# Embecta (EMBC.US)

Canonical: https://gigainvestors.com/s/EMBC

Analysis as of: 2026-10-16T07:28:15.002Z. Financial observations: FY2019–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $6.45 per share; close as of 2026-10-15.

Estimated value: low $28.39 per share, central $31.83 per share, high $36.41 per share. Buy at or below the central value $31.83 per share. Valuation as of 2026-10-16T07:28:15.002Z; scenarios are not confidence intervals.

Expected annual return: 75.7% at the stated quote. About 75.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 5 revenue declines in the last 10 years (informational)

- Financial history: 8 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.33×

Chart: Operating margin; fiscal year observations.

- FY2019: 0.45×

- FY2020: 0.45×

- FY2021: 0.42×

- FY2022: 0.33×

- FY2023: 0.20×

- FY2024: 0.16×

- FY2025: 0.30×

- LTM to Jun 2026: 0.25×

### moat: fail

- Recent gross margin fell 7.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 37.5%

- ROIC, second-lowest year: 29.7%

- Typical minus recent gross margin: 7.9 pp

- Typical gross margin (annual median): 67.8%

- Recent gross margin (lower of latest and 3-year median): 59.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.2%

- ROIC including acquisitions, ten-year median: 23.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2021: 70.8%

- FY2022: 81.2%

- FY2023: 32.2%

- FY2024: 29.7%

- FY2025: 42.8%

- LTM to Jun 2026: 27.9%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.09×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $965M

- Net income, five-year total: $883M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 1.4 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.03×

- FY2023: 1.09×

- FY2024: 1.34×

- FY2025: 1.44×

### management: fail

- buybacks leaned toward cheaper years (informational)

- Per-share earnings: 7.50 to 1.34 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.7%

- Diluted shares, 5-year annual growth: 0.7%

- Per-share value growth: -35.0%

- Per-share value change: -$6.16

- Per-share value, starting three-year median: $7.50

- Per-share value, ending three-year median: $1.34

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 0.5%

- Buyback history: 3 years

- Debt-funded buybacks: No

- ROIC, last three-year median: 32.2%

Chart: Earnings per share; fiscal year observations.

- FY2019: $7.58

- FY2020: $7.50

- FY2021: $7.28

- FY2022: $3.89

- FY2023: $1.22

- FY2024: $1.34

- FY2025: $1.62

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -8.8%

- Receivables to sales index (DSRI): 0.62×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 16.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.01×

- Accounting red flags: 1

Chart: Sloan accruals; fiscal year observations.

- FY2019: -9.8%

- FY2020: -9.6%

- FY2021: -5.2%

- FY2022: -17.4%

- FY2023: 0.2%

- FY2024: 3.3%

- FY2025: -8.8%

## Holders

- [Donald Yacktman](https://gigainvestors.com/YAM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 81% since Mar 2022 · "Embecta Corp. (EMBC) Lowered FY25 Guidance Amid Foreign Exchange Challenges" (finance.yahoo.com, Jun 2025) · sales -5.7%

Story as of 2026-10-16T09:58:41.478Z; price observation 2026-10-15.

Price needs cash profits to shrink 29.9% a year for ten years

- 2025-05-13: Embecta restructures again, outlines tariff costs ([finance.yahoo.com](https://finance.yahoo.com/news/embecta-restructures-again-outlines-tariff-145036354.html))

- 2025-06-26: Embecta Corp. (EMBC) Lowered FY25 Guidance Amid Foreign Exchange Challenges ([finance.yahoo.com](https://finance.yahoo.com/news/embecta-corp-embc-lowered-fy25-151148655.html))

- 2025-08-08: Embecta Boosts FY25 Adj. EPS Outlook; Stock Soars 18% - Update ([nasdaq.com](https://www.nasdaq.com/articles/embecta-boosts-fy25-adj-eps-outlook-stock-soars-18-update))

- 2026-08-07: Embecta forecasts $1.80-$1.90 FY2026 adjusted EPS while raising adjusted operating margin to 23.5%-24% ([seekingalpha.com](https://seekingalpha.com/news/4629625-embecta-forecasts-1_80-1_90-fy2026-adjusted-eps-while-raising-adjusted-operating-margin-to?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales -5.7%; source https://www.sec.gov/Archives/edgar/data/1872789/000187278925000036/embc-20250930.htm; observed 2025-11-25.

- FY2019: $1.1B 

- FY2020: $1.1B 

- FY2021: $1.2B 

- FY2022: $1.1B 

- FY2023: $1.1B 

- FY2024: $1.1B 

- FY2025: $1.1B 

- FY2026: $1.0B 

### Gross margin · FY2026

gross margin 59.9%; source https://www.sec.gov/Archives/edgar/data/1872789/000187278925000036/embc-20250930.htm; observed 2025-11-25.

