EASTERN CO/THE (EML) Stock Fundamental Analysis
USA - NASDAQ:EML - US2763171046 - Common Stock
21.35 USD
-0.01 (-0.05%)
21.35 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to EML. EML was compared to 130 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year EML has reported negative net income.
EML had a positive operating cash flow in the past year.
Of the past 5 years EML 4 years were profitable.
Of the past 5 years EML 4 years had a positive operating cash flow.
1.2 Ratios
EML has a worse Return On Assets (-3.75%) than 74.62% of its industry peers.
Looking at the Return On Equity, with a value of -6.91%, EML is doing worse than 73.08% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.44%, EML is in line with its industry, outperforming 59.23% of the companies in the same industry.
EML had an Average Return On Invested Capital over the past 3 years of 7.26%. This is below the industry average of 10.04%.
The last Return On Invested Capital (8.44%) for EML is above the 3 year average (7.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.75% | ||
| ROE | -6.91% | ||
| ROIC | 8.44% |
ROA(3y)1.5%
ROA(5y)1.99%
ROE(3y)3.04%
ROE(5y)4.48%
ROIC(3y)7.26%
ROIC(5y)6.69%
1.3 Margins
EML has a Operating Margin (7.28%) which is in line with its industry peers.
In the last couple of years the Operating Margin of EML has remained more or less at the same level.
EML's Gross Margin of 24.94% is on the low side compared to the rest of the industry. EML is outperformed by 65.38% 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 | 7.28% | ||
| PM (TTM) | N/A | ||
| GM | 24.94% |
OM growth 3Y5.56%
OM growth 5Y0.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.54%
GM growth 5Y0.79%
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.
The number of shares outstanding for EML has been reduced compared to 1 year ago.
EML has less shares outstanding than it did 5 years ago.
EML has a worse debt/assets ratio than last year.
2.2 Solvency
EML has an Altman-Z score of 3.40. This indicates that EML is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EML (3.40) is better than 60.77% of its industry peers.
EML has a debt to FCF ratio of 10.73. This is a negative value and a sign of low solvency as EML would need 10.73 years to pay back of all of its debts.
The Debt to FCF ratio of EML (10.73) is comparable to the rest of the industry.
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 63.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 10.73 | ||
| Altman-Z | 3.4 |
ROIC/WACC0.87
WACC9.69%
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 71.54% of its industry peers.
A Quick Ratio of 1.33 indicates that EML should not have too much problems paying its short term obligations.
EML has a Quick ratio (1.33) which is in line with its industry peers.
| 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.
Looking at the last year, EML shows a decrease in Revenue. The Revenue has decreased by -0.83% in the last year.
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
The Earnings Per Share is expected to grow by 97.16% on average over the next years. This is a very strong growth
EML is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.25% yearly.
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.
EML is valuated reasonably with a Price/Forward Earnings ratio of 8.26.
EML's Price/Forward Earnings ratio is rather cheap when compared to the industry. EML is cheaper than 96.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EML to the average of the S&P500 Index (22.55), we can say EML is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.26 |
4.2 Price Multiples
95.38% of the companies in the same industry are more expensive than EML, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as EML.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.96 | ||
| EV/EBITDA | 6.42 |
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.
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
EML has a Yearly Dividend Yield of 2.06%.
EML's Dividend Yield is rather good when compared to the industry average which is at 1.81. EML pays more dividend than 86.15% of the companies in the same industry.
EML's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
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
5.3 Sustainability
EML has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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
21.35
-0.01 (-0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.03%
Inst Owner Change-0.21%
Ins Owners7.09%
Ins Owner Change3.85%
Market Cap130.24M
Revenue(TTM)271.44M
Net Income(TTM)-8600800
Analysts84
Price Target34.68 (62.44%)
Short Float %0.67%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.26 | ||
| P/S | 0.48 | ||
| P/FCF | 34.96 | ||
| P/OCF | 10.68 | ||
| P/B | 1.05 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 6.42 |
EPS(TTM)-1.38
EYN/A
EPS(NY)2.59
Fwd EY12.11%
FCF(TTM)0.61
FCFY2.86%
OCF(TTM)2
OCFY9.37%
SpS44.5
BVpS20.4
TBVpS8.89
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.75% | ||
| ROE | -6.91% | ||
| ROCE | 10.46% | ||
| ROIC | 8.44% | ||
| ROICexc | 8.87% | ||
| ROICexgc | 14.56% | ||
| OM | 7.28% | ||
| PM (TTM) | N/A | ||
| GM | 24.94% | ||
| FCFM | 1.37% |
ROA(3y)1.5%
ROA(5y)1.99%
ROE(3y)3.04%
ROE(5y)4.48%
ROIC(3y)7.26%
ROIC(5y)6.69%
ROICexc(3y)7.75%
ROICexc(5y)7.09%
ROICexgc(3y)13.8%
ROICexgc(5y)12.94%
ROCE(3y)8.99%
ROCE(5y)8.29%
ROICexgc growth 3Y11.52%
ROICexgc growth 5Y4.8%
ROICexc growth 3Y16.24%
ROICexc growth 5Y7.92%
OM growth 3Y5.56%
OM growth 5Y0.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.54%
GM growth 5Y0.79%
F-Score6
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 10.73 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 159.15% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 6.05 | ||
| Cash Conversion | 48.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 3.4 |
F-Score6
WACC9.69%
ROIC/WACC0.87
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 1Y2.37%
EBIT growth 3Y9.19%
EBIT growth 5Y2.32%
EBIT Next Year11.17%
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%
EASTERN CO/THE / EML FAQ
What is the ChartMill fundamental rating of EASTERN CO/THE (EML) stock?
ChartMill assigns a fundamental rating of 4 / 10 to EML.
What is the valuation status for EML stock?
ChartMill assigns a valuation rating of 5 / 10 to EASTERN CO/THE (EML). This can be considered as Fairly Valued.
What is the profitability of EML stock?
EASTERN CO/THE (EML) has a profitability rating of 3 / 10.
What is the expected EPS growth for EASTERN CO/THE (EML) stock?
The Earnings per Share (EPS) of EASTERN CO/THE (EML) is expected to grow by 245.97% in the next year.
How sustainable is the dividend of EASTERN CO/THE (EML) stock?
The dividend rating of EASTERN CO/THE (EML) is 6 / 10 and the dividend payout ratio is -31.5%.