ScoreWhy is Emerson Electric Co. ?
1
High Management Efficiency with a high ROE of 20.11%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.81 times
3
Poor long term growth as Net Sales has grown by an annual rate of 0.66% over the last 5 years
4
Flat results in Jun 25
- INTEREST COVERAGE RATIO(Q) Lowest at 1,015.08
- CASH AND EQV(HY) Lowest at USD 4,106 MM
- DEBT-EQUITY RATIO (HY) Highest at 63.66 %
5
With ROE of 11.84%, it has a fair valuation with a 5.90 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 6.65%, its profits have risen by 1.4% ; the PEG ratio of the company is 17.8
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Emerson Electric Co. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Emerson Electric Co. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Emerson Electric Co.
13.43%
0.93
30.37%
S&P 500
13.68%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.60%
EBIT Growth (5y)
4.78%
EBIT to Interest (avg)
13.11
Debt to EBITDA (avg)
1.81
Net Debt to Equity (avg)
0.66
Sales to Capital Employed (avg)
0.54
Tax Ratio
24.35%
Dividend Payout Ratio
52.15%
Pledged Shares
0
Institutional Holding
85.53%
ROCE (avg)
15.46%
ROE (avg)
20.11%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
49
Industry P/E
Price to Book Value
6.04
EV to EBIT
37.14
EV to EBITDA
26.28
EV to Capital Employed
4.18
EV to Sales
7.38
PEG Ratio
4.68
Dividend Yield
1.00%
ROCE (Latest)
11.27%
ROE (Latest)
12.42%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -1.11% (YoY
DIVIDEND PER SHARE(HY)
Highest at USD 6.42
OPERATING PROFIT MARGIN(Q)
Highest at 28.24 %
-7What is not working for the Company
INTEREST(HY)
At USD 238 MM has Grown at 81.68%
CASH AND EQV(HY)
Lowest at USD 3,292 MM
Here's what is working for Emerson Electric Co.
Operating Profit Margin
Highest at 28.24 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Dividend per share
Highest at USD 6.42
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by -1.11% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Emerson Electric Co.
Interest
At USD 238 MM has Grown at 81.68%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Cash and Eqv
Lowest at USD 3,292 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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