Emerson Electric (EMR)
Industrials · NYSE · US
Fundamentals
Valuation and ratings
Emerson Electric trades at $139.08, which is 20% below the $166.32 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 61 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 32.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Emerson Electric
Emerson Electric Co., a technology and software company, provides various solutions in the Americas, Asia, the Middle East, Africa, and Europe. It operates through Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, and Test & Measurement segments. The Final Control segment provides control valves, isolation valves, shutoff valves, pressure relief valves, pressure safety valves, actuators, and regulators for process and hybrid industries under Anderson Greenwood, Bettis, Crosby, Fisher, Keystone, KTM, and Vanessa brands. The Measurement & Analytical segment supplies intelligent instrumentation measuring the physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame under the Flexim, Micro Motion, and Rosemount brands. The Discrete Automation segment includes solenoid valves, pneumatic valves, valve position indicators, pneumatic cylinders and actuators, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems and software, electrical distribution equipment, and materials joining solutions used primarily in discrete industries under the Afag, Appleton, ASCO, Aventics, Branson, Movicon, PACSystems, SolaHD, TESCOM, and TopWorx brands. The Safety & Productivity segment delivers tools for professionals and homeowners that support infrastructure, promote safety, and enhance productivity under the Greenlee, Klauke, ProTeam, and RIDGID brands. The Control Systems & Software segment provides control systems and software that control plant processes by collecting and analyzing information from measurement devices in the plant under the DeltaV and Ovation brands. The Test & Measurement offers software-connected automated test and measurement systems. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.
EMR passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
16 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Ken Fisher, Fisher Asset Management, LLC$1.11B · 0.4% of book
- Ken Griffin, CITADEL ADVISORS LLC$117.03M · 0.0% of book
- Capital Research Global, Capital Research Global Investors$92.65M · 0.0% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$92.02M · 0.1% of book
- Marshall Wace, MARSHALL WACE, LLP$45.52M · 0.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Emerson Electric (EMR) undervalued?
Against our discounted cash flow estimate of $166.32, EMR at $139.08 is 20% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own EMR?
16 of the institutions we track reported a position in EMR in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is EMR's P/E ratio?
EMR trades at 32.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for EMR, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.