2024-05-30 13:07:42 ET
Summary
- Positive: Increased capital investment is driving revenue & EPS above historic trend rates.
- Negative: Continues ¨Portfolio¨ M&A has flat-lined cash flow and cut into ROIC.
- Consensus valuation of US$128 (+13%) backs into a target P/E of 23x and 1.5x P/E that seems reasonable.
- Further valuation upgrades require EMR to execute on its potential and deliver sustainable higher free cash flow and ROIC.
Introduction
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For further details see:
Emerson Electric: Execution Required For Higher Value