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Emerson Electric (EMR) Stock Analysis
Emerson Electric Dividend
Sector: Industrials Industry: Specialty Industrial Machinery
Emerson Electric (EMR) has paid a dividend since 1947 and increased its dividend for 68 consecutive years; qualifying the company as a Dividend King, Dividend Aristocrat, and Dividend Champion.
The company has a proven moat and and has shown an ability to adapt to long term changes in the industry.
Current Dividend Annualized: $2.11
Emerson Electric (EMR) Intrinsic Value – Margin of Safety Analysis
(updated February 2025)
Normalized Diluted Earnings Per Share (TTM): $3.55
Free Cash Flow Per Share (TTM): $5.70
Cash Flow From Operations Per Share (TTM): $6.44
Estimated Intrinsic Value: $94
Target Buy Price Based on Required Margin of Safety = $78
(Required Margin of Safety Based On Risk Stability Grade:
A = 0%, B = 20%, C = 40%, D = 60%, F = 80%)
Target SELL Price Based on Estimated Intrinsic Value = $117
(Allow Overvaluation Adjusted by Risk Stability Grade:
A = 40%, B = 25%, C = 15%, D = 5%, F = 0%)
Risk / Stability Grade: B
A grade indicates a quality company with a strong balance sheet, high earnings quality, and a positive business environment. These stocks require the slimmest margin of safety within the stock universe.
B grade indicates a company with a good balance sheet, good earning quality, and a stable business environment. The margin of safety required should be greater than stocks with an A grade but less than the average stock.
C grade indicates a company with a sufficient balance sheet, at least average earnings quality, and a reasonably stable business environment. The margin of safety required is greater than A & B stocks, but less than D & F stocks.
D grade indicates a company in good standing but has issues that could affect its stability and long term risks. D rated stocks should require a large margin of safety when purchased.
F grade indicates a company with significant issues that are currently affecting its stability and long term risks. Require an extremely large margin of safety for F rated stocks when purchased.
Financial Risk Grade: B
A grade indicates an extremely low probability of a dividend cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories.
B grade indicates a very low probability for a dividend cut.
C grade indicates a low probability for a dividend cut and/or average safety risk.
D grade indicates there are issues that should be considered concerning future dividend payments.
F grade indicates serious dividend safety risks. Investors should complete comprehensive due diligence before investing.
Business Quality Grade: C
A grade indicates earnings quality is high or far above average.
B grade indicates earnings quality is good and/or above average.
C grade indicates earnings quality is acceptable or average.
D grade indicates earnings quality is poor and requires thoughtful due diligence.
F grade indicates the quality of the earnings is poor or far below average requiring serious due diligence.
Earnings Report: 12/31/24
AAAMP Portfolios Position Disclosures:
Treasure Trove Dividend (TTD) – None
Global Dividend Value (GDV) – None
Dividend Growth & Income (DGI) – None
Global Value (GV) – None
Global Value Aggressive (GVA) – None
Global Conservative Income (GCI) – None
Global High Income (GHI) – None
Company Description
Sector: Industrials
Industry: Specialty Industrial Machinery
Company Overview:
Emerson Electric Co. (EMR) is a global technology and engineering company that provides innovative solutions in automation, climate technologies, and industrial equipment. The company’s product portfolio spans multiple industries, including energy, process management, industrial automation, and commercial and residential solutions. Emerson’s brands include Copeland, Rosemount, and Fisher. With operations in more than 150 countries, Emerson is focused on helping customers improve productivity and energy efficiency.
Company Strengths:
Emerson’s strengths include its strong portfolio of leading brands, its expertise in automation and control solutions, and its focus on sustainability and energy efficiency. The company’s diversified business model allows it to serve a broad range of industries, reducing reliance on any single market. Emerson’s commitment to innovation, through significant investment in research and development, enables it to stay ahead of market trends. Its consistent financial performance, strong global presence, and efficient operations contribute to its competitive advantage.
Company Challenges:
Emerson faces challenges such as fluctuating raw material costs, global supply chain disruptions, and regulatory pressures that impact the manufacturing and industrial sectors. Intense competition in automation and industrial technology requires continuous innovation and cost management. Additionally, economic slowdowns, particularly in key sectors like energy and manufacturing, can reduce demand for some of its products. The company also faces the challenge of adapting to changing environmental regulations, particularly in the areas of energy consumption and emissions standards.
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Disclaimer:
While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.