Embecta Corp. Common Stock (EMBC)

FairStock Score: 72/100 — STEADY

Key Financials

Strengths

• Generates $196 million in annual free cash flow (36.4% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Attractive 14.7% dividend yield providing steady income returns
• FairStock composite score of 72/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Revenue declining at 0.3% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Embecta Corp. Common Stock is a micro-cap healthcare company valued at $538 million. The business generates $1.0 billion in annual revenue with a 4.2% net margin and $196 million in free cash flow. From a quality standpoint, Embecta shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.6 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 1.7x, with 3.1% FCF yield. Growth dynamics show revenue growing at -0.3%. The 14.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 72/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $196 million in annual free cash flow (36.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer