Embecta Corp.

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Embecta Corp. trades at $3.6, between stages. That is −60.0% against its own 200-day average. It sits at 4% of a 52-week range of $3 to $15. On relative strength it is currently behind the S&P 500 on a trailing-13-week view (37 weeks and counting).

Today the stock is between stages. At $3.6 it trades −60.0% versus its 200-day average and sits at 4% of its 52-week range ($3–$15).

Against the market, two honest reads. Cumulative: over the last 1.0 years the stock moved −66% while the S&P 500 moved +19% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (37 weeks and counting; last ahead the week of 2025-11-14) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 21st percentile of its own range.

Valuation P/E is the price of $1 of annual profit: how many dollars the market pays for each dollar the company earns in a year.

Embecta Corp. trades at 1.9× P/E, near the bottom of its own range — cheaper only 21% of the time. Its long-run median P/E is 5.0×, measured across 1.0 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 1.9× is near the bottom of its own range — cheaper only 21% of the time, against a long-run median of 5.0× measured over 1.0 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +20.9% against a −69.4% price move — earnings outran the price, pushing the multiple DOWN its own range.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Embecta Corp. reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves — the per-curve reads carry the story. The read is built from 12 quarters across 3 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

The return-on-capital curve is not shown — net worth is negative, so a return on capital is not a meaningful number in any basis. This is a distressed balance sheet, and the stage is read from the growth curves alone.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

No sector-relative score — Embecta Corp. is not among the largest members shown in this industry comparison for Medical Instruments & Supplies.

The score is a rank WITHIN a peer set: every metric is scored by percentile against the other members. Without the peer set there is no score to state, so none is invented here.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Embecta Corp. reported $0.2 B of revenue in the Mar 26 quarter, −15.4% year on year. Over 4 years it has compounded at −2.0% a year. The last full year, FY25, came in at $1.1 B. The last four reported quarters add to $1.0 B.

Embecta Corp. reported $0.2 B of revenue in the Mar 26 quarter, −15.4% year on year. Over 4 years it has compounded at −2.0% a year. The last full year, FY25, came in at $1.1 B. The last four reported quarters add to $1.0 B.

FY25 revenue came in at $1.1 B (−3.6% on the year), capping 4 years at −2.0% compound. The latest quarter (Mar 26) printed $0.2 B, −15.4% year on year.

Pace check: the last four quarters averaged −3.7% growth against the decade's −2.0% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −3.7% over the last 4 quarters against −4.5%/yr over the last 8 — stabilising; TTM profit +200.0% vs +22.5%/yr — accelerating.

→ Revenue slipped — did margins hold as it scaled? Next: 18.2% this quarter (−4.9 pp YoY).

Operating margin Operating margin is what is left of every $100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Embecta Corp.'s operating margin is 18.2% in the Mar 26 quarter, −4.9 percentage points against the same quarter a year ago. Across 5 fiscal years the operating margin has ranged 15.2% to 41.9%. The current quarter sits inside that band.

Embecta Corp.'s operating margin is 18.2% in the Mar 26 quarter, −4.9 percentage points against the same quarter a year ago. Across 5 fiscal years the operating margin has ranged 15.2% to 41.9%. The current quarter sits inside that band.

The latest quarter's operating margin is 18.2%, −4.9 pp against the same quarter a year ago. Across 5 fiscal years the operating margin has ranged 15.2%–41.9%.

🚨 Why the margin moved: operating margin went −4.9 pp year on year while gross margin went −2.4 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins slipped — did that reach the bottom line? Next: profit −100.0% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Embecta Corp. earned $0.0 B of net profit in the Mar 26 quarter, −100.0% year on year. Full-year FY25 profit was $0.1 B. The 4-year compound rate is −29.7%. That is 0.0% of the quarter's revenue. The same quarter a year earlier earned $0.0 B.

Embecta Corp. earned $0.0 B of net profit in the Mar 26 quarter, −100.0% year on year. Full-year FY25 profit was $0.1 B. The 4-year compound rate is −29.7%. That is 0.0% of the quarter's revenue. The same quarter a year earlier earned $0.0 B.

Mar 26 profit was $0.0 B, −100.0% year on year. On the full year, FY25 printed $0.1 B (+25.0%), and the 4-year compound rate is −29.7%.

