Why NYSE:EMR is a Top Pick for Dividend Investors.

Last update: Jan 23, 2024

Discover EMERSON ELECTRIC CO (NYSE:EMR)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:EMR showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

How We Gauge Dividend for NYSE:EMR

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 2.47. EMR pays more dividend than 94.25% of the companies in the same industry.
EMR has been paying a dividend for at least 10 years, so it has a reliable track record.
EMR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
EMR pays out 9.12% of its income as dividend. This is a sustainable payout ratio.
The dividend of EMR is growing, but earnings are growing more, so the dividend growth is sustainable.

What does the Health looks like for NYSE:EMR

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:EMR has received a 7 out of 10:

EMR has an Altman-Z score of 3.50. This indicates that EMR is financially healthy and has little risk of bankruptcy at the moment.
EMR has a Altman-Z score of 3.50. This is in the better half of the industry: EMR outperforms 73.56% 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 79.31% of its industry peers.
EMR has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 2.38 indicates that EMR has no problem at all paying its short term obligations.
EMR has a Quick Ratio of 2.07. This indicates that EMR is financially healthy and has no problem in meeting its short term obligations.
EMR's Quick ratio of 2.07 is fine compared to the rest of the industry. EMR outperforms 74.71% of its industry peers.

Profitability Insights: NYSE:EMR

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:EMR was assigned a score of 8 for profitability:

EMR's Return On Assets of 29.92% is amongst the best of the industry. EMR outperforms 98.85% of its industry peers.
The Return On Equity of EMR (64.58%) is better than 98.85% of its industry peers.
EMR has a Return On Invested Capital of 6.66%. This is in the better half of the industry: EMR outperforms 72.41% of its industry peers.
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.
With an excellent Profit Margin value of 80.41%, EMR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of EMR has grown nicely.
With an excellent Operating Margin value of 19.14%, EMR belongs to the best of the industry, outperforming 95.40% of the companies in the same industry.
EMR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 47.05%, EMR belongs to the best of the industry, outperforming 95.40% of the companies in the same industry.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of EMR contains the most current fundamental analsysis.

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.