EASTERN CO/THE (EML) Stock Fundamental Analysis
USA - NASDAQ:EML - US2763171046 - Common Stock
22.83 USD
+0.28 (+1.24%)
Taking everything into account, EML scores 4 out of 10 in our fundamental rating. EML was compared to 129 industry peers in the Machinery industry. The financial health of EML is average, but 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.
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
With a Return On Assets value of -3.75%, EML is not doing good in the industry: 75.19% of the companies in the same industry are doing better.
EML has a Return On Equity of -6.91%. This is in the lower half of the industry: EML underperforms 73.64% of its industry peers.
EML's Return On Invested Capital of 8.44% is in line compared to the rest of the industry. EML outperforms 59.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EML is below the industry average of 10.04%.
The 3 year average ROIC (7.26%) for EML is below the current ROIC(8.44%), indicating increased profibility in the last year.
| 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
With a Operating Margin value of 7.28%, EML perfoms like the industry average, outperforming 45.74% of the companies in the same industry.
In the last couple of years the Operating Margin of EML has remained more or less at the same level.
EML has a Gross Margin of 24.94%. This is in the lower half of the industry: EML underperforms 65.89% of its industry peers.
EML's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EML is destroying value.
Compared to 1 year ago, EML has less shares outstanding
Compared to 5 years ago, EML has less shares outstanding
EML has a worse debt/assets ratio than last year.
2.2 Solvency
EML has an Altman-Z score of 3.46. This indicates that EML is financially healthy and has little risk of bankruptcy at the moment.
EML has a Altman-Z score (3.46) which is in line with its industry peers.
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.
EML's Debt to FCF ratio of 10.73 is in line compared to the rest of the industry. EML outperforms 40.31% of its industry peers.
EML has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
EML's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. EML outperforms 64.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 10.73 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.85
WACC9.94%
2.3 Liquidity
A Current Ratio of 2.67 indicates that EML has no problem at all paying its short term obligations.
EML has a better Current ratio (2.67) than 72.09% of its industry peers.
EML has a Quick Ratio of 1.33. This is a normal value and indicates that EML is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.33, EML perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
EML shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -171.82%.
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
EML is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 97.16% yearly.
The Revenue is expected to grow by 4.25% on average over the next years.
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 8.83, the valuation of EML can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EML is valued cheaper than 96.90% of the companies in the same industry.
EML is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EML is valued cheaply inside the industry as 94.57% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EML is valued a bit more expensive than the industry average as 62.02% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.38 | ||
| EV/EBITDA | 6.78 |
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
With a Yearly Dividend Yield of 1.95%, EML has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.77, EML pays a better dividend. On top of this EML pays more dividend than 83.72% of the companies listed in the same industry.
EML's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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 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.
The dividend of EML is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-31.5%
EPS Next 2Y97.16%
EPS Next 3YN/A
NASDAQ:EML (10/3/2025, 8:00:02 PM)
22.83
+0.28 (+1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.03%
Inst Owner Change0%
Ins Owners7.09%
Ins Owner Change3.85%
Market Cap139.26M
Analysts84
Price Target34.68 (51.91%)
Short Float %0.6%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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 | 8.83 | ||
| P/S | 0.51 | ||
| P/FCF | 37.38 | ||
| P/OCF | 11.42 | ||
| P/B | 1.12 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 6.78 |
EPS(TTM)-1.38
EYN/A
EPS(NY)2.59
Fwd EY11.33%
FCF(TTM)0.61
FCFY2.68%
OCF(TTM)2
OCFY8.76%
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 | 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%
ROICexcg growth 3Y11.52%
ROICexcg 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 | 3.46 |
F-Score6
WACC9.94%
ROIC/WACC0.85
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%