EMERSON ELECTRIC CO (EMR) Stock Fundamental Analysis
USA - NYSE:EMR - US2910111044 - Common Stock
132.44 USD
+2.91 (+2.25%)
132.44 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. EMR has an excellent profitability rating, but 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.
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
EMR has a Return On Assets of 6.24%. This is amongst the best in the industry. EMR outperforms 80.22% of its industry peers.
EMR has a Return On Equity of 13.35%. This is amongst the best in the industry. EMR outperforms 83.52% of its industry peers.
EMR has a better Return On Invested Capital (8.29%) than 78.02% of its industry peers.
EMR had an Average Return On Invested Capital over the past 3 years of 6.32%. This is below the industry average of 10.45%.
The 3 year average ROIC (6.32%) for EMR is below the current ROIC(8.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 13.35% | ||
| ROIC | 8.29% |
ROA(3y)13.61%
ROA(5y)11.84%
ROE(3y)28.1%
ROE(5y)27.75%
ROIC(3y)6.32%
ROIC(5y)7.76%
1.3 Margins
EMR has a Profit Margin of 14.92%. This is amongst the best in the industry. EMR outperforms 89.01% of its industry peers.
EMR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.03%, EMR belongs to the top of the industry, outperforming 95.60% of the companies in the same industry.
In the last couple of years the Operating Margin of EMR has grown nicely.
EMR has a Gross Margin of 52.70%. This is amongst the best in the industry. EMR outperforms 97.80% 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 3Y1.05%
OM growth 5Y2.11%
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.
The number of shares outstanding for EMR has been reduced compared to 1 year ago.
The number of shares outstanding for EMR has been reduced compared to 5 years ago.
Compared to 1 year ago, EMR has a worse debt to assets ratio.
2.2 Solvency
EMR has an Altman-Z score of 3.93. This indicates that EMR is financially healthy and has little risk of bankruptcy at the moment.
EMR's Altman-Z score of 3.93 is fine compared to the rest of the industry. EMR outperforms 70.33% of its industry peers.
EMR has a debt to FCF ratio of 5.19. This is a neutral value as EMR would need 5.19 years to pay back of all of its debts.
The Debt to FCF ratio of EMR (5.19) is better than 72.53% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that EMR is not too dependend on debt financing.
EMR has a Debt to Equity ratio (0.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 3.93 |
ROIC/WACC1.01
WACC8.17%
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.
Looking at the Current ratio, with a value of 0.85, EMR is doing worse than 80.22% of the companies in the same industry.
EMR has a Quick 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.
Looking at the Quick ratio, with a value of 0.63, EMR is doing worse than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.63 |
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.
Measured over the past years, EMR 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, EMR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.36% on average per year.
The Revenue is expected to grow by 6.91% on average over the next years.
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.
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 22.07.
Compared to the rest of the industry, the Price/Earnings ratio of EMR indicates a rather cheap valuation: EMR is cheaper than 82.42% 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 26.34, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.04 indicates a rather expensive valuation of EMR.
EMR's Price/Forward Earnings ratio is rather cheap when compared to the industry. EMR is cheaper than 80.22% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.43. EMR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 20.04 |
4.2 Price Multiples
EMR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EMR is cheaper than 79.12% of the companies in the same industry.
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 | 27.19 | ||
| EV/EBITDA | 17.49 |
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)2.17
PEG (5Y)1.9
EPS Next 2Y9.4%
EPS Next 3Y10.38%
5. Dividend
5.1 Amount
EMR has a Yearly Dividend Yield of 1.68%.
EMR's Dividend Yield is rather good when compared to the industry average which is at 3.16. EMR pays more dividend than 94.51% of the companies in the same industry.
EMR's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of EMR has a limited annual growth rate of 1.02%.
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)1.02%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
EMR pays out 45.06% 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.
DP45.06%
EPS Next 2Y9.4%
EPS Next 3Y10.38%
132.44
+2.91 (+2.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.89%
Inst Owner Change0.56%
Ins Owners0.21%
Ins Owner Change4.1%
Market Cap74.54B
Revenue(TTM)18.02B
Net Income(TTM)2.65B
Analysts78.24
Price Target151.43 (14.34%)
Short Float %2.74%
Short Ratio5.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend2.1
Dividend Growth(5Y)1.02%
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)-0.24%
PT rev (3m)2.78%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 20.04 | ||
| P/S | 4.19 | ||
| P/FCF | 27.19 | ||
| P/OCF | 23.5 | ||
| P/B | 3.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.49 |
EPS(TTM)6
EY4.53%
EPS(NY)6.61
Fwd EY4.99%
FCF(TTM)4.87
FCFY3.68%
OCF(TTM)5.64
OCFY4.26%
SpS31.59
BVpS35.31
TBVpS-14.14
PEG (NY)2.17
PEG (5Y)1.9
Graham Number69.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 13.35% | ||
| ROCE | 10.64% | ||
| ROIC | 8.29% | ||
| ROICexc | 8.91% | ||
| ROICexgc | 151.48% | ||
| OM | 19.03% | ||
| PM (TTM) | 14.92% | ||
| GM | 52.7% | ||
| FCFM | 15.42% |
ROA(3y)13.61%
ROA(5y)11.84%
ROE(3y)28.1%
ROE(5y)27.75%
ROIC(3y)6.32%
ROIC(5y)7.76%
ROICexc(3y)7.17%
ROICexc(5y)8.73%
ROICexgc(3y)47.28%
ROICexgc(5y)43%
ROCE(3y)8.12%
ROCE(5y)10.12%
ROICexgc growth 3Y41.88%
ROICexgc growth 5Y16.79%
ROICexc growth 3Y6.78%
ROICexc growth 5Y-10.67%
OM growth 3Y1.05%
OM growth 5Y2.11%
PM growth 3Y-18.38%
PM growth 5Y1.69%
GM growth 3Y4.97%
GM growth 5Y4.82%
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 | 3.93 |
F-Score7
WACC8.17%
ROIC/WACC1.01
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 1Y35.32%
EBIT growth 3Y10.43%
EBIT growth 5Y3.57%
EBIT Next Year21.75%
EBIT Next 3Y11.99%
EBIT Next 5Y7.06%
FCF growth 1Y131.31%
FCF growth 3Y3.71%
FCF growth 5Y0.94%
OCF growth 1Y97.63%
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 6 / 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.