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Emerson Electric

NYSE:EMR
Snowflake Description

Established dividend payer with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EMR
NYSE
$45B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Emerson Electric Co., a technology and engineering company, provides various solutions to industrial, commercial, and consumer markets worldwide. The last earnings update was 76 days ago. More info.


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EMR Share Price and Events
7 Day Returns
1.4%
NYSE:EMR
1%
US Electrical
-0.1%
US Market
1 Year Returns
7.1%
NYSE:EMR
8.4%
US Electrical
7.6%
US Market
EMR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Emerson Electric (EMR) 1.4% 9.4% 17.2% 7.1% 30.4% 7.5%
US Electrical 1% 8.9% 15.5% 8.4% 31.3% 14.7%
US Market -0.1% 3.7% 10.2% 7.6% 38.1% 46.4%
1 Year Return vs Industry and Market
  • EMR underperformed the Electrical industry which returned 8.4% over the past year.
Price Volatility
EMR
Industry
5yr Volatility vs Market

EMR Value

 Is Emerson Electric undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Emerson Electric to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Emerson Electric.

NYSE:EMR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 23 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:EMR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.139 (1 + (1- 21%) (13.26%))
1.173
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.173 * 5.96%)
9.72%

Discounted Cash Flow Calculation for NYSE:EMR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Emerson Electric is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:EMR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.72%)
2019 2,392.46 Analyst x12 2,180.49
2020 2,758.28 Analyst x9 2,291.15
2021 2,881.00 Analyst x5 2,181.05
2022 3,302.00 Analyst x1 2,278.29
2023 3,561.61 Est @ 7.86% 2,239.68
2024 3,786.80 Est @ 6.32% 2,170.29
2025 3,985.41 Est @ 5.24% 2,081.74
2026 4,164.37 Est @ 4.49% 1,982.49
2027 4,329.37 Est @ 3.96% 1,878.43
2028 4,484.91 Est @ 3.59% 1,773.50
Present value of next 10 years cash flows $21,057.11
NYSE:EMR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $4,484.91 × (1 + 2.73%) ÷ (9.72% – 2.73%)
$65,898.01
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $65,898.01 ÷ (1 + 9.72%)10
$26,058.53
NYSE:EMR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $21,057.11 + $26,058.53
$47,115.64
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $47,115.64 / 614.62
$76.66
NYSE:EMR Discount to Share Price
Calculation Result
Value per share (USD) From above. $76.66
Current discount Discount to share price of $73.16
= -1 x ($73.16 - $76.66) / $76.66
4.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Emerson Electric is available for.
Intrinsic value
5%
Share price is $73.16 vs Future cash flow value of $76.66
Current Discount Checks
For Emerson Electric to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Emerson Electric's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Emerson Electric's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Emerson Electric's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Emerson Electric's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:EMR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $3.62
NYSE:EMR Share Price ** NYSE (2019-04-23) in USD $73.16
United States of America Electrical Industry PE Ratio Median Figure of 30 Publicly-Listed Electrical Companies 17.39x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Emerson Electric.

NYSE:EMR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:EMR Share Price ÷ EPS (both in USD)

= 73.16 ÷ 3.62

20.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Emerson Electric is overvalued based on earnings compared to the US Electrical industry average.
  • Emerson Electric is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Emerson Electric's expected growth come at a high price?
Raw Data
NYSE:EMR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts
5.3%per year
United States of America Electrical Industry PEG Ratio Median Figure of 20 Publicly-Listed Electrical Companies 1.52x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

NYSE:EMR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.2x ÷ 5.3%

3.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Emerson Electric is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Emerson Electric's assets?
Raw Data
NYSE:EMR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $13.37
NYSE:EMR Share Price * NYSE (2019-04-23) in USD $73.16
United States of America Electrical Industry PB Ratio Median Figure of 63 Publicly-Listed Electrical Companies 1.9x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NYSE:EMR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:EMR Share Price ÷ Book Value per Share (both in USD)

= 73.16 ÷ 13.37

5.47x

* Primary Listing of Emerson Electric.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Emerson Electric is overvalued based on assets compared to the US Electrical industry average.
X
Value checks
We assess Emerson Electric's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check)
  5. Emerson Electric has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