🚨 Why profit moved: revenue contributed −15.4% and the margin −4.9 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +166.7% vs revenue −3.7%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra dollar of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 120% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 120% of Embecta Corp.'s reported profit arrived as operating cash — the cash follows the profit. In FY25 that was $0.2 B of operating cash against $0.1 B of profit. After $0.0 B of capital spending, $0.2 B was left as free cash.

FY25: operating cash of $0.2 B against reported profit of $0.1 B, leaving free cash of $0.2 B after $0.0 B of capital spending. Across the last 3 fiscal years the conversion rate is 120% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why: conversion is measured cleanly, but the working-capital day-counts behind it sit below what we hold — the move is shown without inventing its driver.

Router verdict: the visible cash user is investment — the next section checks what the spending is buying.

→ So follow the cash to where it goes. Next: $0.0 B of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Embecta Corp. does not report the debtor, inventory and payable day-counts a cash cycle is built from, so this section reads the investment side instead. Capital spending ran $0.0 B over the last 3 years. Averaged over those years that is 0.0% of FY25 revenue a year.

Working-capital day-counts are not in our numbers for this stock, so this section reads the investment side — where the cash is being put to work.

On the investment side: capital spending of $0.0 B over the last 3 fiscal years.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROE is null% and the ROIC − WACC spread is +18.2 pp.

Return on equity Return on equity (ROE) is the profit the business earns on its shareholders’ money. With the full capital-employed split not in our numbers, ROE is the cleanest long ladder we can draw here.

Embecta Corp. earns a ROE of −15% in FY25. That is up from a trough of −25% in FY22. Return on invested capital clears the cost of that capital by +18.2 percentage points, so growth here adds value rather than only size. The wiring behind it is 9.3% net margin on 0.99× asset turns.

FY25 ROE is −15%, recovered from a FY22 trough of −25% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY25): 9.3% net margin × 0.99× asset turns × −1.68× balance-sheet leverage ≈ −15.5% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 23.7% − 5.5% = a +18.2 pp spread. The 5.5% is an estimate of this company's own cost of capital — read the sign and the size of the spread, not the decimals. A spread this wide means every dollar reinvested creates more than a dollar of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is not in our numbers.

Dividend A dividend is cash paid out per share. Dividend per share is the declared amount for the period; the trailing twelve-month total is the four most recent quarters added together.

Embecta Corp. paid $0.60 per share over the last four reported quarters. The most recent declaration was $0.15 for Mar 26. Against the current price of $3.6 that is a trailing yield of 16.71%, measured on dividends already paid rather than on a forecast.

Embecta Corp. paid $0.60 per share over the last four reported quarters. The most recent declaration was $0.15 for Mar 26. Against the current price of $3.6 that is a trailing yield of 16.71%, measured on dividends already paid rather than on a forecast.

Embecta Corp. paid $0.60 per share across the last four reported quarters, most recently $0.15 for Mar 26. Against the current price of $3.6 the trailing twelve months work out to 16.71% — trailing dividends measured against today's price, not a forward estimate.

→ A payout is cash leaving the business. Next: what the balance sheet looks like behind it.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Embecta Corp.'s net worth is negative — it owes more than it owns — so a debt-to-equity ratio is not meaningful here. On the annual view that ratio went from 0.00 in FY21 to −2.20 in FY25. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of $1.4 B against shareholder equity of $−0.6 B — a debt-to-equity of −2.16. On the annual view, debt-to-equity went from 0.00 (FY21) to −2.20 (FY25). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: short interest is 10.3% of the float.

Ownership There is no quarter-by-quarter holder register to read here, so we read the crowd through short interest — the slice of tradable shares currently sold short, positioned for a fall.

10.3% of Embecta Corp.'s tradable float is currently sold short — a large bloc is positioned against it. At typical trading volumes those positions would take about 2.5 days to buy back. There is no quarter-by-quarter holder register to read for this filer, so the crowd is read through short interest instead.

The latest reading: 10.3% of the float is sold short, and at typical trading volumes it would take about 2.5 days to buy those positions back. A large bloc is positioned against it. This is a single point-in-time reading — we do not yet hold its history, so we show no trend chart.

Why it sits there: who is doing the shorting, and why, does not travel with the number — the level is shown without inventing its story.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Embecta Corp.: the Z-score reads 2.04. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits in the grey band between the two. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 2.04 sits in the grey band — neither clearly safe nor clearly distressed.

The safety line in one sentence: the Z-score reads 2.04.

Frequently asked questions