Emerson Electric Co. (EMR): What the Financials Tell Us?

Emerson Electric Co. (NYSE:EMR) saw a downside of -1.60% to close Monday at $93.64 after subtracting -$1.52 on the day. The 5-day average trading volume is 2,806,140 shares of the company’s common stock. It has gained $96.94 in the past week. An average of 2,844,500 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,288,684.

EMR’s 1-month performance is -11.41% or -$11.74 on its low of $93.25 reached on 09/20/21. The company’s shares have touched a 52-week low of $63.26 and high of $105.99, with the stock’s rally to the 52-week high happening on 09/03/21. YTD, EMR has achieved 16.51% or $13.27. However, the current price is down -11.65%% from the 52-week high price.

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Insider Transactions

On Aug 10, 56 days have gone by since the last insider trading activity for Emerson Electric Co. (EMR). Button Bell Katherine (Sr. VP & Chief Marketing Off.) most recently sold 12,850 shares at $101.21 per share on Aug 10. This transaction cost the insider $1,300,496. Senior Exec. VP and CFO, DELLAQUILA FRANK J, sold 10,000 shares at a price of $78.91 on Nov 25. Then, on Nov 24, Sr. VP, Secy and Gen. Counsel Bosco Sara Yang sold 12,000 shares at a price of $78.99 per share. This transaction amounted to $947,880.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 29.86 and a low of 10.88. EMR stock has a beta of 1.56. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 3.10 while the price-to-book (PB) in the most recent quarter is 6.03, with the price to cash flow ratio at 25.40.

Emerson Electric Co. pays an annual dividend of $2.02 per share. Its dividend yield is 2.16% and the payout ratio is 51.20%. EMR’s most recent quarterly dividend payment was made on Sep. 10, when it paid $0.5050 a share compared with prior rate of $0.5050, down 0.0% from last year’s. The company has boosted its dividend for the last 59 consecutive years with the latest dividend increase of $0.0050 reported on Wednesday November 4 2020. Measured over the last 3 years, the Dividend has been growing by 4.16% yearly.

It is projected that Emerson Electric Co.’s next ex-dividend date will be on 15-Nov. EMR is expected to distribute $0.505 as its next dividend.

Emerson Electric Co.’s quick ratio for the period ended June 29 was 1.00, with the current ratio over the same period at 1.30 meaning that EMR stock is able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.63, while the total debt to equity was 0.79. In terms of profitability, the gross margin trailing 12 months is 41.70%The trailing 12-month EBITDA margin is 21.72% while for the period ending June 29; Emerson Electric Co.’s operating margin was 16.80%. The firm’s gross profit as reported stood at $7.01 billion against revenue of $16.79 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 16.67% to $4.7 billion, while revenue of $4.43 billion was 5.66% off the previous quarter. Analysts expected EMR to announce $0.98 per share in earnings in its latest quarter, but it posted $1.09, representing a 11.20% surprise. EBITDA for the quarter stood at more than $1.15 billion. EMR stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 15.14 billion, with total debt at $7.83 billion. Shareholders hold equity totaling $597.8 million

Technical Picture

Let’s look briefly at Emerson Electric Co. (EMR) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 04 October was 32.45% to suggest the stock is trending Neutral, with historical volatility in this time period at 19.56%.

The stock’s 5-day moving average is $94.86, reflecting a -3.19% or -$3.09 change from its current price. EMR is currently trading -11.14% above its 20-day SMA, +0.31% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by -4.91% and +15.21% respectively.

Stochastic %K and %D was 15.73% and 20.24% and the average true range (ATR) pointed at 1.90. The RSI (14) points at 34.94%, while the 14-day stochastic is at 6.20% with the period’s ATR at 1.89. The stock’s 9-day MACD Oscillator is pointing at -1.20 and -1.58 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Emerson Electric Co. (NYSE: EMR), Gordon Haskett upgraded it to a Buy rating. They previously had a Hold rating on the stock. Analysts offering their rating for EMR stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate EMR as a “sell,”, while 11 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 11 have offered a “buy” rating.

What is EMR’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $98.00 and a high of $120.00, with their median price target at $111.00. Looking at these predictions, the average price target given by analysts is for Emerson Electric Co. (EMR) stock is $111.18.


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