NYSE:EMR

Stock Analysis Report

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Executive Summary

Emerson Electric Co., a technology and engineering company, provides solutions to industrial, commercial, and consumer markets worldwide. More Details


Snowflake Analysis

Established dividend payer with adequate balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.4%

EMR

-3.5%

US Electrical

-1.1%

US Market


1 Year Return

-5.6%

EMR

20.8%

US Electrical

15.0%

US Market

Return vs Industry: EMR underperformed the US Electrical industry which returned 23.2% over the past year.

Return vs Market: EMR underperformed the US Market which returned 15.6% over the past year.


Shareholder returns

EMRIndustryMarket
7 Day-4.4%-3.5%-1.1%
30 Day4.0%5.1%2.9%
90 Day5.0%13.7%5.7%
1 Year-2.7%-5.6%23.3%20.8%17.6%15.0%
3 Year13.5%3.8%35.5%27.8%38.9%29.7%
5 Year58.2%34.8%82.8%66.1%78.4%58.4%

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?

20.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EMR ($66.92) is trading above our estimate of fair value ($60.34)

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 (20.7x) compared to the US Electrical industry average (24.9x).

PE vs Market: EMR is poor value based on its PE Ratio (20.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: EMR is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: EMR is overvalued based on its PB Ratio (5.1x) compared to the US Electrical industry average (3.7x).


Next Steps

Future Growth

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

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMR's forecast earnings growth (10% per year) is above the savings rate (2.2%).

Earnings vs Market: EMR's earnings (10% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: EMR's revenue (3.8% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: EMR's revenue (3.8% 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 (31.2%)


Next Steps

Past Performance

How has Emerson Electric performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMR has high quality earnings.

Growing Profit Margin: EMR's current net profit margins (11.4%) are lower than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: EMR's earnings have grown by 2% 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 (-11.2%) over the past year, making it difficult to compare to the Electrical industry average (-24.7%).


Return on Equity

High ROE: EMR's Return on Equity (25.2%) 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 ($7.9B) exceed its short term liabilities ($6.0B).

Long Term Liabilities: EMR's short term assets ($7.9B) exceed its long term liabilities ($7.9B).


Debt to Equity History and Analysis

Debt Level: EMR's debt to equity ratio (91.7%) is considered high.

Reducing Debt: EMR's debt to equity ratio has increased from 84.9% to 91.7% over the past 5 years.

Debt Coverage: EMR's debt is well covered by operating cash flow (42.3%).

Interest Coverage: EMR's interest payments on its debt are well covered by EBIT (18.1x coverage).


Balance Sheet


Next Steps

Dividend

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

2.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EMR's dividend (2.99%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: EMR's dividend (2.99%) is low compared to the top 25% of dividend payers in the US market (4.63%).


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 (61.6%), 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 (53.8% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Capital Goods industry.

Management

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

5.2yrs

Average management tenure


CEO

David Farr (65 yo)

20yrs

Tenure

US$20,301,576

Compensation

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 ($USD20.30M) is above average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Farr
Chairman & CEO20yrsUS$20.30m0.44%
$ 176.8m
Michael Train
President & Chairman of Automation Solutions2yrsUS$4.40m0.028%
$ 11.4m
Frank Dellaquila
Senior EVP & CFO10.67yrsUS$7.14m0.062%
$ 25.1m
Steven Pelch
COO & Executive VP of Organization Planning and Development2.83yrsUS$4.45m0.024%
$ 9.5m
Surendralal Karsanbhai
Executive President of Emerson Automation Solutionsno dataUS$4.59m0.0075%
$ 3.0m
Michael Baughman
Chief Accounting Officer2.67yrsno data0.0042%
$ 1.7m
Jake Fritz
Chief Information Officer & VP5.17yrsno datano data
Sara Bosco
Senior VP4.42yrsno data0.013%
$ 5.4m
Lisa Flavin
Chief Compliance Officer & VP of Auditno datano datano data
Katherine Bell
Senior VP & Chief Marketing Officer21.75yrsno data0.0062%
$ 2.5m
Timothy Volk
Vice President of Global Human Resourcesno datano datano data
Mark Bulanda
Senior Vice President of Planning and Development8.25yrsno data0.025%
$ 10.2m

5.2yrs

Average Tenure

57yo

Average Age

Experienced Management: EMR's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Farr
Chairman & CEO20yrsUS$20.30m0.44%
$ 176.8m
Candace Kendle
Independent Director6.67yrsUS$289.47k0.0033%
$ 1.3m
Clemens A. Boersig
Lead Independent Directorno dataUS$357.30k0.0048%
$ 1.9m
Arthur Golden
Independent Director20.75yrsUS$402.49k0.014%
$ 5.5m
James Turley
Independent Director7.25yrsUS$323.64k0.0029%
$ 1.2m
William Easter
Independent Directorno datano data0.00043%
$ 174.0k
Mark Blinn
Independent Director0.92yrno data0.00074%
$ 299.5k
Martin Craighead
Independent Director1.33yrsUS$145.81k0.00078%
$ 315.7k
Matthew Levatich
Independent Director8.17yrsUS$318.65k0.0032%
$ 1.3m
Gloria Flach
Independent Director3.42yrsUS$298.97k0.0014%
$ 574.7k
Joshua Bolten
Independent Director8.67yrsUS$330.81k0.0034%
$ 1.4m
Lori Lee
Independent Director2yrsUS$309.99k0.00082%
$ 331.9k

7.0yrs

Average Tenure

65yo

Average Age

Experienced Board: EMR's board of directors are considered experienced (7 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$40.475b
  • Shares outstanding: 597.59m
  • Website: https://www.emerson.com

Number of Employees


Location

  • Emerson Electric Co.
  • 8000 West Florissant Avenue
  • PO Box 4100
  • St. 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
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., a technology and engineering company, provides solutions to industrial, commercial, and consumer markets worldwide. It operates through Automation Solutions and Commercial & Residenti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 23:51
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


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.