EMERSON ELECTRIC CO (1EMR.MI) Stock Fundamental Analysis
BIT:1EMR - Euronext Milan - US2910111044 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1EMR. 1EMR was compared to 54 industry peers in the Electrical Equipment industry. 1EMR scores excellent on profitability, but there are some minor concerns on its financial health. 1EMR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
1EMR had positive earnings in the past year.
In the past year 1EMR had a positive cash flow from operations.
1EMR had positive earnings in each of the past 5 years.
In the past 5 years 1EMR always reported a positive cash flow from operatings.
1.2 Ratios
1EMR's Return On Assets of 3.76% is fine compared to the rest of the industry. 1EMR outperforms 79.63% of its industry peers.
1EMR has a Return On Equity of 8.25%. This is in the better half of the industry: 1EMR outperforms 68.52% of its industry peers.
With a decent Return On Invested Capital value of 5.17%, 1EMR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1EMR is above the industry average of 7.68%.
The 3 year average ROIC (9.73%) for 1EMR is well above the current ROIC(5.17%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 8.25% | ||
| ROIC | 5.17% |
ROA(3y)16.43%
ROA(5y)13.83%
ROE(3y)39.46%
ROE(5y)33.95%
ROIC(3y)9.73%
ROIC(5y)11.45%
1.3 Margins
With an excellent Profit Margin value of 10.12%, 1EMR belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
1EMR's Profit Margin has improved in the last couple of years.
The Operating Margin of 1EMR (14.74%) is better than 88.89% of its industry peers.
1EMR's Operating Margin has improved in the last couple of years.
1EMR's Gross Margin of 50.26% is fine compared to the rest of the industry. 1EMR outperforms 72.22% of its industry peers.
In the last couple of years the Gross Margin of 1EMR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.74% | ||
| PM (TTM) | 10.12% | ||
| GM | 50.26% |
OM growth 3Y5.02%
OM growth 5Y2.78%
PM growth 3Y95.27%
PM growth 5Y47.1%
GM growth 3Y5.46%
GM growth 5Y2.66%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1EMR is creating some value.
1EMR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1EMR has been reduced compared to 5 years ago.
Compared to 1 year ago, 1EMR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.84 indicates that 1EMR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.84, 1EMR belongs to the best of the industry, outperforming 87.04% of the companies in the same industry.
The Debt to FCF ratio of 1EMR is 8.52, which is on the high side as it means it would take 1EMR, 8.52 years of fcf income to pay off all of its debts.
1EMR has a Debt to FCF ratio of 8.52. This is in the better half of the industry: 1EMR outperforms 62.96% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that 1EMR is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.34, 1EMR is doing good in the industry, outperforming 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 3.84 |
ROIC/WACC0.63
WACC8.19%
2.3 Liquidity
1EMR has a Current Ratio of 1.16. This is a normal value and indicates that 1EMR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1EMR (1.16) is worse than 74.07% of its industry peers.
1EMR has a Quick Ratio of 1.16. This is a bad value and indicates that 1EMR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.86, 1EMR is doing worse than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
1EMR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.98%, which is quite good.
The Earnings Per Share has been growing slightly by 7.23% on average over the past years.
Looking at the last year, 1EMR shows a small growth in Revenue. The Revenue has grown by 3.21% in the last year.
Measured over the past years, 1EMR shows a decrease in Revenue. The Revenue has been decreasing by -2.72% on average per year.
EPS 1Y (TTM)13.98%
EPS 3Y8.42%
EPS 5Y7.23%
EPS Q2Q%10.85%
Revenue 1Y (TTM)3.21%
Revenue growth 3Y-3.33%
Revenue growth 5Y-2.72%
Sales Q2Q%11%
3.2 Future
Based on estimates for the next years, 1EMR will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.34% on average per year.
1EMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.91% yearly.
EPS Next Y25.47%
EPS Next 2Y16.13%
EPS Next 3Y12.67%
EPS Next 5Y11.34%
Revenue Next Year14.21%
Revenue Next 2Y9.39%
Revenue Next 3Y7.84%
Revenue Next 5Y7.91%
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 accelerating.
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
A Price/Earnings ratio of 27.54 indicates a quite expensive valuation of 1EMR.
Based on the Price/Earnings ratio, 1EMR is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
1EMR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.04.
A Price/Forward Earnings ratio of 24.55 indicates a rather expensive valuation of 1EMR.
1EMR's Price/Forward Earnings ratio is in line with the industry average.
1EMR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.54 | ||
| Fwd PE | 24.55 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1EMR.
1EMR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.58 | ||
| EV/EBITDA | 22.67 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1EMR may justify a higher PE ratio.
