EMR
Emerson Electric
$158.94
▲ 1.3%Updated Aug 7, 11:30 AM ET
EMR at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 45/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 17.1% over the last 12 months
Market Cap
$77.88B
P/E
36.89x
Forward P/E (est.)
35.69x
ROE
12.1%
Revenue Growth
4.0%
EPS Growth
3.4%
Profit Margin
13.3%
FCF Yield
3.7%
Debt / Equity
0.65x
ROIC
—
Interest Coverage
—
Current Ratio
0.87x
Dividend Yield
1.5%
Implied Growth (rev. DCF)
5.4%
Rating Score
45/100
Emerson Electric (EMR) is a large-cap company in the Electrical Components & Equipment industry, part of the Industrials sector of the S&P 500, with a market value around $77.88B.
In its latest reported year it generated about $18.02B in revenue and $2.29B in net profit.
Our model rates EMR Neutral (45/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (9 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
50.9% average over the last 3 years
±5.5 pts around 47.3% across 9 years
grew in 6 of the last 8 year-over-year periods
positive in 9 of 9 years
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what EMR's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. EMR trades near $158.94, above its 50-day average ($140.71) and 200-day average ($138.54). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 45 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. EMR's is $4.22 (~2.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month EMR found buyers near $136.42 (support) and sellers near $152.88 (resistance); its 52-week range is $122.64–$165.15. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.9× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
8.6%
Revenue moved from $15.26B in 2017 to $18.02B in 2025, a 2.1% compound annual growth rate. The most recent year was roughly flat (4.0%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
52.8%
Operating Margin
19.3%
Net Margin
12.7%
ROE
12.1%
Emerson Electric keeps about 13.3% of each sales dollar as net profit, with a 52.8% gross margin and 19.3% operating margin. Return on equity is 12.1%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$8.92B
Net Debt
$4.20B
Net Debt / EBITDA
—
Debt / Equity
0.65x
Leverage: debt-to-equity is 0.6x, with a current ratio of 0.9x. That is a moderate, manageable debt load for most businesses. It carries roughly $8.92B of total debt against $4.73B of cash.
Operating CF
$3.10B
Free Cash Flow
$2.67B
FCF Margin
14.8%
In the latest year Emerson Electric produced about $3.10B of operating cash flow and $2.67B of free cash flow after capital spending. That is a free-cash-flow yield of about 3.7% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
1.5%
Per share (latest FY)
$2.11
Total paid (latest FY)
$1.19B
History on record
9 years
dividend uses 45% of free cash flow
52% of net income paid out
no current raise streak
no cuts in the last 9 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
36.89x
P/S
4.69x
P/B
3.89x
EV / EBITDA
—
EMR trades at 36.9x trailing earnings (about 35.7x on estimated forward earnings), 4.7x sales, and 3.9x book value. Reverse-engineering today's price implies the market expects roughly 5.4% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$81.89
Current price
$158.94
Starting FCF (latest 10-K)
$2.67B
Growth, years 1–5
4.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where EMR sits versus its Industrials sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 144 Industrials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How EMR stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
In the Industrials sector (273 S&P 500 companies), EMR ranks #94 of 273 by our overall rating. It trades at a premium versus the sector on earnings (36.9x P/E vs. 32x median) with a lower return on equity (12.1% vs. 18.1%) and slower revenue growth (4.0% vs. 6.0%).
P/E vs sector
36.9x
median 32x
ROE vs sector
12.1%
median 18.1%
Growth vs sector
4.0%
median 6.0%
Sector rank
#94
of 273 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 273 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $158.94 today · expected CAGR -4% – 6%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $18.74B | $19.49B | $20.27B | $21.08B | $21.92B |
| Net income | $2.44B | $2.53B | $2.63B | $2.74B | $2.85B |
| EPS | $4.97 | $5.17 | $5.38 | $5.59 | $5.82 |
| Share price (low) | $109.36 | $113.73 | $118.28 | $123.01 | $127.93 |
| Share price (high) | $183.92 | $191.28 | $198.93 | $206.89 | $215.16 |
| CAGR (low–high) | -31% / 16% | -15% / 10% | -9% / 8% | -6% / 7% | -4% / 6% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for EMR:
- As an established S&P 500 member in Industrials, it brings scale and a long operating history.
The case against EMR:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Valuation risk — at 36.9x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Emerson Electric is a large-cap industrials business growing at a mature pace, with solid profitability, and a sound balance sheet. It trades at 36.9x earnings, which our model scores Neutral (45/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 34 Wall Street analysts covering EMR recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
EMR's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
EMR — frequently asked questions
Is EMR a good stock to buy?
We don't give buy or sell advice. Our model rates Emerson Electric Neutral (45/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is EMR's rating on The Stocks School?
Emerson Electric currently scores 45/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does EMR's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Emerson Electric's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for EMR calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this EMR analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell EMR. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.