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

5.8%

EMR

6.0%

US Electrical

3.4%

US Market


1 Year Return

-9.0%

EMR

-1.0%

US Electrical

5.4%

US Market

Return vs Industry: EMR underperformed the US Electrical industry which returned -1% over the past year.

Return vs Market: EMR underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

EMRIndustryMarket
7 Day5.8%6.0%3.4%
30 Day2.5%-2.1%-1.0%
90 Day4.8%2.0%-0.4%
1 Year-6.2%-9.0%1.2%-1.0%7.7%5.4%
3 Year47.9%34.9%40.8%32.5%46.2%36.8%
5 Year30.0%10.5%35.1%21.6%65.6%47.5%

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?

18.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: EMR ($67.32) is trading above our estimate of fair value ($62.94)

Significantly Undervalued: EMR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EMR is poor value based on its PE Ratio (18.9x) compared to the Electrical industry average (15.5x).

PE vs Market: EMR is poor value based on its PE Ratio (18.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: EMR is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: EMR is overvalued based on its PB Ratio (4.7x) compared to the US Electrical industry average (1.5x).


Next Steps

Future Growth

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

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMR's forecast earnings growth (4.1% per year) is above the savings rate (2.7%).

Earnings vs Market: EMR's earnings (4.1% 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 (2.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: EMR's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: EMR's Return on Equity is forecast to be high in 3 years time (31.5%)


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

Earnings Trend: EMR's earnings have declined by -3.4% per year over the past 5 years.

Accelerating Growth: EMR's earnings growth over the past year (6%) exceeds its 5-year average (-3.4% per year).

Earnings vs Industry: EMR earnings growth over the past year (6%) underperformed the Electrical industry 24%.


Return on Equity

High ROE: EMR's Return on Equity (25.3%) is considered high.


Return on Assets

ROA vs Industry: EMR has a higher Return on Assets than the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: EMR has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Emerson Electric's financial position?


Financial Position Analysis

Short Term Liabilities: EMR's short term assets ($7.4B) exceeds its short term liabilities ($6.2B)

Long Term Liabilities: EMR's short term assets (7.4B) exceeds its long term liabilities (6.3B)


Debt to Equity History and Analysis

Debt Level: EMR's debt to equity ratio (70.6%) is considered high

Reducing Debt: EMR's debt to equity ratio has increased from 60.1% to 70.6% over the past 5 years.

Debt Coverage: EMR's debt is well covered by operating cash flow (45.5%).

Interest Coverage: EMR's interest payments on its debt are well covered by EBIT (16.7x coverage).


Balance Sheet

Inventory Level: EMR has a high level of physical assets or inventory.

Debt Coverage by Assets: EMR's debt is covered by short term assets (assets are 1.183000x debt).


Next Steps

Dividend

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

2.91%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EMR's dividend (2.91%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: EMR's dividend (2.91%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (54.9%), 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 (49.4% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

David Farr (64yo)

19yrs

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

Compensation vs. Market: David's total compensation ($USD15.61M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

3.4yrs

Average Tenure

56yo

Average Age

Experienced Management: EMR's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

64yo

Average Age

Experienced Board: EMR's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 19yrs
    • Compensation: US$15.61m
  • Michael Baughman (54yo)

    Chief Accounting Officer

    • Tenure: 1.7yrs
  • Frank Dellaquila (62yo)

    Senior EVP & CFO

    • Tenure: 9.7yrs
    • 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: 3.4yrs
  • 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: 1yrs
    • Compensation: US$4.97m
  • Jake Fritz

    Chief Information Officer & VP

    • Tenure: 4.2yrs
  • Timothy Reeves

    Director of Investor Relations & Assistant Treasurer

    • Tenure: 0yrs

Board Members

  • Candace Kendle (72yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$268.46k
  • David Farr (64yo)

    Chairman & CEO

    • Tenure: 19yrs
    • Compensation: US$15.61m
  • Clemens A. Börsig (71yo)

    Lead Independent Director

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

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$314.20k
  • Jim Turley (64yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$290.96k
  • Martin Craighead (59yo)

    Director

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

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$282.96k
  • Gloria Flach (60yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$282.96k
  • Josh Bolten (65yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$293.46k
  • Lori Lee (53yo)

    Independent Director

    • Tenure: 1yrs

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$41.409b
  • 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 Analysis2019/10/16 23:34
End of Day Share Price2019/10/16 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.