Embelton Limited (EMB) AI Stock Analysis

• Market Cap: AU$17.97M
• Dividend Yield: 3.6%
• Average Volume (3M): 11.00
• Price to Earnings (P/E): 13.2
• Beta (1Y): -0.04
• Revenue Growth: -20.98%
• EPS Growth: 18.62%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 87
• Industry: Construction
• EPS (TTM): 0.26
• Shares Outstanding: 2,157,857
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 11
• PEG Ratio: -0.33
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.40
• 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

• Rating: 66 Neutral
• Price Target: ―

Embelton Limited's overall score reflects a strong financial foundation with robust cash flow and balance sheet metrics. However, the decline in revenue growth is a significant concern that could impact future performance. The neutral technical indicators and reasonable valuation support a middling score, emphasizing the need for revenue improvement to enhance stock performance.

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

Embelton Limited generates revenue through the sale of its diverse range of products, primarily in the flooring and acoustic solutions markets. The company operates multiple revenue streams, including the manufacture and direct sale of flooring products such as engineered timber and laminate flooring to both retail and wholesale customers. Additionally, Embelton supplies acoustic and vibration control materials to the construction and industrial sectors, providing solutions for noise and vibration management. Significant partnerships with suppliers and distributors enhance its market reach, while a focus on innovation and quality helps maintain competitive advantage and customer loyalty. The company's earnings are bolstered by its ability to leverage its manufacturing capabilities and distribution network to meet the needs of various industries.

Embelton Limited Financial Statement Overview

Summary

Embelton Limited demonstrates solid financial health with a strong balance sheet and cash flow position. The income statement reveals operational efficiency but highlights a decline in revenue, which could be a challenge if sustained.

Income Statement

Embelton Limited exhibited a mixed performance in its income statement. The gross profit margin and net profit margin for the latest year improved slightly compared to previous years, indicating better cost management. However, total revenue decreased by approximately 6% from the previous year, marking a negative growth trend. The EBIT and EBITDA margins showed improvement, suggesting operational efficiency gains despite the revenue decline.

Balance Sheet

The balance sheet of Embelton Limited reflects a strong equity position with the equity ratio consistently above 65%, indicating financial stability. The company maintained a low debt-to-equity ratio, suggesting a conservative approach to leverage. Return on Equity (ROE) improved, highlighting efficient use of equity to generate profits. However, the decrease in total assets and liabilities from the previous year suggests a cautious stance towards expansion.

Cash Flow

The cash flow statement portrays a positive outlook with substantial growth in free cash flow, mainly due to improved operating cash flow. The operating cash flow to net income ratio is robust, reflecting strong cash generation from operations. The consistent positive free cash flow to net income ratio demonstrates effective cash management. However, the negative trend in investing cash flow could imply limited reinvestment in future growth opportunities.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	59.53M	69.82M	74.31M	65.91M	68.12M	72.32M
Gross Profit	14.44M	15.34M	14.93M	14.09M	15.47M	18.88M
EBITDA	2.85M	3.14M	2.90M	2.69M	3.30M	4.52M
Net Income	1.36M	1.26M	950.45K	969.40K	1.44M	2.16M
Balance Sheet
Total Assets	29.95M	29.31M	37.16M	39.20M	32.68M	35.85M
Cash, Cash Equivalents and Short-Term Investments	39.00K	1.83M	383.00K	56.00K	86.00K	25.00K
Total Debt	2.10M	439.83K	6.05M	8.95M	1.45M	6.12M
Total Liabilities	9.66M	9.14M	17.48M	19.82M	13.53M	17.28M
Stockholders Equity	20.28M	20.17M	19.68M	19.38M	19.15M	18.57M
Cash Flow
Free Cash Flow	290.39K	7.80M	3.51M	-6.39M	5.97M	2.18M
Operating Cash Flow	1.46M	8.65M	4.07M	-6.07M	6.47M	2.43M
Investing Cash Flow	-1.16M	-840.46K	20.00K	-305.00K	-460.00K	-618.00K
Financing Cash Flow	-417.07K	-6.37M	-3.76M	6.34M	-5.95M	-1.83M

Embelton Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EMB, the sentiment is Negative. The current price of 8.33 is above the 20-day moving average (MA) of 8.33, below the 50-day MA of 8.35, and below the 200-day MA of 8.36, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.02 is Neutral, 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 Negative sentiment for AU:EMB.

Embelton Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMB	66 Neutral	AU$17.97M	13.18	6.82%	3.60%	-20.98%	18.62%
Sector *	65 Neutral	$10.56B	15.49	5.57%	1.96%	2.71%	-26.28%
ICPVF		$3.23B	―	-3.14%	1.79%	―	―
FRCEF		$1.91B	―	-1.32%	―	―	―
JHIUF		$10.95B	26.55	21.09%	―	―	―
27P		€149.84M	8.20	5.38%	―	―	―

Embelton Limited Corporate Events

Embelton Limited Announces New Dividend Distribution

Embelton Limited has announced a new dividend distribution for its shareholders, with a payment of AUD 0.15 per ordinary fully paid share. This distribution relates to the financial period ending December 31, 2024, and is scheduled for payment on April 11, 2025. The announcement reflects Embelton’s ongoing commitment to providing returns to its investors, potentially strengthening its financial positioning and stakeholder confidence in the company’s growth strategy.

Embelton Limited Reports Increased Profits Amid Revenue Decline

Embelton Limited announced a 23% increase in net profit attributable to members, despite a 25.4% decline in revenue for the half-year ending December 31, 2024. The company maintained its interim dividend of 15.0 cents per share, fully franked, indicating stability in shareholder returns despite revenue challenges.