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Looking At Emerson Electric Co. (NYSE:EMR) From All Angles

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I've been keeping an eye on Emerson Electric Co. (NYSE:EMR) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe EMR has a lot to offer. Basically, it is a financially-robust , dividend-paying company with a a great history of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Emerson Electric here.

Established dividend payer with proven track record

Over the past year, EMR has grown its earnings by 30%, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 27% return to shareholders, which paints a buoyant picture for the company. EMR's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. EMR appears to have made good use of debt, producing operating cash levels of 0.44x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NYSE:EMR Income Statement, May 16th 2019
NYSE:EMR Income Statement, May 16th 2019

Income investors would also be happy to know that EMR is a great dividend company, with a current yield standing at 3.0%. EMR has also been regularly increasing its dividend payments to shareholders over the past decade.

NYSE:EMR Historical Dividend Yield, May 16th 2019
NYSE:EMR Historical Dividend Yield, May 16th 2019

Next Steps:

For Emerson Electric, there are three essential aspects you should look at:

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  1. Future Outlook: What are well-informed industry analysts predicting for EMR’s future growth? Take a look at our free research report of analyst consensus for EMR’s outlook.

  2. Valuation: What is EMR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether EMR is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EMR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.