Embecta Corp. — Earnings Quality Grade F
EMBC · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 49 days, change -14 days YoY
AR growth -24.6% vs revenue growth -3.8%
Revenue -3.8%, CFFO 437.0%. Cash follows revenue
Expense Quality
Inventory 4.1% vs COGS 4.0%. Normal
CapEx growth -41.1% vs revenue -3.8%. Normal
SG&A/Gross Profit = 49.1%. Normal
Gross margin 62.6%, change -2.8pp. Stable
Cash Flow Quality
CFFO/NI = 2.01. Profits backed by cash
FCF $0.2B, FCF/NI = 1.91
Accruals ratio = -8.8%. Low accruals
Cash $0.2B covers only 16% of debt $1.4B
Balance Sheet Health
Goodwill+Intangibles $0.0B = -3% of equity. Manageable
Debt/EBITDA = 5.0x (>4x). Financial stress
Other assets -14.4% vs revenue -3.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -5% YoY. Normal
Manipulation Score
M-Score = -3.11 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25