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Eastern

Nasdaq:EML
Snowflake Description

Solid track record with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EML
Nasdaq
$175M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

The Eastern Company designs, manufactures, and sells industrial hardware, security products, and metal products in the United States and internationally. The last earnings update was 33 days ago. More info.


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EML Share Price and Events
7 Day Returns
-2.4%
NasdaqGM:EML
0.7%
US Machinery
0.4%
US Market
1 Year Returns
-1.8%
NasdaqGM:EML
0.2%
US Machinery
6.8%
US Market
EML Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Eastern (EML) -2.4% -3.9% 10.2% -1.8% 66.9% 76.2%
US Machinery 0.7% 5.6% 14.3% 0.2% 50.2% 31.1%
US Market 0.4% 2.6% 11% 6.8% 38.1% 45.7%
1 Year Return vs Industry and Market
  • EML underperformed the Machinery industry which returned 0.2% over the past year.
  • EML underperformed the Market in United States of America which returned 6.8% over the past year.
Price Volatility
EML
Industry
5yr Volatility vs Market

EML Value

 Is Eastern undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Eastern to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Eastern.

NasdaqGM:EML Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:EML
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.067 (1 + (1- 21%) (16.42%))
1.137
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.137 * 5.96%)
9.51%

Discounted Cash Flow Calculation for NasdaqGM:EML using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Eastern is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGM:EML DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.51%)
2019 8.81 Est @ -3.52% 8.05
2020 8.67 Est @ -1.64% 7.23
2021 8.64 Est @ -0.33% 6.58
2022 8.69 Est @ 0.59% 6.04
2023 8.79 Est @ 1.23% 5.58
2024 8.94 Est @ 1.68% 5.19
2025 9.12 Est @ 1.99% 4.83
2026 9.32 Est @ 2.22% 4.51
2027 9.54 Est @ 2.37% 4.21
2028 9.78 Est @ 2.48% 3.94
Present value of next 10 years cash flows $56.15
NasdaqGM:EML DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $9.78 × (1 + 2.73%) ÷ (9.51% – 2.73%)
$148.21
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $148.21 ÷ (1 + 9.51%)10
$59.76
NasdaqGM:EML Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $56.15 + $59.76
$115.91
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $115.91 / 6.23
$18.6
NasdaqGM:EML Discount to Share Price
Calculation Result
Value per share (USD) From above. $18.60
Current discount Discount to share price of $28.03
= -1 x ($28.03 - $18.60) / $18.60
-50.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Eastern is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Eastern's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Eastern's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:EML PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-29) in USD $2.32
NasdaqGM:EML Share Price ** NasdaqGM (2019-04-16) in USD $28.03
United States of America Machinery Industry PE Ratio Median Figure of 103 Publicly-Listed Machinery Companies 21.72x
United States of America Market PE Ratio Median Figure of 3,072 Publicly-Listed Companies 18.08x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Eastern.

NasdaqGM:EML PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:EML Share Price ÷ EPS (both in USD)

= 28.03 ÷ 2.32

12.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Eastern is good value based on earnings compared to the US Machinery industry average.
  • Eastern is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Eastern's expected growth come at a high price?
Raw Data
NasdaqGM:EML PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
7.5%per year
United States of America Machinery Industry PEG Ratio Median Figure of 83 Publicly-Listed Machinery Companies 1.6x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Eastern, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Eastern's assets?
Raw Data
NasdaqGM:EML PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-29) in USD $15.55
NasdaqGM:EML Share Price * NasdaqGM (2019-04-16) in USD $28.03
United States of America Machinery Industry PB Ratio Median Figure of 129 Publicly-Listed Machinery Companies 2.43x
United States of America Market PB Ratio Median Figure of 5,176 Publicly-Listed Companies 1.91x
NasdaqGM:EML PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:EML Share Price ÷ Book Value per Share (both in USD)

= 28.03 ÷ 15.55

1.8x

* Primary Listing of Eastern.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Eastern is good value based on assets compared to the US Machinery industry average.
X
Value checks
We assess Eastern's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Eastern has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