EMR Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Emerson Electric expected to grow at an attractive rate?
  • Emerson Electric's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Emerson Electric's earnings growth is positive but not above the United States of America market average.
  • Emerson Electric's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:EMR Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:EMR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts 5.3%
NYSE:EMR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts 4.9%
United States of America Electrical Industry Earnings Growth Rate Market Cap Weighted Average 9.9%
United States of America Electrical Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:EMR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:EMR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 21,419 2,472 2
2021-09-30 20,957 3,536 2,635 8
2020-09-30 19,934 3,329 2,473 21
2019-09-30 18,932 3,062 2,300 23
NYSE:EMR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 17,739 2,768 2,276
2018-09-30 17,408 2,892 2,203
2018-06-30 16,955 2,722 2,082
2018-03-31 16,538 2,446 1,777
2017-12-31 15,864 2,121 1,671
2017-09-30 15,264 1,912 1,643
2017-06-30 14,761 2,015 1,626
2017-03-31 14,396 2,085 1,660
2016-12-31 14,401 2,632 1,651
2016-09-30 14,522 2,881 1,590
2016-06-30 10,349 3,025 1,566
2016-03-31 12,178 2,806 1,689

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Emerson Electric's earnings are expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
  • Emerson Electric's revenue is expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:EMR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below

All data from Emerson Electric Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EMR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30 4.04 4.04 4.04 1.00
2021-09-30 4.37 4.60 3.94 5.00
2020-09-30 4.03 4.30 3.70 16.00
2019-09-30 3.68 3.75 3.62 17.00
NYSE:EMR Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 3.62
2018-09-30 3.49
2018-06-30 3.28
2018-03-31 2.78
2017-12-31 2.61
2017-09-30 2.56
2017-06-30 2.53
2017-03-31 2.58
2016-12-31 2.57
2016-09-30 2.47
2016-06-30 2.42
2016-03-31 2.59

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Emerson Electric is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Emerson Electric's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Emerson Electric has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

EMR Past Performance

  How has Emerson Electric performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Emerson Electric's growth in the last year to its industry (Electrical).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Emerson Electric's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Emerson Electric's 1-year earnings growth exceeds its 5-year average (36.2% vs -4.5%)
  • Emerson Electric's earnings growth has not exceeded the US Electrical industry average in the past year (36.2% vs 40.5%).
Earnings and Revenue History
Emerson Electric's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Emerson Electric Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EMR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 17,739.00 2,276.00 4,340.00
2018-09-30 17,408.00 2,203.00 4,258.00
2018-06-30 16,955.00 2,082.00 4,078.00
2018-03-31 16,538.00 1,777.00 3,955.00
2017-12-31 15,864.00 1,671.00 3,791.00
2017-09-30 15,264.00 1,643.00 3,618.00
2017-06-30 14,761.00 1,626.00 3,476.00
2017-03-31 14,396.00 1,660.00 3,397.00
2016-12-31 14,401.00 1,651.00 3,407.00
2016-09-30 14,522.00 1,590.00 3,464.00
2016-06-30 10,349.00 1,566.00 2,345.00
2016-03-31 12,178.00 1,689.00 2,769.00
2015-12-31 13,999.00 2,295.00 3,209.00
2015-09-30 16,249.00 2,517.00 3,735.00
2015-06-30 23,297.00 2,472.00 5,452.00
2015-03-31 24,106.00 2,636.00 5,600.00
2014-12-31 24,518.00 2,210.00 5,676.00
2014-09-30 17,733.00 2,201.00 4,164.00
2014-06-30 24,542.00 2,532.00 5,694.00
2014-03-31 24,574.00 1,998.00 5,666.00
2013-12-31 24,722.00 2,012.00 5,698.00
2013-09-30 24,669.00 2,004.00 5,648.00
2013-06-30 24,557.00 1,491.00 5,601.00
2013-03-31 24,697.00 2,067.00 5,543.00
2012-12-31 24,656.00 2,051.00 5,476.00
2012-09-30 24,412.00 1,968.00 5,436.00
2012-06-30 24,257.00 2,421.00 5,390.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Emerson Electric has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Emerson Electric used its assets more efficiently than the US Electrical industry average last year based on Return on Assets.
  • Emerson Electric has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Emerson Electric's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Emerson Electric has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

EMR Health

 How is Emerson Electric's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Emerson Electric's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Emerson Electric's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Emerson Electric's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Emerson Electric's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Emerson Electric Company Filings, last reported 3 months ago.

