EMERSON ELECTRIC CO (EMR.DE) Stock Fundamental Analysis
FRA:EMR • US2910111044
126.14 EUR
-1.6 (-1.25%)
Last: Feb 27, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to EMR. EMR was compared to 69 industry peers in the Electrical Equipment industry. While EMR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EMR is not valued too expensively and it also shows a decent growth rate.
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.
- 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
- Looking at the Return On Assets, with a value of 5.51%, EMR is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
- With a decent Return On Equity value of 11.40%, EMR is doing good in the industry, outperforming 62.32% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 9.17%, EMR is in the better half of the industry, outperforming 75.36% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for EMR is below the industry average of 9.30%.
- 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
- Looking at the Profit Margin, with a value of 12.71%, EMR belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
- EMR's Profit Margin has improved in the last couple of years.
- 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 82.61% of the companies in the same industry.
- 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EMR is creating some value.
- EMR has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, EMR has less shares outstanding
- EMR has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.36 indicates that EMR is not in any danger for bankruptcy at the moment.
- The Altman-Z score of EMR (4.36) is better than 79.71% 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.
- EMR has a Debt to FCF ratio (5.21) which is in line with its industry peers.
- A Debt/Equity ratio of 0.37 indicates that EMR is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.37, EMR is doing good in the industry, outperforming 63.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.21 | ||
| Altman-Z | 4.36 |
ROIC/WACC1.19
WACC7.72%
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.
- With a Current ratio value of 0.84, EMR is not doing good in the industry: 89.86% of the companies in the same industry are doing better.
- 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 84.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.62 |
3. Growth
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%.
- 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
- The Earnings Per Share is expected to grow by 9.19% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.48% on average over the next years.
EPS Next Y9.23%
EPS Next 2Y9.55%
EPS Next 3Y9.49%
EPS Next 5Y9.19%
Revenue Next Year4.88%
Revenue Next 2Y5.12%
Revenue Next 3Y5.13%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- EMR is valuated rather expensively with a Price/Earnings ratio of 24.49.
- Compared to the rest of the industry, the Price/Earnings ratio of EMR indicates a rather cheap valuation: EMR is cheaper than 82.61% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.13, EMR is valued at the same level.
- EMR is valuated rather expensively with a Price/Forward Earnings ratio of 20.68.
- 69.57% 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 28.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.49 | ||
| Fwd PE | 20.68 |
4.2 Price Multiples
- 60.87% of the companies in the same industry are more expensive than EMR, based on the Enterprise Value to EBITDA ratio.
- 63.77% 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 | 32.5 | ||
| EV/EBITDA | 18.35 |
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)2.65
PEG (5Y)2.1
EPS Next 2Y9.55%
EPS Next 3Y9.49%
5. Dividend
5.1 Amount
- EMR has a Yearly Dividend Yield of 1.45%.
- Compared to an average industry Dividend Yield of 0.81, EMR pays a better dividend. On top of this EMR pays more dividend than 81.16% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, EMR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
- The dividend of EMR has a limited annual growth rate of 1.02%.
Dividend Growth(5Y)1.02%
Div Incr Years0
Div Non Decr Years0
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.
- The dividend of EMR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.06%
EPS Next 2Y9.55%
EPS Next 3Y9.49%
FRA:EMR (2/27/2026, 7:00:00 PM)
126.14
-1.6 (-1.25%)
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 Owners84.17%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap70.89B
Revenue(TTM)18.19B
Net Income(TTM)2.31B
Analysts76
Price Target144.33 (14.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend1.78
Dividend Growth(5Y)1.02%
DP52.06%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)8.07%
PT rev (3m)10.8%
EPS NQ rev (1m)-1.05%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.49 | ||
| Fwd PE | 20.68 | ||
| P/S | 4.6 | ||
| P/FCF | 32.5 | ||
| P/OCF | 27.71 | ||
| P/B | 4.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.35 |
EPS(TTM)5.15
EY4.08%
EPS(NY)6.1
Fwd EY4.84%
FCF(TTM)3.88
FCFY3.08%
OCF(TTM)4.55
OCFY3.61%
SpS27.41
BVpS30.56
TBVpS-10.72
PEG (NY)2.65
PEG (5Y)2.1
Graham Number59.51
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 | 4.36 |
F-Score6
WACC7.72%
ROIC/WACC1.19
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 Y9.23%
EPS Next 2Y9.55%
EPS Next 3Y9.49%
EPS Next 5Y9.19%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y9.28%
Revenue growth 5Y1.43%
Sales Q2Q%4.1%
Revenue Next Year4.88%
Revenue Next 2Y5.12%
Revenue Next 3Y5.13%
Revenue Next 5Y5.48%
EBIT growth 1Y28.36%
EBIT growth 3Y13.73%
EBIT growth 5Y5.42%
EBIT Next Year22.54%
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.DE FAQ
Can you provide the ChartMill fundamental rating for EMERSON ELECTRIC CO?
ChartMill assigns a fundamental rating of 5 / 10 to EMR.DE.
Can you provide the valuation status for EMERSON ELECTRIC CO?
ChartMill assigns a valuation rating of 5 / 10 to EMERSON ELECTRIC CO (EMR.DE). This can be considered as Fairly Valued.
How profitable is EMERSON ELECTRIC CO (EMR.DE) stock?
EMERSON ELECTRIC CO (EMR.DE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of EMERSON ELECTRIC CO (EMR.DE) stock?
The Price/Earnings (PE) ratio for EMERSON ELECTRIC CO (EMR.DE) is 24.49 and the Price/Book (PB) ratio is 4.13.
Is the dividend of EMERSON ELECTRIC CO sustainable?
The dividend rating of EMERSON ELECTRIC CO (EMR.DE) is 5 / 10 and the dividend payout ratio is 52.06%.