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Why EMERSON ELECTRIC CO (NYSE:EMR) should be investigated by quality investors.

By Mill Chart

Last update: Aug 28, 2023

In this article we will dive into EMERSON ELECTRIC CO (NYSE:EMR) as a possible candidate for quality investing. Investors should always do their own research, but we noticed EMERSON ELECTRIC CO showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NYSE:EMR may be interesting for quality investors.

  • The 5-year revenue growth of EMERSON ELECTRIC CO has been remarkable, with 5.16% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • The ROIC excluding cash and goodwill of EMERSON ELECTRIC CO stands at 34.14%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • With a Debt/Free Cash Flow Ratio of 3.94, EMERSON ELECTRIC CO exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • EMERSON ELECTRIC CO demonstrates consistent Profit Quality over the past 5 years, with a strong 108.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • EMERSON ELECTRIC CO has experienced impressive EBIT growth over the past 5 years, with 7.23% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • EMERSON ELECTRIC CO has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to EMR. EMR was compared to 86 industry peers in the Electrical Equipment industry. EMR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. EMR has a valuation in line with the averages, but on the other hand it scores bad on growth.

Check the latest full fundamental report of EMR for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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