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): 18.8
• 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: N/A
• 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 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 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: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 8.1 is above the 20-day moving average (MA) of 8.08, below the 50-day MA of 8.10, and above the 200-day MA of 8.01, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.92 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 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	70 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$21.80M	25.00	6.19%	―	-6.52%	-20.79%
EMB	50 Neutral	AU$17.44M	18.85	4.57%	4.32%	-15.54%	-26.61%
ECT	49 Neutral	AU$60.33M	-6.90	-164.39%	―	―	15.66%
CLG	42 Neutral	AU$18.61M	-0.84	-12.78%	―	-8.37%	-300.48%
OLH	40 Neutral	AU$2.56M	-0.61	―	―	-13.63%	52.08%