Emerson Electric Co. [NYSE:EMR]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Emerson Electric Co. [EMR], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in September. On average, stock market experts give EMR an Outperform rating. Its stock price has been found in the range of 55.38 to 79.70. This is compared to its latest closing price of $65.66.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Emerson Electric Co. [EMR] is sitting at 2.21. This is compared to 1 month ago, when its average rating was 2.17.
For the quarter ending in Mar-19 Emerson Electric Co. [EMR] generated $4.57 billion in sales. That’s 1.58% lower than the average estimate of $4.64 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Tue 6 Aug (In 81 Days).
Fundamental Analysis of Emerson Electric Co. [EMR]
Now let’s turn to look at profitability: with a current Operating Margin for Emerson Electric Co. [EMR] sitting at +17.11 and its Gross Margin at +41.57, this company’s Net Margin is now 12.20%. These measurements indicate that Emerson Electric Co. [EMR] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 21.92, and its Return on Invested Capital has reached 14.40%. Its Return on Equity is 24.94, and its Return on Assets is 11.02. These metrics all suggest that Emerson Electric Co. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Emerson Electric Co. [EMR] has generated a Total Debt to Total Equity ratio of 53.20. Similarly, its Total Debt to Total Capital is 34.73, while its Total Debt to Total Assets stands at 23.34. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 35.06, and its Long-Term Debt to Total Capital is 22.89. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 11.99 and its Total Debt to EBITDA Value is 1.27. The Enterprise Value to Sales for this firm is now 2.48, and its Total Debt to Enterprise Value stands at 0.09. Emerson Electric Co. [EMR] has a Price to Book Ratio of 5.39, a Price to Cash Flow Ratio of 16.82 and P/E Ratio of 17.78. These metrics all suggest that Emerson Electric Co. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Emerson Electric Co. [EMR] earns $198,949 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.43 and its Total Asset Turnover is 0.87. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.78 and its Current Ratio is 1.07. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Emerson Electric Co. [EMR] has 613.43M shares outstanding, amounting to a total market cap of $40.28B. Its stock price has been found in the range of 55.38 to 79.70. At its current price, it has moved by -17.95% from its 52-week high, and it has moved 18.06% from its 52-week low.
This stock’s Beta value is currently 1.24, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 33.88. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Emerson Electric Co. [EMR] a Reliable Buy?
Shares of Emerson Electric Co. [EMR], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.