NYSE:EMR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 8,276.00 5,961.00 1,248.00
2018-09-30 8,990.00 4,760.00 1,093.00
2018-06-30 8,460.00 5,988.00 3,411.00
2018-03-31 8,537.00 5,190.00 2,444.00
2017-12-31 8,388.00 5,468.00 3,096.00
2017-09-30 8,770.00 4,656.00 3,062.00
2017-06-30 8,022.00 5,160.00 3,140.00
2017-03-31 8,057.00 4,068.00 5,039.00
2016-12-31 7,754.00 4,069.00 4,151.00
2016-09-30 7,618.00 6,635.00 3,182.00
2016-06-30 7,955.00 7,282.00 3,516.00
2016-03-31 7,743.00 7,294.00 3,322.00
2015-12-31 7,497.00 7,452.00 3,109.00
2015-09-30 8,128.00 6,841.00 3,153.00
2015-06-30 8,799.00 7,469.00 3,393.00
2015-03-31 8,968.00 6,630.00 3,256.00
2014-12-31 9,556.00 6,773.00 3,122.00
2014-09-30 10,167.00 6,024.00 3,149.00
2014-06-30 10,873.00 6,540.00 3,049.00
2014-03-31 10,525.00 6,497.00 2,724.00
2013-12-31 10,883.00 5,792.00 2,737.00
2013-09-30 10,718.00 5,642.00 3,275.00
2013-06-30 10,264.00 5,545.00 2,810.00
2013-03-31 10,674.00 5,544.00 2,615.00
2012-12-31 10,618.00 5,454.00 2,527.00
2012-09-30 10,442.00 5,293.00 2,367.00
2012-06-30 10,665.00 5,849.00 2,292.00
  • Emerson Electric's level of debt (72%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (53.3% vs 72% today).
  • Debt is well covered by operating cash flow (46.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 18.1x coverage).
X
Financial health checks
We assess Emerson Electric's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Emerson Electric has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

EMR Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.68%
Current annual income from Emerson Electric dividends. Estimated to be 2.77% next year.
If you bought $2,000 of Emerson Electric shares you are expected to receive $54 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Emerson Electric's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Emerson Electric's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:EMR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
United States of America Electrical Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:EMR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 2.02 1.00
2021-09-30 2.13 7.00
2020-09-30 2.03 15.00
2019-09-30 1.96 15.00
NYSE:EMR Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-05 1.960 2.848
2018-11-06 1.960 3.095
2018-08-07 1.940 2.611
2018-05-01 1.940 2.737
2018-02-06 1.940 2.789
2017-11-07 1.940 2.874
2017-08-01 1.920 3.096
2017-05-02 1.920 3.232
2017-02-07 1.920 3.187
2016-11-01 1.920 3.415
2016-08-02 1.900 3.636
2016-05-03 1.900 3.581
2016-02-02 1.900 3.681
2015-11-03 1.900 4.065
2015-08-04 1.880 4.016
2015-05-05 1.880 3.320
2015-02-03 1.880 3.265
2014-11-04 1.880 3.041
2014-08-05 1.720 2.729
2014-05-06 1.720 2.574
2014-02-04 1.720 2.617
2013-11-05 1.720 2.544
2013-08-06 1.640 2.569
2013-05-07 1.640 2.846
2013-02-05 1.640 2.918
2012-11-06 1.640 3.117
2012-08-07 1.600 3.216
2012-05-01 1.600 3.431
2012-02-07 1.600 3.131
2011-11-01 1.600 3.223
2011-08-02 1.380 3.058
2011-05-03 1.380 2.565
2011-02-01 1.380 2.338
2010-11-23 1.380 2.405
2010-11-02 1.380 2.481
2010-08-03 1.340 2.625
2010-05-04 1.340 2.859
2010-02-02 1.340 2.727
2009-11-03 1.340 3.157
2009-08-04 1.320 3.466
2009-05-05 1.320 3.898
2009-04-24 1.320 3.823

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Emerson Electric's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Emerson Electric's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Emerson Electric afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Emerson Electric has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

EMR Management

 What is the CEO of Emerson Electric's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Farr
COMPENSATION $15,609,527
AGE 63
TENURE AS CEO 18.5 years
CEO Bio

