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EMR

Emerson Electric NYSE:EMR Stock Report

Last Price

US$82.49

Market Cap

US$48.7b

7D

4.9%

1Y

-13.2%

Updated

27 Jun, 2022

Data

Company Financials +
EMR fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends5/6

EMR Stock Overview

Emerson Electric Co., a technology and engineering company, provides various solutions for customers in industrial, commercial, and residential markets in the Americas, Asia, the Middle East, Africa, and Europe.

Emerson Electric Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Emerson Electric
Historical stock prices
Current Share PriceUS$82.49
52 Week HighUS$105.99
52 Week LowUS$76.77
Beta1.42
1 Month Change-6.69%
3 Month Change-16.73%
1 Year Change-13.20%
3 Year Change23.66%
5 Year Change36.91%
Change since IPO714.72%

Recent News & Updates

Jun 19
These 4 Measures Indicate That Emerson Electric (NYSE:EMR) Is Using Debt Safely

These 4 Measures Indicate That Emerson Electric (NYSE:EMR) Is Using Debt Safely

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

May 26
Do Emerson Electric's (NYSE:EMR) Earnings Warrant Your Attention?

Do Emerson Electric's (NYSE:EMR) Earnings Warrant Your Attention?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

EMRUS ElectricalUS Market
7D4.9%4.9%6.6%
1Y-13.2%-26.9%-18.4%

Return vs Industry: EMR exceeded the US Electrical industry which returned -26.9% over the past year.

Return vs Market: EMR exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is EMR's price volatile compared to industry and market?
EMR volatility
EMR Average Weekly Movement4.1%
Electrical Industry Average Movement11.6%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: EMR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EMR's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
189086,700Lal Karsanbhaihttps://www.emerson.com

Emerson Electric Co., a technology and engineering company, provides various solutions for customers in industrial, commercial, and residential markets in the Americas, Asia, the Middle East, Africa, and Europe. The company 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.

Emerson Electric Fundamentals Summary

How do Emerson Electric's earnings and revenue compare to its market cap?
EMR fundamental statistics
Market CapUS$48.72b
Earnings (TTM)US$2.87b
Revenue (TTM)US$18.91b

17.1x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EMR income statement (TTM)
RevenueUS$18.91b
Cost of RevenueUS$11.16b
Gross ProfitUS$7.75b
Other ExpensesUS$4.89b
EarningsUS$2.87b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.83
Gross Margin41.00%
Net Profit Margin15.16%
Debt/Equity Ratio103.3%

How did EMR perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

42%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is EMR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EMR?

Other financial metrics that can be useful for relative valuation.

EMR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.8x
Enterprise Value/EBITDA12.9x
PEG Ratio3.4x

Price to Earnings Ratio vs Peers

How does EMR's PE Ratio compare to its peers?

EMR PE Ratio vs Peers
The above table shows the PE ratio for EMR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average27.5x
ETN Eaton
23.7x8.9%US$52.6b
AME AMETEK
25.1x14.1%US$26.2b
ROK Rockwell Automation
36.3x14.8%US$23.4b
HUBB Hubbell
25x9.5%US$9.8b
EMR Emerson Electric
17x5.1%US$48.7b

Price-To-Earnings vs Peers: EMR is good value based on its Price-To-Earnings Ratio (17.1x) compared to the peer average (27.5x).


Price to Earnings Ratio vs Industry

How does EMR's PE Ratio compare vs other companies in the US Electrical Industry?

Price-To-Earnings vs Industry: EMR is good value based on its Price-To-Earnings Ratio (17.1x) compared to the US Electrical industry average (18.2x)


Price to Earnings Ratio vs Fair Ratio

What is EMR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EMR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.1x
Fair PE Ratio22x

Price-To-Earnings vs Fair Ratio: EMR is good value based on its Price-To-Earnings Ratio (17.1x) compared to the estimated Fair Price-To-Earnings Ratio (22x).


Share Price vs Fair Value

What is the Fair Price of EMR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EMR ($82.49) is trading below our estimate of fair value ($127)

Significantly Below Fair Value: EMR is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: EMR is poor value based on its PEG Ratio (3.4x)


Discover undervalued companies

Future Growth

How is Emerson Electric forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMR's forecast earnings growth (5.1% per year) is above the savings rate (1.9%).

Earnings vs Market: EMR's earnings (5.1% per year) are forecast to grow slower than the US market (13.9% per year).

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

Revenue vs Market: EMR's revenue (5.4% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: EMR's revenue (5.4% 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 (29.2%)


Discover growth companies

Past Performance

How has Emerson Electric performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EMR has high quality earnings.

Growing Profit Margin: EMR's current net profit margins (15.2%) are higher than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: EMR's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: EMR's earnings growth over the past year (34.7%) exceeds its 5-year average (7.9% per year).

Earnings vs Industry: EMR earnings growth over the past year (34.7%) exceeded the Electrical industry 31.2%.


Return on Equity

High ROE: Whilst EMR's Return on Equity (27.11%) is high, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Emerson Electric's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EMR's short term assets ($13.5B) exceed its short term liabilities ($8.1B).

Long Term Liabilities: EMR's short term assets ($13.5B) exceed its long term liabilities ($10.8B).


Debt to Equity History and Analysis

Debt Level: EMR's net debt to equity ratio (38%) is considered satisfactory.

Reducing Debt: EMR's debt to equity ratio has increased from 50.6% to 103.3% over the past 5 years.

Debt Coverage: EMR's debt is well covered by operating cash flow (26.7%).

Interest Coverage: EMR's interest payments on its debt are well covered by EBIT (20.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EMR's dividend (2.5%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: EMR's dividend (2.5%) is low compared to the top 25% of dividend payers in the US market (4.23%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (42.4%), EMR's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (52.3%), EMR's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

6.1yrs

Average management tenure


CEO

Lal Karsanbhai (50 yo)

1.33yrs

Tenure

US$15,806,036

Compensation

Mr. Surendralal Lanca Karsanbhai also known as Lal, serves as Director at Federal Reserve Bank Of St. Louis. He serves as Chief Executive Officer & Director at Emerson Electric Co. since February 05, 2021....


CEO Compensation Analysis

Compensation vs Market: Lal's total compensation ($USD15.81M) is about average for companies of similar size in the US market ($USD13.43M).

Compensation vs Earnings: Lal's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: EMR's management team is seasoned and experienced (6.1 years average tenure).


Board Members

Experienced Board: EMR's board of directors are considered experienced (5.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 employee growth, exchange listings and data sources


Key Information

  • Name: Emerson Electric Co.
  • Ticker: EMR
  • Exchange: NYSE
  • Founded: 1890
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Implied Market Cap: US$48.718b
  • Shares outstanding: 593.90m
  • Website: https://www.emerson.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/09/30


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.