EMERSON ELECTRIC CO (EMR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EMR - US2910111044 - Common Stock
135.22 USD
-0.49 (-0.36%)
135.22 USD
0 (0%)
Overall EMR gets a fundamental rating of 6 out of 10. We evaluated EMR against 91 industry peers in the Electrical Equipment industry. EMR has an excellent profitability rating, but 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
EMR's Return On Assets of 5.46% is fine compared to the rest of the industry. EMR outperforms 79.12% of its industry peers.
With an excellent Return On Equity value of 11.30%, EMR belongs to the best of the industry, outperforming 81.32% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.77%, EMR belongs to the best of the industry, outperforming 82.42% 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 9.90%.
The 3 year average ROIC (6.24%) for EMR is below the current ROIC(8.77%), indicating increased profibility in the last year.
| 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.
EMR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.12%, EMR belongs to the best of the industry, outperforming 96.70% of the companies in the same industry.
EMR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 52.83%, EMR belongs to the best of the industry, outperforming 97.80% of the companies in the same industry.
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.
The debt/assets ratio for EMR is higher compared to a year ago.
2.2 Solvency
EMR has an Altman-Z score of 4.14. This indicates that EMR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.14, EMR is in the better half of the industry, outperforming 70.33% of the companies in the same industry.
EMR has a debt to FCF ratio of 4.92. This is a neutral value as EMR would need 4.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.92, EMR is in the better half of the industry, outperforming 73.63% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that EMR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.41, EMR perfoms like the industry average, outperforming 51.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 4.14 |
ROIC/WACC1.11
WACC7.92%
2.3 Liquidity
A Current Ratio of 0.88 indicates that EMR may have some problems paying its short term obligations.
With a Current ratio value of 0.88, EMR is not doing good in the industry: 79.12% of the companies in the same industry are doing better.
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.
The Quick ratio of EMR (0.65) is worse than 76.92% 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.
The Earnings Per Share has been growing by 11.64% on average over the past years. This is quite good.
Looking at the last year, EMR shows a small growth in Revenue. The Revenue has grown by 2.99% in the last year.
EMR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.43% yearly.
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, EMR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.43% on average per year.
Based on estimates for the next years, EMR will show a small growth in Revenue. The Revenue will grow by 5.02% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 22.54, EMR is valued on the expensive side.
82.42% of the companies in the same industry are more expensive than EMR, based on the Price/Earnings ratio.
EMR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.84.
A Price/Forward Earnings ratio of 20.68 indicates a rather expensive valuation of EMR.
EMR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EMR is cheaper than 79.12% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, EMR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.54 | ||
| Fwd PE | 20.68 |
4.2 Price Multiples
79.12% 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 78.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.48 | ||
| EV/EBITDA | 17.08 |
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)2.51
PEG (5Y)1.94
EPS Next 2Y9.31%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
EMR has a Yearly Dividend Yield of 1.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.27, EMR pays a better dividend. On top of this EMR pays more dividend than 96.70% of the companies listed in the same industry.
EMR's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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.
EMR has decreased its dividend 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.
EMR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.01%
EPS Next 2Y9.31%
EPS Next 3Y8.98%
135.22
-0.49 (-0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners84.22%
Inst Owner Change-0.44%
Ins Owners0.24%
Ins Owner Change1.73%
Market Cap75.97B
Revenue(TTM)18.02B
Net Income(TTM)2.29B
Analysts78.24
Price Target152.82 (13.02%)
Short Float %2.65%
Short Ratio5.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)0.92%
PT rev (3m)0.75%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)-5.24%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.54 | ||
| Fwd PE | 20.68 | ||
| P/S | 4.22 | ||
| P/FCF | 28.48 | ||
| P/OCF | 24.52 | ||
| P/B | 3.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.08 |
EPS(TTM)6
EY4.44%
EPS(NY)6.54
Fwd EY4.84%
FCF(TTM)4.75
FCFY3.51%
OCF(TTM)5.51
OCFY4.08%
SpS32.07
BVpS36.1
TBVpS-13.12
PEG (NY)2.51
PEG (5Y)1.94
Graham Number69.81
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 | 4.14 |
F-Score7
WACC7.92%
ROIC/WACC1.11
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 / 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 4 / 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 8.99% in the next year.