Emerson Electric Stock Buy Hold or Sell Recommendation
| EMR Stock | USD 109.62 0.15 0.14% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Emerson Electric is 'Strong Hold'. Macroaxis provides Emerson Electric buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding EMR positions. The advice algorithm takes into account all of Emerson Electric's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Emerson Electric's buy or sell advice are summarized below:
Real Value 113.96 | Target Price 109.95 | Hype Value 109.52 | Market Value 109.62 | Naive Value 108.51 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Emerson Electric given historical horizon and risk tolerance towards Emerson Electric. When Macroaxis issues a 'buy' or 'sell' recommendation for Emerson Electric, the advice is generated through an automated system that utilizes algorithms and statistical models.
Emerson |
Execute Emerson Electric Buy or Sell Advice
The Emerson recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Emerson Electric. Macroaxis does not own or have any residual interests in Emerson Electric or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Emerson Electric's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Emerson Electric Trading Alerts and Improvement Suggestions
| Emerson Electric has a poor financial position based on the latest SEC disclosures | |
| Over 77.0% of the company shares are held by institutions such as insurance companies | |
| On 11th of March 2024 Emerson Electric paid $ 0.525 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: United States Industrial Valve Market Report 2024 An 11.02 Billion Industry Driven by Establishment of Smart Cities and Growing Demand In Healthcare Pharmaceutical Industries |
Emerson Electric Returns Distribution Density
The distribution of Emerson Electric's historical returns is an attempt to chart the uncertainty of Emerson Electric's future price movements. The chart of the probability distribution of Emerson Electric daily returns describes the distribution of returns around its average expected value. We use Emerson Electric price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Emerson Electric returns is essential to provide solid investment advice for Emerson Electric.
| Mean Return | 0.22 | Value At Risk | -1.46 | Potential Upside | 1.50 | Standard Deviation | 1.55 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Emerson Electric historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Emerson Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Emerson Electric is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Emerson Electric backward and forwards among themselves. Emerson Electric's institutional investor refers to the entity that pools money to purchase Emerson Electric's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Northern Trust Corp | 2023-12-31 | 7 M | State Farm Mutual Automobile Ins Co | 2023-12-31 | 5.8 M | Bank Of New York Mellon Corp | 2023-12-31 | 5.3 M | Goldman Sachs Group Inc | 2023-12-31 | 4.9 M | Stifel Financial Corp | 2023-12-31 | 4.5 M | Legal & General Group Plc | 2023-12-31 | 4.5 M | Ubs Group Ag | 2023-12-31 | 4.1 M | Royal Bank Of Canada | 2023-12-31 | 3.9 M | Jpmorgan Chase & Co | 2023-12-31 | 3.8 M | Vanguard Group Inc | 2023-12-31 | 52.2 M | Blackrock Inc | 2023-12-31 | 37.1 M |
Emerson Electric Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (6M) | (126M) | (469M) | (160M) | (144M) | (136.8M) | |
| Change In Cash | 1.8B | (961M) | (550M) | 6.2B | 7.2B | 7.5B | |
| Free Cash Flow | 2.5B | 3.0B | 2.4B | 274M | 315.1M | 299.3M | |
| Depreciation | 854M | 969M | 1.0B | 1.1B | 1.2B | 701.7M | |
| Other Non Cash Items | (20M) | (135M) | (976M) | (237M) | (213.3M) | (202.6M) | |
| Capital Expenditures | 538M | 581M | 531M | 363M | 417.5M | 569.4M | |
| Net Income | 2.0B | 2.3B | 3.2B | 2.1B | 2.4B | 1.7B | |
| End Period Cash Flow | 3.3B | 2.4B | 1.8B | 8.1B | 9.3B | 9.7B | |
| Change To Netincome | 91M | 100M | (833M) | (13.4B) | (12.1B) | (11.5B) | |
| Net Borrowings | 1.6B | (812M) | 3.7B | (3.2B) | (2.9B) | (2.8B) | |
| Investments | (740M) | (2.1B) | (5.3B) | 12.4B | 14.3B | 15.0B |
Emerson Electric Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Emerson Electric or Electrical Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Emerson Electric's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Emerson stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | 0.19 | |
β | Beta against NYSE Composite | 0.26 | |
σ | Overall volatility | 1.55 | |
Ir | Information ratio | 0.09 |
Emerson Electric Volatility Alert
Emerson Electric has low volatility with Treynor Ratio of 0.82, Maximum Drawdown of 12.09 and kurtosis of 29.18. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Emerson Electric's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Emerson Electric's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Emerson Electric Implied Volatility
Emerson Electric's implied volatility exposes the market's sentiment of Emerson Electric stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Emerson Electric's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Emerson Electric stock will not fluctuate a lot when Emerson Electric's options are near their expiration.
