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 187 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! With these ratings, EMBC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
EMBC had positive earnings in the past year.
EMBC had a positive operating cash flow in the past year.
In the past 5 years EMBC has always been profitable.
Each year in the past 5 years EMBC had a positive operating cash flow.
1.2 Ratios
EMBC has a better Return On Assets (4.71%) than 82.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.56%, EMBC belongs to the top of the industry, outperforming 99.47% of the companies in the same industry.
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's Profit Margin of 4.89% is fine compared to the rest of the industry. EMBC outperforms 77.54% 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 95.72% of its industry peers.
In the last couple of years the Operating Margin of EMBC has declined.
With a decent Gross Margin value of 64.61%, EMBC is doing good in the industry, outperforming 67.38% of the companies in the same industry.
EMBC's Gross Margin has declined in the last couple of years.
| 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
EMBC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, EMBC has more shares outstanding
Compared to 5 years ago, EMBC has more shares outstanding
The debt/assets ratio for EMBC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.81 indicates that EMBC is not a great score, but indicates only limited risk for bankruptcy at the moment.
EMBC's Altman-Z score of 1.81 is in line compared to the rest of the industry. EMBC outperforms 57.22% of its industry peers.
EMBC has a debt to FCF ratio of 39.08. This is a negative value and a sign of low solvency as EMBC would need 39.08 years to pay back of 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 | 1.81 |
ROIC/WACC3.77
WACC5.99%
2.3 Liquidity
A Current Ratio of 2.48 indicates that EMBC has no problem at all paying its short term obligations.
With a Current ratio value of 2.48, EMBC perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
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.
The Quick ratio of EMBC (1.83) 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.
The earnings per share for EMBC have been decreasing by -29.06% on average. This is quite bad
The Revenue has decreased by -4.68% in the past year.
The Revenue has been growing slightly by 0.25% on average over the past years.
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
Based on estimates for the next years, EMBC will show a small growth in Earnings Per Share. The EPS will grow by 6.11% on average per year.
Based on estimates for the next years, EMBC will show a small growth in Revenue. The Revenue will grow by 0.68% on average per year.
EPS Next Y17.38%
EPS Next 2Y8.58%
EPS Next 3Y7.08%
EPS Next 5Y6.11%
Revenue Next Year-2.81%
Revenue Next 2Y-1.6%
Revenue Next 3Y-0.83%
Revenue Next 5Y0.68%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 4.06, 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.
The average S&P500 Price/Earnings ratio is at 27.45. EMBC is valued rather cheaply when compared to this.
EMBC is valuated cheaply with a Price/Forward Earnings ratio of 3.54.
99.47% of the companies in the same industry are more expensive than EMBC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.90. EMBC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.06 | ||
| Fwd PE | 3.54 |
4.2 Price Multiples
97.33% of the companies in the same industry are more expensive than EMBC, based on the Enterprise Value to EBITDA ratio.
EMBC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EMBC is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.19 | ||
| EV/EBITDA | 5.95 |
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)0.23
PEG (5Y)N/A
EPS Next 2Y8.58%
EPS Next 3Y7.08%
5. Dividend
5.1 Amount
EMBC has a Yearly Dividend Yield of 5.81%, which is a nice return.
Compared to an average industry Dividend Yield of 1.82, EMBC pays a better dividend. On top of this EMBC pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, EMBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
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 2Y8.58%
EPS Next 3Y7.08%
10.32
+0.07 (+0.68%)
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 Change2.27%
Ins Owners0.46%
Ins Owner Change6.09%
Market Cap603.10M
Analysts51.11
Price Target18.2 (76.36%)
Short Float %7.61%
Short Ratio7.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
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)-10.08%
PT rev (3m)-15.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.49%
EPS NY rev (1m)0.94%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.06 | ||
| Fwd PE | 3.54 | ||
| P/S | 0.56 | ||
| P/FCF | 15.19 | ||
| P/OCF | 11.83 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.95 |
EPS(TTM)2.54
EY24.61%
EPS(NY)2.91
Fwd EY28.22%
FCF(TTM)0.68
FCFY6.58%
OCF(TTM)0.87
OCFY8.46%
SpS18.47
BVpS-12.6
TBVpS-12.99
PEG (NY)0.23
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 | 1.81 |
F-Score4
WACC5.99%
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 Y17.38%
EPS Next 2Y8.58%
EPS Next 3Y7.08%
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-1.6%
Revenue Next 3Y-0.83%
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%