EMERSON ELECTRIC CO (1EMR.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EMR - US2910111044 - Common Stock
116.74 EUR
+5.6 (+5.04%)
1EMR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 73 industry peers in the Electrical Equipment industry. 1EMR has an excellent profitability rating, but there are some minor concerns on its financial health. 1EMR has a correct valuation and a medium 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.
- 1EMR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.46%, 1EMR is in the better half of the industry, outperforming 71.01% of the companies in the same industry.
- 1EMR has a better Return On Equity (11.30%) than 60.87% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.77%, 1EMR is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
- 1EMR had an Average Return On Invested Capital over the past 3 years of 6.24%. This is below the industry average of 9.58%.
- The last Return On Invested Capital (8.77%) for 1EMR 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
- 1EMR has a Profit Margin of 12.72%. This is amongst the best in the industry. 1EMR outperforms 86.96% of its industry peers.
- 1EMR's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 20.12%, 1EMR belongs to the top of the industry, outperforming 94.20% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1EMR has grown nicely.
- Looking at the Gross Margin, with a value of 52.83%, 1EMR belongs to the top of the industry, outperforming 84.06% of the companies in the same industry.
- 1EMR'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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1EMR is still creating some value.
- The number of shares outstanding for 1EMR has been reduced compared to 1 year ago.
- Compared to 5 years ago, 1EMR has less shares outstanding
- Compared to 1 year ago, 1EMR has a worse debt to assets ratio.
2.2 Solvency
- 1EMR has an Altman-Z score of 4.17. This indicates that 1EMR is financially healthy and has little risk of bankruptcy at the moment.
- 1EMR's Altman-Z score of 4.17 is fine compared to the rest of the industry. 1EMR outperforms 79.71% of its industry peers.
- 1EMR has a debt to FCF ratio of 4.92. This is a neutral value as 1EMR would need 4.92 years to pay back of all of its debts.
- 1EMR has a Debt to FCF ratio (4.92) which is comparable to the rest of the industry.
- 1EMR has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of 1EMR (0.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 4.17 |
ROIC/WACC1.12
WACC7.8%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that 1EMR may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.88, 1EMR is doing worse than 88.41% of the companies in the same industry.
- A Quick Ratio of 0.65 indicates that 1EMR may have some problems paying its short term obligations.
- The Quick ratio of 1EMR (0.65) is worse than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.29% over the past year.
- 1EMR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.64% yearly.
- Looking at the last year, 1EMR shows a small growth in Revenue. The Revenue has grown by 2.99% in the last year.
- Measured over the past years, 1EMR 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, 1EMR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.43% on average per year.
- 1EMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.02% yearly.
EPS Next Y8.99%
EPS Next 2Y9.31%
EPS Next 3Y8.98%
EPS Next 5Y9.43%
Revenue Next Year4.71%
Revenue Next 2Y4.88%
Revenue Next 3Y4.96%
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.
- 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
- A Price/Earnings ratio of 22.94 indicates a rather expensive valuation of 1EMR.
- Compared to the rest of the industry, the Price/Earnings ratio of 1EMR indicates a somewhat cheap valuation: 1EMR is cheaper than 78.26% of the companies listed in the same industry.
- 1EMR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
- 1EMR is valuated rather expensively with a Price/Forward Earnings ratio of 21.04.
- Based on the Price/Forward Earnings ratio, 1EMR is valued a bit cheaper than the industry average as 68.12% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, 1EMR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.94 | ||
| Fwd PE | 21.04 |
4.2 Price Multiples
- 1EMR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1EMR is cheaper than 62.32% of the companies in the same industry.
- 60.87% of the companies in the same industry are more expensive than 1EMR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.99 | ||
| EV/EBITDA | 17.28 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1EMR does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of 1EMR may justify a higher PE ratio.
PEG (NY)2.55
PEG (5Y)1.97
EPS Next 2Y9.31%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
- 1EMR has a Yearly Dividend Yield of 1.63%.
- 1EMR's Dividend Yield is rather good when compared to the industry average which is at 0.82. 1EMR pays more dividend than 84.06% of the companies in the same industry.
- 1EMR's Dividend Yield is comparable with the S&P500 average which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
- The dividend of 1EMR has a limited annual growth rate of 1.02%.
Dividend Growth(5Y)1.02%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 52.01% of the earnings are spent on dividend by 1EMR. This is a bit on the high side, but may be sustainable.
- The dividend of 1EMR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.01%
EPS Next 2Y9.31%
EPS Next 3Y8.98%
BIT:1EMR (12/15/2025, 7:00:00 PM)
116.74
+5.6 (+5.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-03 2026-02-03/bmo
Inst Owners84.22%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap65.58B
Revenue(TTM)18.02B
Net Income(TTM)2.29B
Analysts78.24
Price Target128.94 (10.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend1.79
Dividend Growth(5Y)1.02%
DP52.01%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
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)-1.65%
PT rev (3m)4.31%
EPS NQ rev (1m)0.34%
EPS NQ rev (3m)-4.65%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.94 | ||
| Fwd PE | 21.04 | ||
| P/S | 4.29 | ||
| P/FCF | 28.99 | ||
| P/OCF | 24.95 | ||
| P/B | 3.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.28 |
EPS(TTM)5.09
EY4.36%
EPS(NY)5.55
Fwd EY4.75%
FCF(TTM)4.03
FCFY3.45%
OCF(TTM)4.68
OCFY4.01%
SpS27.21
BVpS30.63
TBVpS-11.13
PEG (NY)2.55
PEG (5Y)1.97
Graham Number59.23
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
WACC7.8%
ROIC/WACC1.12
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 Y8.99%
EPS Next 2Y9.31%
EPS Next 3Y8.98%
EPS Next 5Y9.43%
Revenue 1Y (TTM)2.99%
Revenue growth 3Y9.28%
Revenue growth 5Y1.43%
Sales Q2Q%5.11%
Revenue Next Year4.71%
Revenue Next 2Y4.88%
Revenue Next 3Y4.96%
Revenue Next 5Y5.02%
EBIT growth 1Y47.38%
EBIT growth 3Y13.73%
EBIT growth 5Y5.42%
EBIT Next Year22.67%
EBIT Next 3Y13.01%
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 / 1EMR.MI FAQ
Can you provide the ChartMill fundamental rating for EMERSON ELECTRIC CO?
ChartMill assigns a fundamental rating of 6 / 10 to 1EMR.MI.
What is the valuation status of EMERSON ELECTRIC CO (1EMR.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to EMERSON ELECTRIC CO (1EMR.MI). This can be considered as Fairly Valued.
What is the profitability of 1EMR stock?
EMERSON ELECTRIC CO (1EMR.MI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for 1EMR stock?
The Price/Earnings (PE) ratio for EMERSON ELECTRIC CO (1EMR.MI) is 22.94 and the Price/Book (PB) ratio is 3.81.
Can you provide the expected EPS growth for 1EMR stock?
The Earnings per Share (EPS) of EMERSON ELECTRIC CO (1EMR.MI) is expected to grow by 8.99% in the next year.