EMERSON ELECTRIC CO (EMR)
US2910111044 - Common Stock
Overall EMR gets a fundamental rating of 6 out of 10. We evaluated EMR against 88 industry peers in the Electrical Equipment industry. EMR scores excellent on profitability, but there are some minor concerns on its financial health. EMR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year EMR was profitable.
EMR had a positive operating cash flow in the past year.
EMR had positive earnings in each of the past 5 years.
EMR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 4.45%, EMR belongs to the best of the industry, outperforming 80.68% of the companies in the same industry.
With an excellent Return On Equity value of 9.10%, EMR belongs to the best of the industry, outperforming 84.09% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.03%, EMR is doing good in the industry, outperforming 72.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EMR is below the industry average of 9.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 9.1% | ||
| ROIC | 5.03% |
ROA(3y)14.81%
ROA(5y)12.47%
ROE(3y)34.72%
ROE(5y)30.17%
ROIC(3y)6.94%
ROIC(5y)9.3%
1.3 Margins
Looking at the Profit Margin, with a value of 11.25%, EMR belongs to the top of the industry, outperforming 88.64% of the companies in the same industry.
In the last couple of years the Profit Margin of EMR has declined.
EMR has a better Operating Margin (14.06%) than 85.23% of its industry peers.
EMR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 50.79%, EMR belongs to the top of the industry, outperforming 97.73% of the companies in the same industry.
In the last couple of years the Gross Margin of EMR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.06% | ||
| PM (TTM) | 11.25% | ||
| GM | 50.79% |
OM growth 3Y-7.28%
OM growth 5Y-3.77%
PM growth 3Y-3.78%
PM growth 5Y-2.16%
GM growth 3Y6.99%
GM growth 5Y3.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EMR is destroying value.
The number of shares outstanding for EMR has been reduced compared to 1 year ago.
EMR has less shares outstanding than it did 5 years ago.
EMR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.87 indicates that EMR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.87, EMR is in the better half of the industry, outperforming 78.41% of the companies in the same industry.
The Debt to FCF ratio of EMR is 2.64, which is a good value as it means it would take EMR, 2.64 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EMR (2.64) is better than 79.55% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that EMR is not too dependend on debt financing.
EMR's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. EMR outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 3.87 |
ROIC/WACC0.52
WACC9.63%
2.3 Liquidity
A Current Ratio of 1.77 indicates that EMR should not have too much problems paying its short term obligations.
EMR has a worse Current ratio (1.77) than 60.23% of its industry peers.
EMR has a Quick Ratio of 1.40. This is a normal value and indicates that EMR is financially healthy and should not expect problems in meeting its short term obligations.
EMR's Quick ratio of 1.40 is in line compared to the rest of the industry. EMR outperforms 59.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
EMR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.49%, which is quite impressive.
The Earnings Per Share has been growing by 8.33% on average over the past years. This is quite good.
The Revenue has grown by 15.34% in the past year. This is quite good.
EMR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.98% yearly.
EPS 1Y (TTM)24.49%
EPS 3Y10.22%
EPS 5Y8.33%
EPS Q2Q%14.73%
Revenue 1Y (TTM)15.34%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.98%
Sales Q2Q%12.93%
3.2 Future
Based on estimates for the next years, EMR will show a small growth in Earnings Per Share. The EPS will grow by 7.90% on average per year.
EMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.95% yearly.
EPS Next Y9.82%
EPS Next 2Y8.67%
EPS Next 3Y9.36%
EPS Next 5Y7.9%
Revenue Next Year4.86%
Revenue Next 2Y4.95%
Revenue Next 3Y5.04%
Revenue Next 5Y5.95%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.60, which indicates a rather expensive current valuation of EMR.
Compared to the rest of the industry, the Price/Earnings ratio of EMR indicates a somewhat cheap valuation: EMR is cheaper than 78.41% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. EMR is around the same levels.
EMR is valuated rather expensively with a Price/Forward Earnings ratio of 20.58.
EMR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EMR is cheaper than 79.55% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. EMR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.6 | ||
| Fwd PE | 20.58 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than EMR, based on the Enterprise Value to EBITDA ratio.
77.27% of the companies in the same industry are more expensive than EMR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.29 | ||
| EV/EBITDA | 18.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EMR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of EMR may justify a higher PE ratio.
PEG (NY)2.3
PEG (5Y)2.71
EPS Next 2Y8.67%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.72%, EMR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.89, EMR pays a better dividend. On top of this EMR pays more dividend than 93.18% of the companies listed in the same industry.
EMR's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
The dividend of EMR has a limited annual growth rate of 1.52%.
