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Embelton Limited
Industrials · Building Products & Equipment
Updated 22 hours ago
$8.09
MARKET CAP
$17.46M
P/E RATIO
18.8
DIV. YIELD
4.3%
FRANKING
100%
Embelton Limited engages in the manufacture, distribution, and installation of flooring products and services in Australia, Singapore, China, the United Kingdom, and internationally.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
$5.28
For 6% dividend yield
Business quality and balance-sheet durability.
How much the company owes vs. what it owns
Excellent. Very low debt (0.02) means strong financial flexibility and minimal bankruptcy risk.
Current Snapshot
Current D/E
0.02x
Industry Limit
1.00x
Headroom
+0.98x
Why It Matters
Debt-to-equity shows balance-sheet risk. Lower leverage usually means more flexibility when earnings soften.
Formula
Total Debt / Shareholders' EquityMethod
Compare current D/E against the industry threshold used in the scoring framework, then assess remaining headroom.
Worked Example
This company's D/E is 0.02, meaning it carries 2 cents of debt for every $1 of equity. The industrials & services limit is 1.00, leaving 0.98 of headroom.
How to Interpret
Lower values generally imply lower refinancing pressure and lower dividend stress in downturns.
Very low debt means this company has maximum flexibility. They won't need to cut dividends to service loans during downturns - your income stream is protected by a fortress balance sheet.
Sources
Short-term assets vs. short-term debts
Real cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Current Snapshot
Current FCF
$8M
Pass Rule
> $0
Status
Positive
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $8M in free cash flow — cash left after operating costs and capital expenditure. Positive FCF means dividends are funded by real cash generation.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Positive cash flow means dividends are funded by actual money, not accounting profits. As Buffett says, "Cash is fact, profit is opinion." Your income is backed by real cash generation.
Sources
Profit generated per $1 of shareholder investment
Profit after production costs, before overhead
Price versus estimated intrinsic value and required return thresholds.
What percentage of the stock price comes back as earnings each year
Consistency of profits over time
Is the business growing — and is debt being managed responsibly?
Revenue growing with stable debt levels — a positive sign of organic growth that supports future dividends.
Current Snapshot
Revenue Change
+31.4%
Debt Change
-3.4%
Trend State
Improving
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
Revenue changed by +31.4% across the displayed period, while debt changed by -3.4%.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Revenue growing with stable debt levels — a positive sign of organic growth that supports future dividends.
Sources
Annual dividends as percentage of stock price
3.91% yield is well below the 6% target. Not suitable for Barsi's income strategy.
Current Snapshot
6Y Avg Yield
3.9%
6% Requirement
6.0%
Gross Yield
5.6%
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
With a 6-year average annual dividend of $0.32 and a share price of $8.09, the Barsi yield is 3.9%. The minimum requirement is 6%. Including franking credits, the gross yield is 5.6%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
Low yield means you need significant capital to generate meaningful income. Barsi's strategy focuses on stocks that provide substantial cash flow from day one.
Sources
Track record of consistent dividend payments
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 12 Mar 2026Interim | 10 Apr 2026 | $0.21 | 100% | $0.15 | $0.06 |
| ~11 Sept 2026Est | ~19 Oct 2026 | ~$0.26 | 100% | ~$0.18 | $0.08 |
Highest price to lock in 6% yield
Industry category of the business
Industrials is not a BESST sector. Non-BESST stocks receive a lower base score but can still qualify with exceptional dividend metrics.
Current Snapshot
Industry
Building Products & Equipment
BESST Match
No
Score Impact
No bonus
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Building Products & Equipment (Industrials sector). It does not match a BESST sector, so it receives the standard base score. Non-BESST stocks can still qualify with strong dividend metrics.
How to Interpret
Sources
How much of a company's earnings are paid out as dividends
A 76% payout means the company distributes most of its earnings as dividends — more income per share now, but less room for growth. Around 67% is often considered “normal” for established companies. This level feeds directly into the price ceiling calculation.
Current Snapshot
Latest Ratio
76.3%
Healthy Range
30%-75%
Zone
Elevated
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.35 dividend / $0.43 EPS equals 81.4% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
A 76% payout means the company distributes most of its earnings as dividends — more income per share now, but less room for growth. Around 67% is often considered “normal” for established companies. This level feeds directly into the price ceiling calculation.
Sources
Embelton Limited engages in the manufacture, distribution, and installation of flooring products and services in Australia, Singapore, China, the United Kingdom, and internationally. It operates through Merchandising, Commercial/Contracting, and Manufacturing segments. The company is involved in the sale and installation of structural noise and vibration control systems, building materials, industrial corks, rubber products, and metal fabrications. It also offers flooring and consumer products, such as wooden parquetry, prefinished and natural strip, and rubber and sports floorings, as well as timber, hybrid, laminate, and vinyl flooring products; carpets; adhesives and finishes; and other flooring accessories.
