EMERSON ELECTRIC CO (EMR) Fundamental Analysis & Valuation

NYSE:EMR • US2910111044

Current stock price

132.35 USD
+4.2 (+3.28%)
Last:

This EMR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. EMR Profitability Analysis

1.1 Basic Checks

  • In the past year EMR was profitable.
  • In the past year EMR had a positive cash flow from operations.
  • In the past 5 years EMR has always been profitable.
  • Each year in the past 5 years EMR had a positive operating cash flow.
EMR Yearly Net Income VS EBIT VS OCF VS FCFEMR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

1.2 Ratios

  • With a decent Return On Assets value of 5.51%, EMR is doing good in the industry, outperforming 79.35% of the companies in the same industry.
  • EMR has a Return On Equity of 11.40%. This is amongst the best in the industry. EMR outperforms 81.52% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 9.17%, EMR belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
  • EMR had an Average Return On Invested Capital over the past 3 years of 6.24%. This is below the industry average of 9.54%.
  • The 3 year average ROIC (6.24%) for EMR is below the current ROIC(9.17%), indicating increased profibility in the last year.
Industry RankSector 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%
EMR Yearly ROA, ROE, ROICEMR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • Looking at the Profit Margin, with a value of 12.71%, EMR belongs to the top of the industry, outperforming 83.70% of the companies in the same industry.
  • In the last couple of years the Profit Margin of EMR has grown nicely.
  • EMR has a better Operating Margin (20.36%) than 95.65% of its industry peers.
  • EMR's Operating Margin has improved in the last couple of years.
  • EMR has a better Gross Margin (52.75%) than 98.91% of its industry peers.
  • EMR's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
EMR Yearly Profit, Operating, Gross MarginsEMR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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4

2. EMR Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EMR is still creating some value.
  • The number of shares outstanding for EMR has been reduced compared to 1 year ago.
  • EMR has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, EMR has a worse debt to assets ratio.
EMR Yearly Shares OutstandingEMR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
EMR Yearly Total Debt VS Total AssetsEMR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • EMR has an Altman-Z score of 4.04. This indicates that EMR is financially healthy and has little risk of bankruptcy at the moment.
  • EMR has a Altman-Z score of 4.04. This is in the better half of the industry: EMR outperforms 71.74% of its industry peers.
  • The Debt to FCF ratio of EMR is 5.21, which is a neutral value as it means it would take EMR, 5.21 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 5.21, EMR is doing good in the industry, outperforming 77.17% of the companies in the same industry.
  • 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 59.78% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF 5.21
Altman-Z 4.04
ROIC/WACC1.13
WACC8.1%
EMR Yearly LT Debt VS Equity VS FCFEMR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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 Current ratio of 0.84. This is in the lower half of the industry: EMR underperforms 78.26% of its industry peers.
  • A Quick Ratio of 0.62 indicates that EMR may have some problems paying its short term obligations.
  • EMR has a Quick ratio of 0.62. This is in the lower half of the industry: EMR underperforms 77.17% of its industry peers.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.62
EMR Yearly Current Assets VS Current LiabilitesEMR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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4

3. EMR Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 7.61% over the past year.
  • Measured over the past years, EMR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.64% on average per year.
  • EMR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.62%.
  • The Revenue has been growing slightly by 1.43% on average over the past years.
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

  • EMR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.19% yearly.
  • Based on estimates for the next years, EMR will show a small growth in Revenue. The Revenue will grow by 5.48% on average per year.
EPS Next Y9.68%
EPS Next 2Y9.91%
EPS Next 3Y9.8%
EPS Next 5Y9.19%
Revenue Next Year4.89%
Revenue Next 2Y5.19%
Revenue Next 3Y5.19%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
EMR Yearly Revenue VS EstimatesEMR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5B 10B 15B 20B 25B
EMR Yearly EPS VS EstimatesEMR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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5

4. EMR Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 21.77, the valuation of EMR can be described as rather expensive.
  • Based on the Price/Earnings ratio, EMR is valued cheaper than 84.78% of the companies in the same industry.
  • EMR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 18.26 indicates a rather expensive valuation of EMR.
  • Based on the Price/Forward Earnings ratio, EMR is valued cheaper than 82.61% of the companies in the same industry.
  • EMR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.42.
Industry RankSector Rank
PE 21.77
Fwd PE 18.26
EMR Price Earnings VS Forward Price EarningsEMR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EMR indicates a rather cheap valuation: EMR is cheaper than 82.61% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, EMR is valued cheaper than 86.96% of the companies in the same industry.
Industry RankSector Rank
P/FCF 28.89
EV/EBITDA 16.1
EMR Per share dataEMR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EMR does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of EMR may justify a higher PE ratio.
PEG (NY)2.25
PEG (5Y)1.87
EPS Next 2Y9.91%
EPS Next 3Y9.8%

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5

5. EMR Dividend Analysis

5.1 Amount

  • EMR has a Yearly Dividend Yield of 1.71%.
  • EMR's Dividend Yield is rather good when compared to the industry average which is at 0.26. EMR pays more dividend than 96.74% of the companies in the same industry.
  • EMR's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.71%

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.
  • The dividend of EMR decreased recently.
Dividend Growth(5Y)1.02%
Div Incr Years1
Div Non Decr Years1
EMR Yearly Dividends per shareEMR Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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 Yearly Income VS Free CF VS DividendEMR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B
EMR Dividend Payout.EMR Dividend Payout, showing the Payout Ratio.EMR Dividend Payout.PayoutRetained Earnings

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EMR Fundamentals: All Metrics, Ratios and Statistics

EMERSON ELECTRIC CO

NYSE:EMR (3/23/2026, 11:51:03 AM)

132.35

+4.2 (+3.28%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)02-03
Earnings (Next)05-05
Inst Owners84.34%
Inst Owner Change-0.71%
Ins Owners0.24%
Ins Owner Change1.27%
Market Cap74.38B
Revenue(TTM)18.19B
Net Income(TTM)2.31B
Analysts75.43
Price Target170.56 (28.87%)
Short Float %2.56%
Short Ratio4.05
Dividend
Industry RankSector Rank
Dividend Yield 1.71%
Yearly Dividend2.1
Dividend Growth(5Y)1.02%
DP52.06%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-13
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)-0.07%
EPS NQ rev (3m)-0.87%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.14%
Valuation
Industry RankSector Rank
PE 21.77
Fwd PE 18.26
P/S 4.09
P/FCF 28.89
P/OCF 24.63
P/B 3.67
P/tB N/A
EV/EBITDA 16.1
EPS(TTM)6.08
EY4.59%
EPS(NY)7.25
Fwd EY5.48%
FCF(TTM)4.58
FCFY3.46%
OCF(TTM)5.37
OCFY4.06%
SpS32.36
BVpS36.08
TBVpS-12.65
PEG (NY)2.25
PEG (5Y)1.87
Graham Number70.25
Profitability
Industry RankSector 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 RankSector 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 4.04
F-Score6
WACC8.1%
ROIC/WACC1.13
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 2Y5.19%
Revenue Next 3Y5.19%
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 Fundamental Analysis 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 6 / 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 21.77 and the Price/Book (PB) ratio is 3.67.


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%.