Embecta Corp.
Embecta Corp. Fundamental Analysis
Embecta Corp. (EMBC) shows moderate financial fundamentals with a PE ratio of 4.47, profit margin of 12.92%, and ROE of -20.90%. The company generates $1.1B in annual revenue with weak year-over-year growth of -3.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EMBC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentEMBC demonstrates superior asset utilization.
Valuation Score
ExcellentEMBC trades at attractive valuation levels.
Growth Score
ModerateEMBC shows steady but slowing expansion.
Financial Health Score
ExcellentEMBC maintains a strong and stable balance sheet.
Profitability Score
WeakEMBC struggles to sustain strong margins.
Key Financial Metrics
Is EMBC Expensive or Cheap?
P/E Ratio
EMBC trades at 4.47 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EMBC's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Embecta Corp. at -1.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.65 times EBITDA. This is generally considered low.
How Well Does EMBC Make Money?
Net Profit Margin
For every $100 in sales, Embecta Corp. keeps $12.92 as profit after all expenses.
Operating Margin
Core operations generate 32.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-20.90 in profit for every $100 of shareholder equity.
ROA
Embecta Corp. generates $13.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Embecta Corp. produces operating cash flow of $217.55M, showing steady but balanced cash generation.
Free Cash Flow
Embecta Corp. generates strong free cash flow of $209.01M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.53 in free cash annually.
FCF Yield
EMBC converts 32.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
-1.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.21
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.42
vs 25 benchmark
How EMBC Stacks Against Its Sector Peers
| Metric | EMBC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.47 | 29.43 | Better (Cheaper) |
| ROE | -20.90% | 800.00% | Weak |
| Net Margin | 12.92% | -20145.00% (disorted) | Strong |
| Debt/Equity | -2.32 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 2.64 | 4.64 | Strong Liquidity |
| ROA | 13.11% | -17936.00% (disorted) | Strong |
EMBC outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Embecta Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.70%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
-78.19%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-62.41%
Industry Style: Defensive, Growth, Innovation
Declining