EMERSON ELECTRIC CO (EMR) Fundamental Analysis & Valuation
NYSE:EMR • US2910111044
Current stock price
137.45 USD
-2.99 (-2.13%)
At close:
137.45 USD
0 (0%)
After Hours:
This EMR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. EMR Profitability Analysis
1.1 Basic Checks
- EMR had positive earnings in the past year.
- EMR had a positive operating cash flow in the past year.
- In the past 5 years EMR has always been profitable.
- Each year in the past 5 years EMR had a positive operating cash flow.
1.2 Ratios
- EMR has a Return On Assets of 5.51%. This is amongst the best in the industry. EMR outperforms 80.43% of its industry peers.
- EMR has a Return On Equity of 11.40%. This is amongst the best in the industry. EMR outperforms 82.61% of its industry peers.
- EMR has a Return On Invested Capital of 9.17%. This is amongst the best in the industry. EMR outperforms 86.96% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EMR is below the industry average of 9.37%.
- 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
- EMR has a Profit Margin of 12.71%. This is amongst the best in the industry. EMR outperforms 84.78% of its industry peers.
- In the last couple of years the Profit Margin of EMR has grown nicely.
- EMR's Operating Margin of 20.36% is amongst the best of the industry. EMR outperforms 95.65% of its industry peers.
- EMR's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 52.75%, EMR belongs to the best of the industry, outperforming 98.91% of the companies in the same industry.
- EMR's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EMR is still creating some value.
- Compared to 1 year ago, EMR has less shares outstanding
- The number of shares outstanding for EMR has been reduced compared to 5 years ago.
- EMR has a worse debt/assets ratio than last year.
2.2 Solvency
- EMR has an Altman-Z score of 4.18. This indicates that EMR is financially healthy and has little risk of bankruptcy at the moment.
- EMR has a Altman-Z score of 4.18. This is in the better half of the industry: EMR outperforms 69.57% of its industry peers.
- 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.
- With a decent Debt to FCF ratio value of 5.21, EMR is doing good in the industry, outperforming 75.00% 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.
- Looking at the Debt to Equity ratio, with a value of 0.37, EMR is in line with its industry, outperforming 55.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.21 | ||
| Altman-Z | 4.18 |
ROIC/WACC1.13
WACC8.15%
2.3 Liquidity
- A Current Ratio of 0.84 indicates that EMR may have some problems paying its short term obligations.
- EMR's Current ratio of 0.84 is on the low side compared to the rest of the industry. EMR is outperformed by 80.43% of its industry peers.
- A Quick Ratio of 0.62 indicates that EMR may have some problems paying its short term obligations.
- The Quick ratio of EMR (0.62) is worse than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.62 |
3. EMR Growth Analysis
3.1 Past
- EMR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.61%.
- 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.
- 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
- The Earnings Per Share is expected to grow by 9.19% on average over the next years. This is quite good.
- Based on estimates for the next years, EMR will show a small growth in Revenue. The Revenue will grow by 5.50% on average per year.
EPS Next Y9.47%
EPS Next 2Y9.69%
EPS Next 3Y9.74%
EPS Next 5Y9.19%
Revenue Next Year4.72%
Revenue Next 2Y5.07%
Revenue Next 3Y5.17%
Revenue Next 5Y5.5%
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.
4. EMR Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 22.61, the valuation of EMR can be described as rather expensive.
- Based on the Price/Earnings ratio, EMR is valued cheaper than 86.96% of the companies in the same industry.
- EMR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
- A Price/Forward Earnings ratio of 19.04 indicates a rather expensive valuation of EMR.
- EMR's Price/Forward Earnings ratio is rather cheap when compared to the industry. EMR is cheaper than 88.04% of the companies in the same industry.
- EMR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.61 | ||
| Fwd PE | 19.04 |
4.2 Price Multiples
- EMR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EMR is cheaper than 86.96% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, EMR is valued cheaply inside the industry as 83.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30 | ||
| EV/EBITDA | 17.11 |
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)2.39
PEG (5Y)1.94
EPS Next 2Y9.69%
EPS Next 3Y9.74%
5. EMR Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.58%, EMR has a reasonable but not impressive dividend return.
- EMR's Dividend Yield is rather good when compared to the industry average which is at 0.23. 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 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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 in the last 3 years.
Dividend Growth(5Y)1.02%
Div Incr Years2
Div Non Decr Years2
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 2Y9.69%
EPS Next 3Y9.74%
EMR Fundamentals: All Metrics, Ratios and Statistics
137.45
-2.99 (-2.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Industry Strength79.5
Industry Growth68.32
Earnings (Last)02-03 2026-02-03/amc
Earnings (Next)05-05 2026-05-05/amc
Inst Owners84.46%
Inst Owner Change-0.62%
Ins Owners0.24%
Ins Owner Change-3.86%
Market Cap77.25B
Revenue(TTM)18.19B
Net Income(TTM)2.31B
Analysts76
Price Target166.33 (21.01%)
Short Float %2.23%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend2.1
Dividend Growth(5Y)1.02%
DP52.06%
Div Incr Years2
Div Non Decr Years2
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)-2.28%
PT rev (3m)6.15%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.61 | ||
| Fwd PE | 19.04 | ||
| P/S | 4.25 | ||
| P/FCF | 30 | ||
| P/OCF | 25.58 | ||
| P/B | 3.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.11 |
EPS(TTM)6.08
EY4.42%
EPS(NY)7.22
Fwd EY5.25%
FCF(TTM)4.58
FCFY3.33%
OCF(TTM)5.37
OCFY3.91%
SpS32.36
BVpS36.08
TBVpS-12.65
PEG (NY)2.39
PEG (5Y)1.94
Graham Number70.2549 (-48.89%)
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 | 4.18 |
F-Score6
WACC8.15%
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 Y9.47%
EPS Next 2Y9.69%
EPS Next 3Y9.74%
EPS Next 5Y9.19%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y9.28%
Revenue growth 5Y1.43%
Sales Q2Q%4.1%
Revenue Next Year4.72%
Revenue Next 2Y5.07%
Revenue Next 3Y5.17%
Revenue Next 5Y5.5%
EBIT growth 1Y28.36%
EBIT growth 3Y13.73%
EBIT growth 5Y5.42%
EBIT Next Year22.16%
EBIT Next 3Y12.43%
EBIT Next 5Y9.17%
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 5 / 10 to EMERSON ELECTRIC CO (EMR). This can be considered as Fairly Valued.
Can you provide the profitability details for EMERSON ELECTRIC CO?
EMERSON ELECTRIC CO (EMR) has a profitability rating of 9 / 10.
How financially healthy is EMERSON ELECTRIC CO?
The financial health rating of EMERSON ELECTRIC CO (EMR) is 4 / 10.
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%.