EMERSON ELECTRIC CO (EMR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EMR - US2910111044 - Common Stock
137.39 USD
+0.75 (+0.55%)
137.64 USD
+0.25 (+0.18%)
Taking everything into account, EMR scores 6 out of 10 in our fundamental rating. EMR was compared to 90 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year EMR was profitable.
EMR had a positive operating cash flow in the past year.
Each year in the past 5 years EMR has been profitable.
Each year in the past 5 years EMR had a positive operating cash flow.
1.2 Ratios
EMR has a better Return On Assets (5.46%) than 78.89% of its industry peers.
EMR has a better Return On Equity (11.30%) than 81.11% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.77%, EMR belongs to the top of the industry, outperforming 81.11% 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 9.93%.
The 3 year average ROIC (6.24%) for EMR is below the current ROIC(8.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 11.3% | ||
| ROIC | 8.77% |
ROA(3y)13.61%
ROA(5y)11.84%
ROE(3y)28.1%
ROE(5y)27.75%
ROIC(3y)6.24%
ROIC(5y)7.7%
1.3 Margins
EMR has a Profit Margin of 12.72%. This is amongst the best in the industry. EMR outperforms 87.78% of its industry peers.
EMR's Profit Margin has improved in the last couple of years.
The Operating Margin of EMR (20.12%) is better than 96.67% of its industry peers.
In the last couple of years the Operating Margin of EMR has grown nicely.
The Gross Margin of EMR (52.83%) is better than 95.56% of its industry peers.
EMR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.12% | ||
| PM (TTM) | 12.72% | ||
| GM | 52.83% |
OM growth 3Y4.07%
OM growth 5Y3.94%
PM growth 3Y-18.38%
PM growth 5Y1.69%
GM growth 3Y4.97%
GM growth 5Y4.82%
2. Health
2.1 Basic Checks
EMR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
EMR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EMR has less shares outstanding
The debt/assets ratio for EMR is higher compared to a year ago.
2.2 Solvency
EMR has an Altman-Z score of 4.17. This indicates that EMR is financially healthy and has little risk of bankruptcy at the moment.
EMR has a Altman-Z score of 4.17. This is in the better half of the industry: EMR outperforms 72.22% of its industry peers.
The Debt to FCF ratio of EMR is 4.92, which is a neutral value as it means it would take EMR, 4.92 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EMR (4.92) is better than 74.44% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that EMR is not too dependend on debt financing.
EMR has a Debt to Equity ratio of 0.41. This is comparable to the rest of the industry: EMR outperforms 51.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 4.17 |
ROIC/WACC1.11
WACC7.93%
2.3 Liquidity
EMR has a Current Ratio of 0.88. This is a bad value and indicates that EMR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.88, EMR is not doing good in the industry: 81.11% of the companies in the same industry are doing better.
EMR has a Quick Ratio of 0.88. This is a bad value and indicates that EMR is not financially healthy enough and could expect problems in meeting its short term obligations.
EMR has a Quick ratio of 0.65. This is in the lower half of the industry: EMR underperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
EMR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.29%, which is quite good.
EMR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.64% yearly.
EMR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.99%.
Measured over the past years, EMR shows a small growth in Revenue. The Revenue has been growing by 1.43% on average per year.
EPS 1Y (TTM)9.29%
EPS 3Y4.55%
EPS 5Y11.64%
EPS Q2Q%9.46%
Revenue 1Y (TTM)2.99%
Revenue growth 3Y9.28%
Revenue growth 5Y1.43%
Sales Q2Q%5.11%
3.2 Future
Based on estimates for the next years, EMR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.43% on average per year.
The Revenue is expected to grow by 5.02% on average over the next years.
EPS Next Y9%
EPS Next 2Y9.21%
EPS Next 3Y8.7%
EPS Next 5Y9.43%
Revenue Next Year4.74%
Revenue Next 2Y4.88%
Revenue Next 3Y4.93%
Revenue Next 5Y5.02%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EMR is valuated rather expensively with a Price/Earnings ratio of 22.90.
Based on the Price/Earnings ratio, EMR is valued cheaply inside the industry as 82.22% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.49, EMR is valued at the same level.
The Price/Forward Earnings ratio is 21.01, which indicates a rather expensive current valuation of EMR.
Based on the Price/Forward Earnings ratio, EMR is valued a bit cheaper than 78.89% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, EMR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 21.01 |
4.2 Price Multiples
EMR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EMR is cheaper than 77.78% of the companies in the same industry.
EMR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EMR is cheaper than 75.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.94 | ||
| EV/EBITDA | 17.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EMR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.54
PEG (5Y)1.97
EPS Next 2Y9.21%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
EMR has a Yearly Dividend Yield of 1.62%. Purely for dividend investing, there may be better candidates out there.
EMR's Dividend Yield is rather good when compared to the industry average which is at 3.08. EMR pays more dividend than 94.44% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.31, EMR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
The dividend of EMR has a limited annual growth rate of 1.02%.
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)1.02%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
EMR pays out 52.01% of its income as dividend. This is a bit on the high side, but may be sustainable.
