NYSE:EMR

Stock Analysis Report

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Executive Summary

Emerson Electric Co. designs and manufactures technology and engineering products for industrial, commercial, and consumer markets worldwide. More Details


Snowflake Analysis

Established dividend payer with proven track record.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: EMR's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

6.0%

EMR

-1.2%

US Electrical

-0.4%

US Market


1 Year Return

46.5%

EMR

69.2%

US Electrical

36.2%

US Market

Return vs Industry: EMR underperformed the US Electrical industry which returned 69.2% over the past year.

Return vs Market: EMR exceeded the US Market which returned 36.2% over the past year.


Shareholder returns

EMRIndustryMarket
7 Day6.0%-1.2%-0.4%
30 Day5.7%-4.8%-2.9%
90 Day15.0%15.9%5.0%
1 Year50.9%46.5%72.4%69.2%39.1%36.2%
3 Year37.4%26.0%70.2%61.0%48.4%39.0%
5 Year106.9%77.6%107.2%91.3%116.5%92.4%

Long-Term 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

Valuation

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

26.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EMR ($91.04) is trading above our estimate of fair value ($81.76)

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 (26.2x) compared to the US Electrical industry average (30.9x).

PE vs Market: EMR is poor value based on its PE Ratio (26.2x) compared to the US market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: EMR is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: EMR is overvalued based on its PB Ratio (6.1x) compared to the US Electrical industry average (4.7x).


Next Steps

Future Growth

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

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMR's forecast earnings growth (9.8% per year) is above the savings rate (2%).

Earnings vs Market: EMR's earnings (9.8% per year) are forecast to grow slower than the US market (19.2% per year).

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

Revenue vs Market: EMR's revenue (4.7% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: EMR's revenue (4.7% 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 (36.9%)


Next Steps

Past Performance

How has Emerson Electric performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMR has high quality earnings.

Growing Profit Margin: EMR's current net profit margins (12.4%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: EMR's earnings have grown by 5.3% 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 (-3.8%) over the past year, making it difficult to compare to the Electrical industry average (-11.6%).


Return on Equity

High ROE: EMR's Return on Equity (23.6%) is considered high.


Next Steps

Financial Health

How is Emerson Electric's financial position?


Financial Position Analysis

Short Term Liabilities: EMR's short term assets ($7.7B) exceed its short term liabilities ($6.4B).

Long Term Liabilities: EMR's short term assets ($7.7B) do not cover its long term liabilities ($8.4B).


Debt to Equity History and Analysis

Debt Level: EMR's debt to equity ratio (85.1%) is considered high.

Reducing Debt: EMR's debt to equity ratio has reduced from 99.3% to 85.1% over the past 5 years.

Debt Coverage: EMR's debt is well covered by operating cash flow (45.6%).

Interest Coverage: EMR's interest payments on its debt are well covered by EBIT (18.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EMR's dividend (2.22%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: EMR's dividend (2.22%) is low compared to the top 25% of dividend payers in the US market (3.64%).


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 (57.7%), 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 (44.6% payout ratio).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Lal Karsanbhai (50 yo)

0.083

Tenure

US$3,813,925

Compensation

Mr. Surendralal Lanca Karsanbhai also known as Lal, serves as Chief Executive Officer & Director at Emerson Electric Co. since February 05, 2021. He serves as President at Emerson Electric Co. since March ...


CEO Compensation Analysis

Compensation vs Market: Lal's total compensation ($USD3.81M) is below average for companies of similar size in the US market ($USD10.57M).

Compensation vs Earnings: Lal's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Surendralal Karsanbhai
President0.083yrUS$3.81m0.018%
$ 9.8m
Frank Dellaquila
Senior EVP & CFO11.08yrsUS$6.66m0.064%
$ 34.9m
Michael Train
Senior VP & Chief Sustainability Officerno dataUS$4.56m0.031%
$ 17.1m
Ram Krishnan
Executive VP & COO0.083yrno data0.015%
$ 8.2m
Michael Baughman
Chief Accounting Officer3.08yrsno data0.0054%
$ 2.9m
Jake Fritz
Chief Information Officer & VP5.58yrsno datano data
Sara Bosco
Senior VP4.83yrsno data0.016%
$ 8.7m
Lisa Flavin
Chief Compliance Officer & Senior VP10.17yrsno datano data
Katherine Bell
Senior VP & Chief Marketing Officer22.17yrsno data0.0080%
$ 4.4m
Timothy Volk
Vice President of Global Human Resourcesno datano datano data
Mark Bulanda
Executive President of Automation Solutions8.67yrsno data0.030%
$ 16.2m
Terry Buzbee
Chairman of Final Controlno datano datano data

5.6yrs

Average Tenure

56.5yo

Average Age

Experienced Management: EMR's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Surendralal Karsanbhai
President0.083yrUS$3.81m0.018%
$ 9.8m
Candace Kendle
Independent Director7.08yrsUS$275.30k0.0036%
$ 1.9m
David Farr
Independent Non-Executive Chairman16.5yrsUS$16.48m0.45%
$ 246.4m
Clemens A. Boersig
Lead Independent Directorno dataUS$345.17k0.0050%
$ 2.8m
Arthur Golden
Independent Director21.17yrsUS$363.02k0.014%
$ 7.8m
James Turley
Independent Director7.67yrsUS$305.70k0.0032%
$ 1.7m
Mark Blinn
Independent Director1.33yrsUS$346.09k0.0010%
$ 568.1k
Martin Craighead
Independent Director1.75yrsUS$283.02k0.0011%
$ 584.5k
Matthew Levatich
Independent Director8.58yrsUS$294.30k0.0035%
$ 1.9m
Gloria Flach
Independent Director3.83yrsUS$288.02k0.0018%
$ 956.0k
Joshua Bolten
Independent Director9.08yrsUS$309.80k0.0037%
$ 2.0m
Lori Lee
Independent Director2.42yrsUS$286.30k0.0011%
$ 606.4k

7.1yrs

Average Tenure

63yo

Average Age

Experienced Board: EMR's board of directors are considered experienced (7.1 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 company bio, 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
  • Market Cap: US$54.627b
  • Shares outstanding: 600.03m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMRNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
EMRDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
EMRXTRA (XETRA Trading Platform)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 1 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Emerson Electric Co. designs and manufactures technology and engineering products for industrial, commercial, and consumer markets worldwide. It operates through Automation Solutions and Commercial & Resid...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/08 00:22
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/09/30


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.