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Morning Alert: Emerson Electric in 5th consecutive rise, nears a 50-month high 17 October 2017 11:14 EDT

NEWS BITES - NORTH AMERICA

Emerson Electric Co. (NYSE:EMR) extended its gains Tuesday, rising an additional $US1.31 (or 2.0%) to trade at $US65.75. The stock increased 0.08% on Friday and 0.73% on Monday bringing its 5-day rise to 3.7%. It is now approaching its thirty-six-month high of $US66.10.

SECTION 1: The past week

Current indications of bullish signals that support the trend in the unusual trading

1.1 At a glance

Weekly: Emerson Electric shares post best week in three years October 16, 2017 16:00 EDT

Emerson Electric Co. (NYSE:EMR), NYSE's largest Industrial company by market cap, has increased 62.0c (or 1.0%) in the past week to close at $US64.44. The shares had their best week in three years since the week ended Nov 26, 2014. Compared with the S&P 500 Index which rose 12.9 points (or 0.5%) in the week, this represented a relative price increase of 0.5%. The volume was 0.6 times average trading per week of 16.6 million shares. In the past week the market cap has risen $US396.8 million.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Parity:

Price/Sales of 1.7 [1.6]

Undervaluation:

Price/Earnings of 15.3 [23.8]

Dividend yield of 2.9% [1.6%]

Return on Equity 21.8% [14.5%]

Return on Assets 7.4% [4.8%]

Return on Capital Employed 18.2% [8.9%]

Total Liabilities/EBITDA of 4.6 is less than the Joseph Piotroski benchmark of <5.

SECTION 2: Ranking

DescriptionValueRank In Market
MCap $US billion42.1In Top 6%
52-week Range (in $US)49.0-66.1
1-month Range (in $US)62.2-66.1
RSI75.3Bearish
Bollinger Bands1.3Bearish

SECTION 3: Earnings

FY2016 Annual Report: Emerson Electric profits hit by 39.7% fall

Emerson Electric (NYSE:EMR) reported net profit for the year-ended 30 September 2016 of $US1.6b, down 39.7% from $US2.7b in the previous year.

Major changes compared with previous year:

Favourable Changes:

- Retained earnings to total assets up from 96.5% to 99.9%

- Cash to Total Assets up from 13.8% to 14.6%

- Total Liabilities to EBITDA of 4.6 compares favourably with the Joseph Piotroski benchmark of less than 5. However, it has deteriorated by 50.3% from the previous year's ratio of 3.1.

- Total Liabilities to Operating Cash Flow of 4.9 compares favourably with the Joseph Piotroski benchmark of less than 4. This ratio has improved by 11.2% from the previous year's ratio of 5.5.

Unfavourable Changes:

- Net profit slumps 39.7% from $US2.7b to $US1.6b

- Sales revenue down 10.6% from $US16.2b to $US14.5b

- EPS slumps 36.9% from $US4.01 to $US2.53

- EBIT Margin down from 24.5% to 17.2%

- Interest cover down 41.5% from 22.8 to 13.3

- EBIT to total assets down from 18.0% to 11.5%

- Sales and marketing expenses to Sales up from 23% to 23.9%

- Profit before tax to Sales down from 23.4% to 15.9%

- Debt to Equity up 3.5% from 0.8 to 0.9

- Total liabilities to Total assets up 3.2% from 0.6 to 0.7

- Current ratio down 3.9% from 1.3 to 1.2

- Working capital to total assets down from 10.2% to 9.0%

- Other non-current assets to Total Assets down from 19.6% to 18.6%

- Net tangible assets per share down 12.5% from $US4.87 to $US4.26

Note:

- Total revenue to total assets steady at 0.7

- Tax expenses to Sales down from 7.8% to 4.8%

- Depreciation to Sales up from 3.5% to 3.9%

- Total non-current assets to Total Assets down from 54.5% to 54.2%

- Total current assets to Total Assets up from 45.5% to 45.8%

- Intangibles to Total Assets up from 21.7% to 22.1%

SECTION 4: Recent News of Emerson Electric

October 16: Emerson Agrees to Acquire Paradigm

Broadens Emerson's software capabilities to serve global oil and gas industry Positions Emerson as the largest independent provider of Exploration & Production software solutions Source: Nasdaq Stock Exchange

October 16: Emerson Schedules Webcast For Fourth Quarter And Fiscal 2017 Results

ST. LOUIS---- Emerson (NYSE:EMR) will report its fourth quarter and fiscal 2017 results prior to market open on Tuesday, November 7, 2017. Emerson senior management will discuss the results during an investor conference call that same day, beginning at 3:00 p.m. Eastern Time, 2:00 p.m. Central Time. All interested parties may listen to the live conference call by going to the Investors area of Emerson's website at www.Emerson.com/financial and completing a brief registration form.

October 10: Emerson Wireless Technologies Lay Foundation for Industrial IoT Adoption Across Entire Manufacturing Enterprise

AUSTIN, Texas--(BUSINESS WIRE)-- After a decade of pioneering wireless technologies for industrial companies, Emerson (NYSE:EMR) predicts the next 10 years will see exponential growth in the adoption of wireless and pervasive sensing applications that help companies maximize safety and reliability, optimize production and enable Industrial Internet of Things (IoT) strategies.

A key technology of Emerson's Plantweb(TradeMark) digital ecosystem, wireless products have transformed global industrial facilities around the world.

October 10: Emerson Electric (EMR) issued new U.S. patent [9,784,274]

Emerson Electric (EMR) has been issued a new U.S. patent titled "Compressor assembly with liquid sensor" by the US Patent and Trademark Office. The patent number is 9,784,274 and was issued on October 10, 2017.

ABSTRACT

A compressor may include a shell, a compression mechanism, first and second temperature sensors, and a control module.

October 10: Emerson Acquires GeoFields, Inc.

Global software supplier expands Emerson's expertise in pipeline solutions for oil and gas industry ST. LOUIS---- Emerson (NYSE:EMR) has acquired GeoFields, Inc., a leading global supplier of software and implementation services for pipeline integrity data collection, management and risk analysis for the oil and gas industry.

Emerson Electric Co. (N:EMR)

ISIN: US2910111044

PermID: 4295903920

CIK: 32604

CUSIP: 291011104

Source: www.BuySellSignals.com