The Eastern Company
- Open
- 26.59
- Day high
- 27.24
- Day low
- 26.24
- Prev close
- 26.32
- Volume
- 19K
- Mkt cap
- $164M
- P/E (TTM)
- 20.4
- EPS (TTM)
- $1.34
- P/B
- 1.3
- P/S
- 0.7
- Yield
- 1.62%
- Per share
- $0.44
- ▲Insiders net buying $285K over the last 3 months (10 open-market buys, 0 sales)
- ◆Cluster buying — multiple insiders bought within days
- 🏛Institutions reducing (13F)
The Eastern Company (EML) is a Industrials company listed on NASDAQ. The stock is up 11% over the past year. Over the trailing 3 months, insiders filed 10 open-market buys and 0 sales (SEC Form 4).
The Eastern Company (EML) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
EML earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 12, 2026 | $0.67 | $0.15 | -77.6% | $62M | -16.1% |
| May 13, 2026 | $0.50 | $0.11 | -78.0% | $60M | -11.9% |
| Mar 4, 2026 | $0.36 | $0.31 | -13.9% | $60M | -12.4% |
| Nov 4, 2025 | $0.77 | $0.13 | -83.1% | $55M | -24.6% |
| Mar 11, 2025 | — | $0.42 | — | $67M | — |
| Mar 12, 2024 | — | $0.56 | — | $67M | — |
| Mar 14, 2023 | — | $0.11 | — | $69M | — |
| Mar 17, 2022 | — | $0.65 | — | $60M | — |
| Nov 10, 2021 | — | $0.64 | — | $64M | — |
| Aug 12, 2021 | — | $0.44 | — | $61M | — |
| Apr 28, 2021 | — | $0.71 | — | $73M | — |
| Mar 15, 2021 | — | $0.74 | — | $60M | — |
EML insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 17, 2026 | DiSanto Frederick D.director | Buy | 1,000 | $21.25 |
| Jun 17, 2026 | DiSanto Frederick D.director | Grant | 1,068 | $21.40 |
| Jun 17, 2026 | Scott Peggydirector | Buy | 1,176 | $21.40 |
| Jun 17, 2026 | EVERETS JOHNdirector | Buy | 1,310 | $21.40 |
| Jun 17, 2026 | MITAROTONDA JAMES Adirector, 10 percent owner: | Buy | 1,679 | $21.40 |
| Jun 17, 2026 | Galbato Chandirector | Buy | 940 | $21.40 |
| Jun 12, 2026 | DiSanto Frederick D.director | Buy | 1,000 | $21.25 |
| Jun 8, 2026 | DiSanto Frederick D.director | Buy | 288 | $21.50 |
| Jun 8, 2026 | MITAROTONDA JAMES Adirector, 10 percent owner: | Buy | 1,922 | $21.58 |
| Jun 8, 2026 | MITAROTONDA JAMES Adirector, 10 percent owner: | Buy | 3,736 | $21.73 |
| Jun 5, 2026 | DiSanto Frederick D.director | Buy | 213 | $21.50 |
| Mar 20, 2026 | MITAROTONDA JAMES Adirector, 10 percent owner: | Buy | 2,000 | $20.11 |
| Mar 17, 2026 | MITAROTONDA JAMES Adirector, 10 percent owner: | Buy | 1,717 | $20.93 |
| Mar 17, 2026 | Scott Peggydirector | Buy | 1,064 | $20.93 |
| Mar 17, 2026 | Galbato Chandirector | Buy | 962 | $20.93 |
Source: EML SEC Form 4 filings, latest Jun 17, 2026. For informational purposes only — not investment advice.
See the full EML insider & 13F page →The Eastern Company company profile
Overview
The Eastern Company (NYSE:EML) is a diversified industrial manufacturer founded in 1858 and headquartered in Naugatuck, Connecticut. The company has evolved from its 19th-century origins into a modern manufacturer serving automotive, commercial vehicle, and industrial markets. Eastern operates through three main business segments and has undergone significant strategic transformation in recent years, including leadership changes with Ryan Schroeder appointed as CEO in 2024, and portfolio optimization through divestitures of non-core assets.
Business
The Eastern Company operates in the industrial manufacturing sector, specifically focusing on engineered solutions for automotive and commercial vehicle markets. The company's business is organized into three primary segments: Velvac represents the largest segment, manufacturing truck mirror assemblies and related components for the commercial vehicle industry. This division produces mirrors for Class 8 heavy-duty trucks and serves both original equipment manufacturers (OEMs) and the aftermarket. The mirrors are critical safety components that provide visibility for large commercial vehicles, and Velvac maintains strong market share in this specialized niche. Big 3 Precision Products focuses on returnable transport packaging solutions used in automotive assembly processes. These are reusable containers and packaging systems that manufacturers use to transport parts during vehicle assembly, reducing waste and improving efficiency in production lines. The segment also produces blow mold tooling for creating plastic containers used in food, beverage, healthcare, and chemical industries. Additionally, it manufactures truck accessories and components. Eberhard Manufacturing produces industrial hardware components including latches, hinges, locks, handles, and electromechanical systems. These products serve various industrial applications where secure fastening and access control are required. The segment also develops custom mechanical and electromechanical solutions for specialized applications. The company has been streamlining its portfolio, recently divesting its mold manufacturing business (ISBM) and focusing on higher-margin assembly and manufacturing operations. Revenue distribution among segments fluctuates, but Velvac typically represents the largest portion of sales, with the commercial vehicle market being a key driver of overall performance.
