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Why the quality investor may take a look at NYSE:EMR.

By Mill Chart

Last update: Sep 18, 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.
  • With a robust ROIC excluding cash and goodwill at 34.14%, EMERSON ELECTRIC CO showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • EMERSON ELECTRIC CO maintains a healthy Debt/Free Cash Flow Ratio of 3.94, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • With a favorable Profit Quality (5-year) ratio of 108.0%, EMERSON ELECTRIC CO showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • EMERSON ELECTRIC CO has demonstrated consistent growth in EBIT over the past 5 years, with a strong 7.23%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • EMERSON ELECTRIC CO has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score 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 87 industry peers in the Electrical Equipment industry. EMR gets an excellent profitability rating and is at the same time showing great financial health properties. 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 quality stocks can be found in our Caviar Cruise screen.

Keep in mind

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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