Emerson Electric Co., a technology and engineering company, provides solutions to industrial, commercial, and consumer markets worldwide.
Established dividend payer with adequate balance sheet.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: EMR underperformed the US Electrical industry which returned 12.7% over the past year.
Return vs Market: EMR underperformed the US Market which returned 17.9% over the past year.
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
2 weeks ago | Simply Wall StOnly 3 Days Left To Cash In On Emerson Electric Co.'s (NYSE:EMR) Dividend
3 weeks ago | Simply Wall StIf You Had Bought Emerson Electric (NYSE:EMR) Shares Five Years Ago You'd Have Made 26%
4 weeks ago | Simply Wall StWhy Emerson Electric Co. (NYSE:EMR) Looks Like A Quality Company
Is Emerson Electric undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: EMR ($72.09) is trading above our estimate of fair value ($68.37)
Significantly Below Fair Value: EMR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: EMR is good value based on its PE Ratio (20.4x) compared to the Electrical industry average (21.1x).
PE vs Market: EMR is poor value based on its PE Ratio (20.4x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: EMR is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: EMR is overvalued based on its PB Ratio (5.2x) compared to the US Electrical industry average (1.8x).
How is Emerson Electric forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EMR's forecast earnings growth (9.3% per year) is above the savings rate (1.7%).
Earnings vs Market: EMR's earnings (9.3% per year) are forecast to grow slower than the US market (14.1% per year).
High Growth Earnings: EMR's earnings are forecast to grow, but not significantly.
Revenue vs Market: EMR's revenue (3.6% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: EMR's revenue (3.6% 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 (30.6%)
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 (11.8%) are lower than last year (12.8%).
Past Earnings Growth Analysis
Earnings Trend: EMR's earnings have declined by -0.5% 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 (-4.8%) over the past year, making it difficult to compare to the Electrical industry average (0.6%).
Return on Equity
High ROE: EMR's Return on Equity (25.9%) is considered high.
Return on Assets
Return on Capital Employed
How is Emerson Electric's financial position?
Financial Position Analysis
Short Term Liabilities: EMR's short term assets ($7.2B) exceed its short term liabilities ($6.3B).
Long Term Liabilities: EMR's short term assets ($7.2B) exceed its long term liabilities ($6.3B).
Debt to Equity History and Analysis
Debt Level: EMR's debt to equity ratio (71%) is considered high.
Reducing Debt: EMR's debt to equity ratio has increased from 70.9% to 71% over the past 5 years.
Debt Coverage: EMR's debt is well covered by operating cash flow (51.8%).
Interest Coverage: EMR's interest payments on its debt are well covered by EBIT (18.1x coverage).
Inventory Level: EMR has a high level of physical assets or inventory.
Debt Coverage by Assets: EMR's debt is covered by short term assets (assets are 1.2x debt).
What is Emerson Electric's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: EMR's dividend (2.77%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: EMR's dividend (2.77%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: EMR's dividends per share have been stable in the past 10 years.
Growing Dividend: EMR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (55.7%), EMR's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: EMR's dividends in 3 years are forecast to be well covered by earnings (45.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Farr (64yo)
Mr. David N. Farr serves as the Chairman and Chief Executive Officer in 2004 of Emerson Network Power Co., Ltd. Mr. Farr has been the Chief Executive Officer of Emerson Electric Co. (Emerson) since October ...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD20.30M) is above average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|Chairman & CEO||19.3yrs||US$20.30m||0.42% $185.4m|
|President & Chairman of Automation Solutions||1.3yrs||US$4.40m||0.027% $11.9m|
|Senior EVP & CFO||10yrs||US$7.14m||0.061% $26.8m|
|COO & Executive VP of Organization Planning and Development||2.2yrs||US$4.45m||0.023% $10.1m|
|Executive President of Emerson Automation Solutions||0yrs||US$4.59m||0.0073% $3.2m|
|Executive President of Commercial & Residential Solutions||0yrs||US$3.96m||0.022% $9.6m|
|Chief Accounting Officer||2yrs||no data||0.0043% $1.9m|
|Chief Information Officer & VP||4.5yrs||no data||no data|
|Senior VP||3.8yrs||no data||0.013% $5.7m|
|Chief Compliance Officer & VP of Audit||0yrs||no data||no data|
Experienced Management: EMR's management team is considered experienced (3.8 years average tenure).
|Chairman & CEO||19.3yrs||US$20.30m||0.42% $185.4m|
|Independent Director||6yrs||US$289.47k||0.0032% $1.4m|
|Lead Independent Director||0yrs||US$357.30k||0.0047% $2.1m|
|Independent Director||20.1yrs||US$402.49k||0.013% $5.5m|
|Independent Director||6.6yrs||US$323.64k||0.0028% $1.2m|
|Independent Director||0.7yrs||US$145.81k||0.00076% $335.2k|
|Independent Director||7.5yrs||US$318.65k||0.0032% $1.4m|
|Independent Director||2.8yrs||US$298.97k||0.0014% $608.7k|
|Independent Director||8yrs||US$330.81k||0.0034% $1.5m|
|Independent Director||1.3yrs||US$309.99k||0.00080% $352.9k|
Experienced Board: EMR's board of directors are considered experienced (6.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EMR insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Emerson Electric Co.'s company bio, employee growth, exchange listings and data sources
- Name: Emerson Electric Co.
- Ticker: EMR
- Exchange: NYSE
- Founded: 1890
- Industry: Electrical Components and Equipment
- Sector: Capital Goods
- Market Cap: US$44.108b
- Shares outstanding: 611.84m
- Website: https://www.emerson.com
Number of Employees
- Emerson Electric Co.
- 8000 West Florissant Avenue
- PO Box 4100
- St. Louis
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|EMR||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1968|
|EMR||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|EMR *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jan 1968|
|EMR||SWX (SIX Swiss Exchange)||Yes||Common Stock||CH||CHF||Jan 1968|
|0R33||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
|EMR||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Jan 1968|
|E1MR34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 2 REPR 1 SHS UNSPON||BR||BRL||Jan 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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/22 23:48|
|End of Day Share Price||2020/02/21 00:00|
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.