EMR Emerson Electric Co. - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
EMR trades at a premium to the sector on trailing P/E despite weaker recent earnings growth, while its forward multiple suggests modest de-rating already priced in.
- Forward P/E of 20.19 is more reasonable and aligns with growth expectations
- P/S of 4.01 is in line with high-quality industrials given margin strength
- Current P/E of 31.66 is significantly above sector average of 27.54 and forward multiple
- Price/Book of 3.54 lacks margin of safety compared to peers like ITW (ROE 91.68%)
While price momentum is weak (1Y: +1.0%, 6M: +6.7%), the recent quarterly EPS inflection and analyst optimism suggest expectations of a cyclical recovery in automation and climate tech segments.
- Most recent Q/Q EPS growth of +6.6% and YoY of +9.5% indicate potential inflection off weak prior-year comps
- Analyst target of $151.00 implies confidence in sustained recovery and margin expansion
- Revenue growth of 5.1% lags sector average of 7.13%, particularly behind WM’s 14.9%
- Negative YoY earnings growth (-35.3%) raises questions about sustainability of rebound
EMR has delivered strong historical profitability and earnings consistency over five years (+81.5% return), but ROE remains structurally low, reflecting capital intensity and reinvestment challenges.
- Exceptional earnings track record: 22 of 25 quarters beat estimates, including multiple double-digit surprises
- Gross margin of 52.84% and operating margin of 20.72% show durable profitability over time
- ROE of 9.36% is weak compared to sector average of 39.40% and peers like ITW (91.68%) and MMM (72.92%)
- Recent earnings misses in 2023-02 and 2023-11 break a long streak of consistency
EMR’s leverage is a strength relative to peers, but weak liquidity ratios raise operational flexibility concerns, especially in a downturn, though no immediate solvency risk is evident.
- Debt/Equity of 0.68 is conservative vs sector average of 1.80, reducing refinancing and interest rate risk
- Profit margin of 12.73% supports ongoing cash generation despite liquidity constraints
- Current ratio of 0.88 and quick ratio of 0.60 suggest working capital pressure and limited short-term cushion
- Missing cash flow data (OCF, FCF) limits visibility into true financial runway
The dividend is well-covered and strategically positioned within capital allocation, offering stability in a sector where income is valued, though not a high-growth yield story.
- 1.74% dividend yield with a sustainable 52.36% payout ratio provides income appeal
- Long history of dividend payments reflects commitment to shareholder returns
- No data on 5-year yield average or growth trend limits assessment of dividend momentum
- Yield is below some high-dividend peers like WM, which offers both higher yield and growth
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for EMR and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
EMR
Emerson Electric Co.
Primary
|
+81.5% | +40.8% | +1.0% | +6.7% | -1.6% | -1.1% |
|
ITW
Illinois Tool Works Inc.
Peer
|
+29.2% | +14.8% | -7.4% | -1.7% | -1.5% | -0.6% |
|
CTAS
Cintas Corporation
Peer
|
+112.1% | +72.4% | -13.1% | -15.1% | -0.1% | +1.1% |
|
JCI
Johnson Controls International plc
Peer
|
+189.6% | +89.8% | +41.2% | +21.7% | +7.1% | -2.9% |
|
RSG
Republic Services, Inc.
Peer
|
+120.4% | +68.9% | +1.2% | -14.9% | -5.1% | +2.0% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Industrials Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
EMR
Emerson Electric Co.
|
NEUTRAL | $72.17B | 31.66 | 9.4% | 12.7% | $127.58 | |
|
ITW
Illinois Tool Works Inc.
|
NEUTRAL | $71.16B | 23.64 | 91.7% | 19.1% | $243.97 | |
|
CTAS
Cintas Corporation
|
NEUTRAL | $75.51B | 41.49 | 42.2% | 17.5% | $186.72 | |
|
JCI
Johnson Controls International plc
|
NEUTRAL | $78.66B | 44.97 | 11.4% | 13.9% | $118.72 | |
|
RSG
Republic Services, Inc.
|
NEUTRAL | $64.95B | 31.17 | 18.2% | 12.8% | $209.8 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-03 | TANG MICHAEL | Officer | Stock Award | 7,149 | - |
| 2025-11-03 | BAUGHMAN MICHAEL J | Chief Financial Officer | Stock Award | 49,585 | - |
| 2025-11-03 | KARSANBHAI SURENDRALAL LANCA | Chief Executive Officer | Stock Award | 218,063 | - |
| 2025-11-03 | FLAVIN LISA A. | Officer | Stock Award | 24,880 | - |
| 2025-11-03 | TRAIN MICHAEL H | Officer | Stock Award | 33,495 | - |
| 2025-11-03 | KRISHNAN RAM R, | Chief Operating Officer | Stock Award | 74,890 | - |
| 2025-11-03 | ZORNIO PETER | Chief Technology Officer | Stock Award | 12,559 | - |
| 2025-11-03 | RAMNATH VIDYA | Officer | Stock Award | 13,621 | - |
| 2025-11-03 | PIAZZA NICHOLAS J | Officer | Stock Award | 12,003 | - |
Wall Street Analysts
Professional analyst ratings and price targets