EMR - Emerson Electric: Improved Profitability After Restructuring Plans

2024-06-18 14:30:00 ET

Summary

• Emerson Electric stocks are trading above fair market price.
• The restructuring plan led to significant changes in the business model.
• Revenues decreased due to the discontinuation of Climate Technologies, but future profitability and cash flow generation are expected to improve.

Executive Summary

Emerson Electric Co. ( EMR ) stocks are currently trading above their fair market price.

After a major restructuring plan implemented back in 2021, Emerson's business model has changed quite significantly.

Although the company achieved a more profitable and agile business model, due to the discontinuation of the Climate Technologies business line, Emerson's revenues have decreased drastically over the past years, resulting in a significant loss of market share....

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