The Eastern Company designs, manufactures, and sells industrial hardware, security products, and metal products in the United States and internationally.
Undervalued average dividend payer.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: EML underperformed the US Machinery industry which returned -23.5% over the past year.
Return vs Market: EML underperformed the US Market which returned -13.3% over the past year.
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
4 days ago | Simply Wall StDo You Like The Eastern Company (NASDAQ:EML) At This P/E Ratio?
2 weeks ago | Simply Wall StWhat To Know Before Buying The Eastern Company (NASDAQ:EML) For Its Dividend
3 weeks ago | Simply Wall StDid You Miss Eastern's (NASDAQ:EML) 29% Share Price Gain?
Is Eastern undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EML ($18.35) is trading below our estimate of fair value ($86.14)
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 (8.6x) compared to the Machinery industry average (15.2x).
PE vs Market: EML is good value based on its PE Ratio (8.6x) compared to the US market (12.5x).
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 (1.1x) compared to the US Machinery industry average (1.6x).
How is Eastern forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
- 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.
How has Eastern performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EML has high quality earnings.
Growing Profit Margin: EML's current net profit margins (5.3%) are lower than last year (6.2%).
Past Earnings Growth Analysis
Earnings Trend: EML's earnings have grown by 17% 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 (-8.2%) over the past year, making it difficult to compare to the Machinery industry average (-1.6%).
Return on Equity
High ROE: EML's Return on Equity (12.6%) is considered low.
How is Eastern's financial position?
Financial Position Analysis
Short Term Liabilities: EML's short term assets ($114.9M) exceed its short term liabilities ($31.9M).
Long Term Liabilities: EML's short term assets ($114.9M) do not cover its long term liabilities ($143.3M).
Debt to Equity History and Analysis
Debt Level: EML's debt to equity ratio (93.7%) is considered high.
Reducing Debt: EML's debt to equity ratio has increased from 5.7% to 93.7% over the past 5 years.
Debt Coverage: EML's debt is well covered by operating cash flow (23.2%).
Interest Coverage: EML's interest payments on its debt are well covered by EBIT (11.5x coverage).
What is Eastern's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EML's dividend (2.4%) is higher than the bottom 25% of dividend payers in the US market (2.01%).
High Dividend: EML's dividend (2.4%) is low compared to the top 25% of dividend payers in the US market (5.66%).
Stability and Growth of Payments
Stable Dividend: EML's dividends per share have been stable in the past 10 years.
Growing Dividend: EML's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (20.7%), EML's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Gus Vlak (52yo)
Mr. August M. Vlak, also known as Gus, has been the Chief Executive Officer and President at The Eastern Company since January 1, 2016. Mr. Vlak serves as Managing Director at DM Capital. He has been a man ...
CEO Compensation Analysis
Compensation vs Market: Gus's total compensation ($USD902.15K) is above average for companies of similar size in the US market ($USD622.20K).
Compensation vs Earnings: Gus's compensation has been consistent with company performance over the past year.
|VP & CFO||13.33yrs||US$831.04k||0.49% $572.3k|
|Head of Corporate Development & Investor Relations||no data||no data||no data|
|Secretary||13.33yrs||no data||no data|
|Treasurer||no data||no data||no data|
|Group Vice President||2.25yrs||US$567.98k||no data|
Experienced Management: EML's management team is seasoned and experienced (8.8 years average tenure).
|Independent Director||27.25yrs||US$36.01k||1.9% $2.2m|
|Independent Director||4.92yrs||US$44.00k||0.21% $244.3k|
|Independent Director||31.25yrs||US$37.72k||1.04% $1.2m|
|Independent Chairman||4.25yrs||US$68.75k||0.17% $199.4k|
|Independent Director||0.92yr||US$27.46k||0.060% $70.9k|
|Independent Director||4yrs||US$48.75k||0.21% $250.1k|
Experienced Board: EML's board of directors are considered experienced (4.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EML insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Eastern Company's company bio, employee growth, exchange listings and data sources
- Name: The Eastern Company
- Ticker: EML
- Exchange: NasdaqGM
- Founded: 1858
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$117.138m
- Shares outstanding: 6.24m
- Website: https://www.easterncompany.com
Number of Employees
- The Eastern Company
- 112 Bridge Street
- P.O. Box 460
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|EML||NasdaqGM (Nasdaq Global Market)||Yes||Common Stock||US||USD||Jan 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 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 engineered security and access solutions, including mechanical, electronic, and wireless products. Its products also include timers, drop meters, coin chutes, money boxes, meter cases, mobile payment apps, smart cards, value transfer stations, smart card readers, card management software, and access control units. In addition, this segment provides payment systems and 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 designs and manufactures ductile and malleable iron castings, such as valves, rings, torque screws, bean clamps, and concrete anchors for a range of industrial markets, including oil, water, gas; and truck/automotive rail, and military/aerospace, as well as offers expansion shells to support the roofs of underground mines. It sells its products to original equipment manufacturers, distributors, and sales representatives. The Eastern Company was founded in 1858 and is based in Naugatuck, Connecticut.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/07 05:02|
|End of Day Share Price||2020/04/06 00:00|
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.