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I've been keeping an eye on The Eastern Company (NASDAQ:EML) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe EML has a lot to offer. Basically, it is a financially-healthy , dividend-paying company with a a strong history of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Eastern here.
Solid track record with excellent balance sheet and pays a dividend
In the past couple of years, EML has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did EML outperformed its past performance, its growth also surpassed the Machinery industry expansion, which generated a 25% earnings growth. This paints a buoyant picture for the company. EML is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that EML manages its cash and cost levels well, which is a crucial insight into the health of the company. EML appears to have made good use of debt, producing operating cash levels of 0.45x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
EML is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Eastern, I've compiled three fundamental aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for EML’s future growth? Take a look at our free research report of analyst consensus for EML’s outlook.
- Valuation: What is EML worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether EML is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EML? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.