NasdaqGM:EML

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.

Snowflake

Fundamentals

Excellent balance sheet, good value and pays a dividend.

Risks

  • Eastern is not covered by any analysts.

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

1.7%

NasdaqGM:EML

-1.0%

US Machinery

-0.02%

US Market


1 Year Return

-8.0%

NasdaqGM:EML

-5.4%

US Machinery

1.6%

US Market

EML underperformed the Machinery industry which returned -4.3% over the past year.

EML underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

EMLIndustryMarket
7 Day1.7%-1.0%-0.02%
30 Day14.4%7.1%2.7%
90 Day3.9%-1.0%1.4%
1 Year-6.4%-8.0%-3.4%-5.4%3.8%1.6%
3 Year44.7%37.4%49.2%39.5%45.2%35.8%
5 Year94.1%75.2%55.3%36.1%61.8%44.1%

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

Valuation

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

23%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Eastern's share price is below the future cash flow value, and at a moderate discount (> 20%).

Eastern's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Unable to calculate PEG ratio for Eastern, we can't assess if its growth is good value.


Price Based on Value of Assets

Eastern is good value based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

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

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Eastern is high growth as no revenue estimate data is available.

Eastern's earnings are expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).

Unable to compare Eastern's revenue growth to the United States of America market average as no estimate data is available.

Eastern's earnings growth is positive but not above the United States of America market average.

Eastern's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Eastern will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

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 (45.8% vs 13.2%)

Eastern's earnings growth has exceeded the US Machinery industry average in the past year (45.8% vs 18.7%).


Return on Equity

Eastern has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Eastern used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Eastern has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Eastern's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Eastern's level of debt (22.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (6.4% vs 22.3% today).

Debt is well covered by operating cash flow (71.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4.4x debt.


Next Steps

Dividend

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

1.64%

Current Dividend Yield


Dividend Yield and Payments Analysis

Eastern's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Eastern's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).

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

Dividends paid are well covered by earnings (4.5x 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.


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)

3.7yrs

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

Gus's remuneration is about average for companies of similar size in United States of America.

Gus's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

12.8yrs

Average Tenure

61yo

Average Age

The average tenure for the Eastern management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.7yrs

Average Tenure

68yo

Average Age

The tenure for the Eastern board of directors is about average.


Insider Trading

More shares have been bought than sold by Eastern individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$51,51009 Sep 19
Peggy Scott
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,041
Max PriceUS$25.24
BuyUS$140,06709 Sep 19
August Vlak
EntityIndividual
Role
Chief Executive Officer
President
Shares5,717
Max PriceUS$24.50
BuyUS$101,16122 Mar 19
Teton Advisors, Inc
EntityCompany
Shares3,700
Max PriceUS$27.70
SellUS$022 Mar 19
GAMCO Investors, Inc.
EntityCompany
Shares200
Max PriceUS$28.51
BuyUS$187,59322 Mar 19
GAMCO Investors, Inc.
EntityCompany
Shares42,496
Max PriceUS$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: 3.7yrs
    • Compensation: US$1.16m
  • Angelo Labbadia (61yo)

    Group Vice President

    • Tenure: 1.7yrs
    • Compensation: US$567.98k
  • Chris Moulton

    Head of Corporate Development & Investor Relations

    • Tenure: 0yrs

Board Members

  • John Everets (72yo)

    Independent Director

    • Tenure: 26.7yrs
    • Compensation: US$32.51k
  • Michael McManus (76yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$40.00k
  • Charles Henry (69yo)

    Independent Director

    • Tenure: 30.7yrs
    • Compensation: US$33.27k
  • James Mitarotonda (65yo)

    Chairman

    • Tenure: 3.7yrs
    • Compensation: US$64.89k
  • Peggy Scott (68yo)

    Director

    • Tenure: 0.3yrs
  • Fred DiSanto (57yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$47.75k
  • Gus Vlak (52yo)

    President

    • Tenure: 3.7yrs
    • 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$166.938m
  • 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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:35
End of Day Share Price2019/09/18 00:00
Earnings2019/06/29
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.