Emerson Electric Co
EMR
Electronic & Other Electrical Equipment (No Computer Equip)
Mkt Cap
$64.3BPE
5.84Debt
$10.86BCash
$2.076BEV
$73.08BFCF
$2.371BP/E Ratio
5.84Debt
$10.86BCash
$2.076BEV
$73.08BFCF
$2.371BCharts data: {"Earnings":[{"time":"2014-09-29","value":2147000000},{"time":"2015-09-29","value":2710000000},{"time":"2016-09-29","value":1635000000},{"time":"2017-09-29","value":1518000000},{"time":"2018-09-29","value":2203000000},{"time":"2019-09-29","value":2306000000},{"time":"2020-09-29","value":1965000000},{"time":"2021-09-29","value":2303000000},{"time":"2022-09-29","value":3230000000},{"time":"2023-09-29","value":13200000000}],"Sales":[{"time":"2014-09-29","value":24537000000},{"time":"2015-09-29","value":22304000000},{"time":"2016-09-29","value":14522000000},{"time":"2017-09-29","value":15264000000},{"time":"2018-09-29","value":17408000000},{"time":"2019-09-29","value":18372000000},{"time":"2020-09-29","value":16785000000},{"time":"2021-09-29","value":18236000000},{"time":"2022-09-29","value":1660000000},{"time":"2023-09-29","value":15165000000}],"Net Margins":[{"time":"2014-09-29","value":0.08750050943473123},{"time":"2015-09-29","value":0.12150286944045911},{"time":"2016-09-29","value":0.11258779782399118},{"time":"2017-09-29","value":0.0994496855345912},{"time":"2018-09-29","value":0.12655101102941177},{"time":"2019-09-29","value":0.12551709122577837},{"time":"2020-09-29","value":0.11706881143878463},{"time":"2021-09-29","value":0.12628865979381443},{"time":"2022-09-29","value":1.9457831325301205},{"time":"2023-09-29","value":0.8704253214638972}],"Assets":[{"time":"2014-09-29","value":24177000000},{"time":"2015-09-29","value":22088000000},{"time":"2016-09-29","value":21743000000},{"time":"2017-09-29","value":19589000000},{"time":"2018-09-29","value":20390000000},{"time":"2019-09-29","value":20497000000},{"time":"2020-09-29","value":22882000000},{"time":"2021-09-29","value":24715000000},{"time":"2022-09-29","value":35672000000},{"time":"2023-09-29","value":42746000000}],"Stockholders Equity":[{"time":"2014-09-29","value":10167000000},{"time":"2015-09-29","value":8128000000},{"time":"2016-09-29","value":7618000000},{"time":"2017-09-29","value":8770000000},{"time":"2018-09-29","value":8990000000},{"time":"2019-09-29","value":8273000000},{"time":"2020-09-29","value":8447000000},{"time":"2021-09-29","value":9923000000},{"time":"2022-09-29","value":16316000000},{"time":"2023-09-29","value":26598000000}],"ROE":[{"time":"2014-09-29","value":0.21117340415068359},{"time":"2015-09-29","value":0.3334153543307087},{"time":"2016-09-29","value":0.21462326069834603},{"time":"2017-09-29","value":0.17309007981755986},{"time":"2018-09-29","value":0.2450500556173526},{"time":"2019-09-29","value":0.27873806358032155},{"time":"2020-09-29","value":0.23262696815437434},{"time":"2021-09-29","value":0.23208707044240653},{"time":"2022-09-29","value":0.19796518754596715},{"time":"2023-09-29","value":0.49627791563275436}],"ROA":[{"time":"2014-09-29","value":0.13847871944409976},{"time":"2015-09-29","value":0.1883828323071351},{"time":"2016-09-29","value":0.1065170399668859},{"time":"2017-09-29","value":0.11919955076828832},{"time":"2018-09-29","value":0.13079941147621382},{"time":"2019-09-29","value":0.13948382690149777},{"time":"2020-09-29","value":0.10204527576260816},{"time":"2021-09-29","value":0.11782318430103177},{"time":"2022-09-29","value":0.11451558645436197},{"time":"2023-09-29","value":0.06377204884667571}]}
Emerson Electric Co., a technology and engineering company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. The company operates through Automation Solutions, AspenTech, and Commercial & Residential Solutions segments. The Automation Solutions segment offers measurement and analytical instrumentation, industrial valves and equipment, and process control software and systems. It serves oil and gas, refining, chemicals, power generation, life sciences, food and beverage, automotive, pulp and paper, metals and mining, and municipal water supplies markets. The AspenTech segment provides asset optimization software that enables industrial manufacturers to design, operate, and maintain their operations for enhancing performance through a combination of decades of modeling, simulation, and optimization capabilities. The Commercial & Residential Solutions segment offers residential and commercial heating and air conditioning products, such as reciprocating and scroll compressors; system protector and flow control devices; standard, programmable, and Wi-Fi thermostats; monitoring equipment and electronic controls for gas and electric heating systems; gas valves for furnaces and water heaters; ignition systems for furnaces; and temperature sensors and controls. It also provides reciprocating, scroll, and screw compressors; precision flow controls; system diagnostics and controls; and environmental control systems. In addition, this segment offers air conditioning, refrigeration, and lighting control technologies, as well as facility design and product management, site commissioning, facility monitoring, and energy modeling services; and tools for professionals and homeowners. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.
Sector
DCF
Discounted Cash Flow Valuation of Emerson Electric Co
Value
Growth
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%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $2.371B | $2.427B | $2.484B | $2.542B | $2.602B | $2.663B | $2.726B | $2.79B | $2.855B | $2.922B | $2.991B | $29.91B |
| DCF | $2.11B | $1.878B | $1.671B | $1.488B | $1.324B | $1.178B | $1.049B | $933.3M | $830.7M | $739.3M | $7.393B | |
| Value | $20.59B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 16%
Earnings Stability 47%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 12% | 11% | 9.9% | 13% | 13% | 12% | 13% | 190% | 87% | 69% |
| ROA | 19% | 11% | 12% | 13% | 14% | 10% | 12% | 11% | 6.4% | 5.3% |
| ROE | 33% | 21% | 17% | 25% | 28% | 23% | 23% | 20% | 50% | 41% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +55.19%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +26.26%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +11.14%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -1.13%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +28.05%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +2.9%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 3.71 | 2.73 | 2.10 | 2.09 | 2.37 | 2.94 | 2.23 | 4.55 | 3.68 | 4.58 |
| Debt Equity | 0.84 | 0.87 | 0.53 | 0.53 | 0.69 | 0.89 | 0.67 | 0.67 | 0.33 | 0.41 |
| MIN | ||||||||||
| Graham Stability | - | - | 70% | 100% | 100% | 98% | 100% | 100% | 100% | 70% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 4.58.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.39.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.70.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 09-2016 | 09-2018 | 09-2020 | 09-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 0.62% | -2.7% | -3.3% | 810% | 52% |
| Net Income | 35% | 43% | 89% | 310% | 23% |
| Stockholders Equity | 20% | 24% | 47% | 63% | 9.1% |
| FCF | -0.42% | 0.76% | -2.4% | -1.2% | 0.71% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is -2.72%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +51.78%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +43.06%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +22.64%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +24.23%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +9.14%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +0.76%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +0.71%.