Emerson Electric Co. (EMR) – NI acquisition to expand automation business

Emerson Electric Co. (EMR) (Q2FY23)

Introduction

Emerson Electric Co., a technology and engineering company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. The company operates through Automation Solutions, AspenTech, and Commercial & Residential Solutions segments.

The Automation Solutions segment offers measurement and analytical instrumentation, industrial valves and equipment, and process control software and systems. It serves oil and gas, refining, chemicals, power generation, life sciences, food and beverage, automotive, pulp and paper, metals and mining, and municipal water supplies markets.

The AspenTech segment provides asset optimization software that enables industrial manufacturers to design, operate, and maintain their operations for enhancing performance through a combination of decades of modeling, simulation, and optimization capabilities.

The Commercial & Residential Solutions segment offers residential and commercial heating and air conditioning products, such as reciprocating and scroll compressors; system protector and flow control devices; standard, programmable, and Wi-Fi thermostats; monitoring equipment and electronic controls for gas and electric heating systems; gas valves for furnaces and water heaters; ignition systems for furnaces; and temperature sensors and controls. It also provides reciprocating, scroll, and screw compressors; precision flow controls; system diagnostics and controls; and environmental control systems.

In addition, the above segment offers air conditioning, refrigeration, and lighting control technologies, as well as facility design and product management, site commissioning, facility monitoring, and energy modeling services; and tools for professionals and homeowners.

Highlights

Emerson & AspenTech were jointly selected to automate and optimize the Golden
Triangle Polymers facility on the Texas Gulf Coast. The $8.5bn project is a sister facility to QatarEnergy and Chevron Phillips Ras Laffan project that the company highlighted in Q1FY23.

Stock performance

Over the past 3 years, Emerson Electric generated returns of 46% where the stock price surged from $61.38 in Jun 29, 2020 to $89.63 in Jun 27, 2023. The stock had a 200-Day Moving Average of $86.41 and a 50-Day Moving Average of $83.78.

In the past 1 year, EMR delivered returns of 13% where the stock price increased from $79.31 in Jul 05, 2022 to $89.63 in Jun 27,2023.The stock had a 52 Week High of $99.65 and a 52 Week Low of $72.41.

Over the past 3 months, EMR generated returns of 6% where the stock price decreased from $84.94 in Mar 29, 2023 to $89.63 in Jun 27, 2023.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 32

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