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EMLThe Eastern Company
$27.77$167M
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  4. Financial Ratios

The Eastern Company (EML) Financial Ratios

Latest Ratios: P/E Ratio 33.1x · EV/EBITDA 15.5x · ROE 4.2%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

EML Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$167M$119M$165M$138M$120M$157M$151M$191M$101M$165M$131M
Enterprise Value$214M$166M$208M$192M$187M$226M$237M$285M$116M$178M$110M
P/E Ratio →33.0623.37—16.069.7916.8328.0214.4010.4732.6916.72
P/S Ratio0.670.480.610.530.430.640.760.760.430.810.95
P/B Ratio1.360.961.371.040.951.371.451.821.041.891.58
P/FCF34.2124.3915.266.8816.96—8.5810.9313.5519.5613.68
P/OCF18.8913.478.055.2111.51—7.308.347.8514.7210.52

P/E links to full P/E history page with 30-year chart

EML EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.670.760.740.670.921.201.130.490.870.80
EV / EBITDA15.5112.037.998.568.729.1511.6611.905.0010.577.34
EV / EBIT21.1716.4210.5110.7211.1910.8515.5115.756.1714.289.67
EV / FCF—33.8819.199.5626.29—13.4716.2415.5221.0911.49

EML Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin22.6%22.6%24.7%23.9%21.0%23.0%24.3%24.6%25.1%24.4%26.4%
Operating Margin4.1%4.1%7.4%6.6%5.1%7.1%6.8%6.9%7.6%5.9%8.1%
Net Profit Margin2.1%2.1%-3.1%3.3%4.4%3.8%2.7%5.3%6.2%2.5%5.7%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE4.2%4.2%-6.7%6.6%10.2%8.5%5.2%13.1%15.8%6.0%9.6%
ROA2.3%2.3%-3.5%3.3%4.7%3.5%1.9%5.7%8.1%3.4%6.3%
ROIC4.5%4.5%8.6%6.7%5.6%7.0%5.2%8.4%12.7%11.2%13.2%
ROCE5.3%5.3%10.1%8.0%6.6%7.7%5.6%8.8%12.1%9.4%10.2%

EML Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.430.430.470.470.600.660.971.050.300.410.02
Debt / EBITDA3.913.912.182.773.573.044.994.651.242.100.12
Net Debt / Equity—0.370.350.410.520.600.820.880.150.15-0.25
Net Debt / EBITDA3.373.371.642.403.092.794.233.890.640.77-1.40
Debt / FCF—9.493.932.689.33—4.895.321.981.54-2.19
Interest Coverage3.763.767.276.387.3311.917.429.7215.6312.7393.37

EML Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio3.593.592.582.632.672.502.753.323.363.206.04
Quick Ratio1.551.551.351.241.291.231.691.761.611.693.39
Cash Ratio0.270.270.360.220.220.120.380.520.460.711.77
Asset Turnover—1.151.161.031.070.930.720.901.291.161.11
Inventory Turnover3.423.423.723.333.413.023.473.483.333.272.98
Days Sales Outstanding—44.2247.9153.0657.3765.4158.7455.0148.9548.4748.10

EML Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield1.6%2.2%1.7%2.0%2.3%1.8%1.8%1.4%2.7%1.7%2.1%
Payout Ratio52.4%52.4%—32.2%22.3%29.5%51.0%20.7%19.0%54.6%35.3%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield3.0%4.3%—6.2%10.2%5.9%3.6%6.9%9.6%3.1%6.0%
FCF Yield2.9%4.1%6.6%14.5%5.9%—11.7%9.2%7.4%5.1%7.3%
Buyback Yield2.2%3.1%1.8%0.5%1.4%0.2%0.2%0.0%1.1%0.0%0.0%
Total Shareholder Yield3.8%5.4%3.5%2.5%3.6%2.0%2.1%1.4%3.8%1.7%2.1%
Shares Outstanding—$6M$6M$6M$6M$6M$6M$6M$4M$6M$6M

Key Metrics

Growth RegimeContracting
ProfitabilityStrained
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

Cyclical industrial demand contraction

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Valuation Disconnect Amidst Cyclical Trough

According to current market data, EML trades at a trailing P/E of 28.98, which appears disconnected from its recent revenue contraction and suggests investors are pricing in a recovery that is not yet supported by the company's 1.1% net margin reported in 2026Q1.

The disparity between the elevated trailing P/E and the more modest forward P/E of 12.29 implies that the market is anticipating a significant rebound in earnings power. However, given the company's high-fixed-cost structure, this valuation may be overly optimistic if the current industrial downturn persists longer than anticipated.

Capital Efficiency Decay Under Pressure

Based on reported financial statements, EML's ROIC has compressed to a marginal 0.5% in 2026Q1, down from 2.4% in 2024Q2, indicating that the company is struggling to generate returns that exceed its cost of capital during this period of cyclical revenue decline.

The consistent decay in ROIC suggests that the company's invested capital is not being utilized effectively in the current low-volume environment. Investors should monitor whether management can rationalize the asset base to improve these returns, as the current levels are insufficient to drive long-term shareholder value creation.

Working Capital Drag on Liquidity

As evidenced by the 2026Q1 data, EML's cash conversion cycle has extended to 119 days, driven by a high days inventory outstanding of 104, which suggests that the company is carrying significant excess inventory that may be vulnerable to obsolescence in a slowing market.

The inability to efficiently convert inventory into cash highlights a potential mismatch between production levels and actual end-market demand. This inefficiency ties up capital that could otherwise be deployed for strategic initiatives, further exacerbating the impact of the current cyclical downturn on the company's liquidity position.

Conservative Balance Sheet Provides Buffer

According to recent filings, EML maintains a debt-to-equity ratio of 0.43, which, when compared to the broader industrial sector, provides a significant safety margin that allows the company to navigate the current period of earnings volatility without immediate refinancing or covenant risks.

While the low leverage is a clear strength, it also raises questions about whether the company is under-utilizing its balance sheet to drive growth. The interest coverage ratio of 2.16 in 2026Q1 warrants monitoring, as any further decline in operating income could begin to constrain the company's financial flexibility.

Misapplication of P/E in Cyclicality

The P/E ratio is frequently misapplied to EML's business model, as it obscures the impact of non-recurring restructuring costs and the cyclical nature of its manufacturing margins, which often lead to artificially depressed earnings that do not reflect the company's underlying cash-generating potential.

Investors should prioritize EV/EBITDA over P/E when evaluating EML, as the former better accounts for the company's capital structure and the impact of depreciation on its heavy manufacturing asset base. Relying solely on P/E in a cyclical trough can lead to a distorted view of the company's true valuation.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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EML — Frequently Asked Questions

Quick answers to the most common questions about buying EML stock.

What is The Eastern Company's P/E ratio?

The Eastern Company's current P/E ratio is 33.1x. The historical average is 18.6x. This places it at the 93th percentile of its historical range.

What is The Eastern Company's EV/EBITDA?

The Eastern Company's current EV/EBITDA is 15.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.6x.

What is The Eastern Company's ROE?

The Eastern Company's return on equity (ROE) is 4.2%. The historical average is 9.8%.

Is EML stock overvalued?

Based on historical data, The Eastern Company is trading at a P/E of 33.1x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is The Eastern Company's dividend yield?

The Eastern Company's current dividend yield is 1.59% with a payout ratio of 52.4%.

What are The Eastern Company's profit margins?

The Eastern Company has 22.6% gross margin and 4.1% operating margin.

How much debt does The Eastern Company have?

The Eastern Company's Debt/EBITDA ratio is 3.9x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.