Reading EML? Track it free: the weekly brief, plus an alert if the thesis breaks. No credit card.
Track EML free→Reading EML? Track it free: the weekly brief, plus an alert if the thesis breaks. No credit card.
Track EML free→NASDAQIndustrialsTools & AccessoriesSnapshot 2026-06-16
Recent financial performance sits below its industry cohort — worth keeping an eye on, though it has not freshly broken.
Recent financial performance is neutral, and earnings quality is also neutral. Management's recent track record has been fairly steady, while risk is elevated and the sector backdrop is a headwind. Peer multiples imply a price about 51% above where it trades (it looks cheap on this basis); the read is cheap, quality intact. Key factors to watch include any guidance cuts from EML and the performance of sector bellwethers like SNA, RBC, and LECO. This read is provisional.
Daily closes. Earnings/event dots are placed inline.
A consensus fair price across 5 valuation methods, at three horizons. Current price $21.40. Estimates are diagnostics, not price targets. Short-horizon estimates are close to coin-flips, so confidence is a method-agreement read, not a prediction.
No-growth: today's peer multiple on trailing earnings. The headline read.
Embeds projected growth. Leans optimistic by design. Upside context.
We take the 12-month fair value above and grade our own number — how the market prices this name versus what we'd justify, and where the two diverge.
At $21 EML trades at 17× p/e, below its 24× p/e peer median. Our $44 fair value sits above the price; medium confidence. Not investment advice.
One valuation read at a 12-month horizon, plus how price compares to peers and the company's own history.
The price sits about 51% below a flat-multiple fair value; not enough history to forecast a comparison. This describes what's priced in, not a forecast of the move.
Only weak execution quality — not the full expensive x weak x turbulent stack.
For similar setups historically (n=20,154): about 33% saw a 20%+ drawdown, and roughly 76% of those did not recover within the year. These are historical base rates for the cohort, not a forecast of this stock.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 0 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated neutral grew net income 57% of the time over the next year (vs 64% for the rest of the cohort, n=4882).
Over the trailing year it converted 1.29x of net income into operating cash flow. Historically, Industrials names rated neutral grew net income 57% of the time over the next year (vs 60% for the rest of the cohort, n=4440).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, Fed net liquidity, real (inflation-adjusted) rates, long-term interest rates.
The next print and the backdrop around it (sector regime and the AI cycle). Context for the path, not a forecast of returns.
via XLI
Tailwind = sector leading the S&P 500; headwind = trailing. Both can be constructive. Historically, headwind regimes have averaged stronger forward returns than tailwind.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
What a normal day, a bad day, and the worst of the last year would mean for a $10,000 position.
On a typical day, $10k can swing ±$105.
How much price usually moves either way.
On a bad day, this stock has moved -$341.
A rough but not unusual down day (about the 95th percentile).
In the worst 12 months, $10k could have lost $3,317.
Deepest peak-to-trough drop in the last year.
Past results, not a forecast. Not investment advice.
The most important moves since the prior daily snapshot.
No material changes since the prior snapshot.
as of 2026-06-16
Specific, dated things to watch for, each with what would confirm it and what would prove it wrong.
Why it matters: The FOMC's interest rate decision affects borrowing costs. This can influence economic growth. It also impacts Eastern Co.'s business.
Confirms one read:FOMC raises interest rates by 25 basis points or more.
Confirms the other:FOMC holds rates steady or cuts rates.
Recent news graded against this company's own objectives — whether it reinforces or challenges the thesis, and how confirmed it is.
No graded news catalysts for EML yet.
Conditional scenarios: if X happens, the view would shift in this direction. These are not predictions.
No upside scenarios in the latest snapshot.
No downside scenarios in the latest snapshot.
Recent SEC 8-K filings ranked by likely impact, confidence, and recency.
Regulation FD Disclosure On June 2, 2026, The Eastern Company announced the acquisition of Sungear and Crown Precision. A copy of the press release dated June 2, 2026 announcing the acquisition of Sungear and Crown Precision is attached hereto.
Whether the overall read has been drifting up or down lately, and how it's changed since last week.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Long-thesis check; widest uncertainty.
Looks cheaper than most peers in the same business.
Self-history needs ~20 months of data.
Trailing four: 2025-Q1, 2025-Q2, 2025-Q3, 2027-Q1
A side-by-side read on sector standing, valuation, and risk versus Industrial Machinery & Supplies & Components.
| Stock | Sector standing | Valuation | Risk |
|---|---|---|---|
EML Eastern Co. (The) | Typical Show detailsSector percentile: 38 of 100 | inexpensive | elevated |
PH Parker Hannifin | Above typical Show detailsSector percentile: 78 of 100 | full | moderate |
ITW Illinois Tool Works | Above typical Show detailsSector percentile: 88 of 100 | fair | moderate |
GWW W. W. Grainger | Above typical Show detailsSector percentile: 77 of 100 | full | moderate |
DOV Dover Corporation | Typical Show detailsSector percentile: 61 of 100 | fair | low |
7 material management or governance events in the past 24 months, led by M&A activity. Historically, Industrials names rated neutral grew net income 59% of the time over the next year (vs 60% for the rest of the cohort, n=1113).
Not investment advice. As of 2026-06-16.
Context label only: describes the market state (e.g. real bear vs narrative panic, healthy uptrend vs late-stage froth). It is not a per-ticker buy/sell signal and does not predict factor performance.
Not investment advice. As of 2026-06-16.
Announced acquisition of Sungear and Crown Precision to enhance market position.
Newly stated in 2026-Q2. The acquisition of Sungear and Crown Precision was announced to strengthen the company's market position. This strategic move is expected to contribute to growth, but financial impacts are yet to be seen.
“The Eastern Company announced the acquisition of Sungear and Crown Precision.”
Maintain earnings per share guidance at $0.11 for fiscal year 2026.
Stated in 2 of last 2 quarters. EPS guidance maintained at $0.11 for fiscal year 2026. The company reported net income of $0.6 million in 2026-Q1, consistent with guidance. The trajectory is stable, with EPS guidance unchanged.
“Net Income of $0.6 Million, or $0.11 per Diluted Share.”
“Net income for the third quarter of fiscal 2025 was $0.6 million, or $0.10 per diluted share.”
Focus on increasing cash generated from operating activities.
Stated in 3 of last 3 quarters. Cash from operating activities increased to $3.48 million in 2027-Q1 from $3.11 million in 2025-Q3. The company is delivering on its focus to increase cash generation from operations.
Why it matters: This report gives insight into consumer spending trends. Strong retail sales can boost demand for Eastern Co.'s products.
Confirms:Retail sales increase by more than 0.5% month over month.
Disproves:Retail sales decline or grow less than 0.5% month over month.
Why it matters: GDP growth affects overall economic health. Strong growth can lead to increased demand for Eastern Co.'s products.
Confirms:GDP growth is reported above 2% for Q1 2026.
Disproves:GDP growth is reported below 2% for Q1 2026.
Results of Operations and Financial Condition Press Release dated May 12, 2026 announcing the first quarter earnings for 2026 is attached hereto.
Results of Operations and Financial Condition Press Release dated March 3, 2026 announcing the fourth quarter and full year earnings for 2025 is attached hereto.
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On February 25, 2026, each of Mr. Charles W. Henry and Mr. Michael J. Mardy notified the Board of Directors (the “Board”) of The Eastern Company (the “Company”) that he will not stand for re-election at the Company’s 2026 Annual Meeting of Shareholders (the “Annual Meeting”) and will retire from the Board. Mr. Henry and Mr. Mardy will continue to s…
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On February 25, 2026, each of Mr. Charles W. Henry and Mr. Michael J. Mardy notified the Board of Directors (the “Board”) of The Eastern Company (the “Company”) that he will not stand for re-election at the Company’s 2026 Annual Meeting of Shareholders (the “Annual Meeting”) and will retire from the Board. Mr. Henry and Mr. Mardy will continue to s…
“Cash from operating activities increased to $3.48 million.”
“Cash from operating activities was $3.11 million.”
“Cash from operating activities was $3.76 million.”