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EMERSON ELECTRIC CO (EMR) Stock Fundamental Analysis

NYSE:EMR - New York Stock Exchange, Inc. - US2910111044 - Common Stock - Currency: USD

121.85  -2.9 (-2.32%)

After market: 121.85 0 (0%)

Fundamental Rating

6

EMR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 93 industry peers in the Electrical Equipment industry. EMR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EMR has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year EMR was profitable.
EMR had a positive operating cash flow in the past year.
In the past 5 years EMR has always been profitable.
In the past 5 years EMR always reported a positive cash flow from operatings.
EMR Yearly Net Income VS EBIT VS OCF VS FCFEMR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

1.2 Ratios

Looking at the Return On Assets, with a value of 5.66%, EMR belongs to the top of the industry, outperforming 85.87% of the companies in the same industry.
EMR has a better Return On Equity (11.77%) than 84.78% of its industry peers.
The Return On Invested Capital of EMR (6.20%) is better than 76.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMR is below the industry average of 10.23%.
Industry RankSector Rank
ROA 5.66%
ROE 11.77%
ROIC 6.2%
ROA(3y)14.81%
ROA(5y)12.47%
ROE(3y)34.72%
ROE(5y)30.17%
ROIC(3y)6.94%
ROIC(5y)9.3%
EMR Yearly ROA, ROE, ROICEMR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

EMR has a better Profit Margin (13.74%) than 92.39% of its industry peers.
EMR's Profit Margin has declined in the last couple of years.
EMR has a better Operating Margin (16.43%) than 90.22% of its industry peers.
In the last couple of years the Operating Margin of EMR has declined.
Looking at the Gross Margin, with a value of 52.44%, EMR belongs to the top of the industry, outperforming 98.91% of the companies in the same industry.
EMR's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 16.43%
PM (TTM) 13.74%
GM 52.44%
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%
EMR Yearly Profit, Operating, Gross MarginsEMR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EMR is destroying value.
Compared to 1 year ago, EMR has less shares outstanding
Compared to 5 years ago, EMR has less shares outstanding
EMR has a better debt/assets ratio than last year.
EMR Yearly Shares OutstandingEMR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
EMR Yearly Total Debt VS Total AssetsEMR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.2 Solvency

EMR has an Altman-Z score of 3.99. This indicates that EMR is financially healthy and has little risk of bankruptcy at the moment.
EMR has a better Altman-Z score (3.99) than 79.35% of its industry peers.
The Debt to FCF ratio of EMR is 2.33, which is a good value as it means it would take EMR, 2.33 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.33, EMR belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that EMR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, EMR is in line with its industry, outperforming 48.91% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 2.33
Altman-Z 3.99
ROIC/WACC0.74
WACC8.39%
EMR Yearly LT Debt VS Equity VS FCFEMR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.3 Liquidity

A Current Ratio of 1.54 indicates that EMR should not have too much problems paying its short term obligations.
EMR has a Current ratio (1.54) which is in line with its industry peers.
A Quick Ratio of 1.17 indicates that EMR should not have too much problems paying its short term obligations.
EMR has a Quick ratio (1.17) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.54
Quick Ratio 1.17
EMR Yearly Current Assets VS Current LiabilitesEMR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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 16.49%, which is quite good.
The Earnings Per Share has been growing by 8.33% on average over the past years. This is quite good.
EMR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.31%.
EMR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.98% yearly.
EPS 1Y (TTM)16.49%
EPS 3Y10.22%
EPS 5Y8.33%
EPS Q2Q%13.11%
Revenue 1Y (TTM)10.31%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.98%
Sales Q2Q%1.41%

3.2 Future

The Earnings Per Share is expected to grow by 7.90% on average over the next years.
EMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.95% yearly.
EPS Next Y9.67%
EPS Next 2Y8.79%
EPS Next 3Y9.29%
EPS Next 5Y7.9%
Revenue Next Year3.99%
Revenue Next 2Y4.5%
Revenue Next 3Y4.66%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
EMR Yearly Revenue VS EstimatesEMR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
EMR Yearly EPS VS EstimatesEMR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 21.57, the valuation of EMR can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of EMR indicates a somewhat cheap valuation: EMR is cheaper than 78.26% of the companies listed in the same industry.
EMR is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.75 indicates a rather expensive valuation of EMR.
Based on the Price/Forward Earnings ratio, EMR is valued a bit cheaper than 79.35% of the companies in the same industry.
EMR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 21.57
Fwd PE 18.75
EMR Price Earnings VS Forward Price EarningsEMR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 76.09% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EMR indicates a rather cheap valuation: EMR is cheaper than 80.43% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 21.02
EV/EBITDA 16.57
EMR Per share dataEMR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of EMR may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)2.59
EPS Next 2Y8.79%
EPS Next 3Y9.29%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.68%, EMR has a reasonable but not impressive dividend return.
EMR's Dividend Yield is rather good when compared to the industry average which is at 3.59. EMR pays more dividend than 93.48% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.29, EMR is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.68%

