Embecta Corporation (EMBC)
NASDAQ:EMBC
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Embecta Corporation
(NASDAQ:EMBC)
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Rating:59Neutral
Price Target:
$10.00
▲(2.25% Upside)
Action:ReiteratedDate:03/20/26
The score reflects a mixed setup: strong cash generation and attractive valuation (low P/E, high dividend yield) are offset by elevated balance-sheet risk (high debt and negative equity) and weakening price momentum (below key moving averages with negative MACD). Earnings commentary was cautiously stable with reaffirmed guidance but tilted to the low end, while the Owen Mumford acquisition adds longer-term strategic upside with execution risk.
Positive Factors
Cash generation
Consistent, sizable free cash flow provides durable financial flexibility: it supports planned debt repayment, funds selective M&A and product investments, sustains dividend/capital returns, and reduces execution risk from cyclical revenue pressures by enabling self-funded strategic initiatives.
Negative Factors
High leverage
Elevated debt and negative equity limit financial flexibility, increase refinancing and covenant risk, and constrain investment optionality. Even with deleveraging progress, the stretched capital structure amplifies downside from revenue setbacks or execution delays and raises financing costs for growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent, sizable free cash flow provides durable financial flexibility: it supports planned debt repayment, funds selective M&A and product investments, sustains dividend/capital returns, and reduces execution risk from cyclical revenue pressures by enabling self-funded strategic initiatives.
Read all positive factors
Embecta Corporation (EMBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$546.60M
Dividend Yield5.03%
Average Volume (3M)800.63K
Price to Earnings (P/E)3.9
Beta (1Y)1.08
Revenue Growth-2.53%
EPS Growth136.26%
CountryUS
Employees2,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.71
Shares Outstanding59,219,852
10 Day Avg. Volume624,850
30 Day Avg. Volume800,628
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)-1.26
Price to Sales (P/S)0.76
P/FCF Ratio4.51
Enterprise Value/Market Cap3.17
Enterprise Value/Revenue1.60
Enterprise Value/Gross Profit2.52
Enterprise Value/Ebitda4.93
Forecast
1Y Price Target
$17.00Price Target Upside73.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.82
Revenue Forecast (FY)$1.07B
Embecta Corporation Business Overview & Revenue Model
Company Description
Embecta Corp., a medical device company, focuses on the provision of various solutions to enhance the health and wellbeing of people living with diabetes. Its products include pen needles, syringes, and safety devices, as well as digital applicati...
How the Company Makes Money
Embecta makes money primarily by selling diabetes-related medical devices used for insulin administration. Its core revenue stream comes from recurring, high-volume sales of consumable products—especially pen needles and syringes—that patients use...
Embecta Corporation Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveyed mixed near-term operational challenges—notably U.S. pricing and volume headwinds, pen needle declines, China weakness and a meaningful drop in contract manufacturing—balanced against several strategic and financial positives: strong international growth (EMEA and Latin America), category growth in syringes and safety products, meaningful progress on brand transition and Medicare Part D access, tangible GLP-1 commercial traction with >30 partners and executed purchase orders, continued deleveraging (net leverage ~2.8x) and improved GAAP profitability metrics. Management reaffirmed guidance but signaled being nearer the low end due to U.S. pressures. Overall, the call emphasized execution on multi-year strategic initiatives and financial stability, while acknowledging near-term headwinds that temper upside.Positive Updates
Quarterly Revenue (Global) and Currency-Adjusted Change
Embecta reported Q1 FY2026 revenue of approximately $261 million, down 0.3% year-over-year on an as-reported basis and down 2.0% on an adjusted constant currency basis; management noted results were largely in line with expectations and driven by international strength offsetting U.S. headwinds.
Negative Updates
U.S. Revenue Decline and Pricing Headwinds
U.S. revenue for the quarter was approximately $131 million and declined ~7.6% year-over-year on an adjusted constant currency basis (Dev cited lower pricing and lower volumes driven by channel and contractual dynamics). Management now expects incremental U.S. pricing pressure and guidance to be closer to the lower end of ranges.
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Q1-2026 Updates
Positive
Negative
Quarterly Revenue (Global) and Currency-Adjusted Change
Embecta reported Q1 FY2026 revenue of approximately $261 million, down 0.3% year-over-year on an as-reported basis and down 2.0% on an adjusted constant currency basis; management noted results were largely in line with expectations and driven by international strength offsetting U.S. headwinds.
