Embecta Corp. Common Stock (EMBC)

FairStock Score: 72/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Embecta as a statistical bargain with a blemish. At the 2026-10-13 close of $6.20, the market cap is $351.3M, and FairStock calculates a P/E of 4.22 and EV/EBITDA of 6.10. Trailing free cash flow is $164.6M, a 46.9% FCF yield. If those cash flows are durable, the price is very cheap. But the business is not compounding. FairStock's Lynch category is SLOW GROWER—Shrinking, with profit down 25.9% a year over five years and revenue down 0.1%. The filed quarterly pattern is erratic: in fiscal Q3 2026, the quarter ended 2026-06-30, revenue was $271.7M and net income was $21.1M; in fiscal Q2 2026, the quarter ended 2026-03-31, revenue was $221.8M and net income was -$4.1M; in fiscal Q1 2026, the quarter ended 2025-12-31, revenue was $261.2M and net income was $44.1M. The latest quarter's revenue was below fiscal Q3 2025's $295.5M, and net income was below that quarter's $45.5M. The company sells diabetes supplies—pen needles, syringes, safety injection devices—to wholesalers and distributors. There may be a modest moat in established products and regulatory/clinical relationships, but the numbers show pressure. Financial health is mixed: ROCE is 12.24% and the Piotroski F-Score is 6/9, yet the Altman Z-Score is 0.32, which signals distress risk. A Graham-style investor might be tempted by low earnings and high cash yield, but the declining top line and volatile earnings mean this is not a classic Buffett compounder. I would want stable revenue and debt clarity before trusting the cheap multiple.

In plain English: Embecta makes and sells diabetes supplies such as pen needles, syringes, and safety injection devices. The business looks weak because sales and profits have been uneven and have shrunk over time, even though it produces a lot of cash compared with its small stock market value. The stock price looks cheap compared with earnings and cash, but the low financial-safety score and falling sales make it a risky cheap stock, not a safe bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer