NYSE:EMR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-0.9%

EMR

-2.4%

US Electrical

-0.6%

US Market


1 Year Return

-16.7%

EMR

-10.7%

US Electrical

0.7%

US Market

EMR underperformed the Electrical industry which returned -10.7% over the past year.

EMR underperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

EMRIndustryMarket
7 Day-0.9%-2.4%-0.6%
30 Day11.6%8.4%2.9%
90 Day-1.0%0.3%1.3%
1 Year-14.2%-16.7%-8.8%-10.7%2.9%0.7%
3 Year37.2%25.1%38.0%29.9%44.6%35.2%
5 Year21.3%3.0%32.1%18.7%61.9%44.2%

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

2 weeks ago | Simply Wall St

Should Emerson Electric Co. (NYSE:EMR) Be Part Of Your Dividend Portfolio?

Valuation

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

18.25x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Emerson Electric's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Emerson Electric's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Emerson Electric is poor value based on expected growth next year.


Price Based on Value of Assets

Emerson Electric is overvalued based on assets compared to the US Electrical industry average.


Next Steps

Future Growth

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

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Emerson Electric's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

Emerson Electric's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

Emerson Electric's revenue growth is positive but not above the United States of America market average.

Emerson Electric's earnings growth is positive but not above the United States of America market average.

Emerson Electric's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Emerson Electric is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Emerson Electric performed over the past 5 years?

-3.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (6% vs -3.4%)

Emerson Electric's earnings growth has not exceeded the US Electrical industry average in the past year (6% vs 24%).


Return on Equity

Emerson Electric has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Emerson Electric used its assets more efficiently than the US Electrical industry average last year based on Return on Assets.


Return on Capital Employed

Emerson Electric has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Emerson Electric's financial position?


Financial Position Analysis

Emerson Electric is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Emerson Electric's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Emerson Electric's level of debt (70.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (60.1% vs 70.6% today).

Debt is well covered by operating cash flow (45.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 16.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

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

3.14%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Emerson Electric's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Emerson Electric's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

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

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

David Farr (64yo)

18.9yrs

Tenure

US$15,609,527

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

David's remuneration is higher than average for companies of similar size in United States of America.

David's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

56yo

Average Age

The tenure for the Emerson Electric management team is about average.


Board Age and Tenure

6.2yrs

Average Tenure

64yo

Average Age

The tenure for the Emerson Electric board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$290,55021 Jun 19
Katherine Bell
EntityIndividual
Shares4,470
Max PriceUS$65.00
SellUS$500,16419 Jun 19
Katherine Bell
EntityIndividual
Shares7,794
Max PriceUS$64.17
SellUS$783,34912 Jun 19
Michael Train
EntityIndividual
Role
President
President & Chairman of Automation Solutions
Shares12,278
Max PriceUS$63.80
SellUS$1,009,14111 Jun 19
Katherine Bell
EntityIndividual
Shares15,791
Max PriceUS$63.91
SellUS$616,76029 Nov 18
Surendralal Karsanbhai
EntityIndividual
Shares9,070
Max PriceUS$68.00

Ownership Breakdown


Management Team

  • David Farr (64yo)

    Chairman & CEO

    • Tenure: 18.9yrs
    • Compensation: US$15.61m
  • Michael Baughman (54yo)

    Chief Accounting Officer

    • Tenure: 1.6yrs
  • Frank Dellaquila (62yo)

    Senior EVP & CFO

    • Tenure: 9.6yrs
    • Compensation: US$5.97m
  • Bob Sharp (52yo)

    Executive President of Commercial & Residential Solutions

    • Tenure: 0yrs
    • Compensation: US$4.97m
  • Sara Bosco (61yo)

    Senior VP

    • Tenure: 3.3yrs
  • Lisa Flavin (54yo)

    Chief Compliance Officer & VP of Audit

    • Tenure: 0yrs
  • Steve Pelch (55yo)

    Executive VP & COO

    • Tenure: 1.8yrs
    • Compensation: US$4.67m
  • Mike Train (57yo)

    President & Chairman of Automation Solutions

    • Tenure: 0.9yrs
    • Compensation: US$4.97m
  • Jake Fritz

    Chief Information Officer & VP

    • Tenure: 4.1yrs
  • Timothy Reeves

    Director of Investor Relations & Assistant Treasurer

    • Tenure: 0yrs

Board Members

  • Candace Kendle (72yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$268.46k
  • David Farr (64yo)

    Chairman & CEO

    • Tenure: 18.9yrs
    • Compensation: US$15.61m
  • Clemens A. Börsig (71yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$313.79k
  • Arthur Golden (72yo)

    Independent Director

    • Tenure: 19.7yrs
    • Compensation: US$314.20k
  • Jim Turley (64yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$290.96k
  • Martin Craighead (59yo)

    Director

    • Tenure: 0.3yrs
  • Matt Levatich (54yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$282.96k
  • Gloria Flach (60yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$282.96k
  • Josh Bolten (65yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$293.46k
  • Lori Lee (53yo)

    Director

    • Tenure: 0.9yrs

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$39.951b
  • Shares outstanding: 615.10m
  • 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

Biography

Emerson Electric Co., a technology and engineering company, provides solutions to industrial, commercial, and consumer markets worldwide. The company’s Automation Solutions segment offers measurement and a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 23:36
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.