend
5.1 Amount
EMBC has a Yearly Dividend Yield of 5.16%, which is a nice return.
EMBC's Dividend Yield is rather good when compared to the industry average which is at 1.78. EMBC pays more dividend than 100.00% of the companies in the same industry.
EMBC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
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
65.91% of the earnings are spent on dividend by EMBC. This is not a sustainable payout ratio.
DP65.91%
EPS Next 2Y8.17%
EPS Next 3Y6.98%
11.33
-0.4 (-3.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.29%
Inst Owner Change0.32%
Ins Owners0.46%
Ins Owner Change6.09%
Market Cap662.13M
Analysts51.11
Price Target18.92 (66.99%)
Short Float %6.08%
Short Ratio5.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
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)3.98%
PT rev (3m)-6.5%
EPS NQ rev (1m)1.97%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)-0.79%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.46 | ||
| Fwd PE | 3.92 | ||
| P/S | 0.61 | ||
| P/FCF | 16.68 | ||
| P/OCF | 12.98 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.13 |
EPS(TTM)2.54
EY22.42%
EPS(NY)2.89
Fwd EY25.51%
FCF(TTM)0.68
FCFY6%
OCF(TTM)0.87
OCFY7.7%
SpS18.47
BVpS-12.6
TBVpS-12.99
PEG (NY)0.27
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 | 1.83 |
F-Score4
WACC6.05%
ROIC/WACC3.73
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 Y16.45%
EPS Next 2Y8.17%
EPS Next 3Y6.98%
EPS Next 5Y6.11%
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-1.64%
Revenue Next 3Y-0.92%
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 5Y7.67%
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%