EMERSON ELECTRIC CO (EMR) Stock Fundamental Analysis
USA - NYSE:EMR - US2910111044 - Common Stock
130.775 USD
-0.72 (-0.54%)
Overall EMR gets a fundamental rating of 5 out of 10. We evaluated EMR against 92 industry peers in the Electrical Equipment industry. EMR has an excellent profitability rating, but there are some minor concerns on its financial health. EMR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
EMR had positive earnings in the past year.
EMR had a positive operating cash flow in the past year.
Of the past 5 years EMR 4 years were profitable.
EMR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
EMR's Return On Assets of 6.24% is amongst the best of the industry. EMR outperforms 80.43% of its industry peers.
Looking at the Return On Equity, with a value of 13.35%, EMR belongs to the top of the industry, outperforming 83.70% of the companies in the same industry.
The Return On Invested Capital of EMR (8.37%) is better than 79.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMR is below the industry average of 10.26%.
The 3 year average ROIC (5.88%) for EMR is below the current ROIC(8.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 13.35% | ||
| ROIC | 8.37% |
ROA(3y)14.81%
ROA(5y)12.47%
ROE(3y)34.72%
ROE(5y)30.17%
ROIC(3y)5.88%
ROIC(5y)8.65%
1.3 Margins
EMR's Profit Margin of 14.92% is amongst the best of the industry. EMR outperforms 88.04% of its industry peers.
In the last couple of years the Profit Margin of EMR has declined.
With an excellent Operating Margin value of 19.03%, EMR belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
EMR's Operating Margin has declined in the last couple of years.
EMR has a Gross Margin of 52.70%. This is amongst the best in the industry. EMR outperforms 96.74% of its industry peers.
In the last couple of years the Gross Margin of EMR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.03% | ||
| PM (TTM) | 14.92% | ||
| GM | 52.7% |
OM growth 3Y-7.28%
OM growth 5Y-3.77%
PM growth 3Y-3.78%
PM growth 5Y-2.16%
GM growth 3Y6.99%
GM growth 5Y3.61%
2. Health
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.
EMR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.92 indicates that EMR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.92, EMR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of EMR is 5.19, which is a neutral value as it means it would take EMR, 5.19 years of fcf income to pay off all of its debts.
EMR's Debt to FCF ratio of 5.19 is fine compared to the rest of the industry. EMR outperforms 73.91% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that EMR is not too dependend on debt financing.
EMR has a Debt to Equity ratio (0.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 3.92 |
ROIC/WACC1.03
WACC8.14%
2.3 Liquidity
A Current Ratio of 0.85 indicates that EMR may have some problems paying its short term obligations.
EMR has a Current ratio of 0.85. This is in the lower half of the industry: EMR underperforms 79.35% of its industry peers.
A Quick Ratio of 0.63 indicates that EMR may have some problems paying its short term obligations.
The Quick ratio of EMR (0.63) is worse than 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.29% 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.
EPS 1Y (TTM)9.29%
EPS 3Y4.55%
EPS 5Y11.64%
EPS Q2Q%9.46%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.11%
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 8.36% on average per year.
EMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.91% yearly.
EPS Next Y10.15%
EPS Next 2Y9.4%
EPS Next 3Y10.38%
EPS Next 5Y8.36%
Revenue Next Year5.51%
Revenue Next 2Y5.06%
Revenue Next 3Y6.14%
Revenue Next 5Y6.91%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.80, EMR is valued on the expensive side.
EMR's Price/Earnings ratio is rather cheap when compared to the industry. EMR is cheaper than 83.70% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.67, EMR is valued at the same level.
A Price/Forward Earnings ratio of 19.79 indicates a rather expensive valuation of EMR.
Based on the Price/Forward Earnings ratio, EMR is valued cheaply inside the industry as 81.52% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, EMR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 19.79 |
4.2 Price Multiples
EMR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EMR is cheaper than 81.52% 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 | 26.85 | ||
| EV/EBITDA | 17.38 |
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.
EMR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)1.87
EPS Next 2Y9.4%
EPS Next 3Y10.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.69%, EMR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.00, EMR pays a better dividend. On top of this EMR pays more dividend than 94.57% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, EMR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
The dividend of EMR has a limited annual growth rate of 1.52%.
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)1.52%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
45.06% of the earnings are spent on dividend by EMR. This is a bit on the high side, but may be sustainable.
