Wide-moat-rated Emerson’s fiscal second-quarter revenue of $4.4 billion and adjusted EPS of $1.36 both came in above FactSet consensus estimates of $4.3 billion and $1.25, respectively. We’ve increased our fair value estimate to $115 from $113, driven by our slightly more optimistic near-term margin assumptions and time value of money.
Emerson is the undisputed king of process automation with the industry’s largest installed base in the Americas.
Emerson has a spotty history of integrating M&A, which doesn't bode well for the AspenTech acquisition.
|
Metric
|
EMR
|
ROK
|
HON
|
|---|---|---|---|
Price/Earnings (Normalized) | 21.86 | 24.20 | 21.77 |
Price/Book Value | 3.09 | 8.71 | 8.18 |
Price/Sales | 3.92 | 3.48 | 3.72 |
Price/Cash Flow | 20.10 | 21.69 | 22.13 |
|
Metric
|
EMR
|
ROK
|
HON
|
|---|---|---|---|
Quick Ratio | 0.68 | 0.66 | 1.18 |
Current Ratio | 1.18 | 1.11 | 1.66 |
Interest Coverage | 8.06 | 10.74 | 9.46 |
|
Metric
|
EMR
|
ROK
|
HON
|
|---|---|---|---|
Return on Assets (Normalized) | 5.56% | 11.32% | 9.52% |
Return on Equity (Normalized) | 12.76% | 37.63% | 35.30% |
Return on Invested Capital (Normalized) | 6.72% | 18.37% | 16.16% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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