Rising profits lift Embecta’s outlook

Article Excerpt

EMBECTA CORP. $14 is still a buy for long-term gains. The company (Nasdaq symbol EMBC; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 58.1 million; Market cap: $813.4 million; Price-to-sales ratio: 0.7; Dividend yield: 4.3%; TSINetwork Rating: Average; www.embecta.com) makes insulin syringes, insulin pens and related products for the treatment of diabetes. In November 2024, the company decided to stop developing a new disposable insulin patch pump system due to the high costs required to bring this product to market. As well, a new restructuring plan should cut between $60 million and $65 million from its annual costs. The company will probably earn $2.82 a share in the fiscal year ending September 30, 2025, and the stock trades at 5.0 times that estimate. That’s a reasonable p/e as embecta earmarks 8% of revenue to research. The $0.60 dividend yields 4.3%. Embecta is a buy. buy…