Emerson Electric Company
Find Ratings ReportsEMERSON ELECTRIC CO's gross profit margin for the first quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. EMERSON ELECTRIC CO has weak liquidity. Currently, the Quick Ratio is 0.74 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 92.72% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q1 FY24 | Q1 FY23 |
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Net Sales ($mil) | 4117.0 | 3373.0 |
EBITDA ($mil) | 791.0 | 737.0 |
EBIT ($mil) | 369.0 | 477.0 |
Net Income ($mil) | 142.0 | 2331.0 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 2076.0 | 2353.0 |
Total Assets ($mil) | 46513.0 | 36241.0 |
Total Debt ($mil) | 11481.0 | 10388.0 |
Equity ($mil) | 20674.0 | 10727.0 |
Profitability | Q1 FY24 | Q1 FY23 |
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Gross Profit Margin | 50.23 | 52.39 |
EBITDA Margin | 19.21 | 21.84 |
Operating Margin | 8.96 | 14.14 |
Sales Turnover | 0.34 | 0.39 |
Return on Assets | 23.71 | 12.87 |
Return on Equity | 9.5 | 13.67 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 1.12 | 1.1 |
Debt/Capital | 0.36 | 0.49 |
Interest Expense | 84.0 | 68.0 |
Interest Coverage | 4.39 | 7.01 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 571.7 | 571.4 |
Div / share | 0.53 | 0.52 |
EPS | 0.25 | 0.56 |
Book value / share | 36.16 | 18.77 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 2740299.0 | 3098316.0 |
BUY. This stock's P/E ratio indicates a significant discount compared to an average of 53.34 for the Computer and Electronic Product Manufacturing subsector and a premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 3.05 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 23.59. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, EMERSON ELECTRIC CO proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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EMR 32.28 | Peers 53.34 | EMR 99.65 | Peers 44.47 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. EMR is trading at a significant discount to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. EMR is trading at a significant premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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EMR 18.76 | Peers 26.06 | EMR 0.72 | Peers 1.95 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. EMR is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. EMR trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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EMR 3.05 | Peers 23.59 | EMR 37.90 | Peers 123.02 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. EMR is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, EMR is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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EMR 3.97 | Peers 14.13 | EMR 13.46 | Peers 27.20 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. EMR is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. EMR significantly trails its peers on the basis of sales growth. |
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