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 1.12%, its profits have risen by 1.4% ; the PEG ratio of the company is 17.8
6
Underperformed the market in the last 1 year
- The stock has generated a return of 1.12% in the last 1 year, much lower than market (S&P 500) returns of 12.94%
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.
1.72%
0.79
30.34%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.66%
EBIT Growth (5y)
3.01%
EBIT to Interest (avg)
13.11
Debt to EBITDA (avg)
1.81
Net Debt to Equity (avg)
0.66
Sales to Capital Employed (avg)
0.57
Tax Ratio
24.35%
Dividend Payout Ratio
61.25%
Pledged Shares
0
Institutional Holding
84.91%
ROCE (avg)
15.46%
ROE (avg)
20.11%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
50
Industry P/E
Price to Book Value
5.90
EV to EBIT
39.21
EV to EBITDA
26.14
EV to Capital Employed
3.96
EV to Sales
7.17
PEG Ratio
17.81
Dividend Yield
1.06%
ROCE (Latest)
10.10%
ROE (Latest)
11.84%
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
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 3,172 MM
RAW MATERIAL COST(Y)
Fallen by -2.19% (YoY
DIVIDEND PER SHARE(HY)
Highest at USD 6.27
OPERATING PROFIT(Q)
Highest at USD 1,279 MM
OPERATING PROFIT MARGIN(Q)
Highest at 28.1 %
PRE-TAX PROFIT(Q)
At USD 825 MM has Grown at 62.72%
NET PROFIT(Q)
At USD 651.91 MM has Grown at 68.91%
-7What is not working for the Company
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 %
INTEREST(Q)
Highest at USD 126 MM
Here's what is working for Emerson Electric Co.
Operating Cash Flow
Highest at USD 3,172 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Operating Profit
Highest at USD 1,279 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 28.1 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
At USD 825 MM has Grown at 62.72%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 651.91 MM has Grown at 68.91%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Dividend per share
Highest at USD 6.27
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by -2.19% (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 126 MM has Grown at 46.51%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 1,015.08
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 126 MM
in the last five periods and Increased by 46.51% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Cash and Eqv
Lowest at USD 4,106 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 63.66 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
