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

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Snap-On, Inc.

Stanley Black & Decker, Inc.

Luxfer Holdings Plc

The L.S. Starrett Co.

Alta Equipment Group, Inc.

EVI Industries, Inc.

NL Industries, Inc.

Babcock & Wilcox Enterprises, Inc.

The Eastern Co.

P&F Industries, Inc.

Intelligent Living Application Group, Inc.

Why is The Eastern Co. ?

Poor long term growth as Operating profit has grown by an annual rate -2.02% of over the last 5 years

OPERATING CASH FLOW(Y) Lowest at USD 12.2 MM
INTEREST COVERAGE RATIO(Q) Lowest at 514.94
PRE-TAX PROFIT(Q) At USD 2.58 MM has Fallen at -31.17%

With ROE of 9.61%, it has a expensive valuation with a 1.73 Price to Book Value

Over the past year, while the stock has generated a return of -29.69%, its profits have risen by 17% ; the PEG ratio of the company is 1

Below par performance in long term as well as near term

Along with generating -29.69% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

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.

-34.98%

-0.69

41.76%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.19%

EBIT Growth (5y)

-2.02%

EBIT to Interest (avg)

6.44

Debt to EBITDA (avg)

2.25

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

1.56

Tax Ratio

22.52%

Dividend Payout Ratio

20.69%

Pledged Shares

Institutional Holding

75.25%

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

1.73

EV to EBIT

12.86

EV to EBITDA

8.16

EV to Capital Employed

1.57

EV to Sales

0.90

PEG Ratio

1.00

Dividend Yield

ROCE (Latest)

12.18%

ROE (Latest)

9.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.72 times

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 12.2 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 514.94

PRE-TAX PROFIT(Q)

At USD 2.58 MM has Fallen at -31.17%

NET PROFIT(Q)

At USD 2.03 MM has Fallen at -29.97%

RAW MATERIAL COST(Y)

Grown by 7.86% (YoY

OPERATING PROFIT(Q)

Lowest at USD 3.28 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.67 %

Here's what is working for The Eastern Co.

Inventory Turnover Ratio

Highest at 3.72 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Operating Cash Flow

Lowest at USD 12.2 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)

Interest Coverage Ratio

Lowest at 514.94

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 2.58 MM has Fallen at -31.17%

over average net sales of the previous four periods of USD 3.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 2.03 MM has Fallen at -29.97%

over average net sales of the previous four periods of USD 2.91 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit

Lowest at USD 3.28 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 4.67 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 7.86% (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