This is our first report on engineering major, Emerson Electric. The company had a strong finish to the fiscal year 2022, with sales increasing by 9% surpassing Wall Street expectations. However, it missed out on earnings. The company has a positive prognosis for 2023, backed by end-market expansion and good operational performance. It continues to see growth potential in the life sciences sector thanks to continued investment in creating new drugs, vaccines, and medications. The company has been in the news for a series of divestments with the objective of developing a more focused approach on its core business and become a distinctive automation company with a consistent higher-growth portfolio exposed to a range of end markets and in line with global secular trends like digital transformation, sustainability, energy security, and near-shoring. They also have plenty of room to invest naturally and through disciplined capital deployment in M&A to grow automation capabilities along their industry-leading technology stack of intelligent devices, control, and software, which serves top clients in the process, hybrid, and discrete industries. We initiate coverage on the stock of Emerson Electric with a ‘Hold’ rating.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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