The Eastern Co. (EML) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Snap-On, Inc.

Stanley Black & Decker, Inc.

NL Industries, Inc.

Babcock & Wilcox Enterprises, Inc.

Luxfer Holdings Plc

The L.S. Starrett Co.

EVI Industries, Inc.

Alta Equipment Group, Inc.

The Eastern Co.

Intelligent Living Application Group, Inc.

P&F Industries, Inc.

Why is The Eastern Co. ?

Poor long term growth as Operating profit has grown by an annual rate -7.78% of over the last 5 years

With a fall in Operating Profit of -18.93%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 6 consecutive quarters
The company has declared negative results in Dec 24 after 4 consecutive negative quarters
OPERATING CASH FLOW(Y) Lowest at USD 13.8 MM
NET PROFIT(Q) At USD 0.64 MM has Fallen at -55.12%
NET SALES(9M) At USD 172.55 MM has Grown at -14.27%

With ROE of 4.58%, it has a very expensive valuation with a 1.39 Price to Book Value

Over the past year, while the stock has generated a return of 2.51%, its profits have fallen by -54%

Underperformed the market in the last 1 year

The stock has generated a return of 2.51% in the last 1 year, much lower than market (S&P 500) returns of 20.78%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Eastern Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Eastern Co.

2.51%

-0.39

38.22%

S&P 500

20.78%

1.56

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.49%

EBIT Growth (5y)

-7.78%

EBIT to Interest (avg)

6.44

Debt to EBITDA (avg)

2.25

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

1.55

Tax Ratio

22.52%

Dividend Payout Ratio

52.46%

Pledged Shares

Institutional Holding

96.95%

ROCE (avg)

9.30%

ROE (avg)

9.74%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.39

EV to EBIT

21.13

EV to EBITDA

11.80

EV to Capital Employed

1.31

EV to Sales

0.83

PEG Ratio

Dividend Yield

ROCE (Latest)

6.22%

ROE (Latest)

4.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 36.81 %

DEBTORS TURNOVER RATIO(HY)

Highest at 7.34 times

-22What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 13.8 MM

NET PROFIT(Q)

At USD 0.64 MM has Fallen at -55.12%

NET SALES(9M)

At USD 172.55 MM has Grown at -14.27%

ROCE(HY)

Lowest at 3.62%

RAW MATERIAL COST(Y)

Grown by 14.59% (YoY

PRE-TAX PROFIT(Q)

Lowest at USD 0.81 MM

Here's what is working for The Eastern Co.

Debt-Equity Ratio

Lowest at 36.81 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 7.34 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

At USD 2.38 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for The Eastern Co.

Pre-Tax Profit

At USD 0.81 MM has Fallen at -54.71%

over average net sales of the previous four periods of USD 1.79 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 0.64 MM has Fallen at -55.12%

over average net sales of the previous four periods of USD 1.43 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 13.8 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

At USD 172.55 MM has Grown at -14.27%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

Lowest at USD 0.81 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Raw Material Cost

Grown by 14.59% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales