Stock fact sheet · data as of
The Eastern Company (EML): fair value, margin of safety and Wheel Score
Industrials · Manufacturing - Tools & Accessories · United States · Blend
Is EML undervalued?
At 25.04 (close of 16 Oct 2026), EML trades 11% over the GLS average fair value of 22.51. 3 of the 9 models land above the price and 6 below. A negative margin of safety costs Value points in the Wheel Score (8 of 25 here) - the models see no discount, which does not make the business a poor one, only the price a full one.
The 9 models disagree widely: GLS Growth gives 3.91 while 10 Cap gives 62.17. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files EML under Blend.
Nine valuation models for EML
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 14.65 | -41% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 25.47 | +2% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 21.54 | -14% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 5.34 | -79% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 3.91 | -84% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 62.17 | +148% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 48.20 | +92% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 6.47 | -74% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 14.84 | -41% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 1.20 | -95% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - EML passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 2.8 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 2.9%, ROE 4.1%, ROA 2.4% - with debt at 0.43 times equity and a free-cash-flow yield of 10.0%.
The dividend yield is 1.76% at a payout ratio of 33%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Industrial Hardware 72%, Security Products 19%, Metal Products 9% (quarter Q1 FY2020).
Institutional ownership scores 9/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 2.9% |
|---|---|---|---|
| GLS Moat | 2.8 / 10 | ROE | 4.1% |
| Debt / equity | 0.43 | ROA | 2.4% |
| Free-cash-flow yield | 10.0% | Payout ratio | 33% |
| Institutions | 9 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 31: No options
EML has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (31 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 8k shares a day on a market cap of $151M, with a beta of 0.86; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 8 / 25 | -11% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 4 / 15 | moat 2.8/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 6 / 20 | 8k shares/day, $151M cap, beta 0.86 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 10 Nov 2026 (after the close), 25 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Manufacturing - Tools & Accessories
The 11 companies below are the closest to The Eastern Company by market cap within the Manufacturing - Tools & Accessories industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| QEPC Q.E.P. Co., Inc. | 55.98 | 134.90 | +59% | 39No options | $167M |
| DMFG Decker Manufacturing Corporation | 57.10 | 206.15 | +72% | 39No options | $50M |
| HLMN Hillman Solutions Corp. | 7.26 | 7.85 | +8% | 73Good | $1.4B |
| KMT Kennametal Inc. | 30.99 | 37.77 | +18% | 75Good | $2.4B |
| ILAG Intelligent Living Application Group Inc. | 2.85 | - | - | 20No options | $6M |
| TKR The Timken Company | 112.32 | 78.67 | -43% | 63Fair | $7.8B |
| TTC The Toro Company | 98.26 | 72.41 | -36% | 56Fair | $9.3B |
| SWK Stanley Black & Decker, Inc. | 90.29 | 132.49 | +32% | 86Prime | $13.6B |
| LECO Lincoln Electric Holdings, Inc. | 260.24 | 167.87 | -55% | 65Good | $14.2B |
| RBC RBC Bearings Incorporated | 498.54 | 203.15 | -145% | 60Fair | $15.8B |
| SNA Snap-on Incorporated | 363.51 | 303.10 | -20% | 55Fair | $18.8B |
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Start free See the Sunday ScanQuestions about EML
Is EML undervalued right now?
No: at 25.04 the stock trades 11% above the GLS average fair value of 22.51 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of EML and what does it mean?
EML has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for EML?
22.51 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does The Eastern Company report earnings next?
The next earnings report is due on 10 Nov 2026 (after the close), 25 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does EML have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on EML, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.