Embelton
Market Cap
AU$23.7m
Last Updated
2020/02/28 10:36 UTC
Data Sources
Company Financials
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.
Rewards
Risk Analysis
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
| EMB | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | -7.0% | -7.1% |
| 30 Day | -0.9% | -4.4% | -5.3% |
| 90 Day | 0% | -2.4% | -3.2% |
| 1 Year | -5.2%-8.7% | 15.4%13.0% | 11.3%6.7% |
| 3 Year | 2.6%-8.3% | 10.9%4.6% | 28.2%11.2% |
| 5 Year | 95.0%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
3 days ago | Simply Wall St
Is Embelton Limited's (ASX:EMB) CEO Paid At A Competitive Rate?2 weeks ago | Simply Wall St
Is Embelton Limited's (ASX:EMB) 7.4% ROE Worse Than Average?4 weeks ago | Simply Wall St
Should We Worry About Embelton Limited's (ASX:EMB) P/E Ratio?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
- Examine Embelton's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Embelton competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Capital Goods industry.
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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Managing Director | 9.3yrs | AU$450.81k | 1.48% A$350.6k | |
| Group Financial Manager & Company Secretary | 1.1yrs | AU$245.52k | no data | |
| General Manager of Operations | 1.1yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 36.1yrs | AU$104.07k | 46.55% A$11.0m | |
| Independent Non-Executive Director | 17.7yrs | AU$22.00k | 0.30% A$71.9k | |
| Independent Non-Executive Director | 5.3yrs | AU$22.00k | 0.36% 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| EMB | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/28 10:36 |
| End of Day Share Price | 2020/02/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.