Embecta Corporation AI Stock Analysis
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Embecta Corporation (EMBC) AI Stock Analysis
Embecta Corporation
(NASDAQ:EMBC)
The score is held back primarily by balance-sheet risk (negative equity and substantial debt) and a declining revenue outlook, despite strong current cash generation. Offsetting factors include very attractive valuation (low P/E and high dividend yield) and improved earnings/margin guidance, while technicals show positive momentum but appear overbought near term.
Embecta Corporation (EMBC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $369.99M
- Dividend Yield
- 4.90%
- Average Volume (3M)
- 1.09M
- Price to Earnings (P/E)
- 4.4
- Beta (1Y)
- 0.76
- Revenue Growth
- -7.60%
- EPS Growth
- 4.11%
- Country
- US
- Employees
- 1,850
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Medical - Instruments & Supplies
Embecta Corporation Business Overview & Revenue Model
Company Description
Embecta Corp. is a medical technology enterprise devoted to enhancing the quality of life and health outcomes for individuals living with diabetes. Its comprehensive product portfolio includes essential tools such as pen needles, syringes, and advanc...
How the Company Makes Money
Embecta makes money primarily by selling diabetes-care medical devices to healthcare providers, pharmacies, distributors, and other channel partners in markets where insulin injections are commonly used. Its core revenue stream is the recurring, cons...
Embecta Corporation Earnings Call Summary
The call presents a mixed picture: significant strategic progress (Owen Mumford acquisition expanding TAM, international growth, sequential operational improvement, margin/earnings guidance upgrades, brand transition and organizational reinforcements) offset by sizable year‑over‑year declines in U.S. revenue, gross profit and operating profit, pen needle headwinds, and macro volume pressures. Management emphasized execution, cost controls, and deleveraging while reaffirming revenue guidance and raising margin and EPS targets, resulting in cautious optimism but clear near‑term financial challenges.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Embecta reaffirmed full‑year fiscal 2026 revenue guidance of $1.015–$1.035 billion (a y/y decline of ~4.2%–6.1%), raised adjusted operating margin guidance to 23.5%–24% (from 22.25%–23.25%) and raised adjusted EPS to $1.80–$1.90 (from $1.55–$1.75), while forecasting FX to be a ~1.3% tailwind (vs. prior ~1.5%), an adjusted tax rate of ~27% (vs. ~28% prior), interest expense of ~$95 million (vs. ~$97M prior), and a weighted average diluted share count of ~58.6 million (vs. ~59.4M prior) — guidance also assumes at least $150 million of debt repayment in 2026 (about $128M repaid in the first 9 months), roughly $100 million of free cash flow, and ~$18–$20 million of capital expenditures (mostly in Q4); management raised M&A expectations for Owen Mumford given the deal closed two weeks earlier and noted adjusted organic constant‑currency assumptions with the high end modestly lowered due to U.S. customer/payer mix.
Embecta Corporation Financial Statement Overview
Summary
Cash generation is solid (TTM operating cash flow $174.1M; free cash flow $164.6M), but revenue is modestly declining (TTM -2.283%) and the balance sheet is the key weakness with persistently negative equity (-$612.7M TTM) and high debt (~$1.49B), reducing financial flexibility despite positive margins.
Income Statement
52NeutralBalance Sheet
18Very NegativeCash Flow
63Positive| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.02B | 1.08B | 1.12B | 1.12B | 1.13B | 1.17B |
| Gross Profit | 610.10M | 679.50M | 728.90M | 749.90M | 774.90M | 800.00M |
| EBITDA | 265.90M | 284.30M | 192.70M | 245.30M | 334.50M | 533.00M |
| Net Income | 87.50M | 95.40M | 78.30M | 70.40M | 223.60M | 414.80M |
Balance Sheet | ||||||
| Total Assets | 1.27B | 1.09B | 1.29B | 1.21B | 1.09B | 788.00M |
| Cash, Cash Equivalents and Short-Term Investments | 214.70M | 225.50M | 267.50M | 326.50M | 330.90M | 0 |
| Total Debt | 1.50B | 1.43B | 1.61B | 1.64B | 1.64B | 4.10M |
| Total Liabilities | 1.88B | 1.74B | 2.02B | 2.04B | 1.98B | 194.00M |
| Stockholders Equity | -612.70M | -651.20M | -738.30M | -821.70M | -891.40M | 594.00M |
Cash Flow | ||||||
| Free Cash Flow | 164.60M | 182.40M | 19.90M | 41.20M | 388.20M | 417.00M |
| Operating Cash Flow | 174.10M | 191.70M | 35.70M | 67.70M | 412.20M | 456.00M |
| Investing Cash Flow | -127.80M | -9.30M | -15.80M | -26.50M | -24.00M | -39.00M |
| Financing Cash Flow | -62.30M | -226.70M | -73.40M | -48.70M | -48.00M | -417.00M |
Embecta Corporation Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMBC, the sentiment is Positive. The current price of 6.53 is above the 20-day moving average (MA) of 6.44, above the 50-day MA of 5.94, and above the 200-day MA of 6.18, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 56.91 is Neutral, neither overbought nor oversold. The STOCH value of 67.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EMBC.
Embecta Corporation Peers Comparison
Overall Rating
MMSI71Outperform
ICUI64Neutral
BDX63Neutral- EMBC59Neutral
TFX57Neutral
RVP44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| MMSI | 71Outperform | $5.26B | 32.74 | 9.65% | ― | 9.34% | 33.77% |
| ICUI | 64Neutral | $4.55B | 73.97 | 2.81% | ― | -5.82% | ― |
| BDX | 63Neutral | $57.91B | 51.69 | 3.67% | 1.85% | -7.40% | -28.89% |
| EMBC | 59Neutral | $364.32M | 4.38 | -13.98% | 4.90% | -7.60% | 4.11% |
| TFX | 57Neutral | $6.16B | 18.79 | 9.74% | 0.87% | -29.30% | ― |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
| RVP | 44Neutral | $16.59M | -4.61 | -4.59% | ― | -11.16% | 59.85% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| EMBC | Embecta Corporation | 6.53 | -7.42 | -53.19% | |
| BDX | Becton, Dickinson and Co | 214.52 | 66.52 | 44.95% | |
| ICUI | ICU Medical | 178.26 | 39.73 | 28.68% | |
| MMSI | Merit Medical | 88.07 | 0.67 | 0.77% | |
| RVP | Retractable Technologies | 0.55 | -0.26 | -31.60% | |
| TFX | Teleflex | 156.33 | 48.10 | 44.44% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Sep 06, 2026