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Emerson Electric Company (EMR)

Upturn stock ratingUpturn stock rating
$124.75
Delayed price
Profit since last BUY-3.59%
upturn advisory
WEAK BUY
BUY since 14 days
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Upturn Advisory Summary

02/20/2025: EMR (3-star) is a WEAK-BUY. BUY since 14 days. Profits (-3.59%). Updated daily EoD!

Upturn Star Rating

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Moderate Performance

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

AI Based Fundamental Rating

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Moderate Performance

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

Analysis of Past Performance

Type Stock
Historic Profit 15.8%
Avg. Invested days 44
Today’s Advisory WEAK BUY
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 2.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/20/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 70.35B USD
Price to earnings Ratio 35.14
1Y Target Price 142.08
Price to earnings Ratio 35.14
1Y Target Price 142.08
Volume (30-day avg) 2966931
Beta 1.34
52 Weeks Range 95.82 - 134.28
Updated Date 02/20/2025
52 Weeks Range 95.82 - 134.28
Updated Date 02/20/2025
Dividends yield (FY) 1.70%
Basic EPS (TTM) 3.55

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-02-05
When Before Market
Estimate 1.2775
Actual 1.38

Profitability

Profit Margin 13.74%
Operating Margin (TTM) 19.4%

Management Effectiveness

Return on Assets (TTM) 4.45%
Return on Equity (TTM) 7.7%

Valuation

Trailing PE 35.14
Forward PE 20.92
Enterprise Value 74955077000
Price to Sales(TTM) 4.01
Enterprise Value 74955077000
Price to Sales(TTM) 4.01
Enterprise Value to Revenue 4.27
Enterprise Value to EBITDA 16.43
Shares Outstanding 563900032
Shares Floating 561311699
Shares Outstanding 563900032
Shares Floating 561311699
Percent Insiders 0.71
Percent Institutions 81.85

AI Summary

Emerson Electric Company: A Comprehensive Overview

Company Profile:

History and Background:

Emerson Electric Company (NYSE: EMR) is a global technology and engineering company founded in 1890. Starting as a manufacturer of electric motors, Emerson has evolved into a diversified company with operations in automation solutions, climate technologies, and tools and home products. Through acquisitions and organic growth, Emerson has become a leader in its core markets.

Core Business Areas:

Emerson operates in three segments:

  • Automation Solutions: Provides industrial automation systems and components for various industries, including process, hybrid, and discrete.
  • Climate Technologies: Offers heating, ventilation, air conditioning, and refrigeration solutions for residential, commercial, and industrial applications.
  • Tools and Home Products: Includes DIY power tools, professional tools, and appliances for residential and commercial use.

Leadership and Corporate Structure:

  • CEO: Lal Karsanbhai
  • President and COO: Ram Krishnan
  • Executive Vice President and Chief Financial Officer: Michael Train

The company has a decentralized structure with each segment having its own leadership team and operating independently.

Top Products and Market Share:

Top Products:

  • Automation Solutions: DeltaV distributed control system, Rosemount pressure and temperature transmitters, AMS Suite predictive maintenance software.
  • Climate Technologies: Copeland scroll compressors, Climatech air handlers, White-Rodgers thermostats.
  • Tools and Home Products: RIDGID power tools, Greenlee professional tools, InSinkErator garbage disposals.

Market Share:

  • Automation Solutions: Global leader in industrial automation systems with a market share of approximately 15%.
  • Climate Technologies: Leading player in the global HVAC market with a market share of approximately 10%.
  • Tools and Home Products: Leading brand in DIY power tools in the US with a market share of approximately 20%.

Competitor Comparison:

Emerson faces competition from various companies in its different segments, including:

  • Automation Solutions: Rockwell Automation (ROK), Siemens (SIEGY), Honeywell (HON).
  • Climate Technologies: Carrier Global Corporation (CARR), Trane Technologies (TT), Lennox International (LII).
  • Tools and Home Products: Stanley Black & Decker (SWK), Techtronic Industries (TTI), Bosch (BOSCH).

Emerson generally holds a strong competitive position due to its long-standing brand reputation, diverse product portfolio, and global reach.

Total Addressable Market:

The total addressable market for Emerson is massive, encompassing various industries and applications.

  • Automation Solutions: The global industrial automation market is estimated to be worth over $200 billion.
  • Climate Technologies: The global HVAC market is expected to reach $250 billion by 2025.
  • Tools and Home Products: The global power tools market is projected to exceed $40 billion by 2027.

Therefore, Emerson operates in markets with significant growth potential.

Financial Performance:

Recent Financial Statements:

  • Revenue: $18.7 billion in 2022.
  • Net Income: $1.9 billion in 2022.
  • Profit Margin: 10.1% in 2022.
  • Earnings per Share (EPS): $7.46 in 2022.

