EMBCEmbecta Corp.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.1×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is EMBC?
Embecta Corp. earns 28% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 19 points above what the capital costs: growth creates value
- Operating margin
- 22%
Operating margin · Medical Instruments & Supplies median 6.6% · 12 months to Q3 2026
- Cash conversion
- 1.11×
Cash conversion · 0.76× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.03%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 45% |
| FY2021 | 42% |
| FY2022 | 27% |
| FY2023 | 20% |
| FY2024 | 15% |
| FY2025 | 22% |
Details›
- Gross margin12 months to Q3 2026
- 59%
- Operating margin12 months to Q3 2026
- 22%
- Net margin12 months to Q3 2026
- 8.6%
- Free cash flow margin
- 16%
- R&D as % of revenue
- 2.0%
- Revenue, trailing twelve months
- $1.02B
- Free cash flow, trailing twelve months
- $165M
- Net income, trailing twelve months
- $88M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 28%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Medical Instruments & Supplies
Ranks #3 of 21 by RyuScore