A Business at a Glance
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EMERSON ELECTRIC CO
EMR
$84.0B
Mkt Cap
$147.94
+2.10%
EMERSON ELECTRIC CO (EMR) has a current P/E ratio of 36.2, compared to its historical median P/E of 18.3. The stock is currently considered Expensive based on its historical valuation range.
EMERSON ELECTRIC CO (EMR) has a 5-year average return on invested capital (ROIC) of 12.8%. This indicates solid capital allocation.
EMERSON ELECTRIC CO (EMR) has a market capitalization of $82.9B. It is classified as a large-cap stock.
Yes, EMERSON ELECTRIC CO (EMR) pays a dividend with a trailing twelve-month yield of 1.47%. The company also returns capital through share buybacks, with a buyback yield of 0.71%.
Based on historical P/E analysis, EMERSON ELECTRIC CO (EMR) appears expensive. The current P/E of 36.2 is 98% above its historical median of 18.3. The estimated fair value CAGR (P/E method) is 15.3%.
EMERSON ELECTRIC CO (EMR) operates in the Electronic & Other Electrical Equipment (No Computer Equip) industry, within the Industrials sector.
EMERSON ELECTRIC CO (EMR) reported annual revenue of $18.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
Emerson is a global automation and software company serving process, hybrid, and discrete manufacturing environments through measurement and analytical instrumentation, industrial valves and equipment, process control systems, and digital software solutions. The company operates a subscription and project-based business model, with software generating recurring annual contract value (ACV) while hardware and services generate transactional and maintenance revenue; maintenance and repair operations (MRO) represent approximately 65% of sales, providing stable recurring cash flows. Emerson's competitive moat derives from decades of deep domain expertise in mission-critical, highly regulated industries including power generation, life sciences, semiconductors, aerospace and defense, and liquefied natural gas (LNG), combined with proprietary software platforms such as Ovation and DeltaV that are embedded in customer operations. The company distributes through direct sales and project execution across North America, Europe, Asia, the Middle East, and Africa, with particular strength in the Americas and emerging markets including India. Emerson's business is characterized by capital-intensive project work alongside asset-light software subscriptions, with pricing power demonstrated through consistent price realization and margin expansion driven by favorable mix, cost synergies from recent acquisitions (AspenTech and Test & Measurement), and operational leverage from the Emerson Management Process.
【Secular tailwinds driving growth】 Emerson's automation portfolio is aligned to powerful secular tailwinds including electrification, energy security, nearshoring and sovereign self-sufficiency, which management expects to drive growth over the next three years and beyond. The company is seeing significant capital deployment in growth verticals including power, life sciences, semiconductors, aerospace and defense, and LNG, with project funnel activity supporting multi-year revenue visibility. Management remains confident in achieving 2028 targets of $21 billion in revenue, 30% adjusted segment EBITDA margins, and $8 adjusted EPS, supported by 40% incremental margins and 20% free cash flow margins. The company expects to continue returning capital to shareholders, with plans to return $10 billion or 70% of cumulative cash through $6 billion in share repurchases and $4 billion in dividend payouts.
