Emerson Electric Company logged a 2.5% change during today's afternoon session, and is now trading at a price of $87.95 per share.
Emerson Electric Company returned gains of 6.0% last year, with its stock price reaching a high of $99.65 and a low of $72.41. Over the same period, the stock underperformed the S&P 500 index by -13.0%. As of April 2023, the company's 50-day average price was $83.21. 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. Based in Saint Louis, MO, the large-cap Technology company has 85,500 full time employees. Emerson Electric Company has offered a 2.4% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 32.29%:
| 2019-09-30 | 2020-09-30 | 2021-09-30 | 2022-09-30 | |
|---|---|---|---|---|
| Revenue (MM) | $18,372 | $16,785 | $18,236 | $19,629 |
| Gross Margins | 42.5% | 41.8% | 41.5% | 41.7% |
| Operating Margins | 17.0% | 18.0% | 16.9% | 18.2% |
| Net Margins | 12.55% | 11.71% | 12.63% | 16.46% |
| Net Income (MM) | $2,306 | $1,965 | $2,303 | $3,231 |
| Net Interest Expense (MM) | -174 | -156 | -154 | -193 |
| Net Interest Expense (MM) | -$174 | -$156 | -$154 | -$193 |
| Depreciation & Amort. (MM) | -$822 | -$854 | -$969 | -$1,039 |
| Earnings Per Share | $3.71 | $3.24 | $3.82 | $4.93 |
| EPS Growth | n/a | -12.67% | 17.9% | 29.06% |
| Diluted Shares (MM) | 621 | 607 | 602 | 572 |
| Free Cash Flow (MM) | $2,412 | $2,545 | $2,994 | $2,391 |
| Capital Expenditures (MM) | -$594 | -$538 | -$581 | -$531 |
| Net Current Assets (MM) | -$5,085 | -$5,629 | -$6,360 | -$10,850 |
| Current Ratio | 1.19 | 1.52 | 1.35 | 1.09 |
| Long Term Debt (MM) | $4,277 | $6,326 | $5,793 | $8,259 |
| Net Debt / EBITDA | 1.1 | 1.26 | 1.07 | 1.61 |
Emerson Electric Company has strong margins with a stable trend, a steady stream of strong cash flows, and stable revenues and a flat capital expenditure trend. The company also benefits from wider gross margins than its peer group, positive EPS growth, and healthy leverage. Furthermore, Emerson Electric Company has just enough current assets to cover current liabilities.
A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
Emerson Electric Company has a trailing twelve month P/E ratio of 16.9, compared to an average of 27.16 for the Technology sector. Based on its EPS guidance of $4.68, the company has a forward P/E ratio of 17.8. The 4.8% compound average growth rate of Emerson Electric Company's historical and projected earnings per share yields a PEG ratio of 3.55. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Emerson Electric Company in terms of its equity because its P/B ratio is 4.42 while the sector average is 6.23. The company's shares are currently trading 110.0% above their Graham number.
There's an Analyst Consensus of Some Upside Potential for Emerson Electric Company:
The 22 analysts following Emerson Electric Company have set target prices ranging from $89.0 to $120.0 per share, for an average of $103.27 with a buy rating. As of April 2023, the company is trading -19.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Emerson Electric Company has a very low short interest because 1.0% of the company's shares are sold short. Institutions own 78.1% of the company's shares, and the insider ownership rate stands at 0.33%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 9% stake in the company is worth $4,616,875,723.
