EMERSON ELECTRIC CO (EMR) Fundamental Analysis & Valuation
NYSE:EMR • US2910111044
142.38 USD
+1.26 (+0.89%)
Last: Mar 10, 2026, 11:44 AM
This EMR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall EMR gets a fundamental rating of 6 out of 10. We evaluated EMR against 91 industry peers in the Electrical Equipment industry. EMR scores excellent on profitability, but there are some minor concerns on its financial health. EMR has a decent growth rate and is not valued too expensively.
1. EMR Profitability Analysis
1.1 Basic Checks
- EMR had positive earnings in the past year.
- In the past year EMR had a positive cash flow from operations.
- Each year in the past 5 years EMR has been profitable.
- In the past 5 years EMR always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.51%, EMR is in the better half of the industry, outperforming 78.02% of the companies in the same industry.
- The Return On Equity of EMR (11.40%) is better than 81.32% of its industry peers.
- EMR has a better Return On Invested Capital (9.17%) than 84.62% of its industry peers.
- EMR had an Average Return On Invested Capital over the past 3 years of 6.24%. This is below the industry average of 9.59%.
- The last Return On Invested Capital (9.17%) for EMR is above the 3 year average (6.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 11.4% | ||
| ROIC | 9.17% |
ROA(3y)13.61%
ROA(5y)11.84%
ROE(3y)28.1%
ROE(5y)27.75%
ROIC(3y)6.24%
ROIC(5y)7.7%
1.3 Margins
- With an excellent Profit Margin value of 12.71%, EMR belongs to the best of the industry, outperforming 83.52% of the companies in the same industry.
- EMR's Profit Margin has improved in the last couple of years.
- EMR has a better Operating Margin (20.36%) than 95.60% of its industry peers.
- In the last couple of years the Operating Margin of EMR has grown nicely.
- The Gross Margin of EMR (52.75%) is better than 98.90% of its industry peers.
- In the last couple of years the Gross Margin of EMR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.36% | ||
| PM (TTM) | 12.71% | ||
| GM | 52.75% |
OM growth 3Y4.07%
OM growth 5Y3.94%
PM growth 3Y-18.38%
PM growth 5Y1.69%
GM growth 3Y4.97%
GM growth 5Y4.82%
2. EMR Health Analysis
2.1 Basic Checks
- EMR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for EMR has been reduced compared to 1 year ago.
- The number of shares outstanding for EMR has been reduced compared to 5 years ago.
- The debt/assets ratio for EMR is higher compared to a year ago.
2.2 Solvency
- EMR has an Altman-Z score of 4.24. This indicates that EMR is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.24, EMR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- EMR has a debt to FCF ratio of 5.21. This is a neutral value as EMR would need 5.21 years to pay back of all of its debts.
- EMR has a better Debt to FCF ratio (5.21) than 75.82% of its industry peers.
- EMR has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.37, EMR perfoms like the industry average, outperforming 59.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.21 | ||
| Altman-Z | 4.24 |
ROIC/WACC1.15
WACC7.96%
2.3 Liquidity
- EMR has a Current Ratio of 0.84. This is a bad value and indicates that EMR is not financially healthy enough and could expect problems in meeting its short term obligations.
- EMR has a worse Current ratio (0.84) than 78.02% of its industry peers.
- EMR has a Quick Ratio of 0.84. This is a bad value and indicates that EMR is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.62, EMR is doing worse than 75.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.62 |
3. EMR Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 7.61% over the past year.
- EMR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.64% yearly.
- The Revenue has been growing slightly by 3.62% in the past year.
- Measured over the past years, EMR shows a small growth in Revenue. The Revenue has been growing by 1.43% on average per year.
EPS 1Y (TTM)7.61%
EPS 3Y4.55%
EPS 5Y11.64%
EPS Q2Q%5.8%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y9.28%
Revenue growth 5Y1.43%
Sales Q2Q%4.1%
3.2 Future
- Based on estimates for the next years, EMR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.19% on average per year.
- The Revenue is expected to grow by 5.48% on average over the next years.
EPS Next Y9.68%
EPS Next 2Y9.91%
EPS Next 3Y9.8%
EPS Next 5Y9.19%
Revenue Next Year4.89%
Revenue Next 2Y5.16%
Revenue Next 3Y5.2%
Revenue Next 5Y5.48%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. EMR Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 23.42 indicates a rather expensive valuation of EMR.
- EMR's Price/Earnings ratio is rather cheap when compared to the industry. EMR is cheaper than 82.42% of the companies in the same industry.
- When comparing the Price/Earnings ratio of EMR to the average of the S&P500 Index (26.45), we can say EMR is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 19.64, the valuation of EMR can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EMR indicates a rather cheap valuation: EMR is cheaper than 82.42% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.65. EMR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.42 | ||
| Fwd PE | 19.64 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EMR is valued cheaper than 81.32% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, EMR is valued cheaply inside the industry as 81.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.07 | ||
| EV/EBITDA | 17.51 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- EMR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)2.01
EPS Next 2Y9.91%
EPS Next 3Y9.8%
5. EMR Dividend Analysis
5.1 Amount
- EMR has a Yearly Dividend Yield of 1.56%.
- Compared to an average industry Dividend Yield of 0.26, EMR pays a better dividend. On top of this EMR pays more dividend than 95.60% of the companies listed in the same industry.
- EMR's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
- The dividend of EMR has a limited annual growth rate of 1.02%.
- EMR has paid a dividend for at least 10 years, which is a reliable track record.
- EMR has decreased its dividend recently.
Dividend Growth(5Y)1.02%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 52.06% of the earnings are spent on dividend by EMR. This is a bit on the high side, but may be sustainable.
