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Emerson Electric Co EMR

Morningstar Rating
$105.67 +0.09 (0.09%)
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Company Report

Emerson Earnings: Full-Year Outlook Raised Thanks to Strength in Process and Hybrid

Wide-moat-rated Emerson posted solid fiscal first-quarter results, as its revenue of $4.1 billion and adjusted EPS of $1.22 both easily beat the FactSet consensus estimates of $3.9 billion and $1.04, respectively. We’ve raised our fair value estimate to $113 from $109, which reflects our slightly more optimistic near-term revenue growth and incremental margin projections as well as time value of money.

Price vs Fair Value

EMR is trading at a 7% discount.
Price
$105.56
Fair Value
$888.00
Uncertainty
Medium
1-Star Price
$477.34
5-Star Price
$63.10
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Emerson is the undisputed king of process automation with the industry’s largest installed base in the Americas.

Bears

Emerson has a spotty history of integrating M&A, which doesn't bode well for the AspenTech acquisition.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
$105.58
Day Range
$105.56106.05
52-Week Range
$76.97107.07
Bid/Ask
$105.65 / $105.68
Market Cap
$60.42 Bil
Volume/Avg
113,646 / 2.9 Mil

Key Statistics

Price/Earnings (Normalized)
21.59
Price/Sales
3.81
Dividend Yield (Trailing)
1.98%
Dividend Yield (Forward)
1.99%
Total Yield
2.74%

Company Profile

Emerson Electric sells automation equipment and services under two segments: intelligent devices and software control. Within software and control, it also holds a majority interest in AspenTech, an industrial software business, and owns a test and measurement business that was formerly National Instruments. Intelligent devices also holds Emerson's tools business, which boasts several household brands, like Ridgid. Emerson's automation business is most known for its process manufacturing solutions, which consists of measurement and analytical instrumentation, as well as control valves and actuators, among other products and services. Nearly half of the firm’s geographic sales come from the Americas.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Large Core
Total Number of Employees
67,000

Competitors

Valuation

Metric
EMR
HON
ABBN
Price/Earnings (Normalized)
21.5921.2220.38
Price/Book Value
2.928.126.60
Price/Sales
3.813.602.60
Price/Cash Flow
20.0926.5118.93
Price/Earnings
EMR
HON
ABBN

Financial Strength

Metric
EMR
HON
ABBN
Quick Ratio
0.620.840.80
Current Ratio
1.121.271.18
Interest Coverage
8.679.9417.77
Quick Ratio
EMR
HON
ABBN

Profitability

Metric
EMR
HON
ABBN
Return on Assets (Normalized)
7.03%9.49%9.21%
Return on Equity (Normalized)
17.23%34.73%28.61%
Return on Invested Capital (Normalized)
8.75%16.29%16.80%
Return on Assets
EMR
HON
ABBN
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