Emerson Electric Fundamentals Vs Peers
Comparing Emerson Electric's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Emerson Electric's direct or indirect competition across all of the common fundamentals between Emerson Electric and the related equities. This way, we can detect undervalued stocks with similar characteristics as Emerson Electric or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Emerson Electric's fundamental indicators could also be used in its relative valuation, which is a method of valuing Emerson Electric by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Emerson Electric to competition |
| Fundamentals | Emerson Electric | Peer Average |
| Return On Equity | 0.0894 | -0.31 |
| Return On Asset | 0.0481 | -0.14 |
| Profit Margin | 0.69 % | (1.27) % |
| Operating Margin | 0.21 % | (5.51) % |
| Current Valuation | 77.96 B | 16.62 B |
| Shares Outstanding | 571.7 M | 571.82 M |
| Shares Owned By Insiders | 0.34 % | 10.09 % |
| Shares Owned By Institutions | 77.36 % | 39.21 % |
| Number Of Shares Shorted | 6.41 M | 4.71 M |
| Price To Earning | 17.43 X | 28.72 X |
| Price To Book | 3.12 X | 9.51 X |
| Price To Sales | 4.05 X | 11.42 X |
| Revenue | 15.16 B | 9.43 B |
| Gross Profit | 7.43 B | 27.38 B |
| EBITDA | 3.88 B | 3.9 B |
| Net Income | 2.13 B | 570.98 M |
| Cash And Equivalents | 8.05 B | 2.7 B |
| Cash Per Share | 3.05 X | 5.01 X |
| Total Debt | 8.16 B | 5.32 B |
| Debt To Equity | 0.67 % | 48.70 % |
| Current Ratio | 1.09 X | 2.16 X |
| Book Value Per Share | 36.16 X | 1.93 K |
| Cash Flow From Operations | 637 M | 971.22 M |
| Short Ratio | 2.90 X | 4.00 X |
| Earnings Per Share | 3.41 X | 3.12 X |
| Price To Earnings To Growth | 2.30 X | 4.89 X |
| Target Price | 123.16 | |
| Number Of Employees | 67 K | 18.84 K |
| Beta | 1.37 | -0.15 |
| Market Capitalization | 62.67 B | 19.03 B |
| Total Asset | 42.75 B | 29.47 B |
| Retained Earnings | 40.07 B | 9.33 B |
| Working Capital | 8.79 B | 1.48 B |
Note: Acquisition by Michael Train of 28305 shares of Emerson Electric subject to Rule 16b-3 [view details]
Emerson Electric Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Emerson . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Emerson Electric Buy or Sell Advice
When is the right time to buy or sell Emerson Electric? Buying financial instruments such as Emerson Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 10.4B | 8.2B | 9.4B | 9.8B | Total Assets | 35.7B | 42.7B | 49.2B | 51.6B |
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Check out Emerson Electric Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. To learn how to invest in Emerson Stock, please use our How to Invest in Emerson Electric guide.You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Complementary Tools for Emerson Stock analysis
When running Emerson Electric's price analysis, check to measure Emerson Electric's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Emerson Electric is operating at the current time. Most of Emerson Electric's value examination focuses on studying past and present price action to predict the probability of Emerson Electric's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Emerson Electric's price. Additionally, you may evaluate how the addition of Emerson Electric to your portfolios can decrease your overall portfolio volatility.
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Is Emerson Electric's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Emerson Electric. If investors know Emerson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Emerson Electric listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.94) | Dividend Share 2.085 | Earnings Share 3.41 | Revenue Per Share 27.862 | Quarterly Revenue Growth 0.221 |
The market value of Emerson Electric is measured differently than its book value, which is the value of Emerson that is recorded on the company's balance sheet. Investors also form their own opinion of Emerson Electric's value that differs from its market value or its book value, called intrinsic value, which is Emerson Electric's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Emerson Electric's market value can be influenced by many factors that don't directly affect Emerson Electric's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Emerson Electric's value and its price as these two are different measures arrived at by different means. Investors typically determine if Emerson Electric is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Emerson Electric's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.