The dividend of EMR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.06%
EPS Next 2Y9.4%
EPS Next 3Y10.38%
NYSE:EMR (11/7/2025, 10:53:45 AM)
130.775
-0.72 (-0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.89%
Inst Owner Change-1.44%
Ins Owners0.21%
Ins Owner Change-0.47%
Market Cap73.60B
Revenue(TTM)N/A
Net Income(TTM)2.65B
Analysts78.24
Price Target151.43 (15.79%)
Short Float %2.74%
Short Ratio5.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend2.1
Dividend Growth(5Y)1.52%
DP45.06%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.65%
Min EPS beat(2)-0.41%
Max EPS beat(2)3.72%
EPS beat(4)2
Avg EPS beat(4)2.48%
Min EPS beat(4)-0.41%
Max EPS beat(4)6.76%
EPS beat(8)4
Avg EPS beat(8)3.84%
EPS beat(12)7
Avg EPS beat(12)4.29%
EPS beat(16)11
Avg EPS beat(16)4.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)0.09%
Revenue beat(4)2
Avg Revenue beat(4)-1%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)0.17%
Revenue beat(8)4
Avg Revenue beat(8)-0.62%
Revenue beat(12)6
Avg Revenue beat(12)-0.42%
Revenue beat(16)7
Avg Revenue beat(16)-2.6%
PT rev (1m)-0.17%
PT rev (3m)4.85%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)-0.86%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 19.79 | ||
| P/S | 4.14 | ||
| P/FCF | 26.85 | ||
| P/OCF | 23.2 | ||
| P/B | 3.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.38 |
EPS(TTM)6
EY4.59%
EPS(NY)6.61
Fwd EY5.05%
FCF(TTM)4.87
FCFY3.72%
OCF(TTM)5.64
OCFY4.31%
SpS31.59
BVpS35.31
TBVpS-14.14
PEG (NY)2.15
PEG (5Y)1.87
Graham Number69.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 13.35% | ||
| ROCE | 10.64% | ||
| ROIC | 8.37% | ||
| ROICexc | 9% | ||
| ROICexgc | 153.04% | ||
| OM | 19.03% | ||
| PM (TTM) | 14.92% | ||
| GM | 52.7% | ||
| FCFM | 15.42% |
ROA(3y)14.81%
ROA(5y)12.47%
ROE(3y)34.72%
ROE(5y)30.17%
ROIC(3y)5.88%
ROIC(5y)8.65%
ROICexc(3y)6.74%
ROICexc(5y)10.11%
ROICexgc(3y)28.81%
ROICexgc(5y)33.99%
ROCE(3y)7.63%
ROCE(5y)11.31%
ROICexgc growth 3Y-11.32%
ROICexgc growth 5Y-10.06%
ROICexc growth 3Y-28.85%
ROICexc growth 5Y-20.68%
OM growth 3Y-7.28%
OM growth 5Y-3.77%
PM growth 3Y-3.78%
PM growth 5Y-2.16%
GM growth 3Y6.99%
GM growth 5Y3.61%
F-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.19 | ||
| Debt/EBITDA | 1.67 | ||
| Cap/Depr | 27.54% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.11% | ||
| Profit Quality | 103.36% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 3.92 |
F-Score7
WACC8.14%
ROIC/WACC1.03
Cap/Depr(3y)36.82%
Cap/Depr(5y)46.68%
Cap/Sales(3y)2.88%
Cap/Sales(5y)3.01%
Profit Quality(3y)74.7%
Profit Quality(5y)96.72%
High Growth Momentum
Growth
EPS 1Y (TTM)9.29%
EPS 3Y4.55%
EPS 5Y11.64%
EPS Q2Q%9.46%
EPS Next Y10.15%
EPS Next 2Y9.4%
EPS Next 3Y10.38%
EPS Next 5Y8.36%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.11%
Revenue Next Year5.51%
Revenue Next 2Y5.06%
Revenue Next 3Y6.14%
Revenue Next 5Y6.91%
EBIT growth 1Y35.32%
EBIT growth 3Y-8.56%
EBIT growth 5Y-4.71%
EBIT Next Year23.43%
EBIT Next 3Y12.3%
EBIT Next 5Y7.7%
FCF growth 1Y30.09%
FCF growth 3Y-0.91%
FCF growth 5Y3.85%
OCF growth 1Y27.03%
OCF growth 3Y-2.32%
OCF growth 5Y2.08%
EMERSON ELECTRIC CO / EMR FAQ
Can you provide the ChartMill fundamental rating for EMERSON ELECTRIC CO?
ChartMill assigns a fundamental rating of 5 / 10 to EMR.
What is the valuation status for EMR stock?
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 7 / 10.
How financially healthy is EMERSON ELECTRIC CO?
The financial health rating of EMERSON ELECTRIC CO (EMR) is 4 / 10.
Can you provide the expected EPS growth for EMR stock?
The Earnings per Share (EPS) of EMERSON ELECTRIC CO (EMR) is expected to grow by 10.15% in the next year.