EMR has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of EMR decreased recently.
Dividend Growth(5Y)1.52%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
61.03% of the earnings are spent on dividend by EMR. This is not a sustainable payout ratio.
EMR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.03%
EPS Next 2Y8.67%
EPS Next 3Y9.36%
EMERSON ELECTRIC CO
NYSE:EMR (12/20/2024, 9:59:50 PM)
After market: 124.09 0 (0%)124.09
+1.74 (+1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.62%
Inst Owner Change1.59%
Ins Owners0.21%
Ins Owner Change2.59%
Market Cap70.76B
Analysts77.33
Price Target137.84 (11.08%)
Short Float %1.98%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Dividend Growth(5Y)1.52%
DP61.03%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.17%
Min EPS beat(2)-0.19%
Max EPS beat(2)-0.15%
EPS beat(4)2
Avg EPS beat(4)5.78%
Min EPS beat(4)-0.19%
Max EPS beat(4)15.96%
EPS beat(8)4
Avg EPS beat(8)3.98%
EPS beat(12)8
Avg EPS beat(12)4.96%
EPS beat(16)12
Avg EPS beat(16)6.16%
Revenue beat(2)1
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)0.17%
Revenue beat(4)3
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)4.02%
Revenue beat(8)5
Avg Revenue beat(8)-0.08%
Revenue beat(12)6
Avg Revenue beat(12)-2.8%
Revenue beat(16)9
Avg Revenue beat(16)-2%
PT rev (1m)7.61%
PT rev (3m)5.21%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-2.82%
EPS NY rev (1m)0.21%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.74%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.6 | ||
| Fwd PE | 20.58 | ||
| P/S | 4.05 | ||
| P/FCF | 24.29 | ||
| P/OCF | 21.24 | ||
| P/B | 3.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.05 |
EPS(TTM)5.49
EY4.42%
EPS(NY)6.03
Fwd EY4.86%
FCF(TTM)5.11
FCFY4.12%
OCF(TTM)5.84
OCFY4.71%
SpS30.68
BVpS37.94
TBVpS-12.04
PEG (NY)2.3
PEG (5Y)2.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 9.1% | ||
| ROCE | 6.39% | ||
| ROIC | 5.03% | ||
| ROICexc | 5.55% | ||
| ROICexgc | 30.19% | ||
| OM | 14.06% | ||
| PM (TTM) | 11.25% | ||
| GM | 50.79% | ||
| FCFM | 16.65% |
ROA(3y)14.81%
ROA(5y)12.47%
ROE(3y)34.72%
ROE(5y)30.17%
ROIC(3y)6.94%
ROIC(5y)9.3%
ROICexc(3y)7.87%
ROICexc(5y)10.79%
ROICexgc(3y)33.79%
ROICexgc(5y)37%
ROCE(3y)9.05%
ROCE(5y)12.16%
ROICexcg growth 3Y-11.32%
ROICexcg growth 5Y-10.06%
ROICexc growth 3Y-28.85%
ROICexc growth 5Y-20.68%
OM growth 3Y-7.28%
OM growth 5Y-3.77%
PM growth 3Y-3.78%
PM growth 5Y-2.16%
GM growth 3Y6.99%
GM growth 5Y3.61%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.64 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 24.81% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 12.74 | ||
| Cash Conversion | 80.33% | ||
| Profit Quality | 148.02% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 3.87 |
F-Score7
WACC9.63%
ROIC/WACC0.52
Cap/Depr(3y)36.82%
Cap/Depr(5y)46.68%
Cap/Sales(3y)2.5%
Cap/Sales(5y)2.78%
Profit Quality(3y)74.7%
Profit Quality(5y)96.72%
High Growth Momentum
Growth
EPS 1Y (TTM)24.49%
EPS 3Y10.22%
EPS 5Y8.33%
EPS Q2Q%14.73%
EPS Next Y9.82%
EPS Next 2Y8.67%
EPS Next 3Y9.36%
EPS Next 5Y7.9%
Revenue 1Y (TTM)15.34%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.98%
Sales Q2Q%12.93%
Revenue Next Year4.86%
Revenue Next 2Y4.95%
Revenue Next 3Y5.04%
Revenue Next 5Y5.95%
EBIT growth 1Y-15.27%
EBIT growth 3Y-8.56%
EBIT growth 5Y-4.71%
EBIT Next Year22.95%
EBIT Next 3Y12.03%
EBIT Next 5Y8.08%
FCF growth 1Y963.14%
FCF growth 3Y-0.91%
FCF growth 5Y3.85%
OCF growth 1Y423.08%
OCF growth 3Y-2.32%
OCF growth 5Y2.08%