EMERSON ELECTRIC CO (EMR) Stock Fundamental Analysis
NYSE:EMR - US2910111044 - Common Stock
133.45 USD
+0.1 (+0.07%)
133.45 USD
0 (0%)
Taking everything into account, EMR scores 6 out of 10 in our fundamental rating. EMR was compared to 93 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year EMR was profitable.
EMR had a positive operating cash flow in the past year.
Each year in the past 5 years EMR has been profitable.
EMR 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 6.24%, EMR belongs to the top of the industry, outperforming 81.72% of the companies in the same industry.
EMR's Return On Equity of 13.35% is amongst the best of the industry. EMR outperforms 84.95% of its industry peers.
EMR's Return On Invested Capital of 8.37% is amongst the best of the industry. EMR outperforms 80.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMR is below the industry average of 10.00%.
The last Return On Invested Capital (8.37%) for EMR is above the 3 year average (5.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 13.35% | ||
| ROIC | 8.37% |
ROA(3y)14.81%
ROA(5y)12.47%
ROE(3y)34.72%
ROE(5y)30.17%
ROIC(3y)5.88%
ROIC(5y)8.65%
1.3 Margins
EMR has a better Profit Margin (14.92%) than 90.32% of its industry peers.
EMR's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 19.03%, EMR belongs to the best of the industry, outperforming 95.70% of the companies in the same industry.
EMR's Operating Margin has declined in the last couple of years.
The Gross Margin of EMR (52.70%) is better than 96.77% of its industry peers.
EMR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.03% | ||
| PM (TTM) | 14.92% | ||
| GM | 52.7% |
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 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.
The number of shares outstanding for EMR has been reduced compared to 5 years ago.
EMR has a better debt/assets ratio than last year.
2.2 Solvency
EMR has an Altman-Z score of 3.95. This indicates that EMR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.95, EMR is doing good in the industry, outperforming 74.19% of the companies in the same industry.
The Debt to FCF ratio of EMR is 5.19, which is a neutral value as it means it would take EMR, 5.19 years of fcf income to pay off all of its debts.
EMR has a better Debt to FCF ratio (5.19) than 75.27% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that EMR is not too dependend on debt financing.
EMR's Debt to Equity ratio of 0.42 is in line compared to the rest of the industry. EMR outperforms 48.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 3.95 |
ROIC/WACC1.02
WACC8.23%
2.3 Liquidity
EMR has a Current Ratio of 0.85. This is a bad value and indicates that EMR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.85, EMR is not doing good in the industry: 79.57% of the companies in the same industry are doing better.
A Quick Ratio of 0.63 indicates that EMR may have some problems paying its short term obligations.
EMR has a Quick ratio of 0.63. This is in the lower half of the industry: EMR underperforms 75.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
EMR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.57%, which is quite good.
EMR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.33% yearly.
The Revenue has been growing slightly by 4.81% in the past year.
EMR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.98% yearly.
EPS 1Y (TTM)10.57%
EPS 3Y10.22%
EPS 5Y8.33%
EPS Q2Q%6.29%
Revenue 1Y (TTM)4.81%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.98%
Sales Q2Q%3.95%
3.2 Future
The Earnings Per Share is expected to grow by 8.54% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.80% on average over the next years.
EPS Next Y10.4%
EPS Next 2Y9.58%
EPS Next 3Y9.19%
EPS Next 5Y8.54%
Revenue Next Year3.71%
Revenue Next 2Y4.6%
Revenue Next 3Y4.68%
Revenue Next 5Y5.8%
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
EMR is valuated rather expensively with a Price/Earnings ratio of 22.77.
Based on the Price/Earnings ratio, EMR is valued cheaper than 80.65% of the companies in the same industry.
When comparing the Price/Earnings ratio of EMR to the average of the S&P500 Index (27.14), we can say EMR is valued inline with the index average.
The Price/Forward Earnings ratio is 20.24, which indicates a rather expensive current valuation of EMR.
EMR's Price/Forward Earnings ratio is rather cheap when compared to the industry. EMR is cheaper than 81.72% 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 22.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 20.24 |
4.2 Price Multiples
EMR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EMR is cheaper than 78.49% of the companies in the same industry.
