Emerson Electric Co.EMR

Morningstar Rating

Stock Research and Analysis

by Daniel Holland

Emerson Electric provides investors with a broad portfolio of industrial businesses and a reputation for providing consistent returns to investors. We like Emerson's prospects despite the tough competitive environment.

During the downturn of 2001-02, Read more

Bulls Say

Emerson has diligently returned value to shareholders with an average of 80% of free cash flows coming back to shareholders via stock buybacks and dividends.

Emerson's reputation in the process automation has enabled it to capture an estimated 18% of the market.

Emerson has made strong advances in wireless devices for use in industrial environments, opening up a new window of growth opportunities.

The company has a number of investments to expand its presence in emerging markets and has a strong position relative to other firms. Read more

Bears Say

With customers retreating, there are few immediate catalysts for growth for the company.

Almost half of revenue for Emerson comes from the United States, where little growth is expected over the next 12 months.

With such a big bet in emerging markets, the company may spread itself too thin reaching for growth in distinct markets. Read more

Strategy

Emerson seeks to serve global industrial markets while keeping its costs low through an efficient supply chain. Emerson strives to keep its end-market business exposure diversified across geographic Read more

Management

Emerson emphatically states that it strongly supports long-term shareholder value creation and has an excellent record of backing up this claim. Management's goal is to return at least 50% of cash flows to shareholders in the form of dividends or share Read more

Profile

Emerson manages five business segments: process management (25% of sales), industrial automation (18%), network power (25%), climate technologies (15%), and tools and appliances Read more

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