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 2000 and served as its President since 2005 until 2010. He held a wide range of leadership positions over 20 years in areas ranging from manufacturing and strategic planning to sales and general management. He also served four years as the President of Emerson's Asia-Pacific business in Hong Kong. He served as Emerson's Chief Operating Officer. He joined Emerson in 1981 in a corporate staff position. He served as a Manager of Investor Relations, Vice President of Corporate Planning & Development, President of the Ridge Tool division and Group Vice President for the industrial components and equipment business. He then served four years as the Hong Kong-based president of Emerson Asia-Pacific and Chief Executive Officer of Emerson's Astec joint venture. In 1997, he returned to St. Louis to become Executive Vice President overseeing Emerson's process management business. In May 1999, he became Senior Executive Vice President and Chief Operating Officer in 1999 with responsibility for global operations. He has been the Chairman of Emerson Electric Co. since September 17, 2004. He serves as the Chairman of the National Association of Manufacturers. He serves as the Chairman of Civic Progress, an organization of Chief Executives from leading companies in St. Louis who work to promote the region and also served as its President. He has been a Director of International Business Machines Corporation since January 1, 2012 and Emerson Electric Co. since 2000. He serves as a Director of IBM India Private Limited and US-China Business Council, Inc. He serves as a Member of Municipal Theatre Association of St. Louis. He serves as a Member of The Business Council, based in Washington, D.C. Active in a variety of civic and charitable organizations in St. Louis, he serves on the Executive Boards of The Muny at Forest Park and the Boy Scouts of America (Greater St. Louis Area Council). He also serves as a Member of Civic Progress, an organization of Chief Executives from leading companies in St. Louis. He served as a Director of Delphi Corporation. He served as a Trustee of Webster University. He served as a Director of DPH Holdings Corp. from 2002 to October 06, 2009. He was Member of The Board of Directors of the United Way of Greater St. Louis and served as the organization's annual fundraising campaign Chairman in 2007, helping raise a record $68.8 million in corporate and employee gifts and pledges. In 2008 and 2009, he was ranked among The Best CEOs in America and the top CEO in the electrical equipment and multi-industry category by Institutional Investor magazine. Mr. Farr received his B.A. degree in Chemistry from Wake Forest University and earned an M.B.A. from Vanderbilt University.

CEO Compensation
  • David's compensation has increased by more than 20% in the past year.
  • David's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Emerson Electric management team in years:

2.9
Average Tenure
55
Average Age
  • The tenure for the Emerson Electric management team is about average.
Management Team

David Farr

TITLE
Chairman & CEO
COMPENSATION
$16M
AGE
63
TENURE
18.5 yrs

Mike Train

TITLE
President & Chairman of Automation Solutions
COMPENSATION
$5M
AGE
56
TENURE
0.5 yrs

Frank Dellaquila

TITLE
Senior EVP & CFO
COMPENSATION
$6M
AGE
61
TENURE
9.2 yrs

Steve Pelch

TITLE
Executive VP of Organizational Development & COO
COMPENSATION
$5M
AGE
54
TENURE
1.3 yrs

Bob Sharp

TITLE
Executive President of Commercial & Residential Solutions
COMPENSATION
$5M
AGE
51

Michael Baughman

TITLE
Chief Accounting Officer
AGE
53
TENURE
1.2 yrs

Jake Fritz

TITLE
Chief Information Officer & VP
TENURE
3.7 yrs

Timothy Reeves

TITLE
Director of Investor Relations & Assistant Treasurer

Sara Bosco

TITLE
Senior VP
AGE
60
TENURE
2.9 yrs

Lisa Flavin

TITLE
Chief Compliance Officer & VP of Audit
AGE
53
Board of Directors Tenure

Average tenure and age of the Emerson Electric board of directors in years:

6.2
Average Tenure
63
Average Age
  • The tenure for the Emerson Electric board of directors is about average.
Board of Directors

Clemens A. Börsig

TITLE
Lead Independent Director
COMPENSATION
$314K
AGE
70

David Farr

TITLE
Chairman & CEO
COMPENSATION
$16M
AGE
63
TENURE
14.6 yrs

Josh Bolten

TITLE
Independent Director
COMPENSATION
$293K
AGE
64
TENURE
7.2 yrs

Jim Turley

TITLE
Independent Director
COMPENSATION
$291K
AGE
63
TENURE
5.8 yrs

Arthur Golden

TITLE
Independent Director
COMPENSATION
$314K
AGE
71
TENURE
19.3 yrs

Matt Levatich

TITLE
Independent Director
COMPENSATION
$283K
AGE
53
TENURE
6.7 yrs

Candace Kendle

TITLE
Independent Director
COMPENSATION
$268K
AGE
71
TENURE
5.2 yrs

Gloria Flach

TITLE
Independent Director
COMPENSATION
$283K
AGE
59
TENURE
1.9 yrs

Lori Lee

TITLE
Director
AGE
52
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
29. Nov 18 Sell Surendralal Karsanbhai Individual 28. Nov 18 28. Nov 18 -9,070 $68.00 $-616,760
11. Sep 18 Sell Edward Monser Individual 07. Sep 18 10. Sep 18 -60,000 $76.36 $-4,566,087
16. Aug 18 Sell Frank Dellaquila Individual 14. Aug 18 14. Aug 18 -6,316 $73.91 $-466,829
20. Jun 18 Sell Michael Train Individual 18. Jun 18 18. Jun 18 -24,166 $71.46 $-1,726,844
X
Management checks
We assess Emerson Electric's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Emerson Electric has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

