By: Bhavik Khandhar, Tracy Marsolo &
Matt Shubeck
Featuring: Brandon Harlow (Utilities)
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Recap of Sector Analysis
Company Analysis
Business Analysis
Financial Analysis
Valuation Analysis
Recommendation
Q&A
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Increase Industrials by 150 BP to 10.94% of
portfolio
Industrials are leaders in a recovery
We recommended buying from Industrial
Conglomerates or Electrical Components
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General Electric
Osh Kosh Corporation
Shaw Group
Canada Pacific Railway
Total
1.49%
1.99%
4.40%
1.56%
9.44%
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Emerson is a diversified global manufacturing
and technology company.
Emerson offers a wide range of products and
services in the areas of process management,
climate technologies, network power, storage
solutions, professional tools, appliance
solutions, motor technologies, and industrial
automation
Company is recognized widely for their
engineering capabilities and management
excellence
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Process Management
Industrial Automation
Network Power
Climate Technologies
Appliance and Tools
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Ranked No. 30 on the Information Week
magazine's annual listing of the most innovative
users of information technology in the United
States.
Ranked among the country's 400 best of the biggest
publicly traded companies & has been on the list
for the past 8 years.
Ranked No. 2 in Institutional Investor Magazine’s
America’s Most Shareholder-Friendly Companies
in March 2009
Increased dividends over the last 52 years
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Last Trade: 32.18
ETChange: 0.51 (1.52%)
Prev Close:33.63
Open:33.33
1y Target Est:37.17
Day's Range:33.33 - 34.19
52wk Range:24.39 - 58.72
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Volume:2,049,884
Avg Vol (3m):6,631,800
Market Cap:25.65B
P/E (ttm):12.39
EPS (ttm):2.76
Div & Yield:1.32 (3.70%)
04/01/2009
02/01/2009
12/01/2008
10/01/2008
08/01/2008
06/01/2008
04/01/2008
02/01/2008
12/01/2007
10/01/2007
08/01/2007
06/01/2007
04/01/2007
02/01/2007
12/01/2006
10/01/2006
08/01/2006
06/01/2006
04/01/2006
02/01/2006
12/01/2005
10/01/2005
08/01/2005
06/01/2005
04/01/2005
02/01/2005
12/01/2004
10/01/2004
08/01/2004
06/01/2004
04/01/2004
25.0000
20.0000
Median 17.6
15.0000
10.0000
5.0000
0.0000
04/01/2009
02/01/2009
12/01/2008
10/01/2008
08/01/2008
06/01/2008
04/01/2008
02/01/2008
12/01/2007
10/01/2007
08/01/2007
06/01/2007
04/01/2007
02/01/2007
12/01/2006
10/01/2006
08/01/2006
06/01/2006
04/01/2006
02/01/2006
12/01/2005
10/01/2005
08/01/2005
06/01/2005
04/01/2005
02/01/2005
12/01/2004
10/01/2004
08/01/2004
06/01/2004
04/01/2004
1.2000
1.0000
0.8000
0.6000
0.4000
0.2000
0.0000
04/01/2009
02/01/2009
12/01/2008
10/01/2008
08/01/2008
06/01/2008
04/01/2008
02/01/2008
12/01/2007
10/01/2007
08/01/2007
06/01/2007
04/01/2007
02/01/2007
12/01/2006
10/01/2006
08/01/2006
06/01/2006
04/01/2006
02/01/2006
12/01/2005
10/01/2005
08/01/2005
06/01/2005
04/01/2005
02/01/2005
12/01/2004
10/01/2004
08/01/2004
06/01/2004
04/01/2004
25.0000
20.0000
Median 17.6
15.0000
10.0000
5.0000
0.0000
04/01/2009
02/01/2009
12/01/2008
16.0000
10/01/2008
08/01/2008
06/01/2008
04/01/2008
02/01/2008
12/01/2007
10/01/2007
08/01/2007
06/01/2007
04/01/2007
02/01/2007
12/01/2006
10/01/2006
08/01/2006
06/01/2006
04/01/2006
02/01/2006
12/01/2005
10/01/2005
08/01/2005
06/01/2005
04/01/2005
02/01/2005
12/01/2004
10/01/2004
08/01/2004
06/01/2004
04/01/2004
20.0000
18.0000
Median 15
14.0000
12.0000
10.0000
8.0000
6.0000
4.0000
2.0000
0.0000
Composite
Espey Mfg Franklin
Regal Roper
Smith
Emerson AMETEK Baldor Electric Tech
Cooper
Electric Hubbell A Hubbell B Beloit Industries (A.O.)
25632
3273
1058
52
5600
38
542
248
58.1911
7.4305
2.4019
0.1181
12.713
4
0.0863
1.2305
0.5630
3386.2 55.2128
5.7692
0.0139
161.63
06
0.0074
1.5141
0.3170
>1800
Highly
Concentrated
<1800
>1000
Moderately
Concentrated
<1000
Not
Concentrated
UQM
Tech
Zareba
Systems Total
1615 1224
4067
645
50
4 44048
3.6665
2.778
8
9.2331
1.4643
0.1135
0.0091
13.4429
7.721
7
85.2503
2.1442
0.0129
0.0001
3719.2
37
ROE
0.27442
Leverage
2.27677
ROA
0.12053
Asset Turnover
1.21842
Profit Margin
0.09892
EBIT Margin
0.15234
1-interest burden
0.95025
interest burden
1-tax bruden
0.68338
tax burden
0.049749
0.31662
Average Target: 49.02
Current Price: 32.18
Absolute
EMR
P/ Forward E
high
low
median
Target E, S,
Your Target B, CF per
Multiple
share
Target Price
current
21.3
10
17.6
14.8
17.6
2.330
41.008
P/S
2.1
0.8
1.8
1
1.8
28.556
51.401
P/B
5.1
2.4
4.1
2.9
4.1
11.097
45.496
P/CF
17.5
6.5
15
8.3
15
3.877
58.157
Upside: 52%
Year
2004
2005
2006
2007
2008
2009
Quarterly Dividend
0.2
0.2075
0.2225
0.2625
0.3
0.33
Annual Dividend
0.8
0.83
0.89
1.05
1.2
1.32
0.0375
0.072289157
0.179775
0.142857
0.1
Dividend Growth
Average Dividend
Growth
0.106484
Beta
1.17
Current Price
Market Risk
Premium
0.08
Target Price
61.06677
Upside
0.897662
Risk Free Rate
0.0345
Rate
0.1281
32.18
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General Electric
Osh Kosh Corporation
Shaw Group
Canada Pacific Railway
Emerson Electric
Total
1.49%
1.99%
4.40%
1.56%
1.50%
10.94%