80.65% 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 | 27.4 | ||
| EV/EBITDA | 17.61 |
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 excellent profitability rating of EMR may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)2.73
EPS Next 2Y9.58%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.62%, EMR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.49, EMR pays a better dividend. On top of this EMR pays more dividend than 94.62% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, EMR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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.
EMR has decreased its dividend recently.
Dividend Growth(5Y)1.52%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
45.06% of the earnings are spent on dividend by EMR. 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.
DP45.06%
EPS Next 2Y9.58%
EPS Next 3Y9.19%
133.45
+0.1 (+0.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.16%
Inst Owner Change1.22%
Ins Owners0.21%
Ins Owner Change-0.47%
Market Cap75.11B
Analysts78.29
Price Target151.68 (13.66%)
Short Float %2.35%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend2.1
Dividend Growth(5Y)1.52%
DP45.06%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.65%
Min EPS beat(2)-0.41%
Max EPS beat(2)3.72%
EPS beat(4)2
Avg EPS beat(4)2.48%
Min EPS beat(4)-0.41%
Max EPS beat(4)6.76%
EPS beat(8)4
Avg EPS beat(8)3.84%
EPS beat(12)7
Avg EPS beat(12)4.29%
EPS beat(16)11
Avg EPS beat(16)4.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)0.09%
Revenue beat(4)2
Avg Revenue beat(4)-1%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)0.17%
Revenue beat(8)4
Avg Revenue beat(8)-0.62%
Revenue beat(12)6
Avg Revenue beat(12)-0.42%
Revenue beat(16)7
Avg Revenue beat(16)-2.6%
PT rev (1m)5.03%
PT rev (3m)14.17%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-0.79%
EPS NY rev (1m)0.21%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.51%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 20.24 | ||
| P/S | 4.22 | ||
| P/FCF | 27.4 | ||
| P/OCF | 23.68 | ||
| P/B | 3.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.61 |
EPS(TTM)5.86
EY4.39%
EPS(NY)6.59
Fwd EY4.94%
FCF(TTM)4.87
FCFY3.65%
OCF(TTM)5.64
OCFY4.22%
SpS31.59
BVpS35.31
TBVpS-14.14
PEG (NY)2.19
PEG (5Y)2.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 13.35% | ||
| ROCE | 10.64% | ||
| ROIC | 8.37% | ||
| ROICexc | 9% | ||
| ROICexgc | 153.04% | ||
| OM | 19.03% | ||
| PM (TTM) | 14.92% | ||
| GM | 52.7% | ||
| FCFM | 15.42% |
ROA(3y)14.81%
ROA(5y)12.47%
ROE(3y)34.72%
ROE(5y)30.17%
ROIC(3y)5.88%
ROIC(5y)8.65%
ROICexc(3y)6.74%
ROICexc(5y)10.11%
ROICexgc(3y)28.81%
ROICexgc(5y)33.99%
ROCE(3y)7.63%
ROCE(5y)11.31%
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-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.19 | ||
| Debt/EBITDA | 1.67 | ||
| Cap/Depr | 27.54% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.11% | ||
| Profit Quality | 103.36% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 3.95 |
F-Score7
WACC8.23%
ROIC/WACC1.02
Cap/Depr(3y)36.82%
Cap/Depr(5y)46.68%
Cap/Sales(3y)2.88%
Cap/Sales(5y)3.01%
Profit Quality(3y)74.7%
Profit Quality(5y)96.72%
High Growth Momentum
Growth
EPS 1Y (TTM)10.57%
EPS 3Y10.22%
EPS 5Y8.33%
EPS Q2Q%6.29%
EPS Next Y10.4%
EPS Next 2Y9.58%
EPS Next 3Y9.19%
EPS Next 5Y8.54%
Revenue 1Y (TTM)4.81%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.98%
Sales Q2Q%3.95%
Revenue Next Year3.71%
Revenue Next 2Y4.6%
Revenue Next 3Y4.68%
Revenue Next 5Y5.8%
EBIT growth 1Y35.32%
EBIT growth 3Y-8.56%
EBIT growth 5Y-4.71%
EBIT Next Year23.94%
EBIT Next 3Y11.92%
EBIT Next 5Y7.7%
FCF growth 1Y30.09%
FCF growth 3Y-0.91%
FCF growth 5Y3.85%
OCF growth 1Y27.03%
OCF growth 3Y-2.32%
OCF growth 5Y2.08%