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Eastern Company (EML)
NASDAQ:EML
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Eastern Company
(NASDAQ:EML)
54Neutral
Eastern Company (EML) vs. S&P 500 (SPY)
Market Cap
$159.59M
Dividend Yield1.69%
Average Volume (3M)7.07K
Price to Earnings (P/E)12.3
Beta (1Y)1.35
Revenue Growth2.04%
EPS Growth70.29%
CountryUS
Employees1,246
SectorIndustrials
Sector Strength66
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)2.34
Shares Outstanding6,126,416
10 Day Avg. Volume6,011
30 Day Avg. Volume7,066
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)N/A
Price to Sales (P/S)0.60
Price to Cash Flow (P/CF)3.70
P/FCF Ratio3.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Eastern Company Business Overview & Revenue Model
Company DescriptionThe Eastern Company designs, manufactures, and sells engineered solutions to industrial markets in the United States and internationally. It offers turnkey returnable packaging solutions that are used in the assembly process of vehicles, aircraft, and durable goods, as well as in the production process of plastic packaging products, packaged consumer goods, and pharmaceuticals; designs and manufactures blow mold tools and injection blow mold tooling products, and 2-step stretch blow molds and related components; and supplies blow molds and change parts to the food, beverage, healthcare, and chemical industry. It also offers rotary latches, compression latches, draw latches, hinges, camlocks, key switches, padlocks, and handles, as well as development and program management services for custom electromechanical and mechanical systems; designs and manufactures proprietary vision technology for original equipment manufacturers (OEMs) and aftermarket applications; and provides aftermarket components to the heavy-duty truck market. The Eastern Company was founded in 1858 and is based in Naugatuck, Connecticut.
How the Company Makes MoneyEastern Company generates revenue primarily through the sale of its tobacco products, which is one of its largest revenue streams. The company also derives significant income from its packaging division, providing packaging materials and solutions to a variety of industries. Additionally, its industrial engineering segment contributes to earnings by offering specialized machinery and equipment to clients in various sectors. These diversified operations help the company mitigate risks associated with market fluctuations in individual sectors. Strategic partnerships and distribution agreements further enhance its revenue-generating capabilities, ensuring a steady flow of income across its business divisions.
Eastern Company Financial Statement Overview
Summary
Eastern Company exhibits stable operational margins but faces challenges in net profitability and revenue growth. The balance sheet shows moderate leverage with a solid equity base, while cash flows highlight operational efficiency but require consistent growth. Overall, the company is in a stable position but must address profitability and growth issues to improve financial health.Income Statement
The company has been experiencing declining profitability, with a negative Net Income in the most recent year. Gross Profit Margin has been stable, but Net Profit Margin and Revenue Growth Rate have been negative. EBIT and EBITDA margins are positive, indicating operational efficiency, but not enough to offset the overall negative net income.45
Neutral
Balance Sheet
The company has a moderate Debt-to-Equity Ratio, suggesting balanced leverage. However, the Return on Equity (ROE) has been low or negative due to declining net income. The Equity Ratio indicates a solid equity base relative to total assets, but growth has been limited.50
Neutral
Cash Flow
The company has shown positive Free Cash Flow, indicating operational efficiency. The Operating Cash Flow to Net Income Ratio is healthy, although Free Cash Flow growth has been inconsistent, suggesting potential volatility in cash generation.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 10.00T> | 273.45M | 279.27M | 246.52M | 240.40M | Gross Profit |
| 67.27T | 64.95M | 58.62M | 56.77M | 53.66M | EBIT |
| 20.15T | 15.18M | 14.17M | 17.45M | 16.86M | EBITDA |
| 20.15T | 21.97M | 23.89M | 26.64M | 23.16M | Net Income Common Stockholders |
| -8.53M | 8.59M | 12.30M | 16.18M | 5.41M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 833.14B | 9.29M | 10.19M | 6.17M | 16.13M | Total Assets |
| 235.31M | 252.04M | 261.52M | 266.33M | 275.53M | Total Debt |
| 56.64M | 62.08M | 76.40M | 82.62M | 101.50M | Net Debt |
| 42.62M | 53.78M | 66.21M | 76.45M | 85.40M | Total Liabilities |
| 2.14T | 119.56M | 134.91M | 151.73M | 171.22M | Stockholders Equity |
| 10.00T> | 132.48M | 126.61M | 114.60M | 104.31M |
| Cash Flow | Free Cash Flow | |||
| 9.68T | 20.05M | 7.10M | -5.74M | 17.59M | Operating Cash Flow |
| 19.39T | 26.48M | 10.46M | -2.02M | 20.69M | Investing Cash Flow |
| -7.89T | -5.43M | 5.09M | 12.62M | -9.11M | Financing Cash Flow |
| -4.82T | -22.90M | -11.78M | -20.27M | -13.18M |
Eastern Company Technical Analysis
Negative
26.05
Price Trends
27.22
Negative
27.61
Negative
28.43
Negative
Market Momentum
-0.45
Positive
39.59
Neutral
48.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EML, the sentiment is Negative. The current price of 26.05 is below the 20-day moving average (MA) of 26.68, below the 50-day MA of 27.22, and below the 200-day MA of 28.43, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 39.59 is Neutral, neither overbought nor oversold. The STOCH value of 48.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EML.
