The Eastern Company (EML) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-48.4%

$14.75

vs $28.58 price

Levered DCF

$23.00

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.24

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	23.37×	-19.39×	15.94×	9.74×	16.83×	27.7×	14.07×	10.49×
P/B	0.96×	1.37×	1.03×	0.95×	1.37×	1.44×	1.77×	1.05×
P/S	0.48×	0.61×	0.53×	0.43×	0.64×	0.76×	0.74×	0.43×
EV / EBITDA	11.96×	8.24×	8.21×	7.78×	8.32×	10.7×	11.42×	4.82×
Gross margin	22.6%	24.7%	23.9%	21.0%	23.0%	24.3%	24.6%	25.1%
Operating margin	4.1%	7.4%	6.6%	5.1%	7.1%	6.8%	6.9%	7.6%
Net margin	2.1%	-3.1%	3.3%	4.4%	3.8%	2.7%	5.3%	6.2%
Current ratio	3.59×	2.58×	2.63×	2.67×	2.5×	2.75×	3.32×	3.36×
Debt / equity	0.43×	0.5×	0.47×	0.6×	0.72×	0.97×	1.05×	0.3×
Interest coverage	3.76×	7.4×	6.07×	6.23×	9.98×	6.56×	9.4×	14.85×
Dividend yield	2.2%	1.7%	2.0%	2.3%	1.8%	1.8%	1.5%	2.7%
Payout ratio	52.4%	-32.0%	32.2%	22.3%	29.5%	51.0%	20.7%	19.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	4.1%	-7.1%	6.5%	9.7%	8.2%	5.2%	12.6%	15.0%
Return on invested capital	4.2%	7.9%	6.1%	4.8%	6.5%	4.6%	5.6%	9.6%
Return on assets	2.4%	-3.6%	3.4%	4.7%	3.5%	2.0%	4.7%	8.0%
Free cash flow yield	4.1%	6.6%	14.6%	5.9%	-3.7%	11.7%	9.4%	7.4%
Earnings yield	4.3%	-5.2%	6.3%	10.3%	6.0%	3.6%	7.1%	14.3%
Enterprise value	$165.7M	$211.6M	$190.9M	$186M	$233.4M	$236.3M	$280M	$116.3M
Net debt / EBITDA	3.35×	1.8×	2.31×	2.77×	2.72×	3.89×	3.8×	0.61×
Cash conversion cycle (days)	120	111	116	119	129	112	122	120