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EMR

Emerson ElectricNYSE:EMR Stock Report

Market Cap

US$57.1b

7D

-1.8%

1Y

50.6%

Updated

23 Sep, 2021

Data

Company Financials +
EMR fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends5/6

EMR Overview

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

Emerson Electric Competitors

Eaton

NYSE:ETN

US$62.4b

Generac Holdings

NYSE:GNRC

US$27.9b

Acuity Brands

NYSE:AYI

US$6.1b

Cisco Systems

NasdaqGS:CSCO

US$234.2b

Price History & Performance

Summary of all time highs, changes and price drops for Emerson Electric
Historical stock prices
Current Share PriceUS$96.96
52 Week HighUS$63.16
52 Week LowUS$105.99
Beta1.54
1 Month Change-6.25%
3 Month Change1.00%
1 Year Change50.58%
3 Year Change26.27%
5 Year Change82.87%
Change since IPO857.63%

Recent News & Updates

Sep 09

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.

Aug 25
Here's Why Emerson Electric (NYSE:EMR) Can Manage Its Debt Responsibly

Here's Why Emerson Electric (NYSE:EMR) Can Manage Its Debt Responsibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

EMRUS ElectricalUS Market
7D-1.8%0.2%-0.5%
1Y50.6%55.6%37.5%

Return vs Industry: EMR underperformed the US Electrical industry which returned 54.3% over the past year.

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

Price Volatility

Is EMR's price volatile compared to industry and market?
EMR volatility
EMR Beta1.54
Industry Beta1.34
Market Beta1

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

FoundedEmployeesCEOWebsite
189083,500Lal Karsanbhaihttps://www.emerson.com

Emerson Electric Co. designs and manufactures technology and engineering products for 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.

Emerson Electric Fundamentals Summary

How do Emerson Electric's earnings and revenue compare to its market cap?
EMR fundamental statistics
Market CapUS$57.09b
Earnings (TTM)US$2.36b
Revenue (TTM)US$17.85b

24.6x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EMR income statement (TTM)
RevenueUS$17.85b
Cost of RevenueUS$10.38b
Gross ProfitUS$7.47b
ExpensesUS$5.11b
EarningsUS$2.36b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.94
Gross Margin41.85%
Net Profit Margin13.20%
Debt/Equity Ratio78.3%

How did EMR perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

51%

Payout Ratio

Valuation

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

0.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EMR ($96.96) is trading below our estimate of fair value ($97.8)

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 poor value based on its PE Ratio (24.6x) compared to the US Electrical industry average (22.9x).

PE vs Market: EMR is poor value based on its PE Ratio (24.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: EMR is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: EMR is overvalued based on its PB Ratio (6.2x) compared to the US Electrical industry average (3x).


Future Growth

How is Emerson Electric forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMR's forecast earnings growth (7.4% per year) is above the savings rate (2%).

Earnings vs Market: EMR's earnings (7.4% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: EMR's revenue (5.3% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: EMR's revenue (5.3% 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%)


Past Performance

How has Emerson Electric performed over the past 5 years?

7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMR has high quality earnings.

Growing Profit Margin: EMR's current net profit margins (13.2%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: EMR's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: EMR's earnings growth over the past year (20.3%) exceeds its 5-year average (7.1% per year).

Earnings vs Industry: EMR earnings growth over the past year (20.3%) underperformed the Electrical industry 22.9%.


Return on Equity

High ROE: EMR's Return on Equity (25.5%) is considered high.


Financial Health

How is Emerson Electric's financial position?


Financial Position Analysis

Short Term Liabilities: EMR's short term assets ($8.8B) exceed its short term liabilities ($6.7B).

Long Term Liabilities: EMR's short term assets ($8.8B) exceed its long term liabilities ($8.5B).


Debt to Equity History and Analysis

Debt Level: EMR's debt to equity ratio (78.3%) is considered high.

Reducing Debt: EMR's debt to equity ratio has reduced from 91.5% to 78.3% over the past 5 years.

Debt Coverage: EMR's debt is well covered by operating cash flow (54%).

Interest Coverage: EMR's interest payments on its debt are well covered by EBIT (20.3x coverage).


Balance Sheet


Dividend

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

2.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EMR's dividend (2.08%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: EMR's dividend (2.08%) is low compared to the top 25% of dividend payers in the US market (3.63%).


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 (51.2%), 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 covered by earnings (53.3% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Lal Karsanbhai (51 yo)

0.58

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 ($USD3.81M) is below average for companies of similar size in the US market ($USD11.36M).

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


Leadership Team

Experienced Management: EMR's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: EMR's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

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

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
  • Market Cap: US$57.090b
  • Shares outstanding: 597.80m
  • 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 Analysis2021/09/23 22:56
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
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.