Revenue model
The Eastern Company generates revenue primarily through direct product sales to original equipment manufacturers and aftermarket distributors. The business model centers on manufacturing engineered components and assemblies that are sold at negotiated prices, typically under longer-term supply agreements with automotive and commercial vehicle manufacturers. Revenue streams include: 1. OEM sales to truck manufacturers who integrate Eastern's mirrors and components into new vehicles, 2. Aftermarket sales through distributors serving the replacement parts market, 3. Industrial sales of returnable packaging systems to automotive assembly plants, and 4. Custom tooling and engineering services for specialized applications. The company's profitability is influenced by several key factors. Positive margin drivers include the ability to pass through raw material cost increases to customers, vertical integration initiatives that reduce supplier dependence, and the specialized nature of products that limits direct competition. The company's focus on essential safety components like truck mirrors provides some pricing power due to regulatory requirements and the critical nature of these products. Margin pressures come from raw material cost volatility, particularly steel and plastics, freight cost fluctuations, and the cyclical nature of the commercial vehicle industry. The company faces challenges from tariff impacts on imported materials and components, as well as the need to invest in new technologies like electric vehicle components as the industry evolves. Customer concentration in the automotive industry also creates vulnerability to production schedule changes and pricing pressures from large OEM customers.
Competitive moat
The Eastern Company operates in niche markets with moderate competitive advantages, though its moat is not particularly wide or durable. The company's strongest competitive position lies in Velvac's truck mirror business, where it maintains significant market share in Class 8 heavy-duty truck mirrors. This position benefits from established relationships with truck manufacturers, regulatory compliance expertise, and the specialized nature of commercial vehicle safety equipment. The company's competitive advantages include: 1. Long-standing customer relationships built over decades in specialized markets, 2. Technical expertise in regulatory compliance for safety-critical components, 3. Established distribution networks in aftermarket channels, and 4. Manufacturing capabilities that combine standard products with custom engineering solutions. However, the moat faces several vulnerabilities. The industrial manufacturing sector is generally competitive with relatively low barriers to entry for many product categories. Competitive threats include larger diversified manufacturers with greater resources, potential new entrants from lower-cost regions, and technology disruption from electric vehicle adoption that could change component requirements. The returnable packaging business faces competition from both traditional packaging companies and newer sustainable packaging solutions. The company's small size relative to major industrial conglomerates limits its ability to invest heavily in research and development or to weather significant market downturns. While Eastern has carved out profitable niches, these positions are more dependent on execution and customer service than on truly defensible competitive advantages.
Risks & safety
The Eastern Company presents a moderate margin of safety profile with reasonable financial stability but limited financial flexibility. • Liquidity and Solvency: Current ratio of 2.77 indicates solid short-term liquidity. Cash position of $7.9 million is relatively modest but adequate for operations. Debt-to-equity ratio of 0.52 shows manageable leverage levels. • Cash Flow: Recent quarters show negative free cash flow of -$2.3 million, indicating working capital challenges. However, the company generated positive operating cash flow of $20.6 million for full year 2024. • Valuation Metrics: Trading at P/E ratio of 20.8x and EV/EBITDA of 11.9x, which appears reasonable for a cyclical industrial company. Price-to-book ratio of 1.34x suggests modest premium to book value. • Operational Risks: Concentrated customer base in cyclical commercial vehicle industry creates earnings volatility. Recent gross margin compression from 26.8% to 22.4% indicates pricing pressure or cost inflation challenges. • Balance Sheet Strength: Total assets of $232 million with shareholders' equity providing reasonable cushion. Working capital management remains a key focus area given recent cash flow pressures.
Recent development
The Eastern Company has undergone significant strategic transformation over the past few years, centered on portfolio optimization and operational improvements. The most notable change was the appointment of Ryan Schroeder as CEO in November 2024, bringing extensive experience from leadership roles at Plaskolite, IMI Norgen, and Parker Hannifin. Portfolio rationalization has been a key theme, with the company divesting non-core assets including the sale of Argo EMS and the recent divestiture of the ISBM blow mold business (Centralia Mold). The company also closed its Dearborn facility as part of operational consolidation efforts. These moves reflect management's focus on higher-margin, core manufacturing and assembly operations. Leadership restructuring accompanied the CEO change, with new presidents appointed at two of three business segments: Zachary Gorny at Eberhard Manufacturing and Emilio Ruffalo at Big 3 Precision Products, while Dan McGrew continues leading Velvac. This decentralized approach aims to provide more focused leadership for each business unit. Operational initiatives include a $3.5 million investment in plastics manufacturing capabilities, implementation of cellular manufacturing systems, and vertical integration efforts to reduce supplier dependence. The company has also been actively managing tariff impacts through supply chain flexibility and pricing strategies. Capital allocation has focused on debt reduction (over $20 million paid down in recent years), share buybacks (completed 200,000 shares with authorization for 400,000 additional shares), and selective capital investments in manufacturing capabilities. The company maintains an active acquisition pipeline while prioritizing balance sheet strength.
EML company profile · for informational purposes only — not investment advice.
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