1EMR's earnings are expected to grow with 12.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)3.81
EPS Next 2Y16.13%
EPS Next 3Y12.67%
5. Dividend
5.1 Amount
1EMR has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.44, 1EMR pays a better dividend. On top of this 1EMR pays more dividend than 81.48% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.31, 1EMR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
The dividend of 1EMR has a limited annual growth rate of 1.52%.
Dividend Growth(5Y)1.52%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1EMR pays out 69.87% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1EMR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP69.87%
EPS Next 2Y16.13%
EPS Next 3Y12.67%
BIT:1EMR (7/18/2025, 7:00:00 PM)
124.22
+23.72 (+23.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners82.81%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap69.87B
Analysts78.29
Price Target123.61 (-0.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend1.79
Dividend Growth(5Y)1.52%
DP69.87%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.65%
Min EPS beat(2)-0.19%
Max EPS beat(2)7.48%
EPS beat(4)2
Avg EPS beat(4)5.21%
Min EPS beat(4)-2.44%
Max EPS beat(4)15.96%
EPS beat(8)5
Avg EPS beat(8)5.19%
EPS beat(12)9
Avg EPS beat(12)5.08%
EPS beat(16)13
Avg EPS beat(16)7.12%
Revenue beat(2)1
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)0.99%
Revenue beat(4)2
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-3.45%
Max Revenue beat(4)4.02%
Revenue beat(8)4
Avg Revenue beat(8)-0.13%
Revenue beat(12)5
Avg Revenue beat(12)-3.13%
Revenue beat(16)9
Avg Revenue beat(16)-1.94%
PT rev (1m)-2.65%
PT rev (3m)-4.51%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)0.17%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)-1.41%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.54 | ||
| Fwd PE | 24.55 | ||
| P/S | 4.93 | ||
| P/FCF | 70.58 | ||
| P/OCF | 52.11 | ||
| P/B | 4.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.67 |
EPS(TTM)4.51
EY3.63%
EPS(NY)5.06
Fwd EY4.07%
FCF(TTM)1.76
FCFY1.42%
OCF(TTM)2.38
OCFY1.92%
SpS25.2
BVpS30.89
TBVpS-11.53
PEG (NY)1.08
PEG (5Y)3.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 8.25% | ||
| ROCE | 6.58% | ||
| ROIC | 5.17% | ||
| ROICexc | 5.5% | ||
| ROICexgc | 27.53% | ||
| OM | 14.74% | ||
| PM (TTM) | 10.12% | ||
| GM | 50.26% | ||
| FCFM | 6.99% |
ROA(3y)16.43%
ROA(5y)13.83%
ROE(3y)39.46%
ROE(5y)33.95%
ROIC(3y)9.73%
ROIC(5y)11.45%
ROICexc(3y)11.13%
ROICexc(5y)13.18%
ROICexgc(3y)38.07%
ROICexgc(5y)41.12%
ROCE(3y)12.73%
ROCE(5y)15.19%
ROICexcg growth 3Y-14.03%
ROICexcg growth 5Y-15.15%
ROICexc growth 3Y-19.81%
ROICexc growth 5Y-15.05%
OM growth 3Y5.02%
OM growth 5Y2.78%
PM growth 3Y95.27%
PM growth 5Y47.1%
GM growth 3Y5.46%
GM growth 5Y2.66%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 8.52 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 27.38% | ||
| Cap/Sales | 2.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 39.79% | ||
| Profit Quality | 69.06% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 3.84 |
F-Score6
WACC8.19%
ROIC/WACC0.63
Cap/Depr(3y)48.53%
Cap/Depr(5y)56.17%
Cap/Sales(3y)2.76%
Cap/Sales(5y)2.94%
Profit Quality(3y)68.69%
Profit Quality(5y)88.04%
High Growth Momentum
Growth
EPS 1Y (TTM)13.98%
EPS 3Y8.42%
EPS 5Y7.23%
EPS Q2Q%10.85%
EPS Next Y25.47%
EPS Next 2Y16.13%
EPS Next 3Y12.67%
EPS Next 5Y11.34%
Revenue 1Y (TTM)3.21%
Revenue growth 3Y-3.33%
Revenue growth 5Y-2.72%
Sales Q2Q%11%
Revenue Next Year14.21%
Revenue Next 2Y9.39%
Revenue Next 3Y7.84%
Revenue Next 5Y7.91%
EBIT growth 1Y-20.53%
EBIT growth 3Y1.53%
EBIT growth 5Y-0.01%
EBIT Next Year34.12%
EBIT Next 3Y15.91%
EBIT Next 5Y11.6%
FCF growth 1Y-40.57%
FCF growth 3Y-52.43%
FCF growth 5Y-34.51%
OCF growth 1Y-37.3%
OCF growth 3Y-40.88%
OCF growth 5Y-26.11%