Embelton Limited (EMB) AI Stock Analysis

• Market Cap: AU$17.48M
• Dividend Yield: 4.32%
• Average Volume (3M): 219.00
• Price to Earnings (P/E): 18.9
• 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): 0.17
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: AU$7.50 ▼(-7.41% Downside)

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

Cash Flow Management

Strong cash flow management indicates Embelton's ability to generate cash from operations, ensuring liquidity and funding for future investments.

Balance Sheet Health

A robust balance sheet with low leverage suggests financial stability, providing resilience against economic downturns and flexibility for strategic initiatives.

Operational Efficiency

Improved margins indicate better cost management and operational efficiency, enhancing profitability even amidst revenue challenges.

Negative Factors

Revenue Decline

A declining revenue trend raises concerns about market demand and competitive positioning, potentially impacting long-term growth prospects.

Negative Revenue Growth

Significant negative revenue growth highlights challenges in expanding market share and sustaining business momentum, affecting future earnings potential.

Limited Reinvestment

Reduced investing cash flow suggests a cautious approach to expansion, potentially limiting the company's ability to capitalize on new market opportunities.

Embelton Limited Business Overview & Revenue Model

Company Description

Embelton Limited (EMB) is an Australian company specializing in the manufacturing and distribution of high-quality flooring and construction products. The company operates primarily in the building and construction sector, offering a diverse range of products including acoustic flooring systems, waterproofing solutions, and various construction materials. With a focus on innovation and sustainability, Embelton serves both residential and commercial markets, aiming to provide durable and environmentally friendly solutions that meet the evolving needs of its customers.

How the Company Makes Money

Embelton Limited generates revenue primarily through the sale of its products in the flooring and construction markets. The company has multiple key revenue streams, including direct sales to builders, contractors, and retailers, as well as partnerships with distributors that expand its market reach. Additionally, Embelton may derive income from specialized services such as installation and technical support for its products. The company's financial performance is further bolstered by strategic partnerships with other industry players, enabling access to new markets and enhancing product offerings. Factors contributing to its earnings include the demand for construction materials driven by building activity, trends in sustainable construction, and the company's reputation for quality and reliability in its product range.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	59.00M	59.00M	69.82M	74.31M	65.91M	68.12M
Gross Profit	2.65M	2.65M	15.17M	14.93M	14.09M	15.47M
EBITDA	2.65M	2.65M	3.14M	2.90M	2.69M	3.30M
Net Income	925.00K	925.00K	1.26M	950.45K	969.40K	1.44M
Balance Sheet
Total Assets	34.48M	34.48M	29.31M	37.16M	39.20M	32.68M
Cash, Cash Equivalents and Short-Term Investments	97.00K	97.00K	1.83M	383.00K	56.00K	86.00K
Total Debt	5.32M	5.32M	439.83K	6.05M	9.34M	1.45M
Total Liabilities	14.14M	14.14M	9.14M	17.48M	19.82M	13.53M
Stockholders Equity	20.34M	20.34M	20.17M	19.68M	19.38M	19.15M
Cash Flow
Free Cash Flow	-5.86M	-5.86M	7.80M	3.51M	-6.39M	5.97M
Operating Cash Flow	-1.52M	-1.52M	8.65M	4.07M	-6.07M	6.47M
Investing Cash Flow	-4.33M	-4.33M	-840.46K	20.00K	-305.00K	-460.00K
Financing Cash Flow	4.12M	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: Positive
• 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 below the 20-day moving average (MA) of 8.12, above the 50-day MA of 7.84, and above the 200-day MA of 8.04, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 73.62 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	73 Outperform	AU$32.34M	3.54	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$19.07M	21.88	6.19%	―	-6.52%	-20.79%
EMB	50 Neutral	AU$17.48M	18.89	4.57%	4.32%	-15.54%	-26.61%
CLG	42 Neutral	AU$18.61M	-0.84	-12.78%	―	-8.37%	-300.48%
OLH	40 Neutral	AU$3.20M	-0.77	―	―	-13.63%	52.08%
ECT	27 Underperform	AU$37.26M	-6.67	-164.39%	―	―	15.66%

Embelton Limited Corporate Events

Embelton Limited Announces 2025 AGM Agenda

Embelton Limited has announced its 2025 Annual General Meeting (AGM) for shareholders, scheduled to take place on November 5, 2025, at the company’s registered office in Victoria. Key agenda items include the consideration of the company’s financial report, the re-election of Mr. J.R. Baldwin as a director, and the adoption of the remuneration report. The meeting will also address voting exclusions related to the remuneration report, ensuring compliance with the Corporations Act. The announcement highlights the company’s adherence to governance protocols and provides shareholders with an opportunity to engage with the company’s financial and management strategies.

Embelton Limited Updates Director’s Shareholding

Embelton Limited has announced a revision to its Appendix 3Y, reflecting a minor amendment in the director’s interest notice. The update indicates that James John Embelton, a director, has increased his holdings by acquiring 807 ordinary shares, bringing his total to 32,684 shares. This change could signify a positive outlook from the director regarding the company’s future performance, potentially impacting investor confidence.

Embelton Limited Releases 2025 Corporate Governance Statement

Embelton Limited has released its corporate governance statement for the financial year ending June 30, 2025, which has been approved by the board and is current as of September 19, 2025. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, detailing the extent of compliance and any deviations along with reasons and alternative practices adopted. This announcement is significant as it reflects Embelton Limited’s commitment to transparency and accountability in its governance practices, potentially impacting its reputation and trust with stakeholders.

Embelton Limited Releases Annual Report Highlighting Strategic Growth

Embelton Limited has released its annual report, providing insights into its financial performance and strategic direction. The report highlights the company’s commitment to enhancing shareholder value through operational improvements and market expansion, which could strengthen its position in the industry and benefit stakeholders.