EML Future Performance

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

  • No analysts cover Eastern, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Eastern expected to grow at an attractive rate?
  • Eastern's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Eastern's earnings growth is positive but not above the United States of America market average.
  • Unable to compare Eastern's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:EML Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:EML Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 7.5%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 11%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:EML Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:EML Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2018-12-31
NasdaqGM:EML Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-29 234 13 15
2018-09-29 232 8 10
2018-06-30 230 10 8
2018-03-31 228 9 7
2017-12-30 204 11 5
2017-09-30 184 14 8
2017-07-01 162 13 8
2017-04-01 141 14 9
2016-12-31 138 12 8
2016-10-01 138 14 7
2016-07-02 141 14 7
2016-04-02 141 9 6
2016-01-02 145 9 6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Eastern's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Eastern is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:EML Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Eastern Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:EML Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2018-12-31
NasdaqGM:EML Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-29 2.32
2018-09-29 1.59
2018-06-30 1.34
2018-03-31 1.06
2017-12-30 0.81
2017-09-30 1.26
2017-07-01 1.28
2017-04-01 1.38
2016-12-31 1.25
2016-10-01 1.10
2016-07-02 1.12
2016-04-02 0.88
2016-01-02 0.92

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Eastern will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Eastern's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Eastern has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

EML Past Performance

  How has Eastern performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Eastern's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Eastern's year on year earnings growth rate has been positive over the past 5 years.
  • Eastern's 1-year earnings growth exceeds its 5-year average (185.8% vs 7.9%)
  • Eastern's earnings growth has exceeded the US Machinery industry average in the past year (185.8% vs 29.8%).
Earnings and Revenue History
Eastern's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Eastern Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:EML Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-29 234.28 14.51 33.03 6.95
2018-09-29 231.81 9.96 32.76 6.55
2018-06-30 230.46 8.42 33.22 6.39
2018-03-31 227.64 6.63 34.19 6.38
2017-12-30 204.24 5.05 31.09 5.62
2017-09-30 184.24 7.86 30.23 4.74
2017-07-01 161.71 8.03 27.51 4.88
2017-04-01 140.55 8.65 23.06 3.20
2016-12-31 137.61 7.79 22.64 2.57
2016-10-01 137.88 6.88 21.91 1.99
2016-07-02 140.64 7.00 22.29
2016-04-02 140.79 5.50 23.85
2016-01-02 144.57 5.73 23.76 2.46
2015-10-03 144.55 6.02 24.27
2015-07-04 144.11 5.92 23.58
2015-04-04 141.85 7.03 21.52
2015-01-03 140.83 7.66 20.77
2014-09-27 140.69 7.55 20.19
2014-06-28 139.15 6.92 20.06
2014-03-29 143.62 7.40 20.30
2013-12-28 142.46 6.90 19.76
2013-09-28 144.01 6.70 19.53
2013-06-29 149.39 7.13 19.59
2013-03-30 151.71 7.59 19.47
2012-12-29 157.51 8.63 19.80
2012-09-29 159.76 8.37 19.93
2012-06-30 156.20 7.60 19.53

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Eastern has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Eastern used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.
  • Eastern has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Eastern's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Eastern has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

EML Health

 How is Eastern's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Eastern's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Eastern is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Eastern's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Eastern's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Eastern Company Filings, last reported 3 months ago.

NasdaqGM:EML Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-29 96.87 28.68 13.93
2018-09-29 95.16 29.06 11.36
2018-06-30 92.52 35.45 18.98
2018-03-31 90.42 30.84 16.36
2017-12-30 86.93 35.23 22.28
2017-09-30 87.62 35.69 21.56
2017-07-01 85.40 36.11 19.40
2017-04-01 84.02 1.43 23.80
2016-12-31 82.47 1.79 22.73
2016-10-01 81.58 2.14 21.64
2016-07-02 79.87 2.14 20.25
2016-04-02 80.01 2.50 16.73
2016-01-02 79.41 3.21 17.81
2015-10-03 76.28 3.21 13.61
2015-07-04 75.14 3.57 13.32
2015-04-04 74.91 3.93 14.14
2015-01-03 74.97 4.29 15.83
2014-09-27 84.91 5.00 21.20
2014-06-28 83.66 5.36 19.38
2014-03-29 82.15 5.71 18.52
2013-12-28 81.50 6.07 19.99
2013-09-28 75.14 6.43 19.08
2013-06-29 73.54 6.79 18.17
2013-03-30 72.14 7.14 16.89
2012-12-29 71.58 7.50 18.48
2012-09-29 75.45 7.86 17.82
2012-06-30 73.08 8.21 14.48
  • Eastern's level of debt (29.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (7.4% vs 29.6% today).
  • Debt is well covered by operating cash flow (44.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.6x coverage).
X
Financial health checks
We assess Eastern's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Eastern has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

