Emerson Electric Co

Technology
Consumer Electronics/Appliances
www.emerson.com

Earnings Score
Moat Score
Safety Score

Market Cap $74.09B
PE 38
Debt $8.22B
Cash $3.59B
EV $78.72B
FCF $2.91B

Earnings

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Sales & Net Margins

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Earnings	$1.96B
EBIT	$2.02B
ROE	7%
ROA	5%
FCF	$2.91B
Equity	$27.51B
Growth Stability	31%
PE	37.9
PEG	1.26
PB	2.69
P/FCF	25.43
P/S	4.24
Price/Cash	0.05
Debt/Equity	0.3
Debt/FCF	2.82
Net Margins	11%
Gross Margins	51%
Op. Margins	12%
Earnings CAGR	16%
Sales Growth YoY	13%
Sales Growth QoQ	5%
Sales CAGR	-5%
FCF CAGR	2%
Equity CAGR	13%
Earnings Stability	0.42
Earnings Growth YoY	33%
Earnings Growth QoQ	192%
Earnings CAGR 5Y	30%

Sales CAGR 5Y	-8%
FCF CAGR 5Y	-1%
Equity CAGR 5Y	38%
Earnings CAGR 3Y	25%
Sales CAGR 3Y	25%
FCF CAGR 3Y	7%
Equity CAGR 3Y	46%
Market Cap	$74.09B
Revenue	$17.49B
Dividend Yield	2%
Payout Ratio	61%
Assets	$44.25B
Total Debt	$8.22B
Cash	$3.59B
Shares Outstanding	568.31M
EV	78.72B
Earnings Score	44%
Moat Score	75%
Safety Score	63%
Final Score	61%
Working Capital	4.45B
Current Ratio	1.77
Gross Profit	$8.89B
Shares Growth 3y	-3%
Equity Growth QoQ	3%
Equity Growth YoY	3%

Assets & ROA

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Stockholders Equity & ROE

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Emerson Electric is a multi-industrial conglomerate that operates under two business platforms: automation solutions and commercial and residential solutions. The latter is further subdivided into two operating segments: climate technologies, which sells HVAC and refrigeration products and services as well as tools and home products, which sells tools and compressors, among other products and services. Commercial and residential solutions boasts several household brands, including Copeland, InSinkErator, and RIDGID. Automation solutions is most known for its process manufacturing solutions, which consists of measurement instrumentation, as well as valves and actuators, among other products and services. Roughly half of the firm's geographic sales take place in the United States.

SEC Filings

Direct access to Emerson Electric Co (EMR) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Emerson Electric Co compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Emerson Electric Co compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 16%

Stability 42%

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Emerson Electric Co Discounted Cash Flow

Fully customizable DCF calculator online for Emerson Electric Co.

Years

Calculation mode

= $34B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$2.9B	$3B	$3B	$3.1B	$3.2B	$3.3B	$3.3B	$3.4B	$3.5B	$3.6B	$3.6B	$36B
DCF		$2.7B	$2.5B	$2.3B	$2.2B	$2B	$1.9B	$1.7B	$1.6B	$1.5B	$1.4B	$14B
Value	$34B

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	09/2024	TTM
Net Margins	12%	11%	10%	13%	13%	12%	13%	195%	87%	11%	11%
ROA	-	11%	12%	13%	14%	10%	12%	11%	6%	5%	5%
ROE	-	21%	17%	25%	28%	23%	23%	20%	50%	7%	7%

Good Net Margins (11.18%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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	09/2024	TTM
Debt over FCF	-	2.73	2.1	2.09	2.37	2.94	2.23	4.55	3.68	2.82	2.82
Debt over Equity	0.84	0.87	0.53	0.53	0.69	0.89	0.67	0.67	0.33	0.3	0.3
Growth Stability	-	-	-	100%	100%	98%	100%	100%	100%	31%	31%

Neutral Debt/FCF ratio (2.82)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.3)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (31%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	CAGR 5Y
Revenue YoY growth	-	-35%	5%	14%	6%	-9%	9%	-91%	814%	15%	-8%
Earnings YoY growth	-	-40%	-7%	45%	5%	-15%	17%	40%	309%	-85%	30%
Equity YoY growth	-	-6%	15%	3%	-8%	2%	17%	64%	63%	3%	38%
FCF YoY growth	-	32%	-9%	3%	6%	6%	18%	-20%	-1%	23%	-1%