EMERSON ELECTRIC CO (EMR) Stock Fundamental Analysis
NYSE:EMR - New York Stock Exchange, Inc. - US2910111044 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to EMR. EMR was compared to 97 industry peers in the Electrical Equipment industry. EMR gets an excellent profitability rating and is at the same time showing great financial health properties. EMR has a decent growth rate and is not valued too expensively. With these ratings, EMR could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
EMR had positive earnings in the past year.
EMR had a positive operating cash flow in the past year.
EMR had positive earnings in each of the past 5 years.
In the past 5 years EMR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.66%, EMR belongs to the top of the industry, outperforming 83.51% of the companies in the same industry.
EMR's Return On Equity of 11.77% is amongst the best of the industry. EMR outperforms 85.57% of its industry peers.
EMR's Return On Invested Capital of 6.20% is fine compared to the rest of the industry. EMR outperforms 77.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMR is below the industry average of 9.66%.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 13.74%, EMR belongs to the top of the industry, outperforming 92.78% of the companies in the same industry.
In the last couple of years the Profit Margin of EMR has declined.
EMR has a Operating Margin of 16.43%. This is amongst the best in the industry. EMR outperforms 90.72% of its industry peers.
EMR's Operating Margin has declined in the last couple of years.
EMR has a Gross Margin of 52.44%. This is amongst the best in the industry. EMR outperforms 96.91% of its industry peers.
EMR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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
Compared to 1 year ago, EMR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.76 indicates that EMR is not in any danger for bankruptcy at the moment.
The Altman-Z score of EMR (3.76) is better than 77.32% 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.
EMR has a better Debt to FCF ratio (2.33) than 83.51% of its industry peers.
EMR has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
EMR has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: EMR outperforms 55.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 3.76 |
ROIC/WACC0.76
WACC8.14%
2.3 Liquidity
A Current Ratio of 1.54 indicates that EMR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.54, EMR is in line with its industry, outperforming 45.36% of the companies in the same industry.
EMR has a Quick Ratio of 1.17. This is a normal value and indicates that EMR is financially healthy and should not expect problems in meeting its short term obligations.
EMR has a Quick ratio (1.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.82% over the past year.
Measured over the past years, EMR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.33% on average per year.
Looking at the last year, EMR shows a quite strong growth in Revenue. The Revenue has grown by 15.34% in the last year.
The Revenue has been decreasing by -0.98% on average over the past years.
EPS 1Y (TTM)11.82%
EPS 3Y10.22%
EPS 5Y8.33%
EPS Q2Q%8.82%
Revenue 1Y (TTM)15.34%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.98%
Sales Q2Q%1.28%
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 9.10% yearly.
EMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.18% yearly.
EPS Next Y8.78%
EPS Next 2Y8.86%
EPS Next 3Y8.98%
EPS Next 5Y9.1%
Revenue Next Year2.7%
Revenue Next 2Y3.82%
Revenue Next 3Y4.15%
Revenue Next 5Y6.18%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.20, 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 77.32% of the companies listed in the same industry.
EMR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 23.99, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.03, the valuation of EMR can be described as rather expensive.
EMR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EMR is cheaper than 79.38% of the companies in the same industry.
EMR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.2 | ||
| Fwd PE | 17.03 |
4.2 Price Multiples
78.35% of the companies in the same industry are more expensive than EMR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EMR is valued a bit cheaper than 78.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.11 | ||
| EV/EBITDA | 14.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EMR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)2.31
EPS Next 2Y8.86%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.97%, EMR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.66, EMR pays a better dividend. On top of this EMR pays more dividend than 92.78% of the companies listed in the same industry.
EMR's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
5.2 History
The dividend of EMR has a limited annual growth rate of 1.52%.
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)1.52%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
EMR pays out 49.85% of its income as dividend. This is a bit on the high side, but may be sustainable.
EMR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.85%
EPS Next 2Y8.86%
EPS Next 3Y8.98%
NYSE:EMR (5/8/2025, 11:04:55 AM)
110.78
+0.92 (+0.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.62%
Inst Owner Change0.12%
Ins Owners0.22%
Ins Owner Change-1.15%
Market Cap62.47B
Analysts79.41
Price Target132.85 (19.92%)
Short Float %2.01%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend2.1
Dividend Growth(5Y)1.52%
DP49.85%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-7.53%
PT rev (3m)-7.54%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-2.71%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-0.66%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-2.64%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.2 | ||
| Fwd PE | 17.03 | ||
| P/S | 3.56 | ||
| P/FCF | 19.11 | ||
| P/OCF | 16.91 | ||
| P/B | 3.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.72 |
EPS(TTM)5.77
EY5.21%
EPS(NY)6.51
Fwd EY5.87%
FCF(TTM)5.8
FCFY5.23%
OCF(TTM)6.55
OCFY5.91%
SpS31.12
BVpS36.34
TBVpS-13.2
PEG (NY)2.19
PEG (5Y)2.31
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.76 |
F-Score8
WACC8.14%
ROIC/WACC0.76
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)11.82%
EPS 3Y10.22%
EPS 5Y8.33%
EPS Q2Q%8.82%
EPS Next Y8.78%
EPS Next 2Y8.86%
EPS Next 3Y8.98%
EPS Next 5Y9.1%
Revenue 1Y (TTM)15.34%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.98%
Sales Q2Q%1.28%
Revenue Next Year2.7%
Revenue Next 2Y3.82%
Revenue Next 3Y4.15%
Revenue Next 5Y6.18%
EBIT growth 1Y4.08%
EBIT growth 3Y-8.56%
EBIT growth 5Y-4.71%
EBIT Next Year22.54%
EBIT Next 3Y11.8%
EBIT Next 5Y8.31%
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%