Eastern Net Income vs. Return On Asset

EML Stock  USD 29.92  0.72  2.47%   
Considering Eastern's profitability and operating efficiency indicators, Eastern Co is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Eastern's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1992-03-31
Previous Quarter
3.5 M
Current Value
-15.3 T
Quarterly Volatility
1.3 T
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Eastern's Price To Sales Ratio is quite stable compared to the past year. Operating Cash Flow Sales Ratio is expected to rise to 0.05 this year, although the value of EV To Sales will most likely fall to 0.54. At this time, Eastern's Net Income Per Share is quite stable compared to the past year. Income Quality is expected to rise to 1.54 this year, although the value of Income Before Tax will most likely fall to about 9.1 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.280.24
Fairly Up
Very volatile
Net Profit Margin0.03580.0396
Moderately Down
Slightly volatile
Operating Profit Margin0.07910.0457
Way Up
Slightly volatile
Pretax Profit Margin0.07750.0593
Significantly Up
Slightly volatile
Return On Assets0.0650.0541
Fairly Up
Slightly volatile
Return On Equity0.110.0972
Moderately Up
Slightly volatile
For Eastern profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Eastern to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Eastern Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Eastern's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Eastern Co over time as well as its relative position and ranking within its peers.
  

Eastern's Revenue Breakdown by Earning Segment

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Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Eastern. If investors know Eastern will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Eastern listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.545
Dividend Share
0.44
Earnings Share
2
Revenue Per Share
45.732
Quarterly Revenue Growth
0.15
The market value of Eastern is measured differently than its book value, which is the value of Eastern that is recorded on the company's balance sheet. Investors also form their own opinion of Eastern's value that differs from its market value or its book value, called intrinsic value, which is Eastern's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Eastern's market value can be influenced by many factors that don't directly affect Eastern's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Eastern's value and its price as these two are different measures arrived at by different means. Investors typically determine if Eastern is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eastern's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Eastern Return On Asset vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Eastern's current stock value. Our valuation model uses many indicators to compare Eastern value to that of its competitors to determine the firm's financial worth.
Eastern Co is rated below average in net income category among its peers. It is rated below average in return on asset category among its peers . The ratio of Net Income to Return On Asset for Eastern Co is about  173,434,384 . At this time, Eastern's Net Income is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Eastern by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Eastern Return On Asset vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Eastern

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
8.59 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Eastern

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0495
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Eastern Return On Asset Comparison

Eastern is currently under evaluation in return on asset category among its peers.

Eastern Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Eastern, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Eastern will eventually generate negative long term returns. The profitability progress is the general direction of Eastern's change in net profit over the period of time. It can combine multiple indicators of Eastern, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-23 M-21.8 M
Operating Income15.2 M16.3 M
Income Before Tax11 M9.1 M
Total Other Income Expense Net-4.2 M-4.4 M
Net Income8.6 M6.2 M
Income Tax Expense2.4 M2.8 M
Net Income Applicable To Common Shares14.1 M7.6 M
Net Income From Continuing Ops5.2 M9.9 M
Non Operating Income Net Other-7.6 M-7.2 M
Interest Income109.3 K122.8 K
Net Interest Income-3.3 M-3.1 M
Change To Netincome3.6 M3.8 M
Net Income Per Share 1.78  1.87 
Income Quality 0.85  1.54 
Net Income Per E B T 0.77  0.52 

Eastern Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Eastern. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Eastern position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Eastern's important profitability drivers and their relationship over time.

Use Eastern in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Eastern position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eastern will appreciate offsetting losses from the drop in the long position's value.

Eastern Pair Trading

Eastern Co Pair Trading Analysis

The ability to find closely correlated positions to Eastern could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Eastern when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Eastern - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Eastern Co to buy it.
The correlation of Eastern is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Eastern moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Eastern moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Eastern can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Eastern position

In addition to having Eastern in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Baby Boomer Prospects Thematic Idea Now

Baby Boomer Prospects
Baby Boomer Prospects Theme
Equities with large market capitalization that account for significant contribution to overall economic growth especially within dividend-paying instruments and stocks from healthcare and financial sectors. The Baby Boomer Prospects theme has 98 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Baby Boomer Prospects Theme or any other thematic opportunities.
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When determining whether Eastern is a strong investment it is important to analyze Eastern's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Eastern's future performance. For an informed investment choice regarding Eastern Stock, refer to the following important reports:
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You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
To fully project Eastern's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Eastern at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Eastern's income statement, its balance sheet, and the statement of cash flows.
Potential Eastern investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Eastern investors may work on each financial statement separately, they are all related. The changes in Eastern's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Eastern's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.