Eastern Company (EML) AI Stock Analysis

• Market Cap: $119.67M
• Dividend Yield: 2.06%
• Average Volume (3M): 9.46K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.09
• Revenue Growth: -8.54%
• EPS Growth: -68.18%
• Country: US
• Employees: 1,246
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 0.13
• Shares Outstanding: 6,068,650
• 10 Day Avg. Volume: 11,491
• 30 Day Avg. Volume: 9,459
• PEG Ratio: 0.16
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 15.21
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 11.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.98
• Revenue Forecast (FY): $274.28M

• Rating: 53 Neutral
• Price Target: $21.50 ▲(0.37% Upside)

Eastern Company is currently facing significant challenges, particularly in profitability and market momentum. The financial performance is weak, with declining revenue and profitability issues. Technical indicators suggest a bearish trend. However, the stock's valuation is relatively attractive, and strategic measures are being implemented to address current challenges. The overall score reflects these mixed factors, with a need for improvement in financial health and market conditions.

Eastern Company Business Overview & Revenue Model

Company Description

Eastern Company (EML) is a diversified manufacturer based in the United States, primarily engaged in the production of security products, metal castings, and industrial hardware. The company operates through its various segments, which include security products, industrial hardware, and metal castings, offering a wide range of products such as padlocks, locks, and other security solutions, as well as diverse industrial components. Established over a century ago, Eastern Company has built a reputation for quality and innovation, serving a variety of markets including government, commercial, and industrial sectors.

How the Company Makes Money

Eastern Company generates revenue through multiple key streams, primarily by selling its security products and industrial hardware to various customers across different sectors. The company benefits from long-term contracts and relationships with government agencies and commercial customers, providing a steady demand for its products. Additionally, Eastern Company engages in custom manufacturing, allowing it to cater to specific customer needs and expand its product offerings. Significant partnerships and collaborations with distributors and other manufacturers also contribute to its earnings, as these relationships facilitate market access and enhance distribution capabilities.

Eastern Company Financial Statement Overview

Summary

Eastern Company faces challenges in profitability and revenue growth, with negative net income and declining revenue. The balance sheet shows improved leverage but inconsistent returns. Cash flow generation is mixed, with strong operating cash flow but declining free cash flow. The company needs to address profitability and cash management to improve its financial health.

Income Statement

The company's revenue has shown fluctuations with a recent decline in TTM. Gross profit margins have been relatively stable, but net profit margins are negative, indicating challenges in profitability. EBIT and EBITDA margins have also decreased, reflecting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio has improved over time, indicating better leverage management. However, the return on equity is highly volatile, with recent negative figures, suggesting inconsistent profitability. The equity ratio remains stable, providing some balance sheet strength.

Cash Flow

Operating cash flow has seen significant growth in the TTM, but free cash flow growth is negative, indicating potential cash management issues. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	255.50M	272.75M	258.86M	279.27M	246.52M	197.61M
Gross Profit	58.14M	67.27M	61.77M	58.62M	56.77M	48.09M
EBITDA	17.72M	25.68M	23.26M	23.91M	28.06M	22.09M
Net Income	7.28M	-8.53M	8.59M	12.30M	9.35M	5.41M
Balance Sheet
Total Assets	220.05M	235.31M	252.04M	261.52M	266.33M	275.53M
Cash, Cash Equivalents and Short-Term Investments	9.23M	16.06M	9.29M	10.19M	6.17M	15.32M
Total Debt	55.42M	56.64M	62.08M	76.40M	75.12M	101.33M
Total Liabilities	95.77M	114.62M	119.56M	134.91M	151.73M	171.22M
Stockholders Equity	124.28M	120.69M	132.48M	126.61M	114.60M	104.31M
Cash Flow
Free Cash Flow	13.09M	10.84M	20.05M	7.10M	-5.74M	17.59M
Operating Cash Flow	16.81M	20.55M	26.48M	10.46M	-2.02M	20.69M
Investing Cash Flow	1.66M	-8.47M	-5.43M	5.09M	12.62M	-9.11M
Financing Cash Flow	-16.94M	-4.82M	-22.90M	-11.78M	-20.27M	-13.18M

Eastern Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EML, the sentiment is Negative. The current price of 21.42 is above the 20-day moving average (MA) of 20.87, below the 50-day MA of 22.64, and below the 200-day MA of 23.58, indicating a bearish trend. The MACD of -0.79 indicates Positive momentum. The RSI at 33.17 is Neutral, neither overbought nor oversold. The STOCH value of 8.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EML.

Eastern Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKR	76 Outperform	$5.48B	18.61	9.80%	1.75%	-1.01%	-12.13%
KMT	72 Outperform	$2.06B	22.22	7.36%	2.89%	-2.63%	-4.46%
SWK	64 Neutral	$10.52B	23.50	4.92%	4.86%	-1.40%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HLMN	63 Neutral	$1.78B	82.30	3.11%	―	4.47%	345.07%
EML	53 Neutral	$119.67M	23.01	4.98%	2.06%	-8.54%	-68.18%
CVR	38 Underperform	$8.76M	―	-16.20%	1.28%	-12.32%	0.17%

Eastern Company Corporate Events

Eastern Company Secures New $100 Million Credit Facility

On October 28, 2025, The Eastern Company entered into a new Credit Agreement with Citizens Bank, N.A., providing a $100 million five-year senior secured revolving credit facility. This agreement allows for revolving loans, swing line loans, and letters of credit, with the potential to increase the commitment by $75 million. The company used approximately $36 million from this facility to repay its prior credit agreement, which included a $60 million term portion and a $50 million revolving commitment portion, effectively restructuring its debt obligations.

The most recent analyst rating on (EML) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Eastern Company stock, see the EML Stock Forecast page.

Eastern Company Navigates Challenges with Strategic Initiatives

The recent earnings call for Eastern Company highlighted a mixed sentiment, reflecting both challenges and proactive measures. The company faced a difficult business environment with declines in revenue, backlog, net income, and gross margin. However, Eastern Company has taken significant steps to mitigate these challenges by reducing costs, decreasing debt, and engaging in strategic projects. The sentiment conveyed was balanced, with positive cost-saving initiatives countering the negative revenue trends.

Eastern Company Reports Q2 2025 Financial Results

The Eastern Company, an industrial manufacturer specializing in engineered solutions for commercial transportation and logistics, has reported its second quarter 2025 financial results. The company operates across various industrial markets and is known for its strategic focus on operational efficiencies.