Stock Analysis Report

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Executive Summary

Emerson Electric Co., a technology and engineering company, provides solutions to industrial, commercial, and consumer markets worldwide.

Snowflake Analysis

Established dividend payer with adequate balance sheet.

Similar Companies

Share Price & News

How has Emerson Electric's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: EMR's share price has been volatile over the past 3 months.

Market Performance

7 Day Return




DE Electrical


DE Market

1 Year Return




DE Electrical


DE Market

Return vs Industry: EMR underperformed the German Electrical industry which returned 24.2% over the past year.

Return vs Market: EMR matched the German Market which returned 0.1% over the past year.

Shareholder returns

7 Day5.1%1.2%1.5%
30 Day3.7%12.3%5.7%
90 Day-8.4%-1.9%-2.7%
1 Year4.0%0.8%27.1%26.7%1.5%-0.2%
3 Year10.3%0.8%-35.5%-37.6%-7.1%-14.3%
5 Year19.0%1.1%-24.1%-29.1%5.2%-8.3%

Price Volatility Vs. Market

How volatile is Emerson Electric's share price compared to the market and industry in the last 5 years?

Simply Wall St News

No news available


Is Emerson Electric undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: EMR (€53.93) is trading below our estimate of fair value (€56.42)

Significantly Below Fair Value: EMR is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: EMR is good value based on its PE Ratio (17.1x) compared to the Electrical industry average (24.8x).

PE vs Market: EMR is good value based on its PE Ratio (17.1x) compared to the German market (19.3x).

Price to Earnings Growth Ratio

PEG Ratio: EMR is poor value based on its PEG Ratio (1.9x)

Price to Book Ratio

PB vs Industry: EMR is overvalued based on its PB Ratio (4.8x) compared to the DE Electrical industry average (2.7x).

Next Steps

Future Growth

How is Emerson Electric forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMR's forecast earnings growth (9% per year) is above the savings rate (0.2%).

Earnings vs Market: EMR's earnings (9% per year) are forecast to grow slower than the German market (21.7% per year).

High Growth Earnings: EMR's earnings are forecast to grow, but not significantly.

Revenue vs Market: EMR's revenue (3.4% per year) is forecast to grow slower than the German market (5.8% per year).

High Growth Revenue: EMR's revenue (3.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: EMR's Return on Equity is forecast to be high in 3 years time (27.6%)

Next Steps

Past Performance

How has Emerson Electric performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EMR has high quality earnings.

Growing Profit Margin: EMR's current net profit margins (12%) are lower than last year (12.8%).

Past Earnings Growth Analysis

Earnings Trend: EMR's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: EMR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EMR had negative earnings growth (-6.4%) over the past year, making it difficult to compare to the Electrical industry average (60.2%).

Return on Equity

High ROE: Whilst EMR's Return on Equity (28.94%) is high, this metric is skewed due to their high level of debt.

Next Steps

Financial Health

How is Emerson Electric's financial position?

Financial Position Analysis

Short Term Liabilities: EMR's short term assets ($8.0B) exceed its short term liabilities ($7.9B).

Long Term Liabilities: EMR's short term assets ($8.0B) exceed its long term liabilities ($6.2B).

Debt to Equity History and Analysis

Debt Level: EMR's debt to equity ratio (101.8%) is considered high.

Reducing Debt: EMR's debt to equity ratio has increased from 74.2% to 101.8% over the past 5 years.

Debt Coverage: EMR's debt is well covered by operating cash flow (41.1%).

Interest Coverage: EMR's interest payments on its debt are well covered by EBIT (19.6x coverage).

Balance Sheet

Next Steps


What is Emerson Electric's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EMR's dividend (3.31%) is higher than the bottom 25% of dividend payers in the German market (1.28%).

High Dividend: EMR's dividend (3.31%) is low compared to the top 25% of dividend payers in the German market (3.94%).

Stability and Growth of Payments

Stable Dividend: EMR's dividends per share have been stable in the past 10 years.

Growing Dividend: EMR's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.9%), EMR's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: EMR's dividends in 3 years are forecast to be well covered by earnings (48.6% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


David Farr (64yo)





Mr. David N. Farr serves as the Chairman and Chief Executive Officer in 2004 of Emerson Network Power Co., Ltd. Mr. Farr has been the Chief Executive Officer of Emerson Electric Co. (Emerson) since October ...

CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD20.30M) is above average for companies of similar size in the German market ($USD5.12M).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

David Farr
Chairman & CEO19.67yrsUS$20.30m0.43% $141.1m
Michael Train
President & Chairman of Automation Solutions1.67yrsUS$4.40m0.028% $9.1m
Frank Dellaquila
Senior EVP & CFO10.33yrsUS$7.14m0.062% $20.4m
Steven Pelch
COO & Executive VP of Organization Planning and Development2.5yrsUS$4.45m0.023% $7.7m
Surendralal Karsanbhai
Executive President of Emerson Automation Solutionsno dataUS$4.59m0.0075% $2.5m
Robert Sharp
Executive President of Commercial & Residential Solutionsno dataUS$3.96m0.022% $7.3m
Michael Baughman
Chief Accounting Officer2.33yrsno data0.0044% $1.5m
Jake Fritz
Chief Information Officer & VP4.83yrsno datano data
Sara Bosco
Senior VP4.08yrsno data0.013% $4.3m
Lisa Flavin
Chief Compliance Officer & VP of Auditno datano datano data


Average Tenure


Average Age

Experienced Management: EMR's management team is considered experienced (4.1 years average tenure).

Board Members

David Farr
Chairman & CEO19.67yrsUS$20.30m0.43% $141.1m
Candace Kendle
Independent Director6.33yrsUS$289.47k0.0033% $1.1m
Clemens A. Börsig
Lead Independent Directorno dataUS$357.30k0.0048% $1.6m
Arthur Golden
Independent Director20.42yrsUS$402.49k0.014% $4.5m
James Turley
Independent Director6.92yrsUS$323.64k0.0029% $947.7k
Martin Craighead
Independent Director1yrUS$145.81k0.00078% $255.8k
Matthew Levatich
Independent Director7.83yrsUS$318.65k0.0032% $1.1m
Gloria Flach
Independent Director3.08yrsUS$298.97k0.0014% $465.7k
Joshua Bolten
Independent Director8.33yrsUS$330.81k0.0034% $1.1m
Lori Lee
Independent Director1.67yrsUS$309.99k0.00082% $268.9k


Average Tenure


Average Age

Experienced Board: EMR's board of directors are considered experienced (6.9 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: EMR insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Emerson Electric Co.'s company bio, employee growth, exchange listings and data sources

Key Information

  • Name: Emerson Electric Co.
  • Ticker: EMR
  • Exchange: DB
  • Founded: 1890
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$36.458b
  • Listing Market Cap: US$32.794b
  • Shares outstanding: 597.48m
  • Website: https://www.emerson.com

Number of Employees


  • Emerson Electric Co.
  • 8000 West Florissant Avenue
  • PO Box 4100
  • St. Louis
  • Missouri
  • 63136
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMRNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
EMRDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
EMR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
EMRSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
0R33LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
EMRETLX (Eurotlx)YesCommon StockITEURJan 1968
E1MR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020


Emerson Electric Co., a technology and engineering company, provides solutions to industrial, commercial, and consumer markets worldwide. It operates through Automation Solutions and Commercial & Residential Solutions segments. The Automation Solutions segment offers measurement and analytical instrumentation, industrial valves and equipment, and process control software and systems. It serves the oil and gas, refining, chemicals and power generation, pharmaceuticals, food and beverage, automotive, pulp and paper, metals and mining, and municipal water supplies markets. The Commercial & Residential Solutions segment offers residential and commercial heating and air conditioning products, such as residential and variable speed scroll compressors; system protector and flow control devices; standard, programmable, and Wi-Fi thermostats; monitoring equipment and electronic controls for gas and electric heating systems; gas valves for furnaces and water heaters; ignition systems for furnaces; sensors and thermistors for home appliances; and temperature sensors and controls. It also provides reciprocating, scroll, and screw compressors; precision flow controls; system diagnostics and controls; and environmental control systems for use in medical, food processing, and cold storage applications. In addition, this segment offers air conditioning, refrigeration, and lighting control technologies, as well as facility design and product management, site commissioning, facility monitoring, and energy modeling services; temperature management and monitoring products for the foodservice markets; and professional and homeowner tools, and appliance solutions. The company was formerly known as The Emerson Electric Manufacturing Company and changed its name to Emerson Electric Co. in 2000. Emerson Electric Co. was founded in 1890 and is headquartered in St. Louis, Missouri. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 21:19
End of Day Share Price2020/05/29 00:00
Annual Earnings2019/09/30

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.