| Metric | Target | Period |
|---|---|---|
| Sales growth | 4.5% | FY2026 |
| Underlying sales growth | 3% | FY2026 |
| Adjusted segment EBITDA margin | approximately 28% | FY2026 |
| Adjusted EPS | $6.45-$6.55 | FY2026 |
| Free cash flow | $3.5 billion-$3.6 billion | FY2026 |
| Annual Contract Value (ACV) growth | 10%+ | FY2026 |
| Q3 FY2026 sales growth | approximately 5.5% | Q3 FY2026 |
| Q3 FY2026 underlying sales growth | approximately 5% | Q3 FY2026 |
| Q3 FY2026 adjusted segment EBITDA margin | approximately 28% | Q3 FY2026 |
| Q3 FY2026 adjusted EPS | $1.65-$1.70 | Q3 FY2026 |
| 2028 revenue target |
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 18.3B | 18.0B | 17.5B | 15.2B | 13.8B | 12.9B |
| Net Income | 2.4B | 2.3B | 2.0B | 13.2B | 3.2B | 2.3B |
| EPS | $4.35 | $4.04 | $3.43 | $22.88 | $5.41 | $3.82 |
| Free Cash Flow | 3.1B | 2.7B | 2.9B | 274M | 2.6B | 3.2B |
| ROIC | 0.0% | 8.0% | 8.3% | - | 18.0% | 17.0% |
| Gross Margin | - | 52.8% | 50.8% | 49.0% | 45.7% | 58.5% |
| Debt/Equity | 0.76 | 0.65 | 0.36 | 0.39 | 1.00 | 0.67 |
| Dividends/Share | $2.17 | $2.11 | $2.10 | $2.08 | $2.06 | $2.02 |
| Operating Income | 0 | 3.0B | 2.4B | - | 3.8B | 2.8B |
| Operating Margin | 0.0% | 16.6% | 13.7% | - | 27.4% | 21.6% |
| ROE | 12.0% | 10.9% | 9.3% | 85.1% | 31.9% | 25.2% |
| Shares Outstanding | 560M | 568M | 574M | 578M | 597M | 603M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 17.7B | 16.2B | 14.5B | 15.3B | 17.4B | 18.4B | 16.8B | 12.9B | 13.8B | 15.2B | 17.5B | 18.0B | 18.3B |
| Gross Margin | 57.3% | 43.1% | 43.1% | 42.0% | 42.7% | 42.5% | 41.8% | 58.5% | 45.7% | 49.0% | 50.8% | 52.8% | N/A |
| R&D | 356M | 336M | 320M | 340M | 436M | 454M | 439M | 347M | 385M | 523M | 781M | 771M | 771M |
| SG&A | 4.2B | 3.7B | 3.5B | 3.6B | 4.3B | 4.5B | 4.0B | 3.5B | 3.6B | 4.2B | 5.1B | 5.1B | 5.2B |
| EBIT | 3.1B | 4.0B | 2.3B | 2.2B | 2.6B | 2.8B | 2.3B | 2.8B | 3.8B | N/A | 2.4B | 3.0B | 0 |
| Op. Margin | 17.5% | 24.5% | 16.1% | 14.3% | 15.2% | 15.5% | 13.8% | 21.6% | 27.4% | N/A | 13.7% | 16.6% | 0.0% |
| Net Income | 2.1B | 2.7B | 1.6B | 1.5B | 2.2B | 2.3B | 2.0B | 2.3B | 3.2B | 13.2B | 2.0B | 2.3B | 2.4B |
| Net Margin | 12.1% | 16.7% | 11.3% | 9.9% | 12.7% | 12.6% | 11.7% | 17.8% | 23.4% | 87.2% | 11.3% | 12.7% | 13.4% |
| Non-Recurring | 547M | 1.2B | 96M | 78M | 65M | 95M | 284M | 153M | 105M | 141M | 228M | 136M | 157M |
| Returns on Capital | |||||||||||||
| ROIC | 17.0% | 21.9% | 14.5% | 14.8% | 19.5% | 19.0% | 16.1% | 17.0% | 18.0% | N/A | 8.3% | 8.0% | 0.0% |
| ROE | 20.7% | 29.8% | 20.9% | 18.6% | 24.9% | 26.8% | 23.6% | 25.2% | 31.9% | 85.1% | 9.3% | 10.9% | 12.0% |
| ROA | 8.8% | 11.7% | 7.5% | 7.3% | 11.0% | 11.3% | 9.1% | 9.7% | 10.7% | 33.7% | 4.5% | 5.3% | 5.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 3.7B | 2.5B | 2.9B | 1.9B | 2.9B | 3.0B | 3.1B | 3.6B | 2.9B | 637M | 3.3B | 3.1B | 3.6B |
| Free Cash Flow | 3.0B | 1.9B | 2.4B | 1.4B | 2.3B | 2.4B | 2.5B | 3.2B | 2.6B | 274M | 2.9B | 2.7B | 3.1B |
| Owner Earnings | 3.0B | 1.9B | 2.2B | 1.2B | 1.9B | 2.1B | 2.1B | 2.6B | 2.0B | -664M | 1.4B | 1.3B | 1.8B |
| CapEx | 651M | 588M | 447M | 476M | 617M | 594M | 538M | 404M | 299M | 363M | 419M | 431M | 443M |
