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Fundamentals snapshot

Emerson Electric Co.

EMR · NYQ · Industrials · Specialty Industrial Machinery

Current price

$164.94

52-week range

$122.64 - $171.25

Market cap

$92.00B

One-glance verdict

Overvalued

$75.42 our estimate vs market $164.94

Wall Street consensus: $175.00 (132.0% higher than our fair-value estimate)

Balance sheet

Watch

9.13x Adequate

Net debt $11.62B. Interest coverage shows how many times profit covers the interest bill.

What this company does

Emerson Electric Co.

Emerson Electric Co. makes sophisticated technology and software that helps businesses manage and automate their operations, like valves and sensors to control liquid and gas flow or tools for professionals. Most of its money comes from selling these essential industrial products and services globally. This is important because these are critical components for many industries to run smoothly and efficiently.

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.

Free cash flow by quarter (oldest to newest)
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 FY2026 Q3 $1.32B
Revenue $4.87B
Net income $718.00M
Diluted EPS 1.28
Operating cash flow $1.42B
Free cash flow $1.32B
Revenue $4.56B
Net income $618.00M
Diluted EPS —
Operating cash flow $779.00M
Free cash flow $694.00M
Revenue $4.35B
Net income $605.00M
Diluted EPS 1.07
Operating cash flow $699.00M
Free cash flow $602.00M
Revenue $4.86B
Net income $637.00M
Diluted EPS 1.12
Operating cash flow $1.01B
Free cash flow $842.00M
Revenue $4.55B
Net income $586.00M
Diluted EPS 1.04
Operating cash flow $1.07B
Free cash flow $977.00M
Revenue $4.43B
Net income $485.00M
Diluted EPS 0.86
Operating cash flow $241.00M
Free cash flow $154.00M
Revenue $4.17B
Net income $585.00M
Diluted EPS 1.02
Operating cash flow $777.00M
Free cash flow $694.00M
Revenue $4.62B
Net income $996.00M
Diluted EPS 1.73
Operating cash flow $1.08B
Free cash flow $916.00M

Is it cheap or expensive?

Fair value $75.42 vs current price $164.94

Wall Street consensus is the average analyst price target: $175.00 (132.0% higher than our fair-value estimate).

Our most-likely fair value is $75.42 a share — about 54.3% below today's price of $164.94, so the stock currently looks expensive (overvalued).

overvalued

We estimate the cash this business should generate over the next 10 years and beyond, then convert it to today's money for a fair value per share, in its trading currency. Cautious, middle and optimistic growth cases give a range. Not for banks/insurers.

Base

Growth 7.0% · Discount 9.1% · Terminal 2.5%

$75.42

Bear

Growth 4.0% · Discount 9.1% · Terminal 2.5%

$60.48

Bull

Growth 12.0% · Discount 9.1% · Terminal 2.5%

$106.21

Is it drowning in debt?

Watch

Net debt $11.6B. Interest coverage 9.1x.

Net debt $11.62B
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 $13.80B Interest coverage 9.13x This is the baseline the peer rows are being compared against.

9.13x
ROK Rockwell Automation, Inc.

Total debt $3.61B Interest coverage 9.12x -0% vs EMR Has roughly the same debt cushion as EMR.

9.12x -0% vs EMR
HON Honeywell International Inc.

Total debt $17.24B Interest coverage 4.89x -46% vs EMR Carries about 1.9x less debt cushion than EMR.

4.89x -46% vs EMR
ETN Eaton Corporation plc

Total debt $21.33B Interest coverage 21.61x +137% vs EMR Carries about 2.4x more debt cushion than EMR.

21.61x +137% vs EMR
PH Parker-Hannifin Corporation

Total debt $8.73B Interest coverage 11.56x +27% vs EMR Carries about 1.3x more debt cushion than EMR.

11.56x +27% vs EMR
JCI Johnson Controls International plc

Total debt $9.28B Interest coverage 12.46x +37% vs EMR Carries about 1.4x more debt cushion than EMR.

12.46x +37% vs EMR

What you should know

The case for and against EMR

3 Rewards 2 Risks

Rewards

  • Revenue grew 3.4% last year.
  • Free cash flow was positive in 10/10 years.
  • Dividend yield is 1.4% with 55-year payout history.

Risks

  • Stock trades 75.8% 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)
36.09x
Forward P/E
22.72x
P/B
4.51x
P/S
4.94x
EV/EBITDA
17.11x
PEG ratio
1.91x

Profitability

How much profit each dollar creates

Gross margin
53.2%
Operating margin
26.9%
Net margin
13.8%
ROE
12.8%
ROA
6.9%

Health

Liquidity and balance-sheet strength

Debt / equity
0.68x
Current ratio
0.90x
Quick ratio
0.62x
Total debt
$13.80B
Total cash
$2.18B

Growth

How the business has been compounding

Revenue TTM
$18.64B
Revenue 5Y CAGR
54.6%
EPS TTM
4.57
EPS 5Y CAGR
-9.3%

Cash flow

How much cash the business throws off

Operating CF TTM
$3.91B
Free CF TTM
$2.67B
FCF margin
14.3%

Dividend

Shareholder payout

Yield
1.4%
Payout ratio
48.0%
Last ex-div date
2026-08-14