We are maintaining our $115 fair value estimate for wide-moat-rated Emerson after the company announced the sale of its remaining interest in the Copeland joint venture, formerly the climate technologies business, to Blackstone for roughly $3.5 billion. Management expects the deal to close in the second half of 2024.
Emerson is the undisputed king of process automation with the industry’s largest installed base in the Americas.
Emerson has a spotty history of integrating M&A, which doesn't bode well for the AspenTech acquisition.
|
Metric
|
EMR
|
HON
|
SIE
|
|---|---|---|---|
Price/Earnings (Normalized) | 20.63 | 21.97 | 17.42 |
Price/Book Value | 2.91 | 8.25 | 2.83 |
Price/Sales | 3.70 | 3.75 | 1.71 |
Price/Cash Flow | 18.96 | 22.33 | 11.53 |
|
Metric
|
EMR
|
HON
|
SIE
|
|---|---|---|---|
Quick Ratio | 0.68 | 1.18 | 1.07 |
Current Ratio | 1.18 | 1.66 | 1.41 |
Interest Coverage | 8.06 | 9.46 | 5.75 |
|
Metric
|
EMR
|
HON
|
SIE
|
|---|---|---|---|
Return on Assets (Normalized) | 5.56% | 9.52% | 4.09% |
Return on Equity (Normalized) | 12.76% | 35.30% | 12.81% |
Return on Invested Capital (Normalized) | 6.72% | 16.16% | 5.07% |
|
1-Day Chart
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Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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SIEGY
| Xltbjtdpr | Tdwl | $140.6 Bil | |||
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ETN
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ITW
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PH
| Fbmpxcqsf | Hfktrp | $64.7 Bil | |||
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OTIS
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IR
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CMI
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XYL
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| Rockwell Automation Inc
ROK
| Zjjdrdkw | Szgn | $29.0 Bil |
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