EMR Emerson Electric Co. - Fundamental Analysis
NEUTRAL
EMR Stock | Fundamental Analysis & Investment Insights
NYSE
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Industrials
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Specialty Industrial Machinery
Current Price
$127.58
Analyst Target
$151.0
+18.4% Upside
52W High
$150.27
52W Low
$90.06
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
Emerson Electric (EMR) trades at a premium valuation with a current P/E of 31.66, above both its forward P/E of 20.19 and the sector average of 27.54, suggesting some near-term multiple compression risk. Despite solid long-term profitability—evidenced by a 20.72% operating margin and consistent earnings beat streak (22 of last 25 quarters)—recent YoY earnings contraction of -35.3% raises near-term concerns. The stock has underperformed peers over the past year (+1.0% vs. sector momentum), though it shows resilience in dividend policy and maintains a manageable 0.68 debt/equity ratio. Analysts remain constructive with a $151.00 target price implying ~18% upside, but weak insider activity and liquidity metrics temper bullish conviction.
Key Strengths
Operating margin of 20.72% exceeds sector average and peer group, reflecting strong pricing power and cost discipline
Consistent earnings outperformance: 22 out of 25 quarters beat estimates, with an average surprise of +8.5% over the last four
Debt/Equity of 0.68 is well below sector average of 1.80, indicating conservative capital structure
Dividend yield of 1.74% supported by sustainable 52.36% payout ratio and long-standing policy
5-year total return of +81.5% demonstrates compounder characteristics despite recent stagnation
Key Risks
Earnings growth down -35.3% YoY, signaling potential cyclical headwinds or execution issues despite revenue growth of 5.1%
Current ratio of 0.88 and quick ratio of 0.60 indicate tight liquidity, below 1.0 threshold and weaker than most peers
P/E of 31.66 is elevated relative to forward P/E of 20.19 and sector average of 27.54, leaving little margin for error
Lack of recent insider buying (0 transactions in last 6 months) suggests muted executive confidence at current levels
Underperformance vs key peers: +1.0% 1Y return compared to MMM (+29.7%) and NOC (+13.5%) despite industrial sector tailwinds
AI Fair Value Estimate
Based on comprehensive analysis
$142.5
+11.7% above current price
Performance Snowflake
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Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare EMR against industry averages and similar companies
Insider Trading & Analyst Ratings
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