- FY2019: 70.9% 

- FY2020: 70.3% 

- FY2021: 68.7% 

- FY2022: 68.6% 

- FY2023: 66.9% 

- FY2024: 64.9% 

- FY2025: 62.9% 

- FY2026: 59.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical instruments & supplies; annual sales are USD 1.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1872789/000187278925000036/embc-20250930.htm (filed 2025-11-25); FY2025: revenue 1080400000; grossProfit 679500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); EMBC.US: Embecta Corp., a medical device company, provides solutions to improve the health and wellbeing of people living with diabetes in the United States and internationally. The company's products include pen needles, syringes, and safety injection devices, as well as digital applications to assist people with managing patient's diabetes. It primarily sells its products to wholesalers and distributors. The company was formerly known as Berra Newco, Inc. Embecta Corp. was founded in 1924 and is headquartered in Parsippany, New Jersey.

### Why customers stay

Margins ranged from 62.9% to 66.9% during 2023–25; it earns 37.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2023: grossProfit / revenue = 66.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2024: grossProfit / revenue = 64.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1872789/000187278925000036/embc-20250930.htm (filed 2025-11-25); FY2025: grossProfit / revenue = 62.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); 8-year return on capital observations [[2021,0.707763981614359],[2022,0.8119135358809345],[2023,0.3221442054026454],[2024,0.29676320272572404],[2025,0.4277762436130179],[2026,0.2792717528373266]]; median 0.3749602245078316. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 69% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1872789/000187278925000036/embc-20250930.htm (filed 2025-11-25); Gross margin observations: [[2021,0.6866952789699571],[2022,0.6860557768924302],[2023,0.6690756602426838]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 7 of 7 years; bought back USD 5.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2019: growth capex 0; upkeep 69000000; owner earnings 399000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2020: growth capex 0; upkeep 41900000; owner earnings 423700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2021: growth capex 1000000; upkeep 38000000; owner earnings 414800000. Growth capex / owner earnings = 0.0024108003857280617.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2022: growth capex 0; upkeep 24000000; owner earnings 231300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2023: growth capex 0; upkeep 26500000; owner earnings 76600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2024: growth capex 0; upkeep 15800000; owner earnings 105000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1872789/000187278925000036/embc-20250930.htm (filed 2025-11-25); FY2025: growth capex 0; upkeep 9300000; owner earnings 137200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Dividend observations: [[2019,8600000],[2020,8600000],[2021,8600000],[2022,8600000],[2023,34400000],[2024,34500000],[2025,35000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1872789/000187278925000036/embc-20250930.htm (filed 2025-11-25); FY2025: cash repurchases 5700000 USD.

### Are managers owners

Insiders own 2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); EMBC.US SharesStats.PercentInsiders = 2.0060000000000002 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits shrink 29.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Ten-year compound average after fade. Initial solved rate -0.4167921253259613. Price 6.45; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2022-03: $33.33 per share

- 2022-04: $30.43 per share

- 2022-05: $24.78 per share

- 2022-06: $25.32 per share

- 2022-07: $29.43 per share

- 2022-08: $31.92 per share

- 2022-09: $28.79 per share

- 2022-10: $30.92 per share

- 2022-11: $32.92 per share

- 2022-12: $25.29 per share

- 2023-01: $26.39 per share

- 2023-02: $31.95 per share

- 2023-03: $28.12 per share

- 2023-04: $27.75 per share

- 2023-05: $27.67 per share

- 2023-06: $21.60 per share

- 2023-07: $21.34 per share

- 2023-08: $18.33 per share

- 2023-09: $15.05 per share

- 2023-10: $15.12 per share

- 2023-11: $18.34 per share

- 2023-12: $18.93 per share

- 2024-01: $17.14 per share

- 2024-02: $14.28 per share

- 2024-03: $13.27 per share

- 2024-04: $10.13 per share

- 2024-05: $12.37 per share

- 2024-06: $12.50 per share

- 2024-07: $15.67 per share

- 2024-08: $16.34 per share

- 2024-09: $14.10 per share

- 2024-10: $14.08 per share

- 2024-11: $20.83 per share

- 2024-12: $20.65 per share

- 2025-01: $17.93 per share

- 2025-02: $13.50 per share

- 2025-03: $12.75 per share

- 2025-04: $12.19 per share

- 2025-05: $10.53 per share

- 2025-06: $9.69 per share

- 2025-07: $10.16 per share

- 2025-08: $14.48 per share

- 2025-09: $14.11 per share

- 2025-10: $13.34 per share

- 2025-11: $12.76 per share

- 2025-12: $11.88 per share

- 2026-01: $10.61 per share

- 2026-02: $10.26 per share

- 2026-03: $8.84 per share

- 2026-04: $9.15 per share

- 2026-05: $3.38 per share

- 2026-06: $3.26 per share

- 2026-07: $3.64 per share

- 2026-08: $5.14 per share

- 2026-09: $5.66 per share

- 2026-10: $6.45 per share

## Annual estimated value (USD per share)

- FY2023: low $80.78 per share, central $91.20 per share, high $105.06 per share

- FY2024: low $47.30 per share, central $53.24 per share, high $61.15 per share

- FY2025: low $28.91 per share, central $32.42 per share, high $37.10 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1872789/000187278925000036/embc-20250930.htm); period 2025-09-30, filed 2025-11-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.