Trying to get my head around Emerson Electric Co. (EMR) – the company is showing up on my screens, pays a good dividend, and looks cheap:
The problem – Emerson is a huge conglomerate that makes a lot of stuff I don’t really understand (Emerson’s award-winning Copeland Scroll variable speed compressors anyone!) – so I need to do more research to get a comfort level before making a trade – stay tuned.
Here are the weekly results from this screen:
| Ticker | Price | Fair Value | Margin of Safety | Yield % |
| EMR | $43.39 | $62.00 | $18.61 | 4.4% |
| CSCO | $23.42 | $27.00 | $3.58 | 3.5% |
Based on the following screen:
- Morningstar analysis available.
- Less than 5% above its 52 week low.
- Greater than or equal to Narrow moat.
- Free cash flow/enterprise value greater than 5% (should be above what the 10 Year Treasury Bond is yielding).
- Financial Health Grade >= B.
- Forward P/E <= 20.
- Stock Industry not = Asset Management
- Dividend Yield % >= 3
- For candidates that have passed all the filters, review the individual stocks Return on Invested Capital (ROIC) for the previous 10 years to select the best long term candidates.
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