About Emerson Electric Company
Emerson Electric Co., a technology and software company, provides various solutions in the Americas, Asia, the Middle East, Africa, and Europe. It operates through Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, and Test & Measurement segments. The Final Control segment provides control valves, isolation valves, shutoff valves, pressure relief valves, pressure safety valves, actuators, and regulators for process and hybrid industries under Anderson Greenwood, Bettis, Crosby, Fisher, Keystone, KTM, and Vanessa brands. The Measurement & Analytical segment supplies intelligent instrumentation measuring the physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame under the Flexim, Micro Motion, and Rosemount brands. The Discrete Automation segment includes solenoid valves, pneumatic valves, valve position indicators, pneumatic cylinders and actuators, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems and software, electrical distribution equipment, and materials joining solutions used primarily in discrete industries under the Afag, Appleton, ASCO, Aventics, Branson, Movicon, PACSystems, SolaHD, TESCOM, and TopWorx brands. The Safety & Productivity segment delivers tools for professionals and homeowners that support infrastructure, promote safety, and enhance productivity under the Greenlee, Klauke, ProTeam, and RIDGID brands. The Control Systems & Software segment provides control systems and software that control plant processes by collecting and analyzing information from measurement devices in the plant under the DeltaV and Ovation brands. The Test & Measurement offers software-connected automated test and measurement systems. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.
Emerson Electric Company (EMR) is a Industrials company in the Specialty Industrial Machinery industry with a market capitalisation of $82.7B. The stock trades at 32.45x trailing earnings and yields 1.46%.
- Sector
- Industrials
- Industry
- Specialty Industrial Machinery
- Market cap
- $82.7B
- P/E ratio
- 32.45
- Forward P/E
- 20.47
- EPS (TTM)
- $4.57
- Revenue (TTM)
- $18.6B
- Free cash flow
- $3.7B
- Profit margin
- 13.8%
- Dividend yield
- 1.46%
- Beta
- 1.23
- Shares outstanding
- 557.8M
Financial health: Strong7.7/10
7 strengths, 1 concern. Weakest points: current ratio.
- Debt to equity: 0.44 (Strong, benchmark < 0.5) — Debt of 0.44x equity is conservative against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 2.8y (Strong, benchmark < 4 years) — Net debt of $7.4B is 2.8x annual free cash flow — about 3 years of cash flow to repay.
- Current ratio: 0.88 (Concern, benchmark > 1.5) — Short-term assets cover only 0.88x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has deteriorated over the last 4 years.
- Return on equity: 12.8% (Watch, benchmark > 15%) — Earns 12.8% on shareholder equity, short of the > 15% mark.
- Gross margin: 53.2% (Strong, benchmark > 40%) — Keeps 53.2% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 13.8% (Strong, benchmark > 10%) — Turns 13.8% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $2.7B (Strong, benchmark positive) — Generated $2.7B of free cash flow after capital spending. It has been broadly flat over the last 4 years.
- Revenue growth: 7.0% (Watch, benchmark > 10%) — Revenue changed 7.0% year on year, short of the > 10% mark.
- Earnings growth: 23.0% (Strong, benchmark > 10%) — Earnings changed 23.0% year on year, comfortably past the > 10% mark.
- PEG ratio: 1.75 (Watch, benchmark < 1) — At 1.75, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 48.0% (Strong, benchmark < 60%) — Pays out 48.0% of earnings as dividends, leaving room to keep paying.