Emerson Electric Stock Analysis, Valuation (NYSE:EMR)

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$73.01 $0.25 (0.34%) EMR stock closing price May 23, 2018 (Closing)
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Emerson Electric
Updated on : May 23, 2018
previous close
EMR 73 (0%)
S&P 500 2733.3 (0%)
Closing Price On: May 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Machinery-Electrical
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
2018-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-7.7%
Operating Profit
Operating Margin:
18%
Sector Average:
8.3%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$497M
Net Income:
$482M
Dividend Yield
EMR dividend yield:
2.66%
PROS      CONS
Recent Growth
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
Long Term Growth
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
EMR PS :
2.8
Industry PS :
1.5
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
18.4%
Return on Equity:
21.4%
Free Cash Flow Margin:
9.4%
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Emerson Electric Stock Analysis

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Take a look at Amigobulls Emerson Electric stock analysis video. This is our analyst opinion covering the buy and sell arguments for EMR stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Emerson Electric Co. Stock Rating 3.4/5

Amigobulls EMR stock analysis relies on business fundamentals such as Emerson Electric revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. We compare Emerson Electric valuation with its sector peers to gauge relative attractiveness of EMR stock. Emerson Electric stock rating is our opinion about the business fundamentals of the company.

Should you buy EMR stock?

  • Emerson Electric sales grew by 18.9% year on year in 2018 Q2.
  • The TTM operating margin was good at 18% for Emerson Electric.
  • LTM Net margins were good at 10.8% for Emerson Electric.
  • Emerson Electric has an attractive ROIC (Return on Invested Capital) of 18.4%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Emerson Electric at 21.4%.
  • Emerson Electric has a healthy FCF (Free Cash Flow) margin of 9.4%.

Should you sell EMR stock?

  • The company saw an average annual sales decline of -7.7% in sales over the last 5 years.
  • The company is trading at a price to sales multiple of 2.8, which is overvalued in comparison to the Machinery-Electrical industry average multiple of 1.5.

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Comments on this video and Emerson Electric stock

Amigobulls Emerson Electric stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Emerson Electric revenue growth and profit or net income are two main metrics which help in identifying whether EMR stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Emerson Electric stock.