| Maint. CapEx | 569M | 573M | 568M | 636M | 758M | 822M | 854M | 762M | 842M | 1.1B | 1.7B | 1.5B | 1.5B |
| Growth CapEx | 82M | 15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 569M | 573M | 568M | 636M | 758M | 822M | 854M | 762M | 842M | 1.1B | 1.7B | 1.5B | 1.5B |
| CapEx/OCF | 20.8% | 23.3% | 15.5% | 24.9% | 21.3% | 19.8% | 17.5% | 16.3% | 10.2% | 57.0% | 12.6% | 13.9% | 12.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 1.2B | 1.3B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B |
| Dividend Yield | 3.6% | 4.4% | 4.8% | 4.1% | 3.3% | 3.5% | 3.5% | 2.5% | 2.5% | 2.5% | 2.1% | 1.7% | 1.5% |
| Share Buybacks | 1.0B | 2.5B | 601M | 400M | 1.0B | 1.3B | 942M | 500M | 500M | 2.0B | 435M | 1.2B | 587M |
| Buyback Yield | 3.2% | 11.3% | 2.2% | 1.2% | 2.4% | 3.5% | 2.7% | 0.9% | 1.2% | 3.7% | 0.7% | 1.6% | 0.7% |
| Stock-Based Comp | 123M | 24M | 145M | 110M | 216M | 120M | 110M | 197M | 125M | 250M | 260M | 263M | 249M |
| Debt Repayment | 329M | 504M | 254M | 254M | 241M | 656M | 503M | 308M | 522M | 741M | 547M | 503M | 503M |
| Balance Sheet | |||||||||||||
| Net Debt | 2.9B | 3.7B | 3.4B | 1.6B | 3.7B | 4.2B | 4.2B | 4.3B | 8.6B | 106M | 4.1B | 11.6B | 13.6B |
| Cash & Equiv. | 3.1B | 3.1B | 3.2B | 3.1B | 1.1B | 1.5B | 3.3B | 2.4B | 1.8B | 8.1B | 3.6B | 1.5B | 1.8B |
| Long-Term Debt | 3.6B | 4.3B | 4.1B | 3.8B | 3.1B | 4.3B | 6.3B | 5.8B | 8.3B | 7.6B | 7.2B | 8.3B | 7.6B |
| Debt/Equity | 0.59 | 0.85 | 0.88 | 0.53 | 0.53 | 0.69 | 0.89 | 0.67 | 1.00 | 0.39 | 0.36 | 0.65 | 0.76 |
| Interest Coverage | 1034.3 | 995.3 | 1167.0 | 2179.0 | 1324.0 | 710.3 | 2311.0 | 19.0 | 541.0 | N/A | 398.2 | 499.2 | 499.2 |
| Equity | 10.1B | 8.1B | 7.6B | 8.7B | 8.9B | 8.2B | 8.4B | 9.9B | 10.4B | 20.7B | 21.6B | 20.3B | 20.3B |
| Total Assets | 24.2B | 22.1B | 21.7B | 19.6B | 20.4B | 20.5B | 22.9B | 24.7B | 35.7B | 42.7B | 44.2B | 42.0B | 42.1B |
| Total Liabilities | 14.1B | 14.0B | 14.2B | 10.9B | 11.4B | 12.3B | 14.5B | 14.8B | 25.3B | 22.1B | 22.6B | 21.7B | 1.7B |
| Intangibles | 1.7B | 938M | 902M | 1.9B | 2.8B | 2.6B | 2.5B | 2.9B | 6.6B | 6.3B | 10.4B | 9.5B | 9.0B |
| Retained Earnings | 19.9B | 21.3B | 21.7B | 22.0B | 23.1B | 24.2B | 25.0B | 26.0B | 28.1B | 40.1B | 40.8B | 40.6B | 41.2B |
| Working Capital | 2.4B | 2.2B | 2.0B | 3.2B | 455M | 1.2B | 3.0B | 2.2B | 729M | 8.8B | 4.5B | -1.2B | -1.4B |
| Current Assets | 10.9B | 10.0B | 10.0B | 8.3B | 6.6B | 7.1B | 8.8B | 8.4B | 8.5B | 13.8B | 10.2B | 8.6B | 9.3B |
| Current Liabilities | 8.5B | 7.8B | 8.0B | 5.0B | 6.2B | 6.0B | 5.8B | 6.2B | 7.8B | 5.0B | 5.7B | 9.8B | 10.7B |
| Per Share Data | |||||||||||||
| EPS | 3.03 | 3.99 | 2.52 | 2.35 | 3.46 | 3.71 | 3.24 | 3.82 | 5.41 | 22.88 | 3.43 | 4.04 | 4.35 |
| Owner EPS | 4.23 | 2.84 | 3.34 | 1.81 | 3.01 | 3.32 | 3.49 | 4.34 | 3.27 | -1.15 | 2.41 | 2.32 | 3.27 |
| Book Value | 14.28 | 11.90 | 11.66 | 13.50 | 14.05 | 13.25 | 13.86 | 16.39 | 17.35 | 35.81 | 37.71 | 35.73 | 36.25 |
| Cash Flow/Share | 5.21 | 3.72 | 4.44 | 2.96 | 4.54 | 4.84 | 5.08 | 5.93 | 4.89 | 1.10 | 5.81 | 5.46 | 7.01 |
| Dividends/Share | 1.72 | 1.88 | 1.90 | 1.92 | 1.94 | 1.96 | 2.00 | 2.02 | 2.06 | 2.08 | 2.10 | 2.11 | 2.17 |
| Shares Out. | 708.6M | 679.2M | 648.8M | 646.0M | 636.7M | 621.6M | 606.5M | 602.9M | 597.2M | 577.8M | 573.8M | 567.6M | 560.1M |
| Valuation | |||||||||||||
| P/E Ratio | 15.3 | 8.2 | 16.5 | 21.8 | 18.6 | 15.5 | 18.0 | 22.9 | 12.9 | 4.1 | 31.1 | 31.6 | 34.0 |
