Embelton Limited (EMB) AI Stock Analysis

• Market Cap: AU$17.44M
• Dividend Yield: 4.32%
• Average Volume (3M): 219.00
• Price to Earnings (P/E): 7.1
• Beta (1Y): <0.01
• Revenue Growth: -15.54%
• EPS Growth: -26.61%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.28
• Shares Outstanding: 2,157,857
• 10 Day Avg. Volume: 179
• 30 Day Avg. Volume: 219
• PEG Ratio: -0.75
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -3.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: AU$8.00 ▼(-1.23% Downside)
• Action: Reiterated Date: 10/08/25
• Date: Action: Reiterated 10/08/25

Embelton Limited's overall stock score is primarily impacted by its financial performance challenges, particularly in cash flow management and declining revenue. Technical analysis indicates bearish momentum, further weighing on the score. However, the stock's valuation is relatively fair, with a moderate P/E ratio and a strong dividend yield providing some support.

Positive Factors

Revenue growth

A reported revenue growth metric (~12.9%) indicates prior top-line expansion, supporting medium-term demand for Embelton's services. Sustained revenue growth underpins capacity to invest in projects and retain market share, provided operational cash conversion is improved.

Balance sheet equity base

The balance sheet shows a healthy equity ratio and moderate leverage, offering financial resilience common in construction cyclicality. A strong equity base preserves borrowing capacity and cushions downturns, enabling the firm to pursue contracts without excessive refinancing risk.

Stable underlying margins

Despite pressure on gross margins, management has kept EBIT and EBITDA margins relatively stable, indicating core operational efficiency. Stable operating margins suggest the company can manage overheads and project execution effectively, aiding long-term profitability once revenue and cash flow improve.

Negative Factors

Negative cash flow

Material negative operating and free cash flows impair Embelton's ability to self-fund working capital, capex, and distributions. Persistent cash burn forces reliance on external financing, raising execution risk on contracts and limiting strategic flexibility over the next several quarters.

Declining revenue and gross margin

A recent revenue decline coupled with a sharp fall in gross profit margin weakens long-term earnings power. Reduced top-line and margin pressure can reflect pricing or cost-control issues, undermining competitive position in construction where scale and margin consistency drive sustainable returns.

Falling return on equity

A declining ROE signals the company is generating lower returns on shareholder capital, pointing to reduced capital efficiency. Sustained lower ROE can constrain investor confidence and limit reinvestment capacity, necessitating strategic fixes to restore long-term value creation.

Embelton Limited Business Overview & Revenue Model

Company Description

Embelton Limited manufactures and distributes flooring, structural noise and vibration control system, metal fabrication, rubber and cork sheeting, and other industrial products in Australia and internationally. It operates through Merchandising, Commercial/Contracting, and Manufacturing segments. The company is involved in the supply and installation of flooring and consumer products, such as wooden parquetry flooring; prefinished and natural strip flooring; timber, hybrid, laminate, and vinyl flooring; carpets; rubber and sports flooring; adhesives and finishes; other flooring accessories; and compressed cork sheets, blocks, and rolls. It also offers industrial and construction products, including structural noise and vibration isolation systems, spring and rubber anti-vibration mountings, seismic restraints for resiliently mounted equipment, recycled and natural rubber sheets, spandex cork jointing and other jointing media, and tube and pipe bending products. In addition, the company provides metal fabrication solutions in stainless steel, high nickel alloys, copper and brass, aluminum, titanium, and carbon steel for high temperature applications; vibration control devices; and building materials. Embelton Limited founded in 1925 and is headquartered in Coburg, Australia.

How the Company Makes Money

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Embelton Limited Financial Statement Overview

Summary

Embelton Limited faces several financial challenges, particularly in revenue generation and cash flow management. While the company maintains operational efficiency and a stable equity base, the declining revenue and negative cash flows pose significant risks. The balance sheet remains relatively strong, but the company needs to address its cash flow issues to improve its financial health.

