Eastern Company (The) — Earnings Quality Grade F
EML · Industrials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 44 days, change -3 days YoY
AR growth -15.2% vs revenue growth -8.7%
Revenue -8.7%, CFFO -56.9%. Cash follows revenue
Expense Quality
Inventory 2.1% vs COGS -6.6%. Normal
CapEx growth -59.1% vs revenue -8.7%. Normal
SG&A/Gross Profit = 74.1%, exceeds 70%
Gross margin 22.9%, change -1.8pp. Stable
Cash Flow Quality
CFFO/NI = 1.24. Profits backed by cash
FCF $0.0B, FCF/NI = 0.69
Accruals ratio = -0.8%. Low accruals
Cash $0.0B covers only 14% of debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $0.1B = 55% of equity. Over 50%
Debt/EBITDA = 3.2x. Healthy
Insufficient data
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -3% YoY. Normal
Manipulation Score
M-Score = -2.56 (< -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