EMERSON ELECTRIC CO (EMR) Fundamental Analysis & Valuation
NYSE:EMR • US2910111044
Current stock price
138.42 USD
-3.05 (-2.16%)
At close:
137.92 USD
-0.5 (-0.36%)
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
- 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.
- EMR had a positive operating cash flow in each of the past 5 years.
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's Return On Equity of 11.40% is amongst the best of the industry. EMR outperforms 82.61% of its industry peers.
- With an excellent Return On Invested Capital value of 9.17%, EMR belongs to the best of the industry, outperforming 86.96% 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 9.34%.
- The 3 year average ROIC (6.24%) for EMR is below the current ROIC(9.17%), indicating increased profibility in the last year.
| 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's Profit Margin of 12.71% is amongst the best of the industry. EMR outperforms 84.78% of its industry peers.
- In the last couple of years the Profit Margin of EMR has grown nicely.
- Looking at the Operating Margin, with a value of 20.36%, EMR belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
- In the last couple of years the Operating Margin of EMR has grown nicely.
- 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 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.
- EMR has less shares outstanding than it did 1 year ago.
- EMR has less shares outstanding than it did 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 69.57% 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.
- Looking at the Debt to FCF ratio, with a value of 5.21, EMR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.37 indicates that EMR is not too dependend on debt financing.
- EMR has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: EMR outperforms 55.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.21 | ||
| Altman-Z | 4.24 |
ROIC/WACC1.13
WACC8.12%
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.
- EMR's Quick ratio of 0.62 is on the low side compared to the rest of the industry. EMR is outperformed by 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
- The Earnings Per Share has been growing slightly by 7.61% over the past year.
- The Earnings Per Share has been growing by 11.64% on average over the past years. This is quite good.
- EMR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.62%.
- EMR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.43% yearly.
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.
- The Revenue is expected to grow by 5.50% on average over the next years.
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
- 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.
- 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
- With a Price/Earnings ratio of 22.77, EMR is valued on the expensive side.
- Based on the Price/Earnings ratio, EMR is valued cheaply inside the industry as 85.87% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 26.91, EMR is valued at the same level.
- With a Price/Forward Earnings ratio of 19.17, EMR is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EMR indicates a rather cheap valuation: EMR is cheaper than 84.78% of the companies listed in the same industry.
- EMR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 19.17 |
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 85.87% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EMR indicates a rather cheap valuation: EMR is cheaper than 84.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.21 | ||
| EV/EBITDA | 17.55 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of EMR may justify a higher PE ratio.
PEG (NY)2.4
PEG (5Y)1.96
EPS Next 2Y9.69%
EPS Next 3Y9.74%
5. EMR Dividend Analysis
5.1 Amount
- EMR has a Yearly Dividend Yield of 1.56%.
- EMR's Dividend Yield is rather good when compared to the industry average which is at 0.24. EMR pays more dividend than 96.74% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, EMR has a dividend comparable with the average S&P500 company.
| 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 been paying a dividend for at least 10 years, so it has 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 2Y9.69%
EPS Next 3Y9.74%
EMR Fundamentals: All Metrics, Ratios and Statistics
138.42
-3.05 (-2.16%)
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 Owners84.46%
Inst Owner Change-0.13%
Ins Owners0.24%
Ins Owner Change1.18%
Market Cap77.79B
Revenue(TTM)18.19B
Net Income(TTM)2.31B
Analysts76
Price Target166.62 (20.37%)
Short Float %2.23%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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)-2.31%
PT rev (3m)6.34%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 19.17 | ||
| P/S | 4.28 | ||
| P/FCF | 30.21 | ||
| P/OCF | 25.76 | ||
| P/B | 3.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.55 |
EPS(TTM)6.08
EY4.39%
EPS(NY)7.22
Fwd EY5.22%
FCF(TTM)4.58
FCFY3.31%
OCF(TTM)5.37
OCFY3.88%
SpS32.36
BVpS36.08
TBVpS-12.65
PEG (NY)2.4
PEG (5Y)1.96
Graham Number70.2549 (-49.25%)
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
WACC8.12%
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%.