Market Cap
US$159.2m
Last Updated
2021/01/22 23:29 UTC
Data Sources
Company Financials
Executive Summary
The Eastern Company designs, manufactures, and sells various engineered solutions for various industrial markets in the United States and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued average dividend payer.
Similar Companies
Share Price & News
How has Eastern's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: EML is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: EML's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
1.8%
EML
-0.3%
US Machinery
1.4%
US Market
1 Year Return
-13.0%
EML
25.9%
US Machinery
22.6%
US Market
Return vs Industry: EML underperformed the US Machinery industry which returned 26% over the past year.
Return vs Market: EML underperformed the US Market which returned 22.8% over the past year.
Shareholder returns
| EML | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | -0.3% | 1.4% |
| 30 Day | 2.9% | 7.3% | 4.9% |
| 90 Day | 15.2% | 16.1% | 14.6% |
| 1 Year | -11.1%-13.0% | 29.0%25.9% | 25.4%22.6% |
| 3 Year | -0.3%-5.6% | 30.0%20.8% | 46.8%37.0% |
| 5 Year | 69.2%53.5% | 177.2%146.7% | 132.0%106.1% |
Long-Term Price Volatility Vs. Market
How volatile is Eastern's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Does Eastern's (NASDAQ:EML) Statutory Profit Adequately Reflect Its Underlying Profit?3 weeks ago | Simply Wall St
Eastern (NASDAQ:EML) Has A Somewhat Strained Balance Sheet1 month ago | Simply Wall St
Is The Eastern Company's (NASDAQ:EML) Recent Stock Performance Influenced By Its Fundamentals In Any Way?Valuation
Is Eastern undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EML ($24.55) is trading below our estimate of fair value ($105.56)
Significantly Below Fair Value: EML is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: EML is good value based on its PE Ratio (17.1x) compared to the US Machinery industry average (32.7x).
PE vs Market: EML is good value based on its PE Ratio (17.1x) compared to the US market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate EML's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: EML is good value based on its PB Ratio (1.4x) compared to the US Machinery industry average (3x).
Next Steps
Future Growth
How is Eastern forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
25.9%
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 Eastern 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 whether Eastern is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Explore growth companies in the Capital Goods industry.
Past Performance
How has Eastern performed over the past 5 years?
16.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EML has a large one-off loss of $3.7M impacting its October 3 2020 financial results.
Growing Profit Margin: EML's current net profit margins (3.6%) are lower than last year (5.3%).
Past Earnings Growth Analysis
Earnings Trend: EML's earnings have grown by 16.3% per year over the past 5 years.
Accelerating Growth: EML's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: EML had negative earnings growth (-29.5%) over the past year, making it difficult to compare to the Machinery industry average (-15.5%).
Return on Equity
High ROE: EML's Return on Equity (8.4%) is considered low.
Next Steps
Financial Health
How is Eastern's financial position?
Financial Position Analysis
Short Term Liabilities: EML's short term assets ($107.9M) exceed its short term liabilities ($33.4M).
Long Term Liabilities: EML's short term assets ($107.9M) do not cover its long term liabilities ($131.8M).
Debt to Equity History and Analysis
Debt Level: EML's debt to equity ratio (89.5%) is considered high.
Reducing Debt: EML's debt to equity ratio has increased from 4.2% to 89.5% over the past 5 years.
Debt Coverage: EML's debt is well covered by operating cash flow (28.6%).
Interest Coverage: EML's interest payments on its debt are well covered by EBIT (6x coverage).
Balance Sheet
Next Steps
Dividend
What is Eastern current dividend yield, its reliability and sustainability?
1.73%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EML's dividend (1.79%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: EML's dividend (1.79%) is low compared to the top 25% of dividend payers in the US market (3.86%).
Stability and Growth of Payments
Stable Dividend: EML's dividends per share have been stable in the past 10 years.
Growing Dividend: EML's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.6%), EML's dividend payments are well 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?
5.0yrs
Average management tenure
CEO
Gus Vlak (53 yo)
5yrs
Tenure
US$902,146
Compensation
Mr. August M. Vlak, also known as Gus, has been the Chief Executive Officer and President at The Eastern Company since January 1, 2016. Mr. Vlak serves as Managing Director at DM Capital. He has been a man...
CEO Compensation Analysis
Compensation vs Market: Gus's total compensation ($USD902.15K) is about average for companies of similar size in the US market ($USD989.90K).
Compensation vs Earnings: Gus's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5yrs | US$902.15k | 0.29% $ 467.4k | |
| VP & CFO | 14.08yrs | US$831.04k | 0.49% $ 777.6k | |
| Chief Operating Officer | 0.083yr | no data | no data | |
| Head of Corporate Development & Investor Relations | no data | no data | no data | |
| Secretary | 14.08yrs | no data | no data | |
| Treasurer | no data | no data | no data | |
| Group Vice President | 3yrs | US$567.98k | no data |
5.0yrs
Average Tenure
59.5yo
Average Age
Experienced Management: EML's management team is seasoned and experienced (5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5yrs | US$902.15k | 0.29% $ 467.4k | |
| Independent Director | 28yrs | US$36.01k | 1.94% $ 3.1m | |
| Independent Director | 5.67yrs | US$44.00k | 0.25% $ 397.3k | |
| Independent Director | 32yrs | US$37.72k | 0.91% $ 1.5m | |
| Independent Chairman | 5yrs | US$68.75k | 0.23% $ 370.6k | |
| Independent Director | 1.67yrs | US$27.46k | 0.10% $ 161.7k | |
| Independent Director | 4.75yrs | US$48.75k | 0.26% $ 407.2k |
5.0yrs
Average Tenure
69yo
Average Age
Experienced Board: EML's board of directors are considered experienced (5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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
The Eastern Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Eastern Company
- Ticker: EML
- Exchange: NasdaqGM
- Founded: 1858
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$159.194m
- Shares outstanding: 6.24m
- Website: https://www.easterncompany.com
Number of Employees
Location
- The Eastern Company
- 112 Bridge Street
- PO Box 460
- Naugatuck
- Connecticut
- 6770
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| EML | NasdaqGM (Nasdaq Global Market) | Yes | Common Stock | US | USD | Jan 1968 |
| EAQ | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
Biography
The Eastern Company designs, manufactures, and sells various engineered solutions for various industrial markets in the United States and internationally. The company operates through three segments: Indus...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/22 23:29 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/10/03 |
| Annual Earnings | 2019/12/28 |
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.