Emerson Electric Co. (NYSE:EMR) shares traded higher over the last trading session, gaining 4.42% on 05/27/20. The shares fell to a low of $60.40 before closing at $61.89. Intraday shares traded counted 4.19 million, which was 23.16% higher than its 30-day average trading volume of 5.45M. EMR’s previous close was $59.27 while the outstanding shares total 607.40M. The firm has a beta of 1.51, a 12-month trailing P/E ratio of 17.61, and a growth ratio of 12.00. The stock’s Relative Strength Index (RSI) is 69.28, with weekly volatility at 2.45% and ATR at 2.24. The EMR stock’s 52-week price range has touched low of $37.75 and a $78.38 high.
Investors have identified the Specialty Industrial Machinery company Emerson Electric Co. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $37.23 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Emerson Electric Co. (EMR) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For EMR, the company has in raw cash 2.58 billion on their books with 3.74 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 8032000000 million total, with 7940000000 million as their total liabilities.
EMR were able to record 787.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 1.09 billion. In cash movements, the company had a total of 1.01 billion as operating cash flow.
Potential earnings growth for Emerson Electric Co. (EMR)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Emerson Electric Co. recorded a total of 4.16 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -9.8% coming in sequential stages and their sales for the third quarter increasing by 0.26%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.41 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.75 billion. This allows shareholders to hold on to 607.40M with the revenue now reading 0.85 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.76 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.69 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on EMR sounds very interesting.
Is the stock of EMR attractive?
In related news, Director, GOLDEN ARTHUR F bought 5,000 shares of the company’s stock in a transaction that recorded on Mar 10. The purchase was performed at an average price of 51.47, for a total value of 257,346. As the purchase deal closes, the Exec. Pres. Comm & Res. Sols., Sharp Robert T now sold 7,000 shares of the company’s stock, valued at 532,911. Also, Director, BLINN MARK A bought 1,400 shares of the company’s stock in a deal that was recorded on Nov 15. The shares were cost at an average price of 73.11 per share, with a total market value of 102,358. Following this completion of disposal, the Senior Exec. VP and CFO, DELLAQUILA FRANK J now holds 2,000 shares of the company’s stock, valued at 148,789. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
8 out of 25 analysts covering the stock have rated it a Buy, while 16 have maintained a Hold recommendation on Emerson Electric Co.. 0 analysts has assigned a Sell rating on the EMR stock. The 12-month mean consensus price target for the company’s shares has been set at $57.37.