Emerson Electric: A Balanced Play On Industrial Digitization And Energy Transition

Research Wise
801 Followers
(10min)

Summary

  • Emerson exited the first half of FY25 with flat top line growth as softness in discrete automation offset strength in software and process businesses.
  • Near-term outlook remains mixed, but improving order momentum, robust $7.5B backlog, and strength in process/hybrid verticals should support sales growth for FY25.
  • Margin expansion is expected to be driven by cost reductions, pricing actions, and operational improvements, with further upside from planned debt reduction.
  • EMR's fair valuation, solid dividend yield, and favorable long-term trends justify a BUY rating for long-term investors.

Advanced Orange Industrial Robot Arms Assemble EV Battery Pack on Automated Production Line. Row of Robotic Arms inside Automotive Plant Assemble Batteries. Modern Electric Car Smart Factory.

SweetBunFactory/iStock via Getty Images

Intro And The Thesis

Emerson Electric (NYSE:EMR) is a leading automation and industrial software player operating globally, which has significantly restructured its portfolio with the expansion of its software and automation capabilities in the past few

This article was written by

801 Followers
As a finance enthusiast with experience in research, I am deeply engaged in studying diverse businesses, especially in the technology, industrial, and conglomerate sectors. I really like companies that have strong foundations and see them doing well in the long run. I enjoy writing about these businesses, telling their stories, strategies, and financial details. I use a mix of looking at their finances and writing to give insights into how well companies might do, helping people understand the market better. This focus on both looking at the numbers and explaining things reflects my dedication to both understanding and explaining the details of the financial world.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About EMR Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on EMR

Related Stocks

SymbolLast Price% Chg
EMR
--