1.23%
5.25%
20.48%
11.38%
42.20%
41.86%
82.10%

Company Description

Emerson Electric Co., a technology and engineering company, provides various solutions for customers in industrial, commercial, and residential markets in the Americas, Asia, the Middle East, Africa, and Europe.The company operates through Automation Solutions, and Commercial & Residential Solutions segments.The Automation Solutions segment offers measurement and analytical instrumentation, industrial valves and equipment, and process control software and systems.


It serves oil and gas, refining, chemicals, power generation, life sciences, food and beverage, automotive, pulp and paper, metals and mining, and municipal water supplies markets.The Commercial & Residential Solutions segment offers residential and commercial heating and air conditioning products, such as reciprocating and scroll compressors; system protector and flow control devices; standard, programmable, and Wi-Fi thermostats; monitoring equipment and electronic controls for gas and electric heating systems; gas valves for furnaces and water heaters; ignition systems for furnaces; sensors and thermistors for home appliances; and temperature sensors and controls.It also provides reciprocating, scroll, and screw compressors; precision flow controls; system diagnostics and controls; and environmental control systems.


In addition, this segment offers air conditioning, refrigeration, and lighting control technologies, as well as facility design and product management, site commissioning, facility monitoring, and energy modeling services; tools for professionals and homeowners; and appliance solutions.Emerson Electric Co. was incorporated in 1890 and is headquartered in Saint Louis, Missouri.

Market Data

Last Price 130.44
Change Percentage 1.23%
Open 129.7
Previous Close 128.85
Market Cap ( Millions) 74290
Volume 2441318
Year High 134.85
Year Low 92.16
M A 50 127.41
M A 200 114.16

Financial Ratios

FCF Yield 3.92%
Dividend Yield 1.61%
ROE 9.37%
Debt / Equity 37.89%
Net Debt / EBIDTA 114.05%
Price To Book 3.44
Price Earnings Ratio 37.79
Price To FCF 25.5
Price To sales 4.25
EV / EBITDA 19.52

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Intelligent Devices - Final Control

Expected Growth : 6.5 %

What the company do ?

Intelligent Devices - Final Control from Emerson Electric Co. are smart sensors and actuators that provide precise control and monitoring of industrial processes, ensuring efficient and safe operations.

Why we expect these perspectives ?

Emerson Electric Co.'s Intelligent Devices - Final Control segment growth of 6.5% is driven by increasing adoption of Industrial Internet of Things (IIoT) and digital transformation in process industries, rising demand for automation and control systems, and growing need for energy efficiency and sustainability solutions.

Segment nΒ°2 -> Intelligent Devices - Measurement & Analytical

Expected Growth : 6.8 %

What the company do ?

Intelligent Devices - Measurement & Analytical from Emerson Electric Co. provides advanced sensors, transmitters, and analyzers for process measurement and analysis in industrial automation.

Why we expect these perspectives ?

Emerson Electric Co.'s Intelligent Devices - Measurement & Analytical segment growth of 6.8% is driven by increasing demand for industrial automation, IoT adoption, and digital transformation in process industries. Additionally, growing need for precise measurement and analytical solutions in oil and gas, chemical, and power generation industries also contribute to this growth.

Segment nΒ°3 -> Intelligent Devices - Discrete Automation

Expected Growth : 6.2 %

What the company do ?

Intelligent Devices - Discrete Automation from Emerson Electric Co. provides advanced automation solutions for discrete manufacturing, enabling efficient production and optimized performance.

Why we expect these perspectives ?

Emerson Electric Co.'s Intelligent Devices - Discrete Automation segment growth of 6.2% is driven by increasing adoption of Industrial Internet of Things (IIoT) and Industry 4.0 technologies, rising demand for automation and digitalization in process industries, and growing need for real-time data analytics and predictive maintenance.

Segment nΒ°4 -> Software and Control - Control Systems & Software

Expected Growth : 7.2 %

What the company do ?

Emerson Electric Co.'s Software and Control - Control Systems & Software provides automation solutions for industrial processes, optimizing efficiency and productivity.

Why we expect these perspectives ?

Emerson Electric Co.'s Control Systems & Software segment growth of 7.2% is driven by increasing adoption of Industrial Internet of Things (IIoT) and digital transformation in industries, rising demand for automation and process optimization, and expansion in emerging markets. Additionally, strategic acquisitions and investments in innovative technologies, such as artificial intelligence and cybersecurity, contribute to the segment's growth.