In addition, the company provides industrial and construction products comprising structural noise and vibration isolation systems, seismic restraints for resiliently mounted equipment, recycled and natural rubber sheets, spandex cork jointing, tube and pipe bending, and other jointing media products; anti-vibration mountings, such as springs and rubber; and compressed cork sheets, blocks, and rolls. It serves construction companies. The company was formerly known as Embelton Proprietary Limited. Embelton Limited was founded in 1925 and is based in Coburg, Australia.
Who owns the company's shares and how much leadership has at stake
When leaders own 20%+, they win when you win and lose when you lose
Shares freely traded on the ASX by individual investors like you
Leadership owns a solid 90.5% of the company, which is encouraging. However, professional fund managers aren’t heavily involved (0.0%), so there may be less analyst coverage and research available. This can mean the stock is overlooked — a potential opportunity if the fundamentals are strong.
Current Snapshot
Insider %
90.5%
Institutional %
0.0%
Float %
9.5%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 90.5% and institutions own 0.0%, public float is 9.5%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
Leadership owns a solid 90.5% of the company, which is encouraging. However, professional fund managers aren’t heavily involved (0.0%), so there may be less analyst coverage and research available. This can mean the stock is overlooked — a potential opportunity if the fundamentals are strong.
Sources
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| 5 Sept 2025 | Embelton (James John) Managing Director | Purchase at price 5.34 per share. | 807 | $4K |
Company insiders have been net buyers of shares over the past 12 months. This may indicate management confidence in future prospects.
Value analysis may be affected by missing data.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
Strong liquidity. 2.46 ratio means ample cash to cover short-term obligations.
Current Snapshot
Current Ratio
2.46x
Warning Floor
1.00x
Target
1.50x
Why It Matters
Liquidity supports operational stability. Companies with weak liquidity can face pressure even when long-term fundamentals are sound.
Formula
Current Assets / Current LiabilitiesMethod
Compare the current ratio to the warning floor and target level used in the framework.
Worked Example
This company's current ratio is 2.46x — it has $2.46 in short-term assets for every $1 of short-term liabilities. The target is 1.5x, with a warning floor at 1.0x.
How to Interpret
Ratios above the target suggest healthier short-term resilience; ratios below 1.0x can indicate immediate funding risk.
Strong liquidity means the company can keep paying dividends even during temporary revenue drops. There's ample cash cushion to weather storms.
Sources
9.5% average is below the 15% threshold. This suggests the business may lack a durable competitive advantage.
Current Snapshot
10Y Avg
9.5%
Threshold
15.0%
Worst Year
4.5%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 9.5%, meaning each $1 of shareholder equity generates $0.09 in annual profit. The threshold is 15%, and the worst single year was 4.5%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
Lower ROE means your investment compounds more slowly. At 9.5%, this business needs more capital to generate the same returns as competitors. Consider whether other strengths (yield, stability) compensate for weaker profitability.
Sources
Worst year margin (20.1%) fell below 35% minimum. Volatility suggests weak pricing power or one-time issues.
Current Snapshot
10Y Avg
21.5%
Threshold
40%
Worst Year
20.1%
Why It Matters
Gross margin indicates how much room a business has to absorb costs and still generate profit.
Formula
(Revenue - Cost of Goods Sold) / Revenue x 100Method
Assess both the long-term average and the weakest year. The framework checks for both level and consistency.
Worked Example
This company's 10-year average gross margin is 21.5% — it keeps 22 cents of every revenue dollar after production costs. The threshold is 40%, and the weakest year was 20.1%.
How to Interpret
Sustained high margins usually support durability. Sharp margin swings can signal weaker control or cyclical pressure.
Thin margins leave no cushion for unexpected costs. A small increase in expenses or drop in prices could squeeze profits and threaten the dividend.
Sources
5.3% earnings yield is below the 7.5% threshold. You'd earn nearly as much from safer government bonds, which means the extra risk of owning shares isn't being compensated.
Current Snapshot
Current Yield
5.3%
Required Yield
7.5%
Spread
-2.2pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.43 and a share price of $8.09, earnings yield is 5.3%. The required yield for this industry is 7.5% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Returns don't justify the added risk compared to safe bonds. Consider whether the dividend yield alone compensates, or wait for a better price.
Sources
10/10 positive EPS years demonstrates highly predictable earnings through multiple economic cycles.
Current Snapshot
Positive Years
10/10
Allowed Losses
1
EPS CAGR
-8.3%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 10 of the last 10 years. The allowed loss tolerance for this industry is 1 year. EPS growth rate (CAGR) is -8.3%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
A perfect track record through multiple economic cycles means this company generates profits in good times and bad. Your dividend has a solid foundation.