Income Statement

Embelton Limited's income statement shows a declining trend in revenue with a significant drop in the latest year. The gross profit margin has decreased sharply from previous years, indicating potential pricing or cost issues. The net profit margin is low, reflecting challenges in maintaining profitability. However, the company has managed to keep EBIT and EBITDA margins relatively stable, which is a positive sign of operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, suggesting a balanced approach to leveraging. The return on equity has decreased, indicating reduced profitability from shareholders' investments. However, the equity ratio remains healthy, showing a strong equity base relative to total assets, which provides stability.

Cash Flow

The cash flow statement reveals significant challenges, with negative operating and free cash flows in the latest year. The free cash flow growth rate is highly negative, indicating cash flow issues. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income into cash. Despite these challenges, the free cash flow to net income ratio is high, suggesting that when cash is generated, it is substantial relative to net income.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	67.22M	59.00M	69.82M	74.31M	65.91M	68.12M
Gross Profit	3.54M	2.65M	15.17M	14.93M	14.09M	15.47M
EBITDA	2.39M	2.65M	3.14M	2.90M	2.69M	3.30M
Net Income	987.00K	925.00K	1.26M	950.45K	969.40K	1.44M
Balance Sheet
Total Assets	33.95M	34.48M	29.31M	37.16M	39.20M	32.68M
Cash, Cash Equivalents and Short-Term Investments	76.00K	97.00K	1.83M	383.00K	56.00K	86.00K
Total Debt	6.58M	5.32M	439.83K	6.05M	9.34M	1.45M
Total Liabilities	13.43M	14.14M	9.14M	17.48M	19.82M	13.53M
Stockholders Equity	20.52M	20.34M	20.17M	19.68M	19.38M	19.15M
Cash Flow
Free Cash Flow	-3.27M	-5.86M	7.80M	3.51M	-6.39M	5.97M
Operating Cash Flow	426.00K	-1.52M	8.65M	4.07M	-6.07M	6.47M
Investing Cash Flow	-3.68M	-4.33M	-840.46K	20.00K	-305.00K	-460.00K
Financing Cash Flow	3.29M	4.12M	-6.37M	-3.76M	6.34M	-5.95M

Embelton Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EMB, the sentiment is Positive. The current price of 8.1 is above the 20-day moving average (MA) of 7.97, above the 50-day MA of 7.94, and above the 200-day MA of 7.85, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 99.17 is Negative, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EMB.

Embelton Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZGL	65 Neutral	AU$24.79M	3.23	13.07%	―	13.43%	22.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SSH	57 Neutral	AU$16.35M	3.85	13.83%	―	-6.52%	-20.79%
EMB	50 Neutral	AU$17.44M	7.14	4.57%	4.32%	-15.54%	-26.61%
CLG	45 Neutral	AU$13.87M	-0.15	-51.88%	―	-8.37%	-300.48%
ECT	41 Neutral	AU$41.19M	-7.05	-38.77%	―	―	15.66%
OLH	40 Neutral	AU$2.56M	-1.23	56.14%	―	-13.63%	52.08%

Embelton Limited Corporate Events

Embelton Declares AUD 0.15 Interim Dividend for December Half

Embelton Limited has declared a fully paid ordinary dividend of AUD 0.15 per share, relating to the six-month period ended 31 December 2025. The company has set an ex-dividend date of 12 March 2026, a record date of 13 March 2026, and scheduled payment on 10 April 2026.

The announcement underscores Embelton’s continued practice of semi-annual shareholder distributions, providing income visibility and a clear timetable for investors. The specified dates enable market participants to plan around entitlement, with the payout signaling ongoing cash generation and reinforcing the company’s commitment to shareholder returns.

The most recent analyst rating on (AU:EMB) stock is a Hold with a A$7.00 price target. To see the full list of analyst forecasts on Embelton Limited stock, see the AU:EMB Stock Forecast page.