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what it is
It makes diabetes injection gear, including pen needles, syringes, and safety devices.
how it gets paid
Last year Embecta made $1.1B in revenue. Pen needles was the main engine at $495M, or 45% of sales.
why growth slowed
Revenue fell 3.8% last year. Revenue was flat vs. prior year. EPS, or earnings per share, was $0.74, which kept the quarter clean even without growth.
what just happened
Q1 revenue landed at $261M, and gross margin held at 61.9%.
At a glance
C+ balance sheet — struggling to keep the lights on
6.6x trailing p/e — the market's not buying it — or you found a deal
6.8% dividend yield — cash in your pocket every quarter
19.4% return on capital — nothing to write home about
$1.62 fy2025 eps est
xvary composite: 30/100 — weak
What they do
It makes diabetes injection gear, including pen needles, syringes, and safety devices.
You are buying a business sold in over 100 countries with 2,100 employees. Pen needles are 45.0% of sales, so one line pays almost half the bills. The deadpan part: $1.4B of long-term debt, or money owed for more than one year, sits against a $521M market cap, the market's sticker price.
How they make money
$1.1B
annual revenue · their business grew -3.8% last year
Pen needles
$495M
2.0%
Syringes
$275M
5.0%
Safety injection devices
$198M
0.0%
Digital diabetes app
$22M
+15.0%
Other diabetes-care products
$110M
8.0%
The products that matter
manufactures diabetes injection supplies
Insulin Pen Needles
$1.1B · current revenue base
this is the business today: $1.1B in annual revenue, but sales fell 3.8% last year. mature cash flow is useful. mature cash flow in decline is a different conversation.
core cash flow
developing next-gen insulin delivery
Tubeless Patch Pump
in development
this is the project management needs to make the story bigger than a legacy needle business. as of the latest 10-K, it is still development-stage. in human-speak: you are paying for the spend today without product revenue to help yet.
execution bet
Key numbers
$1.62
fy2025 eps est
$2B
fy2026 rev est
6.6x
trailing p/e
6.8%
dividend yield
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 4 — safer than 20% of stocks
- price stability 15 / 100
- long-term debt $1.4B (73% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for EMBC right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Q1 revenue landed at $261M, and gross margin held at 61.9%.
Revenue was flat vs. prior year. EPS, or earnings per share, was $0.74, which kept the quarter clean even without growth.
$261M
revenue
$0.74
eps
61.9%
gross margin
gross margin
The 61.9% gross margin is the part that matters. It says the business still keeps 61.9 cents of every sales dollar after product costs.
source: company earnings report, 2026
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What could go wrong
the central risk is specific, not abstract: $1.4B of long-term debt against a $521M market cap, funded by a $1.1B business that already slipped 3.8% last year.
high
debt service gets first claim on the cash
embecta carries $1.4B in long-term debt, equal to 73% of capital. that means the same cash flow investors want for dividends, product spending, and flexibility already has lenders waiting for it.
if earnings soften, this stops being a valuation story and becomes a balance-sheet story fast.
med
the core business is mature and already shrinking
annual revenue was $1.1B and fell 3.8% last year. with one main revenue engine, even modest decline changes the tone quickly because there is no second operating leg doing the offsetting.
if the pen needle business keeps drifting down, the yield story gets harder to defend.
med
the patch pump is still promise, not proof
management's growth narrative depends on a tubeless patch pump that was still in development in the latest 10-K. until it becomes a commercial product, you are funding the spend now for revenue that has not shown up yet.
that is the line between a credible second act and a value trap with good slides.
med
the 6.8% yield may be doing too much of the work
a high dividend can support the stock price. it can also turn into a stress test when debt is high and growth is thin. if investors stop trusting the payout, the low multiple can stay low for a long time.
income support helps until the market decides the payout is carrying more weight than the business should ask of it.
a debt-heavy company with a shrinking $1.1B core business and a not-yet-commercial growth product does not get many sloppy quarters. that is the setup you own.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
full-year EPS guidance
management kept fiscal 2026 EPS guidance at $2.80–$3.00. if that range moves down, the debt debate gets louder very quickly.
trend
revenue direction in the core business
last year revenue fell 3.8%. one more soft year would make "mature" sound a lot more like "in decline."
calendar
patch pump development milestones
there is no hard date in this snapshot. that absence is the point. until management gives you something concrete, the pipeline stays more narrative than numbers.
risk
leadership and capital allocation discipline
a chairman transition was announced for feb 11, 2026. watch what changes first: debt priorities, dividend posture, or the pace of product investment.
Analyst rankings
coverage depth
thin
there is not much ranking data in the current snapshot. in human-speak, wall street is not treating EMBC like a must-cover name.
short-term view
mixed
the latest quarter beat, but cheap stocks with heavy debt loads need more than one clean print to change minds.
source: institutional data
Institutional activity
institutional ownership data for EMBC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$11
current price
n/a
target midpoint · n/a from current
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