EMERSON ELECTRIC CO (EMR) Fundamental Analysis & Valuation
NYSE:EMR • US2910111044
Current stock price
131.845 USD
+0.15 (+0.11%)
Last:
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
- In the past year EMR was profitable.
- EMR had a positive operating cash flow in the past year.
- EMR had positive earnings in each of the past 5 years.
- In the past 5 years EMR always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of EMR (5.51%) is better than 79.35% of its industry peers.
- EMR's Return On Equity of 11.40% is amongst the best of the industry. EMR outperforms 81.52% of its industry peers.
- EMR has a better Return On Invested Capital (9.17%) than 86.96% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EMR is below the industry average of 9.33%.
- 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
- 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.
- EMR's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 20.36%, EMR belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
- EMR's Operating Margin has improved in the last couple of years.
- EMR has a Gross Margin of 52.75%. This is amongst the best in the industry. EMR outperforms 98.91% 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
- 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.
- The number of shares outstanding for EMR has been reduced compared to 5 years ago.
- Compared to 1 year ago, EMR has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.09 indicates that EMR is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 4.09, EMR is doing good in the industry, outperforming 71.74% 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's Debt to FCF ratio of 5.21 is fine compared to the rest of the industry. EMR outperforms 76.09% of its industry peers.
- A Debt/Equity ratio of 0.37 indicates that EMR is not too dependend on debt financing.
- EMR has a Debt to Equity ratio (0.37) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.21 | ||
| Altman-Z | 4.09 |
ROIC/WACC1.13
WACC8.09%
2.3 Liquidity
- A Current Ratio of 0.84 indicates that EMR may have some problems paying its short term obligations.
- With a Current ratio value of 0.84, EMR is not doing good in the industry: 79.35% of the companies in the same industry are doing better.
- 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.
- EMR's Quick ratio of 0.62 is on the low side compared to the rest of the industry. EMR is outperformed by 77.17% of its industry peers.
| 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.
- 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 Year4.84%
Revenue Next 2Y5.14%
Revenue Next 3Y5.24%
Revenue Next 5Y5.48%
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.
- 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
- A Price/Earnings ratio of 21.69 indicates a rather expensive valuation of EMR.
- 83.70% of the companies in the same industry are more expensive than EMR, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 26.17. EMR is around the same levels.
- EMR is valuated rather expensively with a Price/Forward Earnings ratio of 18.19.
- 83.70% of the companies in the same industry are more expensive than EMR, based on the Price/Forward Earnings ratio.
- EMR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.19 |
4.2 Price Multiples
- EMR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EMR is cheaper than 83.70% of the companies in the same industry.
- 83.70% of the companies in the same industry are more expensive than EMR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.78 | ||
| EV/EBITDA | 16.49 |
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)2.24
PEG (5Y)1.86
EPS Next 2Y9.91%
EPS Next 3Y9.8%
5. EMR Dividend Analysis
5.1 Amount
- EMR has a Yearly Dividend Yield of 1.77%.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.89, EMR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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 in the last 3 years.
Dividend Growth(5Y)1.02%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- EMR pays out 52.06% of its income as dividend. 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.
DP52.06%
EPS Next 2Y9.91%
EPS Next 3Y9.8%
EMR Fundamentals: All Metrics, Ratios and Statistics
NYSE:EMR (4/6/2026, 1:47:05 PM)
131.845
+0.15 (+0.11%)
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 Change0%
Ins Owners0.24%
Ins Owner Change1.27%
Market Cap74.10B
Revenue(TTM)18.19B
Net Income(TTM)2.31B
Analysts76
Price Target170.22 (29.11%)
Short Float %2.54%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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)-0.2%
PT rev (3m)11.38%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-1.13%
EPS NY rev (1m)0%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.19 | ||
| P/S | 4.07 | ||
| P/FCF | 28.78 | ||
| P/OCF | 24.54 | ||
| P/B | 3.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.49 |
EPS(TTM)6.08
EY4.61%
EPS(NY)7.25
Fwd EY5.5%
FCF(TTM)4.58
FCFY3.48%
OCF(TTM)5.37
OCFY4.08%
SpS32.36
BVpS36.08
TBVpS-12.65
PEG (NY)2.24
PEG (5Y)1.86
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 | 4.09 |
F-Score6
WACC8.09%
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 Year4.84%
Revenue Next 2Y5.14%
Revenue Next 3Y5.24%
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.
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%.