EMERSON ELECTRIC CO (EMR) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:EMR • US2910111044
157.38 USD
+6.44 (+4.27%)
At close: Feb 6, 2026
156 USD
-1.38 (-0.88%)
After Hours: 2/6/2026, 8:04:00 PM
EMR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 91 industry peers in the Electrical Equipment industry. While EMR has a great profitability rating, there are some minor concerns on its financial health. EMR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year EMR was profitable.
- EMR had a positive operating cash flow in the past year.
- Each year in the past 5 years EMR has been profitable.
- EMR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of EMR (5.51%) is better than 78.02% of its industry peers.
- The Return On Equity of EMR (11.40%) is better than 81.32% of its industry peers.
- With an excellent Return On Invested Capital value of 9.17%, EMR belongs to the best of the industry, outperforming 83.52% 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 9.87%.
- 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 86.81% of the companies in the same industry.
- In the last couple of years the Profit Margin of EMR has grown nicely.
- EMR's Operating Margin of 20.36% is amongst the best of the industry. EMR outperforms 96.70% of its industry peers.
- EMR's Operating Margin has improved in the last couple of years.
- EMR has a better Gross Margin (52.75%) than 97.80% 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. 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.
- Compared to 1 year ago, EMR has less shares outstanding
- Compared to 5 years ago, EMR has less shares outstanding
- The debt/assets ratio for EMR is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.49 indicates that EMR is not in any danger for bankruptcy at the moment.
- EMR's Altman-Z score of 4.49 is fine compared to the rest of the industry. EMR outperforms 72.53% of its industry peers.
- The Debt to FCF ratio of EMR is 5.21, which is a neutral value as it means it would take EMR, 5.21 years of fcf income to pay off all of its debts.
- EMR has a better Debt to FCF ratio (5.21) than 73.63% 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 | 4.49 |
ROIC/WACC1.13
WACC8.1%
2.3 Liquidity
- A Current Ratio of 0.84 indicates that EMR may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.84, EMR is doing worse than 76.92% of the companies in the same industry.
- A Quick Ratio of 0.62 indicates that EMR may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.62, EMR is doing worse than 75.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
- EMR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.61%.
- The Earnings Per Share has been growing by 11.64% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 3.62% in the past year.
- 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
- Based on estimates for the next years, EMR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.59% on average per year.
- EMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.02% yearly.
EPS Next Y9.23%
EPS Next 2Y9.55%
EPS Next 3Y9.49%
EPS Next 5Y9.59%
Revenue Next Year4.9%
Revenue Next 2Y5.03%
Revenue Next 3Y5.05%
Revenue Next 5Y5.02%
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 stable.
- 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
- Based on the Price/Earnings ratio of 25.88, the valuation of EMR can be described as expensive.
- 81.32% of the companies in the same industry are more expensive than EMR, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.92, EMR is valued at the same level.
- Based on the Price/Forward Earnings ratio of 21.86, the valuation of EMR can be described as rather expensive.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 27.78. EMR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.88 | ||
| Fwd PE | 21.86 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EMR is valued cheaply inside the industry as 81.32% of the companies are valued more expensively.
- 75.82% 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 | 34.34 | ||
| EV/EBITDA | 19.26 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.8
PEG (5Y)2.22
EPS Next 2Y9.55%
EPS Next 3Y9.49%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.47%, EMR has a reasonable but not impressive dividend return.
- EMR's Dividend Yield is rather good when compared to the industry average which is at 0.26. EMR pays more dividend than 95.60% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, EMR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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 recently.
Dividend Growth(5Y)1.02%
Div Incr Years1
Div Non Decr Years1
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 2Y9.55%
EPS Next 3Y9.49%
157.38
+6.44 (+4.27%)
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-2.66%
Ins Owners0.24%
Ins Owner Change1.62%
Market Cap88.42B
Revenue(TTM)18.19B
Net Income(TTM)2.31B
Analysts77.14
Price Target158.07 (0.44%)
Short Float %2.71%
Short Ratio5.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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 | 25.88 | ||
| Fwd PE | 21.86 | ||
| P/S | 4.86 | ||
| P/FCF | 34.34 | ||
| P/OCF | 29.28 | ||
| P/B | 4.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.26 |
EPS(TTM)6.08
EY3.86%
EPS(NY)7.2
Fwd EY4.58%
FCF(TTM)4.58
FCFY2.91%
OCF(TTM)5.38
OCFY3.42%
SpS32.37
BVpS36.09
TBVpS-12.66
PEG (NY)2.8
PEG (5Y)2.22
Graham Number70.27
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 | 4.49 |
F-Score6
WACC8.1%
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 Y9.23%
EPS Next 2Y9.55%
EPS Next 3Y9.49%
EPS Next 5Y9.59%
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 5Y5.02%
EBIT growth 1Y28.36%
EBIT growth 3Y13.73%
EBIT growth 5Y5.42%
EBIT Next Year22.72%
EBIT Next 3Y12.36%
EBIT Next 5Y7.53%
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 25.88 and the Price/Book (PB) ratio is 4.36.
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%.