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

Last update: Dec 11, 2023

Our stock screener has singled out EMERSON ELECTRIC CO (NYSE:EMR) as a promising choice for dividend investors. NYSE:EMR not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Unpacking NYSE:EMR's Dividend Rating

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:EMR has achieved a 7 out of 10:

EMR's Dividend Yield is rather good when compared to the industry average which is at 2.43. EMR pays more dividend than 95.35% of the companies in the same industry.
EMR has paid a dividend for at least 10 years, which is a reliable track record.
EMR has not decreased their dividend for at least 10 years, which is a reliable track record.
EMR pays out 9.12% of its income as dividend. This is a sustainable payout ratio.
EMR's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Insights: NYSE:EMR

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:EMR scores a 7 out of 10:

EMR has an Altman-Z score of 3.40. This indicates that EMR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EMR (3.40) is better than 70.93% of its industry peers.
The Debt to FCF ratio of EMR is 3.94, which is a good value as it means it would take EMR, 3.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EMR (3.94) is better than 79.07% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that EMR is not too dependend on debt financing.
EMR has a Current Ratio of 2.38. This indicates that EMR is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 2.07 indicates that EMR has no problem at all paying its short term obligations.
EMR's Quick ratio of 2.07 is fine compared to the rest of the industry. EMR outperforms 74.42% of its industry peers.

Understanding NYSE:EMR's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:EMR, the assigned 8 is noteworthy for profitability:

The Return On Assets of EMR (29.92%) is better than 98.84% of its industry peers.
Looking at the Return On Equity, with a value of 64.58%, EMR belongs to the top of the industry, outperforming 98.84% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.66%, EMR is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
The 3 year average ROIC (11.91%) for EMR is well above the current ROIC(6.66%). The reason for the recent decline needs to be investigated.
Looking at the Profit Margin, with a value of 80.41%, EMR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
EMR's Profit Margin has improved in the last couple of years.
EMR has a Operating Margin of 19.14%. This is amongst the best in the industry. EMR outperforms 95.35% of its industry peers.
In the last couple of years the Operating Margin of EMR has grown nicely.
EMR has a better Gross Margin (47.05%) than 95.35% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of EMR

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.