EASTERN CO/THE (EML)
US2763171046 - Common Stock
We assign a fundamental rating of 4 out of 10 to EML. EML was compared to 132 industry peers in the Machinery industry. The financial health of EML is average, but there are quite some concerns on its profitability. EML does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year EML was profitable.
EML had a positive operating cash flow in the past year.
EML had positive earnings in each of the past 5 years.
Of the past 5 years EML 4 years had a positive operating cash flow.
1.2 Ratios
EML's Return On Assets of 3.41% is in line compared to the rest of the industry. EML outperforms 48.06% of its industry peers.
The Return On Equity of EML (6.48%) is comparable to the rest of the industry.
The Return On Invested Capital of EML (5.60%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for EML is below the industry average of 10.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 6.48% | ||
| ROIC | 5.6% |
ROA(3y)3.87%
ROA(5y)3.66%
ROE(3y)8.1%
ROE(5y)8.42%
ROIC(3y)5.72%
ROIC(5y)5.7%
1.3 Margins
With a Profit Margin value of 3.14%, EML perfoms like the industry average, outperforming 44.96% of the companies in the same industry.
In the last couple of years the Profit Margin of EML has declined.
EML has a Operating Margin (5.55%) which is comparable to the rest of the industry.
EML's Operating Margin has declined in the last couple of years.
EML has a worse Gross Margin (23.76%) than 60.47% of its industry peers.
In the last couple of years the Gross Margin of EML has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.55% | ||
| PM (TTM) | 3.14% | ||
| GM | 23.76% |
OM growth 3Y-10.1%
OM growth 5Y-6.18%
PM growth 3Y4.73%
PM growth 5Y-12.69%
GM growth 3Y-0.81%
GM growth 5Y-1.06%
2. Health
2.1 Basic Checks
EML has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, EML has more shares outstanding
Compared to 5 years ago, EML has more shares outstanding
The debt/assets ratio for EML has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.43 indicates that EML is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.43, EML perfoms like the industry average, outperforming 58.91% of the companies in the same industry.
EML has a debt to FCF ratio of 2.24. This is a good value and a sign of high solvency as EML would need 2.24 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.24, EML is doing good in the industry, outperforming 76.74% of the companies in the same industry.
EML has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
EML has a better Debt to Equity ratio (0.32) than 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 3.43 |
ROIC/WACC0.62
WACC9.05%
2.3 Liquidity
EML has a Current Ratio of 2.63. This indicates that EML is financially healthy and has no problem in meeting its short term obligations.
EML's Current ratio of 2.63 is fine compared to the rest of the industry. EML outperforms 68.99% of its industry peers.
A Quick Ratio of 1.24 indicates that EML should not have too much problems paying its short term obligations.
The Quick ratio of EML (1.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The earnings per share for EML have decreased by 0.00% in the last year.
The Earnings Per Share has been decreasing by -9.86% on average over the past years.
EML shows a decrease in Revenue. In the last year, the revenue decreased by -2.07%.
The Revenue has been growing slightly by 3.14% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y17.22%
EPS 5Y-9.86%
EPS growth Q2Q409.09%
Revenue 1Y (TTM)-2.07%
Revenue growth 3Y11.44%
Revenue growth 5Y3.14%
Revenue growth Q2Q-3.02%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.41, which indicates a rather expensive current valuation of EML.
Based on the Price/Earnings ratio, EML is valued a bit cheaper than the industry average as 68.22% of the companies are valued more expensively.
EML is valuated rather cheaply when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EML indicates a somewhat cheap valuation: EML is cheaper than 72.87% of the companies listed in the same industry.
93.02% of the companies in the same industry are more expensive than EML, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.76 | ||
| EV/EBITDA | 10.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
EML has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
EML's Dividend Yield is a higher than the industry average which is at 1.72.
Compared to an average S&P500 Dividend Yield of 2.41, EML's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of EML decreases each year by -0.34%.
EML has been paying a dividend for at least 10 years, so it has a reliable track record.
As EML did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-0.34%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
32.21% of the earnings are spent on dividend by EML. This is a low number and sustainable payout ratio.
EML's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP32.21%
EPS Next 2YN/A
EPS Next 3YN/A
EASTERN CO/THE
NASDAQ:EML (4/29/2024, 3:03:10 PM)
31.52
-0.79 (-2.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap195.74M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 6.48% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.55% | ||
| PM (TTM) | 3.14% | ||
| GM | 23.76% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.63 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)0%
EPS 3Y17.22%
EPS 5Y
EPS growth Q2Q
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.07%
Revenue growth 3Y11.44%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y