Emerson Electric Co. (NYSE:EMR) Relative Strength Index (RSI) is 65.90, with weekly volatility at 2.45% and ATR at 2.27. The EMR stock’s 52-week price range has touched low of $37.75 and a $82.00 high. Intraday shares traded counted 3.85 million, which was -40.46% lower than its 30-day average trading volume of 2.74M. Its shares traded higher over the last trading session, gaining 1.30% on 12/11/20. The shares fell to a low of $80.50 before closing at $82.42. EMR’s previous close was $81.36 while the outstanding shares total 597.20M. The firm has a beta of 1.54, a 12-month trailing P/E ratio of 25.40, and a growth ratio of 8.55.
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 $48.66 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 3.31 billion on their books with 1.16 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 a decline. In terms of their assets, the company currently has 8.81 billion total, with 5.79 billion as their total liabilities.
EMR were able to record 2.54 billion as free cash flow during the Q4 2020 quarter of the year, this saw their quarterly net cash flow reduce by 1.82 billion. In cash movements, the company had a total of 3.08 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 Q4 2020 quarter of the year, Emerson Electric Co. recorded a total of 4.56 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -9.06% coming in sequential stages and their sales for the Q4 2020 quarter increasing by 14.13%.
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 2.68 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.88 billion. This allows shareholders to hold on to 597.20M with the recently reported earning now reading 1.22 cents per share. This is a figure that compared to analyst’s prediction for their Q4 2020 (1.10 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.93 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, Senior Exec. VP and CFO, DELLAQUILA FRANK J sold 10,000 shares of the company’s stock in a transaction that recorded on Nov 25. The sale was performed at an average price of 78.91, for a total value of 789,103. As the sale deal closes, the Sr. VP, Secy and Gen. Counsel, Bosco Sara Yang now sold 12,000 shares of the company’s stock, valued at 947,880. Also, Exec. Pres Comm & Res Sols, Froedge James sold 6,540 shares of the company’s stock in a deal that was recorded on Nov 10. The shares were price at an average price of 77.41 per share, with a total market value of 506,251. Following this completion of acquisition, the Sr. VP & Chief Marketing Off., Button Bell Katherine now holds 687 shares of the company’s stock, valued at 42,780. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
9 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 $76.50.