As a global leader in automation and technology, Emerson’s financial performance has captured widespread attention.
Understanding Emerson net worth provides insights into the company’s growth and market position.
In this article, we’ll explore key financial elements, from revenue streams to earnings, that shape Emerson’s current financial standing.
Quick Facts
| Fact | Detail |
|---|---|
| Name | Emerson |
| Full Name | Emerson Electric Co. |
| Website | emerson.com |
| Industry | Technology and Software |
| Traded as | NYSE: EMR |
| ISIN | N/A |
| Founded | September 24, 1890 |
| Founders | John W. Emerson |
| Country/Territory | United States |
| Headquarters | St. Louis, Missouri, USA |
| Chief Executive Officer | Lal Karsanbhai |
| Number of Employees | 67,000 |
| Market Cap | $63.74 Billion (as of October 2024) |
| Total Assets | $45.58 Billion (June 2024) |
| Total Equity | $26.68 Billion |
| Revenue | $12.87 Billion (Nine months ended June 2024) |
| Net Income | $987 Million (Nine months ended June 2024) |
What is the Net Worth/Market Cap of Emerson in 2024?
As of October 2024, Emerson holds a market cap of $63.74 billion, making it one of the most notable players in the technology and automation industry.
When comparing its value to other prominent companies in the sector, it stands strong. Emerson’s market cap has consistently grown, reflecting its stable position within the financial market. In comparison to other companies like:
- Siemens
- Honeywell International
- Rockwell Automation
- ABB Group
- Schneider Electric
- General Electric
- Mitsubishi Electric
- AspenTech
- Yokogawa Electric
With a market cap of $63.74 billion, Emerson stands out as a significant entity in the automation space. Discover other companies that belong to the most valuable corporations.
Emerson Financial Performance Overview
Key Financial Performance and Revenue Streams
Emerson has experienced impressive financial growth over the past year. In Q3 2024 alone, the net sales reached $4.38 billion, marking an 11% increase from Q3 2023.
Over the nine months ending in June 2024, total sales reached $12.87 billion.
This significant increase highlights the company’s strategic positioning and growing demand for automation solutions across multiple industries.
Major Revenue Segments and Business Units
The company’s revenue is primarily driven by two key segments: Intelligent Devices and Software and Control.
Intelligent Devices Segment
Within Intelligent Devices, various units contributed to revenue growth. For instance, Final Control saw a 1% increase in Q3 2024, while Measurement & Analytical increased by 8%.
Meanwhile, the Discrete Automation unit experienced an 8% decline, partially offset by the Safety & Productivity unit’s stable performance.
Overall, this segment reported a 5% increase over the first nine months of 2024, showcasing its impact on Emerson’s revenue.
Software and Control Segment
The Software and Control segment comprises Control Systems & Software, Test & Measurement, and AspenTech.
This segment showed a substantial 42% growth in Q3 2024, which was driven partly by AspenTech’s 7% increase and other units like Control Systems & Software.
Financial Impact of Strategic Business Transactions
Emerson’s financial structure has also evolved through key transactions. The divestiture of the Copeland business was a significant event.
The sale of the Copeland note receivable yielded $1.9 billion in pretax cash proceeds.
Additionally, the expected sale of Emerson’s 40% equity stake in Copeland to private equity funds managed by Blackstone is set to bring in $1.5 billion.
Combined, these transactions resulted in $2.9 billion in after-tax proceeds, aimed at reducing existing debt.
Earnings and Profitability Analysis
Earnings Before Interest, Taxes, and Amortization (EBITA)
Emerson’s adjusted segment EBITA for Q3 2024 was $1.189 billion, with an adjusted margin of 27.1%.
This margin represents Emerson’s ability to maintain profitability while managing its operating costs effectively across segments.
Earnings Per Share and Adjusted Earnings Per Share
The company’s GAAP earnings per share (EPS) for Q3 2024 stood at $0.60, while adjusted EPS was $1.43, indicating strong underlying earnings after accounting for restructuring costs and intangible amortization.
Cash Flow and Financial Health
Operating Cash Flow and Free Cash Flow
Emerson’s operating cash flow for Q3 2024 was $1.067 billion, up 27% from the previous year.
The free cash flow stood at $975 million for the same period, demonstrating the company’s robust cash generation capabilities.
Asset and Debt Management
Emerson’s total assets as of June 2024 were $45.58 billion, with cash and equivalents of $2.298 billion.
The company effectively managed its long-term debt, which totaled $7.11 billion, emphasizing its ability to balance growth while controlling liabilities.
Shareholder Returns and Dividends
Dividend Policy and Payouts
Emerson’s consistent approach to returning value to shareholders is evident in its quarterly cash dividend of $0.525 per share, which aligns with the company’s strategy of providing steady returns.
Outlook and Forecast for Fiscal Year
Revenue and Sales Growth Projections
The company projects a 15% net sales growth for the fiscal year 2024, with underlying sales growth expected to be around 6%.
This growth is fueled by demand in automation and control systems, which are anticipated to drive financial performance forward.
Earnings and Cash Flow Forecast
Emerson forecasts adjusted EPS between $5.45 and $5.50 and expects operating cash flow to be approximately $3.2 billion, reinforcing a positive outlook for the fiscal year.
FAQs About Emerson
How did Emerson perform in Q3 2024?
In Q3 2024, Emerson reported $4.38 billion in net sales, marking an 11% increase from the same period in 2023. Adjusted segment EBITA stood at $1.189 billion.
What are the key revenue drivers for Emerson?
Emerson’s key revenue drivers are its Intelligent Devices and Software and Control segments. These segments include units like Final Control, Measurement & Analytical, and AspenTech.
What are Emerson’s financial goals for 2024?
The company aims for a 15% net sales growth and a 6% underlying sales growth. It also targets an adjusted EPS range of $5.45 – $5.50 and approximately $3.2 billion in operating cash flow.
How has the Copeland transaction impacted Emerson’s finances?
The Copeland divestiture brought in $2.9 billion in after-tax proceeds, which are being used to pay down existing debt, positively impacting Emerson’s balance sheet.
What is Emerson’s dividend payout?
The company declared a quarterly cash dividend of $0.525 per share for its shareholders, reflecting the company’s commitment to providing consistent returns.
Conclusion
Emerson’s financial performance in 2024 reflects strategic growth and efficient operations.
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