EMR Stock Overview
Emerson Electric Co. designs and manufactures technology and engineering products for industrial, commercial, and consumer markets worldwide.
Emerson Electric Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$90.31|
|52 Week High||US$105.99|
|52 Week Low||US$74.50|
|1 Month Change||-7.38%|
|3 Month Change||-13.80%|
|1 Year Change||15.55%|
|3 Year Change||33.75%|
|5 Year Change||60.27%|
|Change since IPO||791.95%|
Recent News & Updates
Estimating The Fair Value Of Emerson Electric Co. (NYSE:EMR)
How far off is Emerson Electric Co. ( NYSE:EMR ) from its intrinsic value? Using the most recent financial data, we'll...
Is Now The Time To Look At Buying Emerson Electric Co. (NYSE:EMR)?
Let's talk about the popular Emerson Electric Co. ( NYSE:EMR ). The company's shares received a lot of attention from a...
Emerson Offers Portfolio Transformation And Leverage To Process Market Recoveries
Emerson is enjoying strong demand in HVAC and improving demand in refrigeration and tools, while discrete and hybrid automation markets lead a recovery ahead of process industries. Management seems likely to reduce its oil/gas exposure further, but a lot of the core automation technologies could be applied to new markets like hydrogen. Climate is a core business now, and Emerson is likely to be more active as a buyer than as a seller, with software a particular priority. Emerson isn't undervalued on a core basis, but there's at least a relative value argument as Emerson shares don't enjoy the EBITDA multiple that its margins and returns would otherwise merit.
|EMR||US Electrical||US Market|
Return vs Industry: EMR underperformed the US Electrical industry which returned 24.4% over the past year.
Return vs Market: EMR underperformed the US Market which returned 21.3% over the past year.
|EMR Average Weekly Movement||3.4%|
|Electrical Industry Average Movement||8.8%|
|Market Average Movement||6.0%|
|10% most volatile stocks in US Market||15.0%|
|10% least volatile stocks in US Market||2.3%|
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.
About the Company
Emerson Electric Co. designs and manufactures technology and engineering products for industrial, commercial, and consumer markets worldwide. 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
|EMR fundamental statistics|
Is EMR overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|EMR income statement (TTM)|
|Cost of Revenue||US$10.67b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||3.87|
|Net Profit Margin||12.63%|
How did EMR perform over the long term?See historical performance and comparison
2.3%Current Dividend Yield
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 ($90.31) is trading below our estimate of fair value ($112.3)
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 (23.3x) compared to the US Electrical industry average (23.7x).
PE vs Market: EMR is poor value based on its PE Ratio (23.3x) compared to the US market (17.2x).
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 (5.4x) compared to the US Electrical industry average (3.3x).
How is Emerson Electric forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EMR's forecast earnings growth (12.2% per year) is above the savings rate (2%).
Earnings vs Market: EMR's earnings (12.2% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: EMR's earnings are forecast to grow, but not significantly.
Revenue vs Market: EMR's revenue (5.2% per year) is forecast to grow slower than the US market (10.1% per year).
High Growth Revenue: EMR's revenue (5.2% 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 (24.7%)
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 (12.6%) are higher than last year (11.7%).
Past Earnings Growth Analysis
Earnings Trend: EMR's earnings have grown by 6.7% per year over the past 5 years.
Accelerating Growth: EMR's earnings growth over the past year (17.2%) exceeds its 5-year average (6.7% per year).
Earnings vs Industry: EMR earnings growth over the past year (17.2%) underperformed the Electrical industry 56.7%.
Return on Equity
High ROE: EMR's Return on Equity (23.5%) is considered high.
How is Emerson Electric's financial position?
Financial Position Analysis
Short Term Liabilities: EMR's short term assets ($8.4B) exceed its short term liabilities ($6.2B).
Long Term Liabilities: EMR's short term assets ($8.4B) do not cover its long term liabilities ($8.5B).
Debt to Equity History and Analysis
Debt Level: EMR's net debt to equity ratio (43.4%) is considered high.
Reducing Debt: EMR's debt to equity ratio has reduced from 86.7% to 67.2% over the past 5 years.
Debt Coverage: EMR's debt is well covered by operating cash flow (53.6%).
Interest Coverage: EMR's interest payments on its debt are well covered by EBIT (20.1x coverage).
What is Emerson Electric current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EMR's dividend (2.28%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: EMR's dividend (2.28%) is low compared to the top 25% of dividend payers in the US market (3.58%).
Stability and Growth of Payments
Stable Dividend: EMR's dividends per share have been stable in the past 10 years.
Growing Dividend: EMR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (52.5%), EMR's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: EMR's dividends in 3 years are forecast to be well covered by earnings (38.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Lal Karsanbhai (51 yo)
Mr. Surendralal Lanca Karsanbhai also known as Lal, serves as Chief Executive Officer & Director at Emerson Electric Co. since February 05, 2021. He serves as President at Emerson Electric Co. since March...
CEO Compensation Analysis
Compensation vs Market: Lal's total compensation ($USD3.81M) is below average for companies of similar size in the US market ($USD11.11M).
Compensation vs Earnings: Lal's compensation has been consistent with company performance over the past year.
Experienced Management: EMR's management team is seasoned and experienced (5.5 years average tenure).
Experienced Board: EMR's board of directors are considered experienced (3.1 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Emerson Electric Co.'s 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$53.725b
- Shares outstanding: 594.90m
- Website: https://www.emerson.com
Number of Employees
- Emerson Electric Co.
- 8000 West Florissant Avenue
- PO Box 4100
- Saint Louis
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/11/27 23:09|
|End of Day Share Price||2021/11/26 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.