Stock Analysis Report

Executive Summary

The Eastern Company designs, manufactures, and sells industrial hardware, security products, and metal products in the United States and internationally.



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




US Machinery


US Market

1 Year Return




US Machinery


US Market

Return vs Industry: EML underperformed the US Machinery industry which returned 2.3% over the past year.

Return vs Market: EML underperformed the US Market which returned 6.7% over the past year.

Share holder returns

7 Day6.0%3.2%1.0%
30 Day-4.4%-3.5%-1.8%
90 Day-5.2%-4.6%-1.8%
1 Year-2.3%-3.9%4.5%2.3%9.1%6.7%
3 Year38.7%31.6%46.3%36.8%46.1%36.6%
5 Year81.0%63.4%60.6%41.3%66.9%48.6%

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


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


Discount to future cash flow value

Intrinsic Value Based on Future Cash Flows

Undervalued: EML ($25.6) is trading below our estimate of fair value ($34.8)

Significantly Undervalued: EML is trading below fair value, but not by a significant amount.

Price Based on Earnings

PE vs Industry: EML is good value based on its PE Ratio (13x) compared to the Machinery industry average (19.7x).

PE vs Market: EML is good value based on its PE Ratio (13x) compared to the US market (17.5x).

Price Based on Expected Growth

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

Price Based on Value of Assets

PB vs Industry: EML is good value based on its PB Ratio (1.6x) compared to the US Machinery industry average (2.2x).

Next Steps

Future Growth

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


Forecasted annual earnings growth

Earnings and Revenue Growth Estimates

Future Annual Growth Analysis

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 (14.5% 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 Estimates

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?


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


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


Current Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Dividend Yield and Payments Analysis

Notable Dividend: EML's dividend (1.72%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: EML's dividend (1.72%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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


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


Average management tenure


Gus Vlak (52yo)





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 ($USD1.16M) is about average for companies of similar size in the US market ($USD1.17M).

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

Management Age and Tenure


Average Tenure


Average Age

Experienced Management: EML's management team is seasoned and experienced (12.8 years average tenure).

Board Age and Tenure


Average Tenure


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

BuyUS$51,51009 Sep 19
Peggy Scott
Member of the Board of Directors
Max PriceUS$25.24
BuyUS$140,06709 Sep 19
August Vlak
Chief Executive Officer
Max PriceUS$24.50
BuyUS$101,16122 Mar 19
Teton Advisors, Inc
Max PriceUS$27.70
SellUS$022 Mar 19
GAMCO Investors, Inc.
Max PriceUS$28.51
BuyUS$187,59322 Mar 19
GAMCO Investors, Inc.
Max PriceUS$29.30

Ownership Breakdown

Management Team

  • John Sullivan (66yo)

    VP & CFO

    • Tenure: 12.8yrs
    • Compensation: US$575.07k
  • Theresa Dews


    • Tenure: 12.8yrs
  • Gene Finelli


    • Tenure: 12.8yrs
  • Gus Vlak (52yo)


    • 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)


    • Tenure: 0.4yrs
  • Fred DiSanto (57yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$47.75k
  • Gus Vlak (52yo)


    • 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$159.642m
  • Shares outstanding: 6.24m
  • Website:

Number of Employees


  • The Eastern Company
  • 112 Bridge Street
  • PO Box 460
  • Naugatuck
  • Connecticut
  • 6770
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMLNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJan 1968


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:08
End of Day Share Price2019/10/11 00:00
Annual Earnings2018/12/29

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.


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