Read all positive updates
Company Guidance
Embecta reaffirmed its FY26 guidance: adjusted constant‑currency revenue flat to down 2% year‑over‑year and as‑reported revenue of -0.9% to +1.1% (implying $1.071–$1.093 billion), reflecting an expected ~1.2% FX tailwind and a ~0.1% Italian payback headwind; adjusted operating margin of 29–30% and adjusted EPS of $2.80–$3.00 (management now expects to be nearer the low end due to incremental U.S. pricing headwinds). Key underlying assumptions include volumes roughly flat (vs prior guidance that implied -50 to -150 bps), manufacturing revenue down ~50 bps, new products contributing ~+50 bps, contract‑manufacturing a ~‑50 bps headwind, and a revenue cadence of ~46% of adjusted dollars in H1 / 54% in H2 (prior year 48/52) with Q1 representing roughly 24% of as‑reported revenue (previously modeled at $257–$262M). On the balance sheet and cash flow, Embecta expects to repay approximately $150M of debt in FY26 (Q1 repay ~$38M), generate $180–$200M of free cash flow (closer to the low end; Q1 FCF ~$17M), and entered the year with LTM net leverage of ~2.8x (vs covenant <4.75x).Embecta Corporation Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
28
Negative
Cash Flow
71
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.08B | 1.08B | 1.12B | 1.12B | 1.13B | 1.17B |
| Gross Profit | 688.10M | 679.50M | 728.90M | 749.90M | 774.90M | 800.00M |
| EBITDA | 351.50M | 294.70M | 199.00M | 245.40M | 334.50M | 533.00M |
| Net Income | 139.50M | 95.40M | 78.30M | 70.40M | 223.60M | 414.80M |
Balance Sheet | ||||||
| Total Assets | 1.06B | 1.09B | 1.29B | 1.21B | 1.09B | 788.00M |
| Cash, Cash Equivalents and Short-Term Investments | 204.40M | 225.50M | 267.50M | 326.50M | 330.90M | 0.00 |
| Total Debt | 1.42B | 1.43B | 1.61B | 1.64B | 1.64B | 0.00 |
| Total Liabilities | 1.68B | 1.74B | 2.02B | 2.04B | 1.98B | 194.00M |
| Stockholders Equity | -613.10M | -650.60M | -738.30M | -821.70M | -891.40M | 594.00M |
Cash Flow | ||||||
| Free Cash Flow | 205.80M | 182.40M | 19.90M | 41.20M | 388.20M | 417.00M |
| Operating Cash Flow | 214.20M | 191.70M | 35.70M | 67.70M | 412.20M | 456.00M |
| Investing Cash Flow | 1.70M | -9.30M | -15.80M | -26.50M | -24.00M | -39.00M |
| Financing Cash Flow | -233.10M | -226.70M | -73.40M | -48.70M | -48.00M | -417.00M |
Embecta Corporation Technical Analysis
Neutral
9.78
Price Trends
9.46
Positive
10.61
Negative
11.68
Negative
Market Momentum
0.03
Negative
64.11
Neutral
87.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMBC, the sentiment is Neutral. The current price of 9.78 is above the 20-day moving average (MA) of 9.03, above the 50-day MA of 9.46, and below the 200-day MA of 11.68, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.11 is Neutral, neither overbought nor oversold. The STOCH value of 87.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EMBC.
Embecta Corporation Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $961.35M | 32.29 | 0.95% | ― | 4.57% | ― | |
67 Neutral | $329.56M | 18.78 | 11.26% | ― | -31.82% | -60.71% | |
59 Neutral | $546.60M | 3.93 | -20.90% | 5.03% | -2.53% | 136.26% | |
57 Neutral | $1.11B | 21.64 | 24.11% | ― | 23.62% | -7.25% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $330.61M | 17.73 | 9.56% | ― | 17.04% | 1511.69% |
* Healthcare Sector Average
EMBC
Embecta Corporation
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-2.61
-22.03%
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Embecta Corporation Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Embecta to Acquire Owen Mumford, Expanding Drug-Delivery Portfolio
Positive
Mar 20, 2026
On March 19, 2026, Embecta announced a definitive agreement to acquire privately held U.K. medical device maker Owen Mumford Holdings Limited in a deal valued at up to £150 million. The transaction, unanimously approved by Embecta’s boa...
Executive/Board ChangesShareholder Meetings
Embecta shareholders back board, pay, and equity plan
Positive
Feb 13, 2026
At its Annual Meeting of Stockholders held on February 11, 2026, Embecta Corp. shareholders elected all seven board nominees, including CEO Devdatt Kurdikar and chair Carrie L. Anderson, to one-year terms ending at the 2027 annual meeting. Investo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.