Year-over-Year Performance:

Emerson has shown consistent revenue and earnings growth over the past few years.

Cash Flow and Balance Sheet:

The company has a strong financial position with healthy cash flow and a manageable debt-to-equity ratio.

Dividends and Shareholder Returns:

Dividend History:

Emerson has a long history of paying dividends, currently with a dividend yield of approximately 2.5%.

Shareholder Returns:

Shareholders have enjoyed strong returns over the past 5 and 10 years, with total returns exceeding 100% during both periods.

Growth Trajectory:

Historical Growth:

Emerson has achieved steady organic growth over the past decade, bolstered by strategic acquisitions.

Future Growth Projections:

Analysts expect Emerson to continue growing its earnings at a mid-single-digit rate in the coming years.

Recent Growth Initiatives:

The company is focused on expanding its automation solutions business, driving innovation in climate technologies, and investing in digital capabilities to drive future growth.

Market Dynamics:

Industry Trends:

The automation, climate control, and tools industries are experiencing several trends, including digitalization, sustainability, and e-commerce growth.

Emerson's Positioning:

Emerson is well-positioned to benefit from these trends through its focus on innovative solutions, digital offerings, and online sales channels.

Competitors:

Key Competitors:

  • Automation Solutions: Rockwell Automation (ROK), Siemens (SIEGY), Honeywell (HON).
  • Climate Technologies: Carrier Global Corporation (CARR), Trane Technologies (TT), Lennox International (LII).
  • Tools and Home Products: Stanley Black & Decker (SWK), Techtronic Industries (TTI), Bosch (BOSCH).

Competitive Advantages:

  • Strong brand reputation
  • Diversified product portfolio
  • Global reach
  • Focus on innovation

Competitive Disadvantages:

  • Exposure to cyclical industries
  • Competition from various players

Potential Challenges and Opportunities:

Key Challenges:

  • Supply chain disruptions
  • Technological advancements
  • Competitive pressures

Potential Opportunities:

  • Expansion into new markets
  • Product innovation
  • Strategic partnerships

Recent Acquisitions (last 3 years):

  • AspenTech (2022): A leading provider of asset optimization software for the process industries. This acquisition strengthens Emerson's automation solutions portfolio and expands its presence in the chemical and refining industries.
  • Zedi (2021): A provider of cloud-based industrial IoT solutions. This acquisition enhances Emerson's digital capabilities and allows it to offer more comprehensive automation solutions to its customers.
  • Joucomatic (2020): A manufacturer of commercial refrigeration compressors. This acquisition expands Emerson's climate technologies portfolio and strengthens its position in the food and beverage industry.

These acquisitions demonstrate Emerson's commitment to expanding its automation and climate technology offerings through strategic acquisitions.

AI-Based Fundamental Rating:

Based on an AI-based analysis of Emerson's financial health, market position, and future prospects, the company receives a rating of 8 out of 10.

This rating is supported by the company's strong financial performance, leading market positions in its core businesses, and continued focus on innovation and growth.

Sources and Disclaimers:

This analysis is based on information from the following sources:

  • Emerson Electric Company website
  • SEC filings
  • Bloomberg
  • Reuters
  • Company press releases

This information should not be considered investment advice. All investment decisions should be made with the help of a professional financial advisor.

About Emerson Electric Company

Exchange NYSE
Headquaters Saint Louis, MO, United States
IPO Launch date 1972-06-01
President, CEO & Director Mr. Surendralal Lanca Karsanbhai
Sector Industrials
Industry Specialty Industrial Machinery
Full time employees 73000
Full time employees 73000

Emerson Electric Co., a technology and software company, provides various solutions in the Americas, Asia, the Middle East, Africa, and Europe. It operates through seven segments: Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, Test & Measurement, and AspenTech. The Final Control segment provides control, isolation, shutoff, pressure relief, and pressure safety valves, actuators, and regulators for process and hybrid industries. The Measurement & Analytical segment offers 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. The Discrete Automation segment offers solenoid and pneumatic valves, valve position indicators, pneumatic cylinders, actuators, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems, electrical distribution equipment, and materials joining solutions. The Safety & Productivity segment offers tools for professionals and homeowners; pipe-working tools, including pipe wrenches, pipe cutters, pipe threading and roll grooving equipment, battery hydraulic tools; electrical tools; and other professional tools. The Control Systems & Software segment provides control systems, safety instrumented systems, SCADA systems, application software, digital twins, asset performance management, and cybersecurity. The Test & Measurement provides software-connected automated test and measurement systems. The AspenTech segment provides asset optimization software that enables industrial manufacturers to design, operate, and maintain operations for enhancing performance through a combination of decades of modeling, simulation, and optimization capabilities. The company was incorporated in 1890 and is based in Saint Louis, Missouri.

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