ASX:EMB

Stock Analysis Report

Executive Summary

Embelton Limited manufactures and distributes flooring, structural noise and vibration control system, metal fabrication, rubber and cork sheeting, and other industrial products in Australia and internationally.


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.

Share Price & News

How has Embelton's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EMB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

EMB

-7.0%

AU Building

-7.1%

AU Market


1 Year Return

-8.7%

EMB

13.0%

AU Building

6.7%

AU Market

Return vs Industry: EMB underperformed the Australian Building industry which returned 13% over the past year.

Return vs Market: EMB underperformed the Australian Market which returned 6.7% over the past year.


Shareholder returns

EMBIndustryMarket
7 Day0.5%-7.0%-7.1%
30 Day-0.9%-4.4%-5.3%
90 Day0%-2.4%-3.2%
1 Year-5.2%-8.7%15.4%13.0%11.3%6.7%
3 Year2.6%-8.3%10.9%4.6%28.2%11.2%
5 Year95.0%57.1%39.0%23.9%40.9%9.2%

Price Volatility Vs. Market

How volatile is Embelton's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Embelton undervalued compared to its fair value and its price relative to the market?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EMB (A$11) is trading below our estimate of fair value (A$14.49)

Significantly Below Fair Value: EMB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EMB is poor value based on its PE Ratio (20.1x) compared to the Building industry average (15.2x).

PE vs Market: EMB is poor value based on its PE Ratio (20.1x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EMB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EMB is overvalued based on its PB Ratio (1.3x) compared to the XX Building industry average (1.1x).


Next Steps

Future Growth

How is Embelton forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.2%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Embelton has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Embelton performed over the past 5 years?

2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMB has high quality earnings.

Growing Profit Margin: EMB's current net profit margins (2%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: EMB's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: EMB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EMB had negative earnings growth (-50.8%) over the past year, making it difficult to compare to the Building industry average (5.3%).


Return on Equity

High ROE: EMB's Return on Equity (6.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Embelton's financial position?


Financial Position Analysis

Short Term Liabilities: EMB's short term assets (A$21.3M) exceed its short term liabilities (A$8.9M).

Long Term Liabilities: EMB's short term assets (A$21.3M) exceed its long term liabilities (A$4.9M).


Debt to Equity History and Analysis

Debt Level: EMB's debt to equity ratio (25.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if EMB's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: EMB's debt is well covered by operating cash flow (65.5%).

Interest Coverage: EMB's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: EMB has a high level of physical assets or inventory.

Debt Coverage by Assets: EMB's debt is covered by short term assets (assets are 4.7x debt).


Next Steps

Dividend

What is Embelton's current dividend yield, its reliability and sustainability?

3.64%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Embelton before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.6%marketbottom25%2.5%markettop25%5.8%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: EMB's dividend (3.64%) is higher than the bottom 25% of dividend payers in the Australian market (2.46%).

High Dividend: EMB's dividend (3.64%) is low compared to the top 25% of dividend payers in the Australian market (5.77%).


Stability and Growth of Payments

Stable Dividend: EMB's dividend payments have been volatile in the past 10 years.

Growing Dividend: EMB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73%), EMB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

James Embelton 0

9.3yrs

Tenure

AU$450,812

Compensation

Mr. James John Embelton, BA has been a Group Managing Director of Embelton Ltd., since October 2010. Mr. Embelton serves as Divisional Director of Macquarie Group Limited. He has 15 years experience in the ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD296.59K) is about average for companies of similar size in the Australian market ($USD252.03K).

Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Embelton
Managing Director9.3yrsAU$450.81k1.48% A$350.6k
Eggidio Galgano
Group Financial Manager & Company Secretary1.1yrsAU$245.52kno data
Phil Micallef
General Manager of Operations1.1yrsno datano data

1.1yrs

Average Tenure

Experienced Management: EMB's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
George Embelton
Chairman36.1yrsAU$104.07k46.55% A$11.0m
J. Baldwin
Independent Non-Executive Director17.7yrsAU$22.00k0.30% A$71.9k
Martin Crabb
Independent Non-Executive Director5.3yrsAU$22.00k0.36% A$84.6k

17.7yrs

Average Tenure

Experienced Board: EMB's board of directors are seasoned and experienced ( 17.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EMB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Embelton Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Embelton Limited
  • Ticker: EMB
  • Exchange: ASX
  • Founded:
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: AU$23.736m
  • Shares outstanding: 2.16m
  • Website: https://www.embelton.com

Location

  • Embelton Limited
  • 147 Bakers Road
  • Coburg
  • Victoria
  • 3058
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMBASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992

Biography

Embelton Limited manufactures and distributes flooring, structural noise and vibration control system, metal fabrication, rubber and cork sheeting, and other industrial products in Australia and internationally. It operates through Merchandising, Commercial, and Manufacturing segments. The company is involved in the distribution and merchandising of flooring and consumer products, such as wooden parquetry flooring; prefinished and natural strip flooring; timber, bamboo, laminate, and hybrid flooring; rubber and sports flooring; adhesives and finishes; other flooring accessories; and compressed cork sheets, blocks, and rolls. It also offers industrial and construction products, including structural noise and vibration isolation systems, spring and rubber anti-vibration mountings, seismic restraints for resiliently mounted equipment, recycled and natural rubber sheets, spandex cork jointing and other jointing media, and tube and pipe bending products. In addition, the company manufactures custom fabricators in steel, stainless steel, copper, aluminum, and nickel alloys for high temperature and general industrial use; vibration control devices; tube and pipe bending and rolling products; and parquetry flooring products. Embelton Limited is headquartered in Coburg, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 10:36
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.