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EMR (Emerson Electric Co) Piotroski F-Score : 4 (As of Oct. 31, 2024)


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What is Emerson Electric Co Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Emerson Electric Co has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Emerson Electric Co's Piotroski F-Score or its related term are showing as below:

EMR' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 8
Current: 4

During the past 13 years, the highest Piotroski F-Score of Emerson Electric Co was 8. The lowest was 4. And the median was 6.


Emerson Electric Co Piotroski F-Score Historical Data

The historical data trend for Emerson Electric Co's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Emerson Electric Co Piotroski F-Score Chart

Emerson Electric Co Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.00 5.00 7.00 5.00 7.00

Emerson Electric Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 7.00 7.00 5.00 4.00

Competitive Comparison of Emerson Electric Co's Piotroski F-Score

For the Specialty Industrial Machinery subindustry, Emerson Electric Co's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Emerson Electric Co's Piotroski F-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Emerson Electric Co's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Emerson Electric Co's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Net Income was 744 + 142 + 501 + 329 = $1,716 Mil.
Cash Flow from Operations was -643 + 415 + 743 + 1090 = $1,605 Mil.
Revenue was 4090 + 4117 + 4376 + 4380 = $16,963 Mil.
Gross Profit was 2012 + 1916 + 2284 + 2314 = $8,526 Mil.
Average Total Assets from the begining of this year (Jun23)
to the end of this year (Jun24) was
(44173 + 42746 + 46513 + 46440 + 45585) / 5 = $45091.4 Mil.
Total Assets at the begining of this year (Jun23) was $44,173 Mil.
Long-Term Debt & Capital Lease Obligation was $7,622 Mil.
Total Current Assets was $8,820 Mil.
Total Current Liabilities was $7,592 Mil.
Net Income was 740 + 2331 + 792 + 9352 = $13,215 Mil.

Revenue was 3892 + 3373 + 3756 + 3946 = $14,967 Mil.
Gross Profit was 1829 + 1620 + 1801 + 1994 = $7,244 Mil.
Average Total Assets from the begining of last year (Jun22)
to the end of last year (Jun23) was
(37042 + 35672 + 36241 + 36147 + 44173) / 5 = $37855 Mil.
Total Assets at the begining of last year (Jun22) was $37,042 Mil.
Long-Term Debt & Capital Lease Obligation was $8,002 Mil.
Total Current Assets was $15,760 Mil.
Total Current Liabilities was $6,614 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Emerson Electric Co's current Net Income (TTM) was 1,716. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Emerson Electric Co's current Cash Flow from Operations (TTM) was 1,605. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun23)
=1716/44173
=0.03884726

ROA (Last Year)=Net Income/Total Assets (Jun22)
=13215/37042
=0.35675719

Emerson Electric Co's return on assets of this year was 0.03884726. Emerson Electric Co's return on assets of last year was 0.35675719. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Emerson Electric Co's current Net Income (TTM) was 1,716. Emerson Electric Co's current Cash Flow from Operations (TTM) was 1,605. ==> 1,605 <= 1,716 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun23 to Jun24
=7622/45091.4
=0.16903445

Gearing (Last Year: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=8002/37855
=0.21138555

Emerson Electric Co's gearing of this year was 0.16903445. Emerson Electric Co's gearing of last year was 0.21138555. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun24)=Total Current Assets/Total Current Liabilities
=8820/7592
=1.16174921

Current Ratio (Last Year: Jun23)=Total Current Assets/Total Current Liabilities
=15760/6614
=2.38282431

Emerson Electric Co's current ratio of this year was 1.16174921. Emerson Electric Co's current ratio of last year was 2.38282431. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Emerson Electric Co's number of shares in issue this year was 574.8. Emerson Electric Co's number of shares in issue last year was 574. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=8526/16963
=0.50262336

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=7244/14967
=0.48399813

Emerson Electric Co's gross margin of this year was 0.50262336. Emerson Electric Co's gross margin of last year was 0.48399813. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun23)
=16963/44173
=0.38401286

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun22)
=14967/37042
=0.40405486

Emerson Electric Co's asset turnover of this year was 0.38401286. Emerson Electric Co's asset turnover of last year was 0.40405486. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+0+1+0+0+1+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Emerson Electric Co has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Emerson Electric Co  (NYSE:EMR) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Emerson Electric Co Piotroski F-Score Related Terms

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Emerson Electric Co Business Description

Address
8000 West Florissant Avenue, P.O. Box 4100, St. Louis, MO, USA, 63136
Emerson Electric sells automation equipment and services under two segments: intelligent devices and software control. Within software and control, it also holds a majority interest in AspenTech, an industrial software business, and owns a test and measurement business that was formerly National Instruments. Intelligent devices also holds Emerson's tools business, which boasts several household brands, like Ridgid. Emerson's automation business is most known for its process manufacturing solutions, which consists of measurement and analytical instrumentation, as well as control valves and actuators, among other products and services. Nearly half of the firm's geographic sales come from the Americas.
Executives
Matthew S Levatich director HARLEY-DAVIDSON MOTOR COMPANY, 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Surendralal Lanca Karsanbhai officer: Exec Pres Auto Sols C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Mark A Blinn director 5215 N. O'CONNOR BLVD., SUITE 2300, IRVING TX 75039
Ram R. Krishnan officer: Executive Vice Pres & COO C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Mckelvey James Morgan Jr. director 2645 SOUTH BAYSHORE #802, MIAMI FL 33133
Joshua B. Bolten director ROCK CREEK GLOBAL ADVISORS, 1401 I STREET NW, SUITE 1120, WASHINGTON DC 20005
Arthur F Golden director 450 LEXINGTON AVE, NEW YORK NY 10017
Easter William H Iii director 370 17TH ST, STE 2500, DENVER CO 80202
Vidya Ramnath officer: Senior VP & CMO C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Nicholas J. Piazza officer: Senior VP & CPO C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Lisa Flavin officer: Sr. VP & CCO 8300 MARYLAND AVENUE, ST. LOUIS MO 63105
Leticia Goncalves Lourenco director C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Peter Zornio officer: Chief Technology Officer C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Frank J Dellaquila officer: Sr. V. P. and Controller C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Sara Yang Bosco officer: Sr. VP, Secy & Gen. Counsel 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136