Sources
How much earnings are consumed by capital expenditure
CapEx consumes 49% of cumulative earnings — within the 50% threshold but approaching the limit.
Current Snapshot
10Y CapEx Intensity
49%
Threshold
50%
Buffer
+2%
Why It Matters
CapEx intensity estimates how much of earnings must be reinvested just to sustain operations.
Formula
Cumulative CapEx (10yr) / Cumulative Net Income (10yr) x 100Method
Aggregate 10-year CapEx and net income, then compare the ratio with the sector threshold in the framework.
Worked Example
Over 10 years, 49% of this company's cumulative earnings were consumed by capital expenditure. The industrials & services threshold is 50%, leaving a buffer of +2%.
How to Interpret
Lower ratios usually indicate better cash conversion. Higher ratios can reduce room for dividends and buybacks.
Capital needs are within acceptable bounds but on the higher end. If CapEx requirements increase, there may be less room for dividends and growth.
Sources
How efficiently the company turns money into profit
3.4% ROIC is below the 11.0% threshold. Company may not be earning enough to justify the money invested in it.
Current Snapshot
5Y Avg
3.4%
Threshold
11.0%
WACC Delta
-5.6pp
Why It Matters
ROIC measures capital efficiency. Businesses that repeatedly earn above their funding cost can compound value more effectively.
Formula
After-Tax Operating Profit / Invested Capital x 100Method
Use the 5-year average ROIC and compare it with industry WACC plus the required spread in this framework.
Worked Example
This company's 5-year average ROIC is 3.4%, with a cost of capital (WACC) of 9.0%. The -5.6pp gap below WACC suggests it may be destroying value on each dollar invested.
How to Interpret
A healthy spread above WACC suggests value creation; a narrow or negative spread points to weaker capital efficiency.
Returns below the cost of borrowing mean the business destroys value over time. This can erode the foundation that supports dividends — proceed with caution.
Sources
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 18 Sept 2025Final | 17 Oct 2025 | $0.29 | 100% | $0.20 | $0.09 |
| 13 Mar 2025Interim | 11 Apr 2025 | $0.21 | 100% | $0.15 | $0.06 |
| 19 Sept 2024Final | 24 Oct 2024 | $0.29 | 100% | $0.20 | $0.09 |
| 14 Mar 2024Interim | 12 Apr 2024 | $0.21 | 100% | $0.15 | $0.06 |
| 21 Sept 2023Final | 13 Oct 2023 | $0.29 | 100% | $0.20 | $0.09 |
| 16 Mar 2023Interim | 14 Apr 2023 | $0.14 | 100% | $0.10 | $0.04 |
| 21 Sept 2022Final | 14 Oct 2022 | $0.29 | 100% | $0.20 | $0.09 |
| 17 Mar 2022Interim | 8 Apr 2022 | $0.21 | 100% | $0.15 | $0.06 |
| 23 Sept 2021Final | 15 Oct 2021 | $0.29 | 100% | $0.20 | $0.09 |
| 17 Mar 2021Interim | 14 Apr 2021 | $0.20 | 0% | $0.20 | $0.00 |
Excellent track record. 11 years of consistent dividends through multiple market cycles.
Current Snapshot
History
11yr
Predictability
Moderate
Payout Health
Elevated
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 11 years of dividend history (2016–2026). No suspensions detected — 11 consecutive years of payments. Predictability: Moderate. Payout health: Elevated. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
A 11-year track record through multiple economic cycles gives confidence your income will continue. This company has proven it prioritises shareholder returns.
Sources
Current price ($8.09) is 53% above the ceiling. Wait for a drop to lock in 6% yield.
Current Snapshot
Current Price
$8.09
Max Buy Price
$5.28
Delta
-53.2%
Why It Matters
The price ceiling links valuation discipline to income targets by defining the price that aligns with a 6% yield target.
Formula
6-Year Average Annual Dividend / 0.06Method
Use the 6-year average dividend (not one year) and divide by 0.06 to estimate the maximum entry price for target yield.
Worked Example
With a current price of $8.09 and a ceiling of $5.28, the entry is 53.2% above the ceiling.
How to Interpret
Prices below the ceiling imply a historical yield above 6%; prices above it imply a lower historical yield at entry.
At this price, you won't achieve Barsi's target 6% yield. Consider waiting for a pullback — market volatility often creates more favourable valuations for patient investors.
Sources
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Non-essential businesses face demand drops during recessions — discretionary spending is first to be cut. This increases cyclical risk for dividends, but companies with decades of consistent payments can still demonstrate durability.
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