EML Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.57%
Current annual income from Eastern dividends.
If you bought $2,000 of Eastern shares you are expected to receive $31 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Eastern's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Eastern's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:EML Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 77 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:EML Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2018-12-31
NasdaqGM:EML Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-06 0.440 1.582
2018-11-01 0.440 1.665
2018-08-02 0.440 1.572
2018-05-02 0.440 1.484
2018-02-08 0.440 1.593
2017-11-03 0.440 1.629
2017-08-02 0.440 1.587
2017-05-03 0.440 1.484
2017-02-08 0.440 2.048
2016-11-03 0.440 2.168
2016-07-29 0.440 2.286
2016-04-29 0.440 2.667
2016-02-11 0.440 2.721
2015-10-28 0.440 2.553
2015-07-29 0.440 2.684
2015-04-29 0.440 2.320
2015-02-11 0.440 2.219
2014-10-22 0.440 2.545
2014-07-23 0.440 2.795
2014-04-23 0.440 2.759
2014-02-06 0.440 2.743
2013-10-23 0.440 2.666
2013-07-24 0.440 2.662
2013-04-24 0.400 2.556
2013-02-06 0.400 2.413
2012-10-24 0.400 2.614
2012-07-25 0.400 2.215
2012-04-26 0.400 2.100
2012-02-08 0.400 2.007
2011-10-26 0.360 1.838
2011-07-27 0.360 1.929
2011-04-27 0.360 2.107
2011-02-09 0.360 1.906
2010-10-27 0.360 1.991
2010-07-28 0.360 2.182
2010-04-28 0.360 2.535
2010-02-09 0.360 2.700
2009-10-21 0.360 2.630
2009-07-22 0.360 2.167
2009-04-23 0.360 2.451
2009-04-17 0.360 3.098

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Eastern's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Eastern's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Eastern afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Eastern has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

EML Management

 What is the CEO of Eastern's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gus Vlak
COMPENSATION $1,158,481
AGE 51
TENURE AS CEO 3.3 years
CEO Bio

Mr. August M. Vlak, also known as Gus, has been the Chief Executive Officer and President at The Eastern Company since January 1, 2016. Mr. Vlak serves as Managing Director at DM Capital. He has been a management consultant and most recently, a Senior Advisor to Barington Capital Group, L.P. He is a Senior Advisor at Maker Capital LLC. Mr. Vlak was a Partner at Katzenbach Partners, LLC. He joined Katzenbach Partners experience in management consulting, finance and entrepreneurship. He served as a Senior Advisor at Booz & Company, Mr. Vlak's consulting work focused on growth strategy and operational performance improvement at more than 50 companies - including leading domestic and global industrial enterprises - where he has worked directly with numerous senior management teams and boards of directors. Mr. Vlak was a Consultant at McKinsey & Company, where he was a member of the health care practice. He was an Investment Banker with Lehman Brother's Health Care Banking Group. He has been a Director of The Eastern Company since May 3, 2017. Mr. Vlak holds a B.A. degree in Economics from Amherst College, where he was elected Phi Beta Kappa and an M.B.A. from Stanford University.

CEO Compensation
  • Gus's compensation has been consistent with company performance over the past year.
  • Gus's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Eastern management team in years:

12.3
Average Tenure
60
Average Age
  • The average tenure for the Eastern management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Gus Vlak

TITLE
President
COMPENSATION
$1M
AGE
51
TENURE
3.3 yrs

John Sullivan

TITLE
VP & CFO
COMPENSATION
$575K
AGE
65
TENURE
12.3 yrs

Chris Moulton

TITLE
Head of Corporate Development & Investor Relations

Theresa Dews

TITLE
Secretary
TENURE
12.3 yrs

Gene Finelli

TITLE
Treasurer
TENURE
12.3 yrs

Angelo Labbadia

TITLE
Group Vice President
COMPENSATION
$568K
AGE
60
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Eastern board of directors in years:

3.6
Average Tenure
66
Average Age
  • The tenure for the Eastern board of directors is about average.
Board of Directors

James Mitarotonda

TITLE
Chairman
COMPENSATION
$65K
AGE
64
TENURE
3.3 yrs

Gus Vlak

TITLE
President
COMPENSATION
$1M
AGE
51
TENURE
1.9 yrs

Michael McManus

TITLE
Independent Director
COMPENSATION
$40K
AGE
75
TENURE
3.9 yrs

Fred DiSanto

TITLE
Independent Director
COMPENSATION
$48K
AGE
56
TENURE
3 yrs

Charles Henry

TITLE
Independent Director
COMPENSATION
$33K
AGE
68
TENURE
30.3 yrs

John Everets

TITLE
Independent Director
COMPENSATION
$33K
AGE
71
TENURE
26.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. Mar 19 Buy Teton Advisors, Inc Company 24. Jan 19 14. Mar 19 3,700 $27.70 $101,161
22. Mar 19 Sell GAMCO Investors, Inc. Company 18. Mar 19 19. Mar 19 -200 $28.51 $0
22. Mar 19 Buy GAMCO Investors, Inc. Company 22. Jan 19 21. Mar 19 42,496 $29.30 $187,593
15. Aug 18 Buy August Vlak Individual 10. Aug 18 10. Aug 18 3,500 $26.58 $93,030
X
Management checks
We assess Eastern's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Eastern has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

