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EASTERN CO/THE (EML) Stock Fundamental Analysis

NASDAQ:EML - Nasdaq - US2763171046 - Common Stock - Currency: USD

21.23  +0.24 (+1.14%)

After market: 21.23 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to EML. EML was compared to 128 industry peers in the Machinery industry. While EML seems to be doing ok healthwise, there are quite some concerns on its profitability. EML has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year EML was profitable.
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.
EML Yearly Net Income VS EBIT VS OCF VS FCFEML Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M 20M

1.2 Ratios

EML's Return On Assets of -3.62% is on the low side compared to the rest of the industry. EML is outperformed by 71.88% of its industry peers.
Looking at the Return On Equity, with a value of -7.07%, EML is doing worse than 70.31% of the companies in the same industry.
EML has a Return On Invested Capital (7.84%) which 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 10.69%.
The last Return On Invested Capital (7.84%) for EML is above the 3 year average (6.90%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -3.62%
ROE -7.07%
ROIC 7.84%
ROA(3y)1.5%
ROA(5y)1.99%
ROE(3y)3.04%
ROE(5y)4.48%
ROIC(3y)6.9%
ROIC(5y)6.48%
EML Yearly ROA, ROE, ROICEML Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10

1.3 Margins

EML's Operating Margin of 6.63% is in line compared to the rest of the industry. EML outperforms 43.75% of its industry peers.
In the last couple of years the Operating Margin of EML has declined.
EML has a worse Gross Margin (24.35%) than 65.63% 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 RankSector Rank
OM 6.63%
PM (TTM) N/A
GM 24.35%
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%
EML Yearly Profit, Operating, Gross MarginsEML Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15 20 25

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5

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.
EML has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EML has less shares outstanding
EML has a worse debt/assets ratio than last year.
EML Yearly Shares OutstandingEML Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M
EML Yearly Total Debt VS Total AssetsEML Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

2.2 Solvency

EML has an Altman-Z score of 3.27. This indicates that EML is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.27, EML perfoms like the industry average, outperforming 54.69% of the companies in the same industry.
EML has a debt to FCF ratio of 4.25. This is a neutral value as EML would need 4.25 years to pay back of all of its debts.
EML's Debt to FCF ratio of 4.25 is in line compared to the rest of the industry. EML outperforms 54.69% of its industry peers.
EML has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
EML's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. EML outperforms 55.47% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 4.25
Altman-Z 3.27
ROIC/WACC0.78
WACC10.03%
EML Yearly LT Debt VS Equity VS FCFEML Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M 100M

2.3 Liquidity

A Current Ratio of 2.58 indicates that EML has no problem at all paying its short term obligations.
EML's Current ratio of 2.58 is fine compared to the rest of the industry. EML outperforms 66.41% of its industry peers.
A Quick Ratio of 1.35 indicates that EML should not have too much problems paying its short term obligations.
The Quick ratio of EML (1.35) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.58
Quick Ratio 1.35
EML Yearly Current Assets VS Current LiabilitesEML Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

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1

3. Growth

3.1 Past

EML shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -200.64%.
EML shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.98% yearly.
The Revenue has been growing slightly by 2.04% in the past year.
Measured over the past years, EML shows a small growth in Revenue. The Revenue has been growing by 2.01% on average per year.
EPS 1Y (TTM)-200.64%
EPS 3Y16.96%
EPS 5Y-9.98%
EPS Q2Q%-25%
Revenue 1Y (TTM)2.04%
Revenue growth 3Y9.42%
Revenue growth 5Y2.01%
Sales Q2Q%-0.45%

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.
EML Yearly Revenue VS EstimatesEML Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
EML Yearly EPS VS EstimatesEML Yearly EPS VS EstimatesYearly EPS VS Estimates 2023 0.5 1 1.5

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.73, which indicates a very decent valuation of EML.
Based on the Price/Earnings ratio, EML is valued cheaper than 85.94% of the companies in the same industry.
EML is valuated cheaply when we compare the Price/Earnings ratio to 27.85, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.73
Fwd PE N/A
EML Price Earnings VS Forward Price EarningsEML Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

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.
85.16% of the companies in the same industry are more expensive than EML, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 12
EV/EBITDA 6.42
EML Per share dataEML EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

EML has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of EML has falen by -21.43%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
EML's Dividend Yield is rather good when compared to the industry average which is at 2.04. EML pays more dividend than 84.38% of the companies in the same industry.
EML's Dividend Yield is comparable with the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 2.23%

5.2 History

The dividend of EML has a limited annual growth rate of 0.21%.
EML has paid a dividend for at least 10 years, which is a reliable track record.
EML has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.21%
Div Incr Years0
Div Non Decr Years34
EML Yearly Dividends per shareEML Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4

5.3 Sustainability

EML has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-32.01%
EPS Next 2YN/A
EPS Next 3YN/A
EML Yearly Income VS Free CF VS DividendEML Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5M -5M 10M 15M 20M

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EASTERN CO/THE

NASDAQ:EML (5/1/2025, 5:05:44 PM)

After market: 21.23 0 (0%)

21.23

+0.24 (+1.14%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)03-11 2025-03-11/amc
Earnings (Next)05-06 2025-05-06
Inst Owners74.06%
Inst Owner Change0.07%
Ins Owners6.46%
Ins Owner Change1.59%
Market Cap130.14M
Analysts0
Price Target36.21 (70.56%)
Short Float %0.53%
Short Ratio3.04
Dividend
Industry RankSector Rank
Dividend Yield 2.23%
Yearly Dividend0.44
Dividend Growth(5Y)0.21%
DP-32.01%
Div Incr Years0
Div Non Decr Years34
Ex-Date02-14 2025-02-14 (0.11)
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)N/A
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 RankSector Rank
PE 11.73
Fwd PE N/A
P/S 0.47
P/FCF 12
P/OCF 6.33
P/B 1.08
P/tB 2.63
EV/EBITDA 6.42
EPS(TTM)1.81
EY8.53%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)1.77
FCFY8.33%
OCF(TTM)3.35
OCFY15.79%
SpS45.52
BVpS19.69
TBVpS8.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.62%
ROE -7.07%
ROCE 9.71%
ROIC 7.84%
ROICexc 8.56%
ROICexgc 14.47%
OM 6.63%
PM (TTM) N/A
GM 24.35%
FCFM 3.89%
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 Turnover1.19
Health
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 4.25
Debt/EBITDA 1.71
Cap/Depr 164.9%
Cap/Sales 3.48%
Interest Coverage 5.74
Cash Conversion 84.27%
Profit Quality N/A
Current Ratio 2.58
Quick Ratio 1.35
Altman-Z 3.27
F-Score5
WACC10.03%
ROIC/WACC0.78
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)-200.64%
EPS 3Y16.96%
EPS 5Y-9.98%
EPS Q2Q%-25%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.04%
Revenue growth 3Y9.42%
Revenue growth 5Y2.01%
Sales Q2Q%-0.45%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.82%
EBIT growth 3Y5.01%
EBIT growth 5Y-0.05%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-48.22%
FCF growth 3YN/A
FCF growth 5Y-9.15%
OCF growth 1Y-22.4%
OCF growth 3YN/A
OCF growth 5Y-2.19%