Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

The Eastern Company (EML)

Company Dividend Discount ModelIndustry: Manufacturing - Tools & AccessoriesSector: Industrials

Valuation Snapshot

Stable Growth$10.33 - $15.60$12.81
Multi-Stage$17.50 - $19.22$18.35
Blended Fair Value$15.58
Current Price$24.58
Upside-36.62%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.10%-0.90%0.450.450.450.450.450.450.450.450.450.46
YoY Growth---1.28%0.99%-0.62%0.04%0.39%-0.45%0.07%0.12%-2.12%-5.92%
Dividend Yield--1.72%1.33%2.30%1.94%1.70%2.22%1.64%1.58%2.10%2.81%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)7.28
(-) Cash Dividends Paid (M)2.70
(=) Cash Retained (M)4.58
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1.460.910.55
Cash Retained (M)4.584.584.58
(-) Cash Required (M)-1.46-0.91-0.55
(=) Excess Retained (M)3.123.674.03
(/) Shares Outstanding (M)6.116.116.11
(=) Excess Retained per Share0.510.600.66
LTM Dividend per Share0.440.440.44
(+) Excess Retained per Share0.510.600.66
(=) Adjusted Dividend0.951.041.10
WACC / Discount Rate8.06%8.06%8.06%
Growth Rate-1.07%-0.07%0.93%
Fair Value$10.33$12.81$15.60
Upside / Downside-57.99%-47.87%-36.54%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)7.287.277.277.267.267.257.47
Payout Ratio37.05%47.64%58.23%68.82%79.41%90.00%92.50%
Projected Dividends (M)2.703.464.235.005.766.536.91

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.06%8.06%8.06%
Growth Rate-1.07%-0.07%0.93%
Year 1 PV (M)3.173.213.24
Year 2 PV (M)3.553.623.70
Year 3 PV (M)3.843.964.08
Year 4 PV (M)4.064.234.40
Year 5 PV (M)4.214.434.65
PV of Terminal Value (M)88.0592.5997.32
Equity Value (M)106.89112.04117.38
Shares Outstanding (M)6.116.116.11
Fair Value$17.50$18.35$19.22
Upside / Downside-28.79%-25.37%-21.80%

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