EASTERN CO/THE (EML) Stock Fundamental Analysis
NASDAQ:EML - US2763171046 - Common Stock
23.96 USD
-0.13 (-0.54%)
EML gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
EML had positive earnings in 4 of the past 5 years.
EML had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
EML's Return On Assets of -3.75% is on the low side compared to the rest of the industry. EML is outperformed by 75.78% of its industry peers.
The Return On Equity of EML (-6.91%) is worse than 73.44% of its industry peers.
EML's Return On Invested Capital of 6.91% is in line compared to the rest of the industry. EML outperforms 51.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EML is below the industry average of 9.99%.
The 3 year average ROIC (6.90%) for EML is below the current ROIC(6.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.75% | ||
| ROE | -6.91% | ||
| ROIC | 6.91% |
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 worse Operating Margin (5.96%) than 60.94% of its industry peers.
EML's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 23.62%, EML is doing worse than 67.19% of the companies in the same industry.
EML's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.96% | ||
| PM (TTM) | N/A | ||
| GM | 23.62% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EML is destroying value.
The number of shares outstanding for EML has been reduced compared to 1 year ago.
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 3.45 indicates that EML is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.45, EML is doing good in the industry, outperforming 60.16% of the companies in the same industry.
The Debt to FCF ratio of EML is 10.73, which is on the high side as it means it would take EML, 10.73 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EML (10.73) is worse than 60.94% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that EML is not too dependend on debt financing.
EML's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. EML outperforms 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 10.73 | ||
| Altman-Z | 3.45 |
ROIC/WACC0.67
WACC10.36%
2.3 Liquidity
EML has a Current Ratio of 2.67. This indicates that EML is financially healthy and has no problem in meeting its short term obligations.
EML's Current ratio of 2.67 is fine compared to the rest of the industry. EML outperforms 71.88% of its industry peers.
A Quick Ratio of 1.33 indicates that EML should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.33, EML perfoms like the industry average, outperforming 55.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for EML have decreased strongly by -171.82% in the last year.
EML shows a decrease in Revenue. In the last year, the revenue decreased by -0.83%.
Measured over the past years, EML shows a small growth in Revenue. The Revenue has been growing by 1.62% on average per year.
EPS 1Y (TTM)-171.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y3.43%
Revenue growth 5Y1.62%
Sales Q2Q%-4.08%
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 97.16% on average per year.
Based on estimates for the next years, EML will show a small growth in Revenue. The Revenue will grow by 4.25% on average per year.
EPS Next Y245.97%
EPS Next 2Y97.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.56%
Revenue Next 2Y4.25%
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.
The Price/Forward Earnings ratio is 9.27, which indicates a very decent valuation of EML.
EML's Price/Forward Earnings ratio is rather cheap when compared to the industry. EML is cheaper than 95.31% of the companies in the same industry.
EML is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EML is valued cheaper than 87.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EML is valued a bit more expensive than the industry average as 64.84% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.23 | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
EML's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as EML's earnings are expected to grow with 97.16% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y97.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.87%, EML has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.78, EML pays a better dividend. On top of this EML pays more dividend than 82.81% of the companies listed in the same industry.
EML's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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-31.5%
EPS Next 2Y97.16%
EPS Next 3YN/A
NASDAQ:EML (9/5/2025, 5:20:02 PM)
23.96
-0.13 (-0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners73.95%
Inst Owner Change-0.53%
Ins Owners6.86%
Ins Owner Change3.93%
Market Cap146.16M
Analysts84
Price Target34.68 (44.74%)
Short Float %0.88%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Yearly Dividend0.44
Dividend Growth(5Y)0.21%
DP-31.5%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.02%
Min EPS beat(2)-22.72%
Max EPS beat(2)2.68%
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)1
Avg Revenue beat(2)-5.62%
Min Revenue beat(2)-12.12%
Max Revenue beat(2)0.87%
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)-4.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-15.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.27 | ||
| P/S | 0.54 | ||
| P/FCF | 39.23 | ||
| P/OCF | 11.98 | ||
| P/B | 1.17 | ||
| P/tB | 2.7 | ||
| EV/EBITDA | 8.28 |
EPS(TTM)-1.38
EYN/A
EPS(NY)2.59
Fwd EY10.79%
FCF(TTM)0.61
FCFY2.55%
OCF(TTM)2
OCFY8.35%
SpS44.5
BVpS20.4
TBVpS8.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.75% | ||
| ROE | -6.91% | ||
| ROCE | 8.56% | ||
| ROIC | 6.91% | ||
| ROICexc | 7.26% | ||
| ROICexgc | 11.91% | ||
| OM | 5.96% | ||
| PM (TTM) | N/A | ||
| GM | 23.62% | ||
| FCFM | 1.37% |
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-Score6
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 10.73 | ||
| Debt/EBITDA | 1.63 | ||
| Cap/Depr | 159.15% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 4.95 | ||
| Cash Conversion | 56.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 3.45 |
F-Score6
WACC10.36%
ROIC/WACC0.67
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)-171.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y245.97%
EPS Next 2Y97.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y3.43%
Revenue growth 5Y1.62%
Sales Q2Q%-4.08%
Revenue Next Year1.56%
Revenue Next 2Y4.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-16.27%
EBIT growth 3Y5.01%
EBIT growth 5Y-0.05%
EBIT Next Year24.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-83.82%
FCF growth 3YN/A
FCF growth 5Y-9.15%
OCF growth 1Y-55.22%
OCF growth 3YN/A
OCF growth 5Y-2.19%