About Emerson Electric Company
Emerson Electric Company (EMR) is a Technology company in the Electronic & Other Electrical Equipment (No Computer Equip) industry with a market capitalisation of $90.4B. The stock trades at 35.25x trailing earnings and yields 1.38%.
- Sector
- Technology
- Industry
- Electronic & Other Electrical Equipment (No Computer Equip)
- Market cap
- $90.4B
- P/E ratio
- 35.25
- EPS (TTM)
- $4.04
- Revenue (TTM)
- $18B
- Free cash flow
- $2.7B
- Profit margin
- 12.7%
- Dividend yield
- 1.38%
- Shares outstanding
- 557.8M
Financial health: Strong8/10
7 strengths, 1 concern. Weakest points: current ratio.
- Debt to equity: 0.44 (Strong, benchmark < 0.5) — Debt of 0.44x equity is conservative against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 2.8y (Strong, benchmark < 4 years) — Net debt of $7.4B is 2.8x annual free cash flow — about 3 years of cash flow to repay.
- Current ratio: 0.88 (Concern, benchmark > 1.5) — Short-term assets cover only 0.88x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has deteriorated over the last 4 years.
- Return on equity: 11.3% (Watch, benchmark > 15%) — Earns 11.3% on shareholder equity, short of the > 15% mark.
- Gross margin: 52.8% (Strong, benchmark > 40%) — Keeps 52.8% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 12.7% (Strong, benchmark > 10%) — Turns 12.7% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $2.7B (Strong, benchmark positive) — Generated $2.7B of free cash flow after capital spending. It has been broadly flat over the last 4 years.
- Revenue growth: 3.0% (Watch, benchmark > 10%) — Revenue changed 3.0% year on year, short of the > 10% mark.
- Earnings growth: 16.5% (Strong, benchmark > 10%) — Earnings changed 16.5% year on year, comfortably past the > 10% mark.
- Payout ratio: 52.0% (Strong, benchmark < 60%) — Pays out 52.0% of earnings as dividends, leaving room to keep paying.