EMERSON ELECTRIC CO (EMR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EMR - US2910111044 - Common Stock
128.22 USD
+4.5 (+3.64%)
128.22 USD
0 (0%)
Taking everything into account, EMR scores 6 out of 10 in our fundamental rating. EMR was compared to 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year EMR was profitable.
In the past year EMR had a positive cash flow from operations.
In the past 5 years EMR has always been profitable.
Each year in the past 5 years EMR had a positive operating cash flow.
1.2 Ratios
EMR has a Return On Assets of 5.46%. This is in the better half of the industry: EMR outperforms 79.12% of its industry peers.
The Return On Equity of EMR (11.30%) is better than 82.42% 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 81.32% 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 10.42%.
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
EMR has a better Profit Margin (12.72%) than 87.91% of its industry peers.
In the last couple of years the Profit Margin of EMR has grown nicely.
EMR has a better Operating Margin (20.12%) than 96.70% of its industry peers.
EMR's Operating Margin has improved in the last couple of years.
The Gross Margin of EMR (52.83%) is better than 97.80% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EMR is still creating some value.
EMR has less shares outstanding than it did 1 year ago.
EMR has less shares outstanding than it did 5 years ago.
EMR has a worse debt/assets ratio than last year.
2.2 Solvency
EMR has an Altman-Z score of 4.03. This indicates that EMR is financially healthy and has little risk of bankruptcy at the moment.
EMR has a better Altman-Z score (4.03) than 72.53% 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.
EMR has a better Debt to FCF ratio (4.92) than 73.63% 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 50.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 4.03 |
ROIC/WACC1.08
WACC8.09%
2.3 Liquidity
A Current Ratio of 0.88 indicates that EMR may have some problems paying its short term obligations.
The Current ratio of EMR (0.88) is worse than 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 has a Quick ratio of 0.65. This is in the lower half of the industry: EMR underperforms 74.73% 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.
Measured over the past years, EMR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.64% on average per year.
Looking at the last year, EMR shows a small growth in Revenue. The Revenue has grown by 2.99% in the last year.
The Revenue has been growing slightly by 1.43% on average over the past years.
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
EMR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.36% yearly.
EMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.91% yearly.
EPS Next Y10.15%
EPS Next 2Y9.4%
EPS Next 3Y10.38%
EPS Next 5Y8.36%
Revenue Next Year5.51%
Revenue Next 2Y5.06%
Revenue Next 3Y6.14%
Revenue Next 5Y6.91%
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 decreasing.
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
EMR is valuated rather expensively with a Price/Earnings ratio of 21.37.
Compared to the rest of the industry, the Price/Earnings ratio of EMR indicates a rather cheap valuation: EMR is cheaper than 81.32% of the companies listed in the same industry.
EMR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.45.
With a Price/Forward Earnings ratio of 19.40, EMR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EMR indicates a somewhat cheap valuation: EMR is cheaper than 75.82% of the companies listed in the same industry.
EMR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.37 | ||
| Fwd PE | 19.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMR is valued a bit cheaper than the industry average as 78.02% of the companies are valued more expensively.
80.22% of the companies in the same industry are more expensive than EMR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.06 | ||
| EV/EBITDA | 16.28 |
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)2.1
PEG (5Y)1.84
EPS Next 2Y9.4%
EPS Next 3Y10.38%
5. Dividend
5.1 Amount
EMR has a Yearly Dividend Yield of 1.79%.
Compared to an average industry Dividend Yield of 3.60, EMR pays a better dividend. On top of this EMR pays more dividend than 94.51% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.42, EMR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
The dividend of EMR has a limited annual growth rate of 1.02%.
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)1.02%
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 2Y9.4%
EPS Next 3Y10.38%
128.22
+4.5 (+3.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.89%
Inst Owner Change-0.44%
Ins Owners0.21%
Ins Owner Change4.24%
Market Cap72.16B
Revenue(TTM)18.02B
Net Income(TTM)2.29B
Analysts78.24
Price Target151.43 (18.1%)
Short Float %2.83%
Short Ratio5.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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)-0.24%
PT rev (3m)-0.17%
EPS NQ rev (1m)-6.09%
EPS NQ rev (3m)-5.58%
EPS NY rev (1m)0%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-2.11%
Revenue NQ rev (3m)-2.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.37 | ||
| Fwd PE | 19.4 | ||
| P/S | 4.01 | ||
| P/FCF | 27.06 | ||
| P/OCF | 23.29 | ||
| P/B | 3.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.28 |
EPS(TTM)6
EY4.68%
EPS(NY)6.61
Fwd EY5.15%
FCF(TTM)4.74
FCFY3.7%
OCF(TTM)5.5
OCFY4.29%
SpS32.01
BVpS36.04
TBVpS-13.09
PEG (NY)2.1
PEG (5Y)1.84
Graham Number69.75
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 | 4.03 |
F-Score7
WACC8.09%
ROIC/WACC1.08
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 Y10.15%
EPS Next 2Y9.4%
EPS Next 3Y10.38%
EPS Next 5Y8.36%
Revenue 1Y (TTM)2.99%
Revenue growth 3Y9.28%
Revenue growth 5Y1.43%
Sales Q2Q%5.11%
Revenue Next Year5.51%
Revenue Next 2Y5.06%
Revenue Next 3Y6.14%
Revenue Next 5Y6.91%
EBIT growth 1Y47.38%
EBIT growth 3Y13.73%
EBIT growth 5Y5.42%
EBIT Next Year21.75%
EBIT Next 3Y11.99%
EBIT Next 5Y7.06%
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 10.15% in the next year.