Segment nΒ°5 -> Intelligent Devices - Safety & Productivity

Expected Growth : 6.9 %

What the company do ?

Intelligent Devices - Safety & Productivity from Emerson Electric Co. provides advanced automation solutions to enhance plant safety, efficiency, and productivity in industrial processes.

Why we expect these perspectives ?

Emerson Electric Co.'s Intelligent Devices - Safety & Productivity segment growth of 6.9% is driven by increasing demand for industrial automation, digital transformation, and IoT adoption. Additionally, growing concerns for workplace safety and regulatory compliance are fueling demand for safety solutions. Furthermore, the need for improved operational efficiency and productivity is driving adoption of Emerson's intelligent devices.

Segment nΒ°6 -> Software and Control - AspenTech

Expected Growth : 7.5 %

What the company do ?

AspenTech from Emerson Electric Co. provides software and control solutions for industrial automation, optimizing plant operations, and improving efficiency.

Why we expect these perspectives ?

AspenTech's 7.5% growth is driven by increasing adoption of industrial automation and digitalization, rising demand for process optimization and efficiency, and growing need for real-time data analytics in industries such as oil and gas, chemicals, and pharmaceuticals.

Segment nΒ°7 -> Eliminations/Interest

Expected Growth : 0.0 %

What the company do ?

Eliminations/Interest from Emerson Electric Co. refers to the removal of intercompany transactions and interest expenses between Emerson and its subsidiaries to present a consolidated financial picture.

Why we expect these perspectives ?

Emerson Electric Co.'s Eliminations/Interest segment shows 0.0% growth, driven by stagnant sales and flat operating margins. The lack of growth is attributed to declining industrial automation demand, intense competition, and limited pricing power. Additionally, high research and development expenses, and increasing raw material costs have also contributed to the stagnant growth.

Emerson Electric Co. Products

Product Range What is it ?
Automation Solutions Emerson's automation solutions provide control systems, valves, and instruments to optimize plant performance and efficiency.
Commercial and Residential Solutions Emerson's commercial and residential solutions offer heating, ventilation, and air conditioning (HVAC) systems, as well as refrigeration and cold chain management.
Network Power Emerson's network power solutions provide AC and DC power systems, as well as outside plant and network infrastructure, for telecommunications and data centers.
Process Management Emerson's process management solutions offer control systems, valves, and instruments to optimize process efficiency and safety in industries such as oil and gas, refining, and chemical.
Climate Technologies Emerson's climate technologies provide heating, ventilation, and air conditioning (HVAC) systems, as well as refrigeration and cold chain management, for commercial and residential applications.

Emerson Electric Co.'s Porter Forces

Emerson Electric Co. operates in a industry where substitutes are available, but they are not a significant threat. The company's products are highly specialized and customized, making it difficult for substitutes to replace them.

Emerson Electric Co. has a diverse customer base, which reduces the bargaining power of individual customers. The company's products are also critical to its customers' operations, making it difficult for them to negotiate prices.

Emerson Electric Co. has a moderate level of dependence on its suppliers. While the company has a diverse supplier base, some of its suppliers have a high level of bargaining power due to their size and importance to the company's operations.

The threat of new entrants in the industry is low due to the high barriers to entry, including the need for significant capital investment and specialized expertise. Emerson Electric Co. has a strong brand reputation and established relationships with customers, making it difficult for new entrants to gain traction.

The industry in which Emerson Electric Co. operates is highly competitive, with several established players competing for market share. The company must continually innovate and improve its products and services to maintain its market position.

Capital Structure

Value
Debt Weight 28.28%
Debt Cost 3.95%
Equity Weight 71.72%
Equity Cost 10.77%
WACC 8.84%
Leverage 39.43%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
DOV Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. The Engineered Products segment provides various equipment, component, software, solution, and services …
ROP Roper Technologies, Inc. designs and develops software, and engineered products and solutions. The company offers management, campus solutions, diagnostic and laboratory information management, enterprise management, information solutions, transportation management, financial …
OTIS Otis Worldwide Corporation manufactures, installs, and services elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. The New Equipment …
IR Ingersoll Rand Inc. provides various mission-critical air, fluid, energy, specialty vehicle and medical technologies in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It operates through …
AME AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices worldwide. It operates in two segments, Electronic Instruments (EIG) and Electromechanical (EMG). The company's EIG segment offers advanced instruments for …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
130.44$
Current Price
130.44$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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