Market Cap
US$173.8m
Last Updated
2019/10/17 23:35 UTC
Data Sources
Company Financials
Executive Summary
The Eastern Company designs, manufactures, and sells industrial hardware, security products, and metal products in the United States and internationally.
Snowflake
Fundamentals
Excellent balance sheet, good value and pays a dividend.
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
Market Performance
7 Day Return
7.9%
EML
4.7%
US Machinery
1.8%
US Market
1 Year Return
10.7%
EML
6.6%
US Machinery
7.3%
US Market
Return vs Industry: EML exceeded the US Machinery industry which returned 6.6% over the past year.
Return vs Market: EML exceeded the US Market which returned 7.3% over the past year.
Shareholder returns
| EML | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.9% | 4.7% | 1.8% |
| 30 Day | 4.0% | -0.6% | -0.7% |
| 90 Day | 3.2% | -0.9% | 0.06% |
| 1 Year | 12.6%10.7% | 8.9%6.6% | 9.7%7.3% |
| 3 Year | 52.8%45.0% | 49.4%39.7% | 46.3%36.9% |
| 5 Year | 95.6%76.5% | 57.6%38.4% | 64.5%46.5% |
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
6 days ago | Simply Wall St
We Think Eastern (NASDAQ:EML) Can Stay On Top Of Its Debt2 weeks ago | Simply Wall St
Should You Be Adding Eastern (NASDAQ:EML) To Your Watchlist Today?3 weeks ago | Simply Wall St
The Eastern Company (NASDAQ:EML) Has Attractive FundamentalsValuation
Is Eastern undervalued compared to its fair value and its price relative to the market?
20.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: EML ($27.87) is trading below our estimate of fair value ($35)
Significantly Undervalued: EML is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: EML is good value based on its PE Ratio (14.2x) compared to the Machinery industry average (20.1x).
PE vs Market: EML is good value based on its PE Ratio (14.2x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
Low 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 (1.7x) compared to the US Machinery industry average (2.2x).
Next Steps
Future Growth
How is Eastern forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
9.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EML's forecast earnings growth (9.9% per year) is above the savings rate (2.7%).
Earnings vs Market: EML's earnings (9.9% per year) are forecast to grow slower than the US market (14.6% per year).
High Growth Earnings: EML's earnings are forecast to grow, but not significantly.
Revenue vs Market: Insufficient data to determine if EML's revenue is forecast to grow faster than the US market.
High Growth Revenue: Insufficient data to determine if EML's revenue is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: Insufficient data to determine if EML's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Eastern performed over the past 5 years?
13.2%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: EML's earnings have grown by 13.2% per year over the past 5 years.
Accelerating Growth: EML's earnings growth over the past year (45.8%) exceeds its 5-year average (13.2% per year).
Earnings vs Industry: EML earnings growth over the past year (45.8%) exceeded the Machinery industry 18.7%.
Return on Equity
High ROE: EML's Return on Equity (12.2%) is considered low.
Return on Assets
ROA vs Industry: EML's Return on Assets is below or equal to the Machinery industry average last year.
Return on Capital Employed
ROCE Improving: EML has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Eastern's financial position?
Financial Position Analysis
Short Term Liabilities: EML's short term assets ($99.3M) exceeds its short term liabilities ($28.3M)
Long Term Liabilities: EML's short term assets (99.3M) exceeds its long term liabilities (56.8M)
Debt to Equity History and Analysis
Debt Level: EML's debt to equity ratio (22.3%) is considered satisfactory
Reducing Debt: EML's debt to equity ratio has increased from 6.4% to 22.3% over the past 5 years.
Debt Coverage: EML's debt is well covered by operating cash flow (71.3%).
Interest Coverage: EML's interest payments on its debt are well covered by EBIT (15.8x coverage).
Balance Sheet
Inventory Level: EML has a high level of physical assets or inventory.
Debt Coverage by Assets: EML's debt is covered by short term assets (assets are 4.433490x debt).
Next Steps
Dividend
What is Eastern's current dividend yield, its reliability and sustainability?
1.58%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: EML's dividend (1.58%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: EML's dividend (1.58%) is low compared to the top 25% of dividend payers in the US market (3.72%).
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 low payout ratio (22.4%), 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
What is the CEO of Eastern's salary, the management and board of directors tenure and is there insider trading?
12.8yrs
Average management tenure
CEO
Gus Vlak (52yo)
3.8yrs
Tenure
US$1,158,481
Compensation
Mr. August M. Vlak, also known as Gus, has been the Chief Executive Officer and President at The Eastern Company since January 1, 2016. Mr. Vlak serves as Managing Director at DM Capital. He has been a man ...
CEO Compensation Analysis
Compensation vs. Market: Gus's total compensation ($USD1.16M) is about average for companies of similar size in the US market ($USD1.16M).
Compensation vs Earnings: Gus's compensation has been consistent with company performance over the past year.
Management Age and Tenure
12.8yrs
Average Tenure
61yo
Average Age
Experienced Management: EML's management team is seasoned and experienced (12.8 years average tenure).
Board Age and Tenure
3.8yrs
Average Tenure
68yo
Average Age
Experienced Board: EML's board of directors are considered experienced (3.8 years average tenure).
Insider Trading
Insider Buying: EML insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 2,041 |
| Max Price | US$25.24 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 5,717 |
| Max Price | US$24.50 |
| Entity | Company |
| Shares | 3,700 |
| Max Price | US$27.70 |
| Entity | Company |
| Shares | 200 |
| Max Price | US$28.51 |
| Entity | Company |
| Shares | 42,496 |
| Max Price | US$29.30 |
Ownership Breakdown
Management Team
John Sullivan (66yo)
VP & CFO
- Tenure: 12.8yrs
- Compensation: US$575.07k
Theresa Dews
Secretary
- Tenure: 12.8yrs
Gene Finelli
Treasurer
- Tenure: 12.8yrs
Gus Vlak (52yo)
President
- Tenure: 3.8yrs
- Compensation: US$1.16m
Angelo Labbadia (61yo)
Group Vice President
- Tenure: 1.8yrs
- Compensation: US$567.98k
Chris Moulton
Head of Corporate Development & Investor Relations
- Tenure: 0yrs
Board Members
John Everets (72yo)
Independent Director
- Tenure: 26.8yrs
- Compensation: US$32.51k
Michael McManus (76yo)
Independent Director
- Tenure: 4.4yrs
- Compensation: US$40.00k
Charles Henry (69yo)
Independent Director
- Tenure: 30.8yrs
- Compensation: US$33.27k
James Mitarotonda (65yo)
Independent Chairman
- Tenure: 3.8yrs
- Compensation: US$64.89k
Peggy Scott (68yo)
Director
- Tenure: 0.4yrs
Fred DiSanto (57yo)
Independent Director
- Tenure: 3.5yrs
- Compensation: US$47.75k
Gus Vlak (52yo)
President
- Tenure: 3.8yrs
- Compensation: US$1.16m
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$173.797m
- 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 |
Biography
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 pa ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/17 23:35 |
| End of Day Share Price | 2019/10/17 00:00 |
| Earnings | 2019/06/29 |
| Annual Earnings | 2018/12/29 |
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.