EMERSON ELECTRIC CO (EMR) Fundamental Analysis & Valuation
NYSE:EMR • US2910111044
139.57 USD
-0.53 (-0.38%)
At close: Mar 11, 2026
138 USD
-1.57 (-1.12%)
Pre-Market: 3/12/2026, 5:03:23 AM
This EMR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 6 out of 10 to EMR. EMR was compared to 91 industry peers in the Electrical Equipment industry. EMR has an excellent profitability rating, but there are some minor concerns on its financial health. EMR has a decent growth rate and is not valued too expensively.
1. EMR Profitability Analysis
1.1 Basic Checks
- EMR had positive earnings in the past year.
- In the past year EMR had a positive cash flow from operations.
- In the past 5 years EMR has always been profitable.
- 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 79.12% of its industry peers.
- The Return On Equity of EMR (11.40%) is better than 81.32% of its industry peers.
- EMR has a better Return On Invested Capital (9.17%) than 84.62% of its industry peers.
- EMR had an Average Return On Invested Capital over the past 3 years of 6.24%. This is below the industry average of 9.59%.
- 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
- With an excellent Profit Margin value of 12.71%, EMR belongs to the best of the industry, outperforming 83.52% of the companies in the same industry.
- EMR's Profit Margin has improved in the last couple of years.
- The Operating Margin of EMR (20.36%) is better than 95.60% of its industry peers.
- 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 98.90% 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.
- 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.
- EMR has a worse debt/assets ratio than last year.
2.2 Solvency
- EMR has an Altman-Z score of 4.21. This indicates that EMR is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.21, EMR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- 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 75.82% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.21 | ||
| Altman-Z | 4.21 |
ROIC/WACC1.15
WACC7.95%
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.
- EMR's Current ratio of 0.84 is on the low side compared to the rest of the industry. EMR is outperformed by 79.12% of its industry peers.
- A Quick Ratio of 0.62 indicates that EMR may have some problems paying its short term obligations.
- The Quick ratio of EMR (0.62) is worse than 76.92% 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.
- 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
- 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 Y9.68%
EPS Next 2Y9.91%
EPS Next 3Y9.8%
EPS Next 5Y9.19%
Revenue Next Year4.89%
Revenue Next 2Y5.16%
Revenue Next 3Y5.2%
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 22.96 indicates a rather expensive valuation of EMR.
- Based on the Price/Earnings ratio, EMR is valued cheaper than 83.52% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.15, EMR is valued at the same level.
- A Price/Forward Earnings ratio of 19.26 indicates a rather expensive 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.27, EMR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 19.26 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EMR is valued cheaply inside the industry as 82.42% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EMR indicates a rather cheap valuation: EMR is cheaper than 81.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.46 | ||
| EV/EBITDA | 17.34 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- EMR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.37
PEG (5Y)1.97
EPS Next 2Y9.91%
EPS Next 3Y9.8%
5. EMR Dividend Analysis
5.1 Amount
- EMR has a Yearly Dividend Yield of 1.56%.
- Compared to an average industry Dividend Yield of 0.26, EMR pays a better dividend. On top of this EMR pays more dividend than 95.60% of the companies listed 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 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.
- EMR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.06%
EPS Next 2Y9.91%
EPS Next 3Y9.8%
EMR Fundamentals: All Metrics, Ratios and Statistics
139.57
-0.53 (-0.38%)
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 Change-0.71%
Ins Owners0.24%
Ins Owner Change1.38%
Market Cap78.44B
Revenue(TTM)18.19B
Net Income(TTM)2.31B
Analysts75.43
Price Target170.56 (22.2%)
Short Float %2.99%
Short Ratio4.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend2.1
Dividend Growth(5Y)1.02%
DP52.06%
Div Incr Years1
Div Non Decr Years1
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)7.9%
PT rev (3m)12.16%
EPS NQ rev (1m)-1.12%
EPS NQ rev (3m)-0.83%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 19.26 | ||
| P/S | 4.31 | ||
| P/FCF | 30.46 | ||
| P/OCF | 25.97 | ||
| P/B | 3.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.34 |
EPS(TTM)6.08
EY4.36%
EPS(NY)7.25
Fwd EY5.19%
FCF(TTM)4.58
FCFY3.28%
OCF(TTM)5.37
OCFY3.85%
SpS32.36
BVpS36.08
TBVpS-12.65
PEG (NY)2.37
PEG (5Y)1.97
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 | 4.21 |
F-Score6
WACC7.95%
ROIC/WACC1.15
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 Year4.89%
Revenue Next 2Y5.16%
Revenue Next 3Y5.2%
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 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.
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 22.96 and the Price/Book (PB) ratio is 3.87.
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%.