EASTERN CO/THE (EML) Stock Fundamental Analysis
NASDAQ:EML - Nasdaq - US2763171046 - Common Stock - Currency: USD
Overall EML gets a fundamental rating of 4 out of 10. We evaluated EML against 128 industry peers in the Machinery industry. EML scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. EML is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
EML had negative earnings in the past year.
EML had a positive operating cash flow in the past year.
Of the past 5 years EML 4 years were profitable.
EML had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
EML has a Return On Assets of -3.67%. This is in the lower half of the industry: EML underperforms 73.44% of its industry peers.
Looking at the Return On Equity, with a value of -7.05%, EML is doing worse than 71.88% of the companies in the same industry.
With a Return On Invested Capital value of 7.70%, EML perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EML is below the industry average of 10.67%.
The 3 year average ROIC (6.90%) for EML is below the current ROIC(7.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.67% | ||
| ROE | -7.05% | ||
| ROIC | 7.7% |
ROA(3y)1.5%
ROA(5y)1.99%
ROE(3y)3.04%
ROE(5y)4.48%
ROIC(3y)6.9%
ROIC(5y)6.48%
1.3 Margins
EML has a Operating Margin (6.70%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of EML has declined.
EML has a Gross Margin of 24.03%. This is in the lower half of the industry: EML underperforms 66.41% 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 | 6.7% | ||
| PM (TTM) | N/A | ||
| GM | 24.03% |
OM growth 3Y1.53%
OM growth 5Y-1.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.29%
GM growth 5Y0.06%
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 less shares outstanding
The number of shares outstanding for EML has been reduced compared to 5 years ago.
Compared to 1 year ago, EML has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.36 indicates that EML is not in any danger for bankruptcy at the moment.
The Altman-Z score of EML (3.36) is comparable to the rest of the industry.
EML has a debt to FCF ratio of 6.72. This is a slightly negative value and a sign of low solvency as EML would need 6.72 years to pay back of all of its debts.
The Debt to FCF ratio of EML (6.72) is comparable to the rest of the industry.
EML has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
EML's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. EML outperforms 59.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 6.72 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.77
WACC9.95%
2.3 Liquidity
EML has a Current Ratio of 2.77. This indicates that EML is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.77, EML is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
EML has a Quick Ratio of 1.37. This is a normal value and indicates that EML is financially healthy and should not expect problems in meeting its short term obligations.
EML has a Quick ratio of 1.37. This is comparable to the rest of the industry: EML outperforms 58.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
EML shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -187.25%.
EML shows a small growth in Revenue. In the last year, the Revenue has grown by 2.06%.
The Revenue has been growing slightly by 1.62% on average over the past years.
EPS 1Y (TTM)-187.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3.23%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y3.43%
Revenue growth 5Y1.62%
Sales Q2Q%-6.8%
3.2 Future
Based on estimates for the next years, EML will show a very strong growth in Earnings Per Share. The EPS will grow by 99.58% on average per year.
Based on estimates for the next years, EML will show a small growth in Revenue. The Revenue will grow by 6.52% on average per year.
EPS Next Y271.77%
EPS Next 2Y99.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.05%
Revenue Next 2Y6.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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
The Price/Earnings Ratio is negative for EML. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 8.38, the valuation of EML can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EML indicates a rather cheap valuation: EML is cheaper than 93.75% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EML to the average of the S&P500 Index (22.17), we can say EML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EML indicates a rather cheap valuation: EML is cheaper than 85.94% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EML is valued a bit cheaper than the industry average as 61.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.71 | ||
| EV/EBITDA | 7.19 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EML's earnings are expected to grow with 99.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y99.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EML has a Yearly Dividend Yield of 1.91%.
EML's Dividend Yield is rather good when compared to the industry average which is at 1.90. EML pays more dividend than 80.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, EML has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
The dividend of EML has a limited annual growth rate of 0.21%.
EML has been paying a dividend for at least 10 years, so it has a reliable track record.
EML has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.21%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
The earnings of EML are negative and hence is the payout ratio. EML will probably not be able to sustain this dividend level.
EML's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-31.9%
EPS Next 2Y99.58%
EPS Next 3YN/A
22.78
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.06%
Inst Owner Change-0.58%
Ins Owners6.46%
Ins Owner Change1.39%
Market Cap139.41M
Analysts84
Price Target36.21 (58.96%)
Short Float %0.61%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend0.44
Dividend Growth(5Y)0.21%
DP-31.9%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)0%
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.38 | ||
| P/S | 0.51 | ||
| P/FCF | 20.71 | ||
| P/OCF | 8.99 | ||
| P/B | 1.15 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 7.19 |
EPS(TTM)-1.38
EYN/A
EPS(NY)2.72
Fwd EY11.93%
FCF(TTM)1.1
FCFY4.83%
OCF(TTM)2.54
OCFY11.13%
SpS44.84
BVpS19.77
TBVpS8.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.67% | ||
| ROE | -7.05% | ||
| ROCE | 9.54% | ||
| ROIC | 7.7% | ||
| ROICexc | 8.14% | ||
| ROICexgc | 13.28% | ||
| OM | 6.7% | ||
| PM (TTM) | N/A | ||
| GM | 24.03% | ||
| FCFM | 2.45% |
ROA(3y)1.5%
ROA(5y)1.99%
ROE(3y)3.04%
ROE(5y)4.48%
ROIC(3y)6.9%
ROIC(5y)6.48%
ROICexc(3y)7.36%
ROICexc(5y)6.86%
ROICexgc(3y)13.15%
ROICexgc(5y)12.54%
ROCE(3y)8.55%
ROCE(5y)8.02%
ROICexcg growth 3Y7.26%
ROICexcg growth 5Y2.38%
ROICexc growth 3Y11.8%
ROICexc growth 5Y5.43%
OM growth 3Y1.53%
OM growth 5Y-1.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.29%
GM growth 5Y0.06%
F-Score5
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 6.72 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 158.95% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 6 | ||
| Cash Conversion | 64.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 3.36 |
F-Score5
WACC9.95%
ROIC/WACC0.77
Cap/Depr(3y)104.92%
Cap/Depr(5y)80.09%
Cap/Sales(3y)2.3%
Cap/Sales(5y)1.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-187.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3.23%
EPS Next Y271.77%
EPS Next 2Y99.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.06%
Revenue growth 3Y3.43%
Revenue growth 5Y1.62%
Sales Q2Q%-6.8%
Revenue Next Year6.05%
Revenue Next 2Y6.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.4%
EBIT growth 3Y5.01%
EBIT growth 5Y-0.05%
EBIT Next Year44.41%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-61.13%
FCF growth 3YN/A
FCF growth 5Y-9.15%
OCF growth 1Y-27.06%
OCF growth 3YN/A
OCF growth 5Y-2.19%