One-glance verdict
Overvalued
$68.87 our estimate vs market $150.66
Wall Street consensus: $163.47 (137.4% higher than our fair-value estimate)
119% above our estimate, beyond the bull case
Fundamentals snapshot
Emerson Electric Co.
EMR · NYQ · Industrials · Specialty Industrial Machinery
Current price
$150.66
52-week range
$122.64 - $165.15
Market cap
$84.38B
Balance sheet
Watch
9.13x Adequate
Net debt $12.27B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.7% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 69.9% above its 5-year average P/E.
- Risk Net debt grew 37.5% over 3 years.
What this company does
Emerson Electric Co.
Emerson Electric makes the high-tech 'brains' and 'nervous systems' for factories, including automated valves, sensors, and control software that help industrial plants run efficiently and safely. A large part of its revenue (the money a company brings in from sales) comes from selling these automation systems to major industries like energy and manufacturing. Emerson also makes professional-grade tools you might see on a construction site, such as those from its well-known RIDGID brand.
How the company got here
Founded in 1890 in St. Louis, Missouri, Emerson started out by making some of the first electric motors and fans in the United States. [1, 9] For much of its history, it grew by buying other companies, becoming a sprawling industrial manufacturer of everything from power tools to garbage disposals. [1, 9] Recently, the company has transformed itself by selling off major parts of its business, like its well-known climate technologies division, to focus purely on the growing field of automation (using technology to perform tasks automatically). [1, 15] This new focus was sharpened by major acquisitions of software and technology companies. [7]
What it actually does
Think of a huge factory, a power plant, or a chemical facility; Emerson makes the high-tech equipment and software that runs it. [5, 6] Their products act as the brains, senses, and muscles of these complex industrial operations, helping customers run their facilities more safely, efficiently, and with less waste. [15] Essentially, Emerson provides the tools that allow other large companies to automate their manufacturing and production processes. [3] This means everything from measuring the temperature in a vat to automatically turning a valve to control the flow in a pipe. [30, 40]
Final Control
This is one of Emerson's largest businesses, and it's all about controlling the flow of liquids and gases. [14, 17] Think of this division as making incredibly precise and durable valves, regulators, and actuators (devices that open and close valves) for giant industrial pipes. [30, 36] Companies in the chemical, power, and oil and gas industries pay Emerson for these products to ensure their processes run safely and smoothly. [3] This segment acts as the 'muscle' in an automated system, physically manipulating materials based on commands from the control system. [36]
Sensors
This part of the company makes the 'senses' for industrial facilities. [2] It produces a huge range of intelligent instruments that measure critical properties like pressure, temperature, flow, and the level of liquids or gases. [40] This information is vital because it tells the control system exactly what is happening inside the pipes and tanks at any given moment. [37] Customers in nearly every major industry rely on these sensors to monitor their operations, prevent problems, and maintain quality. [3]
Control Systems & Software
This segment is the 'brain' of the operation, taking all the information from the Sensors and telling the Final Control products what to do. [17] It provides the complex software and control systems that automate an entire plant's processes from a central command center. [19] With its acquisition of software company AspenTech, Emerson is increasingly focused on using artificial intelligence and advanced software to help customers optimize (make the best use of) their operations. [7, 15] This is a large and growing part of Emerson's business, representing its shift towards higher-tech solutions. [16]
Test & Measurement
Through its acquisition of a company called National Instruments (NI), Emerson now helps other manufacturers test their own products. [29] This division provides the specialized hardware and software that companies use to make sure their electronics, cars, and other complex products work correctly before they are sold. [2, 31] For example, an electric vehicle maker might use Emerson's test systems to check the performance of its batteries. [34] This business expands Emerson's automation expertise from the factory floor to the product testing lab. [29]