EMR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.01%
EPS Next 2Y9.21%
EPS Next 3Y8.7%
137.39
+0.75 (+0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners84.22%
Inst Owner Change-0.44%
Ins Owners0.24%
Ins Owner Change2.48%
Market Cap77.19B
Revenue(TTM)18.02B
Net Income(TTM)2.29B
Analysts78.24
Price Target152.06 (10.68%)
Short Float %2.85%
Short Ratio5.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend2.1
Dividend Growth(5Y)1.02%
DP52.01%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.58%
Min EPS beat(2)-0.75%
Max EPS beat(2)-0.41%
EPS beat(4)2
Avg EPS beat(4)2.33%
Min EPS beat(4)-0.75%
Max EPS beat(4)6.76%
EPS beat(8)4
Avg EPS beat(8)4.05%
EPS beat(12)6
Avg EPS beat(12)3.43%
EPS beat(16)10
Avg EPS beat(16)4.3%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.02%
Max Revenue beat(2)-1.94%
Revenue beat(4)1
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)0.09%
Revenue beat(8)4
Avg Revenue beat(8)-0.44%
Revenue beat(12)6
Avg Revenue beat(12)-0.57%
Revenue beat(16)7
Avg Revenue beat(16)-2.49%
PT rev (1m)0.42%
PT rev (3m)0.25%
EPS NQ rev (1m)-2.02%
EPS NQ rev (3m)-5.22%
EPS NY rev (1m)-1.05%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 21.01 | ||
| P/S | 4.28 | ||
| P/FCF | 28.94 | ||
| P/OCF | 24.91 | ||
| P/B | 3.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.26 |
EPS(TTM)6
EY4.37%
EPS(NY)6.54
Fwd EY4.76%
FCF(TTM)4.75
FCFY3.46%
OCF(TTM)5.51
OCFY4.01%
SpS32.07
BVpS36.1
TBVpS-13.12
PEG (NY)2.54
PEG (5Y)1.97
Graham Number69.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 11.3% | ||
| ROCE | 11.27% | ||
| ROIC | 8.77% | ||
| ROICexc | 9.21% | ||
| ROICexgc | 94.95% | ||
| OM | 20.12% | ||
| PM (TTM) | 12.72% | ||
| GM | 52.83% | ||
| FCFM | 14.8% |
ROA(3y)13.61%
ROA(5y)11.84%
ROE(3y)28.1%
ROE(5y)27.75%
ROIC(3y)6.24%
ROIC(5y)7.7%
ROICexc(3y)7.06%
ROICexc(5y)8.66%
ROICexgc(3y)31.49%
ROICexgc(5y)33.53%
ROCE(3y)8.44%
ROCE(5y)10.31%
ROICexgc growth 3Y8.99%
ROICexgc growth 5Y-0.31%
ROICexc growth 3Y5.37%
ROICexc growth 5Y-11.37%
OM growth 3Y4.07%
OM growth 5Y3.94%
PM growth 3Y-18.38%
PM growth 5Y1.69%
GM growth 3Y4.97%
GM growth 5Y4.82%
F-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.92 | ||
| Debt/EBITDA | 1.62 | ||
| Cap/Depr | 28.39% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 16.4 | ||
| Cash Conversion | 60.25% | ||
| Profit Quality | 116.36% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 4.17 |
F-Score7
WACC7.93%
ROIC/WACC1.11
Cap/Depr(3y)29.25%
Cap/Depr(5y)39.76%
Cap/Sales(3y)2.39%
Cap/Sales(5y)2.84%
Profit Quality(3y)88.8%
Profit Quality(5y)94.08%
High Growth Momentum
Growth
EPS 1Y (TTM)9.29%
EPS 3Y4.55%
EPS 5Y11.64%
EPS Q2Q%9.46%
EPS Next Y9%
EPS Next 2Y9.21%
EPS Next 3Y8.7%
EPS Next 5Y9.43%
Revenue 1Y (TTM)2.99%
Revenue growth 3Y9.28%
Revenue growth 5Y1.43%
Sales Q2Q%5.11%
Revenue Next Year4.74%
Revenue Next 2Y4.88%
Revenue Next 3Y4.93%
Revenue Next 5Y5.02%
EBIT growth 1Y47.38%
EBIT growth 3Y13.73%
EBIT growth 5Y5.42%
EBIT Next Year23.12%
EBIT Next 3Y13.12%
EBIT Next 5Y5.81%
FCF growth 1Y-8.44%
FCF growth 3Y3.71%
FCF growth 5Y0.94%
OCF growth 1Y-7.02%
OCF growth 3Y1.97%
OCF growth 5Y0.1%
EMERSON ELECTRIC CO / EMR FAQ
Can you provide the ChartMill fundamental rating for EMERSON ELECTRIC CO?
ChartMill assigns a fundamental rating of 6 / 10 to EMR.
What is the valuation status for EMR stock?
ChartMill assigns a valuation rating of 5 / 10 to EMERSON ELECTRIC CO (EMR). This can be considered as Fairly Valued.
How profitable is EMERSON ELECTRIC CO (EMR) stock?
EMERSON ELECTRIC CO (EMR) has a profitability rating of 9 / 10.
How financially healthy is EMERSON ELECTRIC CO?
The financial health rating of EMERSON ELECTRIC CO (EMR) is 4 / 10.
Can you provide the expected EPS growth for EMR stock?
The Earnings per Share (EPS) of EMERSON ELECTRIC CO (EMR) is expected to grow by 9% in the next year.