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Is this Large Market Cap Stock target price reasonable for Emerson Electric Co. (NYSE:EMR)?

The company in question is, Emerson Electric Co. (NYSE:EMR) currently with a stock price of 51.64 (-0.86% today). The market cap for Emerson Electric Co. is 34813.83, and is in the sector Industrial Goods, and Industrial Electrical Equipment industry. The target price for Emerson Electric Co. is 51.28. Currently Emerson Electric Co. is trading with a P/E of 18.77, and a forward P/E of 17.11. Average volume for Emerson Electric Co. is 3640.35 and so far today it is 201450.

Performance in the last year for Emerson Electric Co. has been 17.49%. For EPS growth, Emerson Electric Co. has seen a growth of 31.40%, and is looking to grow in the next year to 4.00%. More long term stats show that EPS growth has been 9.00% over the last five years and could be 5.66% for the next five years. Emerson Electric Co. has seen sales growth quarter over quarter at -6.90%, with EPS growth quarter over quarter at -15.10%. The 20-day simple moving average is -4.00%, with the 200-day simple moving average coming to 2.44%.

Since the IPO date for Emerson Electric Co. on the 6/1/1972, Emerson Electric Co. has seen performance year to date to be 11.99%. With Emerson Electric Co. trading at 51.64, the dividend yield is 3.65%, and the EPS is 2.78.

So could Emerson Electric Co., be undervalued? Well as said before P/E is 18.77. The PEG is 3.31, P/S is 1.69 and the P/B is at 4.39. The P/cash is 9.9, with P/free cash flow at 27.39.

Emerson Electric Co. ability to deal with debt shows that the current ratio is 1.2, and the quick ratio is 1. This is with long term debt/equity at 0.51, and total debt/equity at 0.92.

In terms of margins, Emerson Electric Co. has a gross margin of 40.20%, an operating margin of 13.80% and a profit margin of 9.00%.Payout ratio for Emerson Electric Co. is 68.00%. Return on assets come to 8.40% with return on investment coming to 12.40%.

Insider ownership for Emerson Electric Co., is at 0.62% and institutional ownership comes to 71.90%. Outstanding shares are at 668.34. While shares float is 639.23. The float short is currently 3.07%, and short ratio is 5.4.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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