EMR News

Simply Wall St News

I Ran A Stock Scan For Earnings Growth And Emerson Electric (NYSE:EMR) Passed With Ease

How Fast Is Emerson Electric Growing Its Earnings Per Share. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … While we note Emerson Electric's EBIT margins were flat over the last year, revenue grew by a solid 12% to US$18b.

Simply Wall St -

Should You Be Pleased About The CEO Pay At Emerson Electric Co.'s (NYSE:EMR)

First, this article will compare CEO compensation with compensation at other large companies. … How Does David Farr's Compensation Compare With Similar Sized Companies. … has a market cap of US$44b, and is paying total annual CEO compensation of US$16m.

Simply Wall St -

Investors Who Bought Emerson Electric (NYSE:EMR) Shares Three Years Ago Are Now Up 31%

One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Emerson Electric was able to grow its EPS at 1.5% per year over three years, sending the share price higher. … In comparison, the 9.3% per year gain in the share price outpaces the EPS growth.

Simply Wall St -

At US$66.48, Is It Time To Put Emerson Electric Co. (NYSE:EMR) On Your Watch List?

As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Emerson Electric’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Simply Wall St -

Will Emerson Electric Co.'s (NYSE:EMR) Earnings Grow In The Next 12 Months?

In December 2018, Emerson Electric Co. … with profits predicted to increase by 2.9% next year … the past 5-year average growth rate of -4.5%

Simply Wall St -

Does Emerson Electric Co.'s (NYSE:EMR) Recent Track Record Look Strong?

After reading Emerson Electric Co.'s (NYSE:EMR) latest earnings update (31 December 2018), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … How EMR fared against its long-term earnings performance and its industry. … EMR's trailing twelve-month earnings (from 31 December 2018) of US$2.3b has

Simply Wall St -

What Kind Of Shareholders Own Emerson Electric Co. (NYSE:EMR)?

Generally speaking, as a company grows, institutions will increase their ownership. … Emerson Electric is a pretty big company. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Is Emerson Electric Co.'s (NYSE:EMR) ROE Of 28% Impressive?

We'll use ROE to examine Emerson Electric Co. … View our latest analysis for Emerson Electric? … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Emerson Electric Co. (NYSE:EMR): 2 Days To Buy Before The Ex-Dividend Date

Investors who want to cash in on Emerson Electric Co.'s (NYSE:EMR) upcoming dividend of US$0.49 per share have only 2 days left to buy the shares before its ex-dividend date, 14 February 2019, in time for dividends payable on the 11 March 2019. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?

Simply Wall St -

Emerson Electric Co.'s (NYSE:EMR) Most Important Factor To Consider

What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … I’ve analysed below, the health and outlook of Emerson Electric’s cash flow, which will help you understand the stock from a cash standpoint. … Emerson Electric generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating

Simply Wall St -

EMR Company Info

Description

Emerson Electric Co., a technology and engineering company, provides various solutions to industrial, commercial, and consumer markets worldwide. The company’s Automation Solutions segment offers products and integrated solutions, including measurement and analytical instrumentation; valves, actuators, and regulators; industrial solutions; and process control systems and solutions. 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 company’s Climate Technologies 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 commercial and industrial refrigeration products that include 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; and temperature management and monitoring products for the foodservice markets. Its Tools & Home Products segment offers 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.

Details
Name: Emerson Electric Co.
EMR
Exchange: NYSE
Founded: 1890
$44,965,588,884
614,619,859
Website: http://www.emerson.com
Address: Emerson Electric Co.
8000 West Florissant Avenue,
PO Box 4100,
St. Louis,
Missouri, 63136,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE EMR Common Stock New York Stock Exchange US USD 02. Jan 1968
DB EMR Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0R33 Common Stock London Stock Exchange GB USD 02. Jan 1968
SWX EMR Common Stock SIX Swiss Exchange CH CHF 02. Jan 1968
BMV EMR * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
Number of employees
Current staff
Staff numbers
87,500
Emerson Electric employees.
Industry
Electrical Components and Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 23:35
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/06
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.