Eastern Company Risk Analysis
Eastern Company disclosed 28 risk factors in its most recent earnings report. Eastern Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Eastern Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $150.82M | 16.43 | 9.79% | 1.49% | 1.56% | -45.26% | |
66 Neutral | $171.08M | 46.32 | 6.15% | 1.96% | -8.67% | -40.72% | |
62 Neutral | $8.06B | 13.61 | 3.91% | 3.11% | 3.80% | -14.06% | |
58 Neutral | $120.35M | 9.44 | 44.97% | ― | 5.75% | -15.87% | |
54 Neutral | $159.59M | 12.25 | 9.21% | 1.69% | 2.04% | 70.29% | |
44 Neutral | $166.07M | ― | -32.53% | ― | -17.78% | -820.48% | |
41 Neutral | $142.08M | ― | -38.46% | ― | -34.12% | -3803.38% |
* Industrials Sector Average
Performance Comparison
EML
Eastern Company
26.05
-6.37
-19.65%
ACU
Acme United
40.17
-6.05
-13.09%
PESI
Perma-Fix
7.71
-3.98
-34.05%
RCMT
Rcm Technologies
15.86
-4.83
-23.34%
TBI
Trueblue
5.31
-6.92
-56.58%
HQI
HireQuest
12.22
-0.56
-4.38%
Eastern Company Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: -5.27% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable sales growth and leadership changes aimed at strengthening operations. However, increased costs and reduced margins posed significant challenges. Despite a decline in quarterly net income, the overall net income for the year improved, supported by backlog growth.Highlights
Increase in Net Sales
Fourth quarter net sales increased by 4.5% to $66.7 million, driven primarily by higher truck demand for returnable transport packaging products.
Annual Net Sales Growth
For the full year 2024, net sales rose by 5% to $272.8 million from $258.9 million in 2023.
Backlog Increase
As of December 28, 2024, the backlog rose 15.7% to $89.2 million compared to the previous year, driven by new mirror programs for Class 8 trucks.
Leadership Changes
New leadership appointments at Eberhard Manufacturing and Big 3 Precision Products aim to drive operational improvements and revenue growth.
Improved Net Income
For the full year 2024, net income increased by 12% to $13.2 million compared to 2023.
Lowlights
Decrease in Gross Margin
Fourth quarter gross margin decreased to 23% from 26.8% the previous year, due to higher material costs and a lack of favorable LIFO adjustments.
Increased Operating Expenses
Selling and administrative expenses increased by 11% in Q4 2024, primarily due to higher payroll, legal, and professional expenses.
Decline in Quarterly Net Income
Net income for the fourth quarter of 2024 fell to $1.6 million from $3.9 million in the same period of 2023.
Company Guidance
During the Eastern Company Fourth Quarter Fiscal Year 2024 earnings call, guidance was provided regarding the company's financial performance and strategic directions. Net sales for the fourth quarter increased by 4.5% to $66.7 million, and for the full year, sales rose by 5% to $272.8 million. The backlog as of December 28, 2024, increased by 15.7% to $89.2 million. Gross margin for the fourth quarter was 23%, down from 26.8% the previous year, primarily due to higher material costs. For the full year, gross margin improved slightly to 24.7%. Product development costs and selling/administrative expenses were also discussed, with selling expenses rising by 11% in Q4. Net income for the quarter was $1.6 million, a decrease from the previous year, but full-year net income rose by 12% to $13.2 million. The company repurchased 39,000 shares under its share repurchase program. CEO Ryan Schroeder emphasized a focus on leadership, operational improvements, and strategic growth, while CFO Nicholas Vlahos provided detailed financial metrics. The company aims to drive revenue growth and enhance shareholder value through strategic initiatives and a decentralized operational approach.Eastern Company Corporate Events
Executive/Board Changes
Eastern Company Appoints New CEO Ryan Schroeder
Neutral
Nov 8, 2024
On November 4, 2024, The Eastern Company saw a leadership change as Mark A. Hernandez resigned as CEO, with a comprehensive severance package in place. Ryan Schroeder, previously CEO of Plaskolite LLC, was appointed as the new CEO, effective November 6, 2024. Schroeder’s employment terms include a $475,000 base salary and eligibility for performance-based incentives. The transition signals strategic leadership continuity, appealing to investors keen on stable executive management.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.