One-glance verdict
Within fair range
$26.42 our estimate vs market $27.97
6% above our estimate
Fundamentals snapshot
The Eastern Company
EML · NGM · Industrials · Tools & Accessories
Current price
$27.97
52-week range
$17.61 - $29.91
Market cap
$168.31M
Balance sheet
Stretched
3.98x Stretched
Net debt $46.39M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 6.3% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 71.0% above its 5-year average P/E.
- Risk Operating margin compressed from 5.3% to 2.6% over 3 years.
What this company does
The Eastern Company
The Eastern Company makes and sells specialized packaging and hardware for big industries like cars and planes, mostly in North America. Their money comes from selling these engineered solutions and parts that help other companies build their products efficiently. This matters because their products are key to how many important manufacturers operate and get their goods made.
How the company got here
The Eastern Company has a long history, dating back to 1858 when it was founded as Tuttle & Whittemore iron works. [1] The company's early growth was significantly boosted by its products during the American Civil War. [1] Over the decades, it evolved through name changes and strategic acquisitions, such as buying Eberhard Manufacturing in 1936 and Frazer & Jones in 1947. [1] The company has undergone significant transformations, moving away from its early foundry-based operations by discontinuing its malleable iron and high alloy stainless steel casting businesses in the 1990s. [3] This evolution has positioned The Eastern Company as a designer and manufacturer of engineered solutions for industrial markets. [2]
What it actually does
The Eastern Company designs, manufactures, and sells engineered solutions for various industrial markets. [2] Their products are diverse, ranging from industrial hardware like latches and hinges to security products such as electronic and mechanical locking devices. [4, 1] They also provide custom-engineered solutions for vehicular and industrial applications, including access hardware systems and mirrors. [5] Additionally, the company is involved in providing engineered turn-key packaging and tooling for blow molding, serving industries like automotive, consumer goods, and pharmaceuticals. [5]
Industrial Hardware
This segment of The Eastern Company focuses on providing a wide array of hardware used in industrial and vehicular applications. [4] This includes items like passenger restraint locks, slam and draw latches, dead bolt latches, compression latches, cam-type vehicular locks, hinges, and tool box locks. [4] These products are essential components for vehicles in sectors such as agriculture, education, military, fire, and medical, as well as for general industry markets. [1] The hardware is designed for durability and functionality in demanding environments.
Security Products
The Security Products division offers both electronic and mechanical locking devices. [1] These products cater to various markets, including the consumer and gaming industries, providing solutions like timers, drop meters, coin security products, and access control units. [1] The company also supplies security products for everyday items such as luggage and furniture, as well as for commercial laundry equipment. [1] This segment emphasizes safeguarding assets and controlling access through reliable locking mechanisms.
Metal Products
While specific details on the "Metal Products" segment are less distinct in the provided sources, it generally encompasses the manufacturing and sale of metal components and solutions. [3] Given the company's historical roots in iron works and its current focus on engineered solutions, this segment likely involves the production of custom metal parts, castings, or assemblies that are integral to the broader product offerings across industrial hardware and security products. [1, 3]
What management is betting on now
The Eastern Company's management is focused on pursuing organic growth strategies and executing attractive external growth and acquisition opportunities. [2] They aim to increase cash generation, operating earnings, and long-term shareholder value by managing the financial, operational, and strategic performance of their businesses. [2] A key priority is recruiting and retaining talented managers who are accountable, maintain cost discipline, act quickly, and build strong followership. [2] The company also emphasizes disciplined operations, optimum capital utilization, and value-adding acquisitions and vertical integration. [5]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$-6.71M
FY2025 Q4
$8.96M
FY2026 Q1
$-2.70M
FY2026 Q2
$3.01M
FY2026 Q3
$3.07M
FY2026 Q4
$1.52M
FY2027 Q1
$2.61M
FY2027 Q2
$7.94M
Revenue
$61.82M
Net income
$5.65M
Diluted EPS
0.94
Operating cash flow
$8.56M
Free cash flow
$7.94M
Fetching…
Sources
Revenue
$59.68M
Net income
$640.13K
Diluted EPS
0.11
Operating cash flow
$3.48M
Free cash flow
$2.61M
Fetching…
Sources
Revenue
$60.16M
Net income
$1.17M
Diluted EPS
0.19
Operating cash flow
$3.84M
Free cash flow
$1.52M
Fetching…
Sources
Revenue
$55.34M
Net income
$578.94K
Diluted EPS
0.10
Operating cash flow
$3.11M
Free cash flow
$3.07M
Fetching…
Sources
Revenue
$70.16M
Net income
$3.44M
Diluted EPS
0.56
Operating cash flow
$3.76M
Free cash flow
$3.01M
Fetching…
Sources
Revenue
$63.31M
Net income
$1.94M
Diluted EPS
0.32
Operating cash flow
$-1.85M
Free cash flow
$-2.70M
Fetching…
Sources
Revenue
$60.40M
Net income
$1.31M
Diluted EPS
0.22
Operating cash flow
$11.04M
Free cash flow
$8.96M
Fetching…
Sources
Revenue
$71.27M
Net income
$-15.30M
Diluted EPS
-2.46
Operating cash flow
$-1.91M
Free cash flow
$-6.71M
Fetching…
Sources
Is it cheap or expensive?
Fair value $26.42 vs current price $27.97
Our most-likely fair value is $26.42 a share — about 5.5% away from today's price of $27.97, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $46.4M. Interest coverage 4.0x.
Net debt
$46.39M
Interest coverage
3.98x
The Eastern Company's profit covers its interest bill about 4.0 times over. which is stronger than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
EML
BASELINE
The Eastern Company
Total debt $61.53M Interest coverage 3.98x This is the baseline the peer rows are being compared against.
Total debt $9.84M Interest coverage -115.37x -100% vs EML This peer has almost no interest-payment cushion compared with EML.
Total debt $0.00 Interest coverage 6.81x +71% vs EML Carries about 1.7x more debt cushion than EML.
Total debt $216.68M Interest coverage -0.91x -100% vs EML This peer has almost no interest-payment cushion compared with EML.
Total debt $2.47B Interest coverage -0.37x -100% vs EML This peer has almost no interest-payment cushion compared with EML.
Total debt $166.92M Interest coverage -0.38x -100% vs EML This peer has almost no interest-payment cushion compared with EML.
What you should know
The case for and against EML
3 Rewards
3 Risks
Rewards
-
Returns 6.3% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 1.6% with 40-year payout history.
Risks
-
Stock trades 71.0% above its 5-year average P/E.
-
Operating margin compressed from 5.3% to 2.6% over 3 years.
-
Insider ownership is only 8.1% (peer median: 10.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
24.32x
Forward P/E
—
P/B
1.29x
P/S
0.72x
EV/EBITDA
13.21x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
21.4%
Operating margin
2.6%
Net margin
3.4%
ROE
6.3%
ROA
2.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.47x
Current ratio
2.80x
Quick ratio
1.17x
Total debt
$61.53M
Total cash
$15.14M
Growth
How the business has been compounding
Revenue TTM
$236.99M
Revenue 5Y CAGR
0.9%
EPS TTM
1.15
EPS 5Y CAGR
-15.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$18.99M
Free CF TTM
$4.90M
FCF margin
2.1%
Dividend
Shareholder payout
Yield
1.6%
Payout ratio
38.3%
Last ex-div date
2026-08-14