Stock Analysis on Net
Stock Analysis on Net

Emerson Electric Co. (NYSE:EMR)

This company has been moved to the archive! The financial data has not been updated since April 24, 2020.

Price to FCFE (P/FCFE) 

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Emerson Electric Co., FCFE calculation

US$ in millions

Microsoft Excel
12 months ended: Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Net earnings common stockholders 2,306 2,203 1,518 1,635 2,710 2,147
Noncontrolling interests in earnings of subsidiaries 22 21 32 29 23 37
Net noncash charges 828 751 980 742 (62) 1,394
Changes in operating working capital (150) (83) 160 93 (142) 114
Cash provided by operating activities 3,006 2,892 2,690 2,499 2,529 3,692
Capital expenditures (594) (617) (476) (447) (685) (767)
Net increase (decrease) in short-term borrowings (6) 343 (1,635) (34) 1,116 180
Proceeds from short-term borrowings greater than three months — — — 1,264 2,515 2,952
Payments of short-term borrowings greater than three months — — (90) (1,174) (3,286) (2,510)
Proceeds from long-term debt 1,691 — — — 1,000 1
Payments on long-term debt (656) (241) (254) (254) (504) (329)
Free cash flow to equity (FCFE) 3,441 2,377 235 1,854 2,685 3,219

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Emerson Electric Co. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Emerson Electric Co. FCFE increased from 2017 to 2018 and from 2018 to 2019.

Price to FCFE Ratio, Current

Emerson Electric Co., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 597,475,300
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 3,441
FCFE per share 5.76
Current share price (P) 53.82
Valuation Ratio
P/FCFE 9.34
Benchmarks
P/FCFE, Competitors1
Boeing Co. —
Caterpillar Inc. 18.02
Eaton Corp. plc 41.37
GE Aerospace 296.42
Honeywell International Inc. 28.56
Lockheed Martin Corp. 16.17
RTX Corp. 9.32
P/FCFE, Sector
Capital Goods 37.25
P/FCFE, Industry
Industrials 40.02

Based on: 10-K (reporting date: 2019-09-30).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Emerson Electric Co., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
No. shares of common stock outstanding1 609,153,835 626,158,598 641,819,838 642,776,971 654,557,141 693,634,810
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 3,441 2,377 235 1,854 2,685 3,219
FCFE per share3 5.65 3.80 0.37 2.88 4.10 4.64
Share price1, 4 73.07 68.46 60.26 54.97 50.01 64.15
Valuation Ratio
P/FCFE5 12.94 18.03 164.58 19.06 12.19 13.82
Benchmarks
P/FCFE, Competitors6
Boeing Co. 19.60 — — — — —
Caterpillar Inc. 11.07 — — — — —
Eaton Corp. plc 11.12 — — — — —
GE Aerospace — — — — — —
Honeywell International Inc. 21.75 — — — — —
Lockheed Martin Corp. 28.62 — — — — —
RTX Corp. 28.09 — — — — —
P/FCFE, Sector
Capital Goods 27.54 — — — — —
P/FCFE, Industry
Industrials 28.48 — — — — —

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,441,000,000 ÷ 609,153,835 = 5.65

4 Closing price as at the filing date of Emerson Electric Co. Annual Report.

5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 73.07 ÷ 5.65 = 12.94

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Emerson Electric Co. P/FCFE ratio decreased from 2017 to 2018 and from 2018 to 2019.