Emerson Electric Co. (
is one of those large-cap industrial stocks whose prospects are always
likely to follow the direction of the economy. Of course, this isn't a
bad thing, but Foolish investors will wonder if there is a reason to buy
the stock rather than one of its peers like General Electric Company, Rockwell Automation , or Ingersoll-Rand ?
What Emerson Electric Co. offers investors
Given its $47 billion market cap and sprawling set of industrial businesses, the company's fortunes will inevitable rise and fall with the global industrial economy. Having said that, the stock is still attractive for a lot for investors. Emerson Electric is a relatively mature business that has tended to convert around 13.5% of its revenue into operating cash flow over the last three years. Moreover, its management promises to pay back between 50%-60% of cash flow to investors this year, so you can quickly understand the investment proposition Emerson Electric offers.
Given its $47 billion market cap and sprawling set of industrial businesses, the company's fortunes will inevitable rise and fall with the global industrial economy. Having said that, the stock is still attractive for a lot for investors. Emerson Electric is a relatively mature business that has tended to convert around 13.5% of its revenue into operating cash flow over the last three years. Moreover, its management promises to pay back between 50%-60% of cash flow to investors this year, so you can quickly understand the investment proposition Emerson Electric offers.
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