Emerson Electric Company
Exchange: NYSESector: IndustrialsIndustry: Specialty Industrial Machinery
Emerson is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation.
Did you know?
A large-cap company with a $78.9B market cap.
Current Price
$140.37
-0.02%GoodMoat Value
$64.14
54.3% overvaluedProfile
Valuation (TTM)
Market Cap$78.86B
P/E34.11
EV$84.60B
P/B3.89
Shares Out561.80M
P/Sales4.34
Revenue$18.19B
EV/EBITDA18.83
Emerson Electric Company (EMR) Stock Analysis
GoodMoat Analysis
Emerson Electric appears to be a high-quality industrial business, but its valuation is a significant concern. The stock's current price of $129.39 is more than double the GoodMoat Target of $64.14, indicating a potentially extreme valuation that fails the Decision Framework's Valuation Gate.
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Emerson Electric is a global leader in automation technology and software for industrial, commercial, and residential markets. Applying the GoodMoat Investment Framework, the company likely possesses a durable competitive advantage. It would score well on several Moat criteria, including Switching Costs (mission-critical automation systems), Niche Dominance in process automation, Technology Leadership, and Strategic Partnerships with major industrial firms. This suggests a Moat Score comfortably above the 5+ threshold required to proceed. The company also demonstrates solid Quality Indicators, with a strong operating margin of 17.6%, a reasonable debt/equity ratio of 0.65, and a consistent dividend, pointing to capable stewardship. However, the valuation assessment presents a severe red flag. The current P/E of 31.8 is high for a company with 4.1% YoY revenue growth. Most critically, the GoodMoat Target price of $64.14 implies the stock is trading at a 102% premium to that estimated fair value. This represents a negative Margin of Safety, placing it firmly in the 'Unfavourable' band of the Decision Framework's Valuation Gate (Section 6). While the business itself is strong, the price appears to demand near-perfect future execution and leaves no room for error, making it an unfavourable proposition for a value investor seeking a margin of safety. Analysis based on data as of 2024-05-15.
Market Cap$78.86B
Current Price$140.37
P/E Ratio34.11
Forward P/E—
PEG Ratio7.03
EPS$4.04
Book Value$36.10
P/B Ratio3.89
EMR Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 1.7% FCF growth (CAGR)
Cash vs Debt
Net Debt: 11.6B
Revenue
18.4B
FY19
16.8B
FY20
12.9B
FY21
13.8B
FY22
15.2B
FY23
17.5B
FY24
18.0B
FY25
Net Income
2.3B
FY19
2.0B
FY20
2.3B
FY21
3.2B
FY22
13.2B
FY23
2.0B
FY24
2.3B
FY25
EMR 52-Week Range
$94.85
$161.09
50-Day MA: $141.43200-Day MA: $136.83
Did you know?
Profit margin stands at 12.7%.
Emerson Electric Company (EMR) Financial Summary
Emerson Electric Company (EMR) is a Industrials company in the Specialty Industrial Machinery industry, listed on NYSE. The stock currently trades at $140.37 with a market capitalization of $78.86B.
Key valuation metrics include a P/E ratio of 34.11, price-to-book ratio of 3.89, and EPS of $4.04. The company reports a profit margin of 12.7% and return on equity of 11.4%.
EMR Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $78.86B |
| P/E Ratio | 34.11 |
| EPS | $4.04 |
| P/B Ratio | 3.89 |
| P/S Ratio | 4.34 |
| EV/EBITDA | 18.83 |
| Dividend Yield | 1.51% |
| Profit Margin | 12.7% |
| Return on Equity | 11.4% |
| Debt/Equity | 0.65 |
EMR Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $18.37B | $2.31B |
| FY20 | $16.79B | $1.97B |
| FY21 | $12.93B | $2.30B |
| FY22 | $13.80B | $3.23B |
| FY23 | $15.16B | $13.22B |
| FY24 | $17.49B | $1.97B |
| FY25 | $18.02B | $2.29B |
Emerson Electric Company (EMR) Valuation
Based on GoodMoat's DCF model, Emerson Electric Company has a fair value estimate of $64.14. At the current price of $140.37, the stock appears 118.9% overvalued relative to our intrinsic value estimate.
EMR Quality Indicators
Emerson Electric Company maintains a profit margin of 12.7% and an operating margin of 17.6%. Return on equity stands at 11.4%. The current ratio is 0.88. Debt-to-equity ratio is 0.65.
About Emerson Electric Company
Emerson is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation.
EMR Free Cash Flow
Emerson Electric Company generated $2.67B in trailing twelve-month free cash flow, representing an FCF yield of 3.38%. This moderate FCF yield indicates reasonable cash generation.
EMR Shares Outstanding
Emerson Electric Company has 0.56 billion shares outstanding at a share price of $140.37, giving it a market capitalization of $78.86B.
EMR Recent Insider Trades
Recent insider transactions at Emerson Electric Company include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Karsanbhai Surendralal Lanca (President & CEO) | SELL | 5,700 | $811227.42 |
| LEVATICH MATTHEW S | SELL | 1,476 | $239348.75 |
| Piazza Nicholas J. (Senior VP & CPO) | SELL | 6,703 | $1.07M |