Safety & Productivity
This business makes professional-grade tools and equipment that workers, like plumbers and electricians, use on job sites every day. [17, 27] You might recognize some of its well-known brands, such as RIDGID tools, which are sold in hardware stores. [10] This segment is focused on making physical jobs safer and more efficient for skilled professionals. [27] It's worth noting that Emerson has announced it is looking at selling this business to further focus on its core automation portfolio. [18, 25]
What management is betting on now
Management is betting heavily on a future where major industries are increasingly automated. [22] Their strategy is to become a one-stop shop for industrial automation, providing the full package of hardware, software, and intelligent devices that customers need. [7] The recent multi-billion dollar acquisitions of National Instruments (for testing) and AspenTech (for industrial software) are the clearest signs of this bet. [15] They are also focused on helping their customers meet their sustainability goals, such as reducing emissions, by making their operations more efficient. [24]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$998.00M
FY2024 Q4
$916.00M
FY2025 Q1
$694.00M
FY2025 Q2
$154.00M
FY2025 Q3
$977.00M
FY2025 Q4
$842.00M
FY2026 Q1
$602.00M
FY2026 Q2
$694.00M
Revenue
$4.56B
Net income
$618.00M
Diluted EPS
—
Operating cash flow
$779.00M
Free cash flow
$694.00M
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Sources
Revenue
$4.35B
Net income
$605.00M
Diluted EPS
1.07
Operating cash flow
$699.00M
Free cash flow
$602.00M
Fetching…
Sources
Revenue
$4.86B
Net income
$637.00M
Diluted EPS
1.12
Operating cash flow
$1.01B
Free cash flow
$842.00M
Fetching…
Sources
Revenue
$4.55B
Net income
$586.00M
Diluted EPS
1.04
Operating cash flow
$1.07B
Free cash flow
$977.00M
Fetching…
Sources
Revenue
$4.43B
Net income
$485.00M
Diluted EPS
0.86
Operating cash flow
$241.00M
Free cash flow
$154.00M
Fetching…
Sources
Revenue
$4.17B
Net income
$585.00M
Diluted EPS
1.02
Operating cash flow
$777.00M
Free cash flow
$694.00M
Fetching…
Sources
Revenue
$4.62B
Net income
$996.00M
Diluted EPS
1.73
Operating cash flow
$1.08B
Free cash flow
$916.00M
Fetching…
Sources
Revenue
$4.38B
Net income
$329.00M
Diluted EPS
0.57
Operating cash flow
$1.09B
Free cash flow
$998.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $68.87 vs current price $150.66
Wall Street consensus is the average analyst price target: $163.47 (137.4% higher than our fair-value estimate).
Our most-likely fair value is $68.87 a share — about 54.3% below today's price of $150.66, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $12.3B. Interest coverage 9.1x.
Net debt
$12.27B
Interest coverage
9.13x
Emerson Electric Co.'s profit covers its interest bill about 9.1 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
EMR
BASELINE
Emerson Electric Co.
Total debt $14.06B Interest coverage 9.13x This is the baseline the peer rows are being compared against.
Total debt $4.05B Interest coverage 9.12x -0% vs EMR Has roughly the same debt cushion as EMR.
Total debt $37.75B Interest coverage 4.89x -46% vs EMR Carries about 1.9x less debt cushion than EMR.
Total debt $9.52B Interest coverage 12.46x +37% vs EMR Carries about 1.4x more debt cushion than EMR.
Total debt $9.58B Interest coverage 9.93x +9% vs EMR Has roughly the same debt cushion as EMR.
What you should know
The case for and against EMR
3 Rewards
2 Risks
Rewards
-
Revenue grew 1.7% last year.
-
Free cash flow was positive in 10/10 years.
-
Trades at 34.9x P/E vs peer median 40.5x (13.8% cheaper).
Risks
-
Stock trades 69.9% above its 5-year average P/E.
-
Net debt grew 37.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
34.88x
Forward P/E
21.02x
P/B
4.16x
P/S
4.61x
EV/EBITDA
16.45x
PEG ratio
2.10x
Profitability
How much profit each dollar creates
Gross margin
52.7%
Operating margin
24.2%
Net margin
13.4%
ROE
12.3%
ROA
6.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.69x
Current ratio
0.87x
Quick ratio
0.59x
Total debt
$14.06B
Total cash
$1.79B
Growth
How the business has been compounding
Revenue TTM
$18.32B
Revenue 5Y CAGR
54.6%
EPS TTM
4.32
EPS 5Y CAGR
-9.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.56B
Free CF TTM
$2.67B
FCF margin
14.6%
Dividend
Shareholder payout
Yield
1.5%
Payout ratio
50.1%
Last ex-div date
2026-05-15