- EMR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.06%
EPS Next 2Y9.91%
EPS Next 3Y9.8%
EMR Fundamentals: All Metrics, Ratios and Statistics
NYSE:EMR (3/10/2026, 11:44:10 AM)
142.38
+1.26 (+0.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)02-03 2026-02-03/amc
Earnings (Next)05-05 2026-05-05/bmo
Inst Owners84.34%
Inst Owner Change-0.71%
Ins Owners0.24%
Ins Owner Change1.38%
Market Cap80.02B
Revenue(TTM)18.19B
Net Income(TTM)2.31B
Analysts75.43
Price Target170.56 (19.79%)
Short Float %2.99%
Short Ratio4.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend2.1
Dividend Growth(5Y)1.02%
DP52.06%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-13 2026-02-13 (0.555)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.82%
Min EPS beat(2)-0.75%
Max EPS beat(2)2.4%
EPS beat(4)2
Avg EPS beat(4)1.24%
Min EPS beat(4)-0.75%
Max EPS beat(4)3.72%
EPS beat(8)4
Avg EPS beat(8)2.36%
EPS beat(12)7
Avg EPS beat(12)4.59%
EPS beat(16)10
Avg EPS beat(16)4.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-2.02%
Max Revenue beat(2)-1.02%
Revenue beat(4)1
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)0.09%
Revenue beat(8)3
Avg Revenue beat(8)-1.07%
Revenue beat(12)6
Avg Revenue beat(12)-0.44%
Revenue beat(16)7
Avg Revenue beat(16)-0.67%
PT rev (1m)7.9%
PT rev (3m)12.16%
EPS NQ rev (1m)-1.12%
EPS NQ rev (3m)-0.83%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.42 | ||
| Fwd PE | 19.64 | ||
| P/S | 4.4 | ||
| P/FCF | 31.07 | ||
| P/OCF | 26.5 | ||
| P/B | 3.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.51 |
EPS(TTM)6.08
EY4.27%
EPS(NY)7.25
Fwd EY5.09%
FCF(TTM)4.58
FCFY3.22%
OCF(TTM)5.37
OCFY3.77%
SpS32.36
BVpS36.08
TBVpS-12.65
PEG (NY)2.42
PEG (5Y)2.01
Graham Number70.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 11.4% | ||
| ROCE | 11.78% | ||
| ROIC | 9.17% | ||
| ROICexc | 9.72% | ||
| ROICexgc | 126.21% | ||
| OM | 20.36% | ||
| PM (TTM) | 12.71% | ||
| GM | 52.75% | ||
| FCFM | 14.16% |
ROA(3y)13.61%
ROA(5y)11.84%
ROE(3y)28.1%
ROE(5y)27.75%
ROIC(3y)6.24%
ROIC(5y)7.7%
ROICexc(3y)7.06%
ROICexc(5y)8.66%
ROICexgc(3y)31.49%
ROICexgc(5y)33.53%
ROCE(3y)8.44%
ROCE(5y)10.31%
ROICexgc growth 3Y8.99%
ROICexgc growth 5Y-0.31%
ROICexc growth 3Y5.37%
ROICexc growth 5Y-11.37%
OM growth 3Y4.07%
OM growth 5Y3.94%
PM growth 3Y-18.38%
PM growth 5Y1.69%
GM growth 3Y4.97%
GM growth 5Y4.82%
F-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.21 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 29.79% | ||
| Cap/Sales | 2.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.12% | ||
| Profit Quality | 111.42% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 4.24 |
F-Score6
WACC7.96%
ROIC/WACC1.15
Cap/Depr(3y)29.25%
Cap/Depr(5y)39.76%
Cap/Sales(3y)2.39%
Cap/Sales(5y)2.84%
Profit Quality(3y)88.8%
Profit Quality(5y)94.08%
High Growth Momentum
Growth
EPS 1Y (TTM)7.61%
EPS 3Y4.55%
EPS 5Y11.64%
EPS Q2Q%5.8%
EPS Next Y9.68%
EPS Next 2Y9.91%
EPS Next 3Y9.8%
EPS Next 5Y9.19%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y9.28%
Revenue growth 5Y1.43%
Sales Q2Q%4.1%
Revenue Next Year4.89%
Revenue Next 2Y5.16%
Revenue Next 3Y5.2%
Revenue Next 5Y5.48%
EBIT growth 1Y28.36%
EBIT growth 3Y13.73%
EBIT growth 5Y5.42%
EBIT Next Year22.4%
EBIT Next 3Y12.52%
EBIT Next 5Y9.01%
FCF growth 1Y917.79%
FCF growth 3Y3.71%
FCF growth 5Y0.94%
OCF growth 1Y376.34%
OCF growth 3Y1.97%
OCF growth 5Y0.1%
EMERSON ELECTRIC CO / EMR FAQ
Can you provide the ChartMill fundamental rating for EMERSON ELECTRIC CO?
ChartMill assigns a fundamental rating of 6 / 10 to EMR.
Can you provide the valuation status for EMERSON ELECTRIC CO?
ChartMill assigns a valuation rating of 5 / 10 to EMERSON ELECTRIC CO (EMR). This can be considered as Fairly Valued.
How profitable is EMERSON ELECTRIC CO (EMR) stock?
EMERSON ELECTRIC CO (EMR) has a profitability rating of 9 / 10.
What are the PE and PB ratios of EMERSON ELECTRIC CO (EMR) stock?
The Price/Earnings (PE) ratio for EMERSON ELECTRIC CO (EMR) is 23.42 and the Price/Book (PB) ratio is 3.95.
Is the dividend of EMERSON ELECTRIC CO sustainable?
The dividend rating of EMERSON ELECTRIC CO (EMR) is 5 / 10 and the dividend payout ratio is 52.06%.