Embecta Corporation (EMBC) AI Stock Analysis

• Market Cap: $695.72M
• Dividend Yield: 5.09%
• Average Volume (3M): 359.73K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.85
• Revenue Growth: -3.80%
• EPS Growth: 20.20%
• Country: US
• Employees: 2,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.50
• Shares Outstanding: 58,512,840
• 10 Day Avg. Volume: 430,768
• 30 Day Avg. Volume: 359,726
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $25.00
• Price Target Upside: 82.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $12.50 ▼(-8.56% Downside)

Embecta Corporation's overall stock score reflects significant financial challenges, including declining revenues and high leverage. While technical indicators suggest bearish momentum, the stock's valuation appears attractive with a low P/E ratio and high dividend yield. Strategic advancements and financial discipline noted in the earnings call provide some optimism, but revenue declines and increased costs remain concerns.

Positive Factors

ERP System Implementation

The successful ERP system implementation enhances operational efficiency and supports better resource management, providing a foundation for improved profitability and scalability.

GLP-1 Strategy Advancement

The GLP-1 strategy positions Embecta for future growth by tapping into a significant revenue opportunity, enhancing its product offerings and market competitiveness.

Debt Reduction

Significant debt reduction improves financial stability and flexibility, allowing Embecta to invest in growth initiatives and weather economic fluctuations.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in maintaining market share and pricing power, potentially impacting long-term growth and profitability.

Challenges in China Market

Competitive pressures and local brand preference in China pose risks to Embecta's international expansion and revenue diversification efforts.

Increased Cannula Costs

Rising input costs without immediate alternate suppliers strain margins, potentially affecting profitability and necessitating cost management strategies.

Embecta Corporation Business Overview & Revenue Model

Company Description

Embecta Corporation (EMBC) is a global leader in diabetes care, specializing in the design, manufacturing, and distribution of insulin delivery devices and other diabetes management solutions. The company focuses primarily on the production of insulin syringes, pen needles, and infusion sets aimed at enhancing the quality of life for people living with diabetes. With a commitment to innovation and patient-centric solutions, Embecta operates in the healthcare sector, providing essential products that facilitate effective diabetes management.

How the Company Makes Money

Embecta Corporation generates revenue primarily through the sale of its diabetes care products, including insulin delivery devices and related accessories. The company operates on a business-to-business model, supplying hospitals, clinics, and pharmacies, as well as direct-to-consumer sales in some markets. Key revenue streams include the sale of pen needles, insulin syringes, and infusion sets, with a significant portion of sales derived from long-term contracts and partnerships with healthcare providers and distributors. Additionally, Embecta may benefit from strategic collaborations with technology firms to integrate digital health solutions into its product offerings, thus enhancing value and driving revenue growth.

Embecta Corporation Financial Statement Overview

Summary

Embecta Corporation faces significant financial challenges, with declining revenues and profitability, high financial leverage, and negative equity. Despite some improvement in cash flow generation, the overall financial health remains a concern.

Income Statement

Embecta Corporation's income statement reveals a declining revenue trend over recent years, with a negative revenue growth rate of -2.005% in the latest period. The gross profit margin has decreased from previous years, indicating pressure on cost management. The net profit margin has also declined, reflecting reduced profitability. Despite these challenges, the company maintains a positive EBITDA margin, suggesting some operational efficiency.

Balance Sheet

The balance sheet shows significant financial leverage, with a negative debt-to-equity ratio due to negative stockholders' equity. This indicates high financial risk and potential solvency issues. The return on equity is negative, further highlighting the company's struggles to generate returns for shareholders. The equity ratio is also negative, underscoring the company's reliance on debt financing.

Cash Flow

Embecta Corporation's cash flow statement shows a positive free cash flow growth rate of 37.868% in the latest period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is relatively healthy, suggesting that the company can convert its earnings into cash effectively. However, the free cash flow to net income ratio has fluctuated, pointing to some volatility in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.08B	―	1.08B	1.12B	1.12B	1.13B
Gross Profit	676.80M	―	676.80M	735.20M	749.90M	774.90M
EBITDA	294.70M	―	294.70M	192.70M	245.40M	400.20M
Net Income	94.70M	―	95.40M	78.30M	70.40M	223.60M
Balance Sheet
Total Assets	1.09B	―	28.30M	1.29B	1.21B	1.09B
Cash, Cash Equivalents and Short-Term Investments	225.50M	―	225.50M	267.50M	326.50M	330.90M
Total Debt	1.43B	―	1.43B	1.61B	1.66B	1.64B
Total Liabilities	1.74B	―	1.74B	2.02B	2.04B	1.98B
Stockholders Equity	-650.60M	―	-650.60M	-738.30M	-821.70M	-891.40M
Cash Flow
Free Cash Flow	182.40M	―	182.40M	19.90M	41.20M	388.20M
Operating Cash Flow	191.70M	―	191.70M	35.70M	67.70M	412.20M
Investing Cash Flow	-9.30M	―	-9.30M	-15.80M	-26.50M	-24.00M
Financing Cash Flow	-226.70M	―	-226.70M	-73.40M	-48.70M	-48.00M

Embecta Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMBC, the sentiment is Negative. The current price of 13.67 is above the 20-day moving average (MA) of 12.35, above the 50-day MA of 13.16, and above the 200-day MA of 12.19, indicating a bearish trend. The MACD of -0.50 indicates Negative momentum. The RSI at 40.45 is Neutral, neither overbought nor oversold. The STOCH value of 65.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EMBC.

Embecta Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIGA	73 Outperform	$449.72M	6.13	39.94%	―	-0.85%	-13.50%
COLL	71 Outperform	$1.54B	30.44	22.96%	―	26.34%	-32.79%
DVAX	70 Outperform	$1.27B	-28.25	-7.14%	―	26.73%	-310.39%
PCRX	69 Neutral	$1.13B	59.52	2.90%	―	3.14%	―
EMBC	52 Neutral	$695.72M	7.34	―	5.09%	-3.80%	20.20%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ORGO	50 Neutral	$656.14M	-53.72	0.30%	―	2.24%	-67.56%

Embecta Corporation Corporate Events

Embecta Corp Announces Board Resignation and Transition

On November 17, 2025, Embecta Corp. announced the resignation of David A. Albritton from its Board of Directors, effective immediately, and LTG (Ret.) David F. Melcher’s decision not to stand for re-election at the 2026 annual meeting. These changes are part of Embecta’s strategic transition from its initial standup phase to a growth-focused phase. The Board plans to appoint Devdatt Kurdikar as Chairman and Dr. Claire Pomeroy as Lead Independent Director, reflecting a strategic realignment to prioritize customer, employee, and shareholder needs.