Emerson Electric (EMR)
Industrials · $86.1B market cap · SEC CIK 0000032604
fundamentals score out of 100
Next reports on Nov 3, 2026, after the close, with analysts expecting $1.87 in earnings per share.
The case for EMR
- Pays a modest 2.4% dividend.
The case against
- Pricey at 33.4× earnings, against a long-run market average nearer 20×.
- Current liabilities exceed current assets (ratio 0.90).
- Growth is weak (24/100): revenue +4.8%, EPS -1.8%, +1.4% a year over five years.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 42 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 24 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 56 |
| Momentumhow the price has behaved lately | 63 |
| Stabilityhow violently it moves, what it owes and what it pays you | 64 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 33.4× |
|---|---|
| Price / book | 3.93× |
| Price / sales | 4.6× |
| Revenue growth (YoY) | +4.8% |
| EPS growth (YoY) | -1.8% |
| Gross margin | 53% |
| Operating margin | 20% |
| Net margin | 14% |
| Return on equity | 13% |
| Debt / equity | 0.64× |
| Current ratio | 0.90 |
| Dividend yield | 2.37% |
| Beta | 1.24 |
| 52-week range | $122.64 – $166.35 |
| Position in that range | 72% of the way up |
| 3-month return | +0.7% |
| 1-year return | +14.6% |
Five years of financials, as filed
Pulled from Emerson Electric's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $18.0B | $17.5B | $15.2B | $13.8B | $12.9B |
| Gross profit | $9.5B | $8.9B | $7.4B | $6.3B | $7.6B |
| Net income | $2.3B | $2.0B | $13.2B | $3.2B | $2.3B |
| Operating cash flow | $3.1B | $3.3B | $637M | $2.9B | $3.6B |
| Capital expenditure | $431M | $419M | $363M | $299M | $404M |
| Total assets | $41.9B | $42.6B | $46.5B | $36.2B | $27.0B |
| Shareholder equity | $20.3B | $20.5B | $20.7B | $10.7B | $10.2B |
| Cash | $1.7B | $2.8B | $2.1B | $2.3B | $4.7B |
| Long-term debt | $7.6B | $6.6B | $7.6B | $8.2B | $8.7B |
| Free cash flow | $2.7B | $2.9B | $274M | $2.6B | $3.2B |
| Gross margin | 52.8% | 50.8% | 49.0% | 45.7% | 58.5% |
| Net margin | 12.7% | 11.3% | 87.2% | 23.4% | 17.8% |
| Diluted shares | 567M | 574M | 577M | 596M | 602M |
Share count is down 5.8% over 4 years. Buybacks have been shrinking the pie.
What Emerson Electric says it does
Emerson Electric Co. ("Emerson", "we", "us", "our" or the "Company") is a global technology and software company that provides innovative solutions for customers in a wide range of end markets around the world. Through its leading automation portfolio, Emerson helps process, hybrid and discrete manufacturers optimize operations, protect personnel, reduce emissions and achieve their sustainability goals. Sales by geographic destination in 2025 were: the Americas, 51 percent; Asia, Middle East & Africa, 30 percent (China, 10 percent); and Europe, 19 percent . Portfolio management is an integral component of Emerson's growth and value creation strategy. Over the past three years, the Company has taken significant actions to accelerate the transformation of its portfolio through the completion of strategic acquisitions and divestitures of non-core businesses. These actions were undertaken to create a cohesive, higher growth, higher margin…
Risk factors EMR lists in its 10-K
- We Operate in Businesses That Are Subject to Competitive Pressures That Could Affect Prices or Demand for Our Products
- Our Operating Results Depend in Part on Continued
- Successful Research, Development and Marketing of New and/or Improved Products and Services, and There Can Be No Assurance That We Will Continue to Successfully Introduce New Products and Services
- If We Are Unable to Defend or Protect Our Intellectual Property Rights, the Company's Competitive Position Could Be Adversely Affected
- We Use a Variety of Raw Materials and Components in Our Businesses, and Significant Shortages or Price Increases Could Increase Our Operating Costs and Adversely Impact the Competitive Positions of Our P
- Access to Funding Through the Capital Markets is Essential to the Execution of Our Business Plan, and if We Are Unable to Maintain Such Access We Could Experience a Material Adverse Effect on Our Business and Financial Results
- Our Business Success Depends on the Ability to Attract, Develop and Retain Key Personnel
- Security and/or Data Privacy Breaches, or Disruptions of Our Information Technology Systems Could Adversely Affect Our Business
- Industry and General Economic Risks
- Our Substantial Sales Both in the U.S. and Abroad Subject Us to Economic Risk as Our Results of Operations May Be Adversely Affected by Changes in Government Regulations and Policies and Currency Fluctuations
- Recessions, Adverse Market Conditions or Downturns in End Markets We Serve May Negatively Affect Our Operations
- Changes in Tax Rates, Laws or Regulations and the Resolution of Tax Disputes Could Adversely Impact Our Financial Results
- Our Reputation, Ability To Do Business and Results of Operations Could Be Impaired By Improper Conduct By Any of Our Employees, Agents or Business Partners
- We Are Subject to Litigation and Environmental Regulations That Could Adversely Impact Our Operating Results