5.2 History

The dividend of EMR has a limited annual growth rate of 1.52%.
EMR has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of EMR decreased recently.
Dividend Growth(5Y)1.52%
Div Incr Years1
Div Non Decr Years1
EMR Yearly Dividends per shareEMR Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

49.85% of the earnings are spent on dividend by EMR. 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.
DP49.85%
EPS Next 2Y8.79%
EPS Next 3Y9.29%
EMR Yearly Income VS Free CF VS DividendEMR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B
EMR Dividend Payout.EMR Dividend Payout, showing the Payout Ratio.EMR Dividend Payout.PayoutRetained Earnings

EMERSON ELECTRIC CO

NYSE:EMR (2/21/2025, 8:15:44 PM)

After market: 121.85 0 (0%)

121.85

-2.9 (-2.32%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)02-05 2025-02-05/bmo
Earnings (Next)05-06 2025-05-06/bmo
Inst Owners79.62%
Inst Owner Change1.67%
Ins Owners0.21%
Ins Owner Change2.76%
Market Cap68.71B
Analysts78.75
Price Target143.68 (17.92%)
Short Float %2.24%
Short Ratio4.21
Dividend
Industry RankSector Rank
Dividend Yield 1.68%
Yearly Dividend2.1
Dividend Growth(5Y)1.52%
DP49.85%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-14 2025-02-14 (0.5275)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.31%
Min EPS beat(2)-0.15%
Max EPS beat(2)6.76%
EPS beat(4)2
Avg EPS beat(4)3.48%
Min EPS beat(4)-0.19%
Max EPS beat(4)7.48%
EPS beat(8)5
Avg EPS beat(8)6.27%
EPS beat(12)8
Avg EPS beat(12)5.13%
EPS beat(16)12
Avg EPS beat(16)5.29%
Revenue beat(2)1
Avg Revenue beat(2)-1.07%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)0.17%
Revenue beat(4)2
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)0.99%
Revenue beat(8)5
Avg Revenue beat(8)-0.04%
Revenue beat(12)6
Avg Revenue beat(12)-0.48%
Revenue beat(16)8
Avg Revenue beat(16)-2.37%
PT rev (1m)0.87%
PT rev (3m)12.17%
EPS NQ rev (1m)-4.17%
EPS NQ rev (3m)-7.76%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)-3.36%
Revenue NQ rev (3m)-4.41%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-0.98%
Valuation
Industry RankSector Rank
PE 21.57
Fwd PE 18.75
P/S 3.92
P/FCF 21.02
P/OCF 18.6
P/B 3.35
P/tB N/A
EV/EBITDA 16.57
EPS(TTM)5.65
EY4.64%
EPS(NY)6.5
Fwd EY5.33%
FCF(TTM)5.8
FCFY4.76%
OCF(TTM)6.55
OCFY5.38%
SpS31.12
BVpS36.34
TBVpS-13.2
PEG (NY)2.23
PEG (5Y)2.59
Profitability
Industry RankSector Rank
ROA 5.66%
ROE 11.77%
ROCE 7.87%
ROIC 6.2%
ROICexc 6.72%
ROICexgc 38.57%
OM 16.43%
PM (TTM) 13.74%
GM 52.44%
FCFM 18.63%
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-Score8
Asset Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 2.33
Debt/EBITDA 1.45
Cap/Depr 25.76%
Cap/Sales 2.42%
Interest Coverage 250
Cash Conversion 81.47%
Profit Quality 135.59%
Current Ratio 1.54
Quick Ratio 1.17
Altman-Z 3.99
F-Score8
WACC8.39%
ROIC/WACC0.74
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)16.49%
EPS 3Y10.22%
EPS 5Y8.33%
EPS Q2Q%13.11%
EPS Next Y9.67%
EPS Next 2Y8.79%
EPS Next 3Y9.29%
EPS Next 5Y7.9%
Revenue 1Y (TTM)10.31%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.98%
Sales Q2Q%1.41%
Revenue Next Year3.99%
Revenue Next 2Y4.5%
Revenue Next 3Y4.66%
Revenue Next 5Y5.95%
EBIT growth 1Y4.08%
EBIT growth 3Y-8.56%
EBIT growth 5Y-4.71%
EBIT Next Year23.12%
EBIT Next 3Y12.31%
EBIT Next 5Y8.08%
FCF growth 1Y39.52%
FCF growth 3Y-0.91%
FCF growth 5Y3.85%
OCF growth 1Y31.13%
OCF growth 3Y-2.32%
OCF growth 5Y2.08%