EML News

Simply Wall St News

Is The Eastern Company's (NASDAQ:EML) CEO Salary Justified?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … According to our data, The Eastern Company has a market capitalization of US$171m, and pays its CEO total annual compensation worth US$1.2m. … While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$450k

Simply Wall St -

Does The Eastern Company (NASDAQ:EML) Have A Good P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll show how you can use The Eastern Company's (NASDAQ:EML) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Take Comfort From Insider Transactions At The Eastern Company (NASDAQ:EML)?

We often see insiders buying up shares in companies that perform well over the long term. … So shareholders might well want to know whether insiders have been buying or selling shares in The Eastern Company (NASDAQ:EML). … We generally consider it a positive if insiders have been buying on market, even if the share price has increased a bit since then

Simply Wall St -

Did You Miss Eastern's 80% Share Price Gain?

To wit, the Eastern share price has climbed 80% in five years, easily topping the market return of 40% (ignoring dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … This EPS growth is slower than the share price growth of 12% per year, over the same period.

Simply Wall St -

Is The Eastern Company (NASDAQ:EML) A Financially Sound Company?

While small-cap stocks, such as The Eastern Company (NASDAQ:EML) with its market cap of US$172m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … since poor capital management may bring about bankruptcies,

Simply Wall St -

Is The Eastern Company (NASDAQ:EML) A Smart Choice For Dividend Investors?

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Historically, The Eastern Company (NASDAQ:EML) has paid dividends to shareholders, and these days it yields 1.6%. … Let's dig deeper into whether Eastern should have a place in your portfolio.

Simply Wall St -

The Eastern Company (NASDAQ:EML) Delivered A Weaker ROE Than Its Industry

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Eastern has a return on equity of 10% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Kind Of Investor Owns Most Of The Eastern Company (NASDAQ:EML)?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that used to be publicly owned tend to have lower insider ownership. … Eastern is a smaller company with a market capitalization of US$159m, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand The Eastern Company (NASDAQ:EML)

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll show how you can use The Eastern Company's (NASDAQ:EML) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

The Eastern Company (NASDAQ:EML): Time For A Financial Health Check

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

EML Company Info

Description

The Eastern Company designs, manufactures, and sells industrial hardware, security products, and metal products in the United States and internationally. The company’s Industrial Hardware segment offers passenger restraint and vehicular locks, latches, hinges, mirrors, mirror-cameras, light-weight sleeper boxes, and truck bodies for tractor-trailer trucks, specialty commercial vehicles, recreational vehicles, fire and rescue vehicles, school buses, military vehicles, and other vehicles. This segment also provides fasteners and other closure devices. The company’s Security Products segment offers engineered and standard closing and locking systems, including vehicular accessory locks, cabinet locks, cam locks, electric switch locks, tubular key locks, and combination. Its products also include timers, drop meters, coin chutes, money boxes, meter cases, smart cards, value transfer stations, smart card readers, card management software, and access control units. In addition, this segment provides coin acceptors and other coin security products for the commercial laundry markets; and circuit boards and other electronic assemblies to various industries, including measurement systems, semiconductor equipment manufacturing, and industrial controls, medical, and military products. The company’s Metal Products segment offers expansion shells to support the roofs of underground mines; and specialty malleable and ductile iron castings. This segment’s products include mine roof support anchors, couplers for railroad braking systems, support anchoring for construction, and couplers/fittings for utility industries. The company sells its products to original equipment manufacturers, distributors, and sales representatives. The Eastern Company was founded in 1858 and is based in Naugatuck, Connecticut.

Details
Name: The Eastern Company
EML
Exchange: NasdaqGM
Founded: 1858
$174,666,394
6,231,409
Website: http://www.easterncompany.com
Address: The Eastern Company
112 Bridge Street,
PO Box 460,
Naugatuck,
Connecticut, 06770,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM EML Common Stock Nasdaq Global Market US USD 02. Jan 1968
Number of employees
Current staff
Staff numbers
1,327
Eastern employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/16 23:36
End of day share price update: 2019/04/16 00:00
Last estimates confirmation: 2019/03/14
Last earnings filing: 2019/03/14
Last earnings reported: 2018/12/29
Last annual earnings reported: 2018/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.