EMERSON ELECTRIC CO (EMR) Stock Fundamental Analysis
NYSE:EMR • US2910111044
148.13 USD
+3.15 (+2.17%)
At close: Feb 13, 2026
148.13 USD
0 (0%)
After Hours: 2/13/2026, 8:05:15 PM
EMR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 92 industry peers in the Electrical Equipment industry. EMR scores excellent on profitability, but there are some minor concerns on its financial health. EMR has a correct valuation and a medium 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.
- 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
- Looking at the Return On Assets, with a value of 5.51%, EMR is in the better half of the industry, outperforming 78.02% of the companies in the same industry.
- EMR's Return On Equity of 11.40% is amongst the best of the industry. EMR outperforms 81.32% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.17%, EMR belongs to the top of the industry, outperforming 83.52% 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 9.75%.
- 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 86.81% of the companies in the same industry.
- In the last couple of years the Profit Margin of EMR has grown nicely.
- EMR has a Operating Margin of 20.36%. This is amongst the best in the industry. EMR outperforms 96.70% of its industry peers.
- In the last couple of years the Operating Margin of EMR has grown nicely.
- EMR's Gross Margin of 52.75% is amongst the best of the industry. EMR outperforms 97.80% 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EMR is 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.
- Compared to 1 year ago, EMR has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.30 indicates that EMR is not in any danger for bankruptcy at the moment.
- EMR's Altman-Z score of 4.30 is fine compared to the rest of the industry. EMR outperforms 72.53% 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 better Debt to FCF ratio (5.21) than 74.73% of its industry peers.
- EMR has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.37, EMR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.21 | ||
| Altman-Z | 4.3 |
ROIC/WACC1.16
WACC7.9%
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.
- The Current ratio of EMR (0.84) is worse than 76.92% of its industry peers.
- A Quick Ratio of 0.62 indicates that EMR may have some problems paying its short term obligations.
- With a Quick ratio value of 0.62, EMR is not doing good in the industry: 75.82% of the companies in the same industry are doing better.
| 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.
- 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
- 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.
- EMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.48% yearly.
EPS Next Y9.23%
EPS Next 2Y9.55%
EPS Next 3Y9.49%
EPS Next 5Y9.19%
Revenue Next Year4.9%
Revenue Next 2Y5.03%
Revenue Next 3Y5.05%
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.
- 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. Valuation
4.1 Price/Earnings Ratio
- EMR is valuated rather expensively with a Price/Earnings ratio of 24.36.
- Based on the Price/Earnings ratio, EMR is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
- EMR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.97.
- The Price/Forward Earnings ratio is 20.57, which indicates a rather expensive current valuation of EMR.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EMR indicates a rather cheap valuation: EMR is cheaper than 83.52% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of EMR to the average of the S&P500 Index (27.96), we can say EMR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.36 | ||
| Fwd PE | 20.57 |
4.2 Price Multiples
- EMR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EMR is cheaper than 84.62% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EMR indicates a somewhat cheap valuation: EMR is cheaper than 79.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.33 | ||
| EV/EBITDA | 17.92 |
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)2.64
PEG (5Y)2.09
EPS Next 2Y9.55%
EPS Next 3Y9.49%
5. Dividend
5.1 Amount
- EMR has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.25, EMR pays a better dividend. On top of this EMR pays more dividend than 95.60% of the companies listed in the same industry.
- EMR's Dividend Yield is comparable with the S&P500 average which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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 recently.
Dividend Growth(5Y)1.02%
Div Incr Years1
Div Non Decr Years1
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%
148.13
+3.15 (+2.17%)
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 Change-2.3%
Ins Owners0.24%
Ins Owner Change1.64%
Market Cap83.25B
Revenue(TTM)18.19B
Net Income(TTM)2.31B
Analysts76
Price Target158.07 (6.71%)
Short Float %2.71%
Short Ratio5.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend2.1
Dividend Growth(5Y)1.02%
DP52.06%
Div Incr Years1
Div Non Decr Years1
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)3.44%
PT rev (3m)4.39%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)-0.76%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.36 | ||
| Fwd PE | 20.57 | ||
| P/S | 4.58 | ||
| P/FCF | 32.33 | ||
| P/OCF | 27.57 | ||
| P/B | 4.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.92 |
EPS(TTM)6.08
EY4.1%
EPS(NY)7.2
Fwd EY4.86%
FCF(TTM)4.58
FCFY3.09%
OCF(TTM)5.37
OCFY3.63%
SpS32.36
BVpS36.08
TBVpS-12.65
PEG (NY)2.64
PEG (5Y)2.09
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 | 4.3 |
F-Score6
WACC7.9%
ROIC/WACC1.16
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 Year4.9%
Revenue Next 2Y5.03%
Revenue Next 3Y5.05%
Revenue Next 5Y5.48%
EBIT growth 1Y28.36%
EBIT growth 3Y13.73%
EBIT growth 5Y5.42%
EBIT Next Year22.72%
EBIT Next 3Y12.36%
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 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.
How profitable is EMERSON ELECTRIC CO (EMR) stock?
EMERSON ELECTRIC CO (EMR) has a profitability rating of 9 / 10.
What are the PE and PB ratios of EMERSON ELECTRIC CO (EMR) stock?
The Price/Earnings (PE) ratio for EMERSON ELECTRIC CO (EMR) is 24.36 and the Price/Book (PB) ratio is 4.11.
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%.