Embecta Investment Analysis
This post is for entertainment and informative reasons only - this is not an investment recommendation. Always do your own work!
Recently, I wrote about Embecta (EMBC), a recent spinoff from the giant Becton Dickinson. Emebcta spun out at a price of $49, and quickly traded down to a low of $27. This is a predictable company that has 15% market share of insulin injection devices. There are supply chain and inflation pressures for the business, and the financials have a lot of noise in them. The business earns 70% return on capital with a normalized operating income of $360M/year. At an 8% earnings yield, the business is worth around $50/share. This is not the greatest opportunity on earth, but it is an interesting spinoff. Enjoy!