EMERSON ELECTRIC CO (EMR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EMR - US2910111044 - Common Stock
134.99 USD
+2.01 (+1.51%)
135.65 USD
+0.66 (+0.49%)
Overall EMR gets a fundamental rating of 6 out of 10. We evaluated EMR against 91 industry peers in the Electrical Equipment industry. While EMR has a great profitability rating, 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
EMR had positive earnings in the past year.
In the past year EMR had a positive cash flow from operations.
EMR had positive earnings in each of the past 5 years.
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 79.12% of its industry peers.
EMR has a Return On Equity of 11.30%. This is amongst the best in the industry. EMR outperforms 81.32% of its industry peers.
EMR has a Return On Invested Capital of 8.77%. This is amongst the best in the industry. EMR outperforms 82.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMR is below the industry average of 9.90%.
The last Return On Invested Capital (8.77%) for EMR is above the 3 year average (6.24%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 12.72%, EMR belongs to the best of the industry, outperforming 87.91% 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 20.12%. This is amongst the best in the industry. EMR outperforms 96.70% of its industry peers.
EMR's Operating Margin has improved in the last couple of years.
EMR has a better Gross Margin (52.83%) than 95.60% of its industry peers.
In the last couple of years the Gross Margin of EMR has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EMR is creating some value.
The number of shares outstanding for EMR has been reduced compared to 1 year ago.
The number of shares outstanding for EMR has been reduced compared to 5 years ago.
The debt/assets ratio for EMR is higher compared to a year ago.
2.2 Solvency
EMR has an Altman-Z score of 4.10. This indicates that EMR is financially healthy and has little risk of bankruptcy at the moment.
EMR's Altman-Z score of 4.10 is fine compared to the rest of the industry. EMR outperforms 70.33% of its industry peers.
EMR has a debt to FCF ratio of 4.92. This is a neutral value as EMR would need 4.92 years to pay back of all of its debts.
EMR has a Debt to FCF ratio of 4.92. This is in the better half of the industry: EMR outperforms 74.73% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that EMR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.41, EMR is in line with its industry, outperforming 51.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 4.1 |
ROIC/WACC1.1
WACC7.95%
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.
EMR's Current ratio of 0.88 is on the low side compared to the rest of the industry. EMR is outperformed by 79.12% of its industry peers.
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's Quick ratio of 0.65 is on the low side compared to the rest of the industry. EMR is outperformed by 76.92% 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.
The Earnings Per Share has been growing by 11.64% on average over the past years. This is quite good.
Looking at the last year, EMR shows a small growth in Revenue. The Revenue has grown by 2.99% in the last year.
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
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
With a Price/Earnings ratio of 22.50, EMR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of EMR indicates a rather cheap valuation: EMR is cheaper than 82.42% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EMR to the average of the S&P500 Index (26.61), we can say EMR is valued inline with the index average.
EMR is valuated rather expensively with a Price/Forward Earnings ratio of 20.64.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EMR indicates a rather cheap valuation: EMR is cheaper than 80.22% of the companies listed in the same industry.
EMR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.5 | ||
| Fwd PE | 20.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EMR indicates a somewhat cheap valuation: EMR is cheaper than 78.02% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EMR is valued a bit cheaper than 79.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.44 | ||
| EV/EBITDA | 16.78 |
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 excellent profitability rating of EMR may justify a higher PE ratio.
PEG (NY)2.5
PEG (5Y)1.93
EPS Next 2Y9.21%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.69%, EMR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.28, EMR pays a better dividend. On top of this EMR pays more dividend than 96.70% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, EMR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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.
EMR has decreased its dividend 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.
The dividend of EMR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.01%
EPS Next 2Y9.21%
EPS Next 3Y8.7%
134.99
+2.01 (+1.51%)
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 Change1.73%
Market Cap75.84B
Revenue(TTM)18.02B
Net Income(TTM)2.29B
Analysts78.24
Price Target152.06 (12.65%)
Short Float %2.65%
Short Ratio5.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)0.34%
EPS NQ rev (3m)-5.24%
EPS NY rev (1m)-1.05%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.5 | ||
| Fwd PE | 20.64 | ||
| P/S | 4.21 | ||
| P/FCF | 28.44 | ||
| P/OCF | 24.48 | ||
| P/B | 3.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.78 |
EPS(TTM)6
EY4.44%
EPS(NY)6.54
Fwd EY4.84%
FCF(TTM)4.75
FCFY3.52%
OCF(TTM)5.51
OCFY4.09%
SpS32.07
BVpS36.1
TBVpS-13.12
PEG (NY)2.5
PEG (5Y)1.93
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 | 4.1 |
F-Score7
WACC7.95%
ROIC/WACC1.1
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.