| P/FCF | 10.8 | 11.4 | 11.1 | 23.1 | 18.0 | 14.8 | 13.9 | 16.6 | 15.9 | 195.5 | 21.0 | 27.1 | 26.6 |
| EV/EBIT | 10.0 | 6.1 | 11.8 | 13.9 | 16.1 | 13.2 | 15.2 | 19.0 | 13.2 | N/A | 25.7 | 27.5 | N/A |
| Price/Book | 3.2 | 2.7 | 3.6 | 3.8 | 4.6 | 4.3 | 4.2 | 5.3 | 4.0 | 2.6 | 2.8 | 3.6 | 4.1 |
| Price/Sales | 1.4 | 1.8 | 1.8 | 2.0 | 2.1 | 1.9 | 2.1 | 2.6 | 3.6 | 3.2 | 3.3 | 3.8 | 4.5 |
| FCF Yield | 9.3% | 8.7% | 9.0% | 4.3% | 5.6% | 6.8% | 7.2% | 6.0% | 6.3% | 0.5% | 4.8% | 3.7% | 3.8% |
| Market Cap | 32.8B | 22.2B | 27.0B | 33.1B | 40.9B | 35.7B | 35.4B | 52.6B | 41.8B | 53.6B | 61.1B | 72.4B | 82.9B |
| Avg. Price | 48.04 | 42.67 | 39.30 | 46.82 | 57.99 | 55.99 | 57.22 | 80.04 | 83.03 | 84.29 | 99.65 | 121.35 | 147.94 |
| Year-End Price | 46.35 | 32.70 | 41.58 | 51.28 | 64.27 | 57.46 | 58.43 | 87.31 | 70.03 | 92.71 | 106.54 | 127.55 | 147.94 |
EMERSON ELECTRIC CO passes 6 of 9 quality checks, suggesting mixed fundamentals.
EMERSON ELECTRIC CO trades at 36.2x trailing earnings, compared to its 15-year median P/E of 18.3x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 32.3x vs a median of 16.6x. The company's 5-year average ROIC is 12.8% with a gross margin of 51.4%. Total shareholder yield (dividends + buybacks) is 2.2%. At current prices, the estimated annualized return to fair value is -6.7%.
EMERSON ELECTRIC CO (EMR) has a net profit margin of 12.7%. This is a healthy margin.
EMERSON ELECTRIC CO (EMR) generated $2.7 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
EMERSON ELECTRIC CO (EMR) has a debt-to-equity ratio of 0.65. This indicates moderate leverage.
EMERSON ELECTRIC CO (EMR) reported earnings per share (EPS) of $4.04 in its most recent fiscal year.
EMERSON ELECTRIC CO (EMR) has a return on equity (ROE) of 10.9%. This indicates moderate shareholder returns.
EMERSON ELECTRIC CO (EMR) has a 5-year average gross margin of 51.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for EMERSON ELECTRIC CO (EMR), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
EMERSON ELECTRIC CO (EMR) has a book value per share of $35.73, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Emerson's automation portfolio is aligned to powerful secular tailwinds including electrification, energy security, nearshoring and sovereign self-sufficiency, which management expects to drive growth over the next three years and beyond. The company is seeing significant capital deployment in growth verticals including power, life sciences, semiconductors, aerospace and defense, and LNG, with project funnel activity supporting multi-year revenue visibility. Management remains confident in achieving 2028 targets of $21 billion in revenue, 30% adjusted segment EBITDA margins, and $8 adjusted EPS, supported by 40% incremental margins and 20% free cash flow margins. The company expects to continue returning capital to shareholders, with plans to return $10 billion or 70% of cumulative cash through $6 billion in share repurchases and $4 billion in dividend payouts.
Based on recent SEC filings and earnings calls, EMERSON ELECTRIC CO (EMR) has provided the following forward guidance: Sales growth: 4.5% (FY2026); Underlying sales growth: 3% (FY2026); Adjusted segment EBITDA margin: approximately 28% (FY2026); Adjusted EPS: $6.45-$6.55 (FY2026); Free cash flow: $3.5 billion-$3.6 billion (FY2026), plus 10 additional metrics.
| $21 billion |
| FY2028 |
| 2028 adjusted segment EBITDA margin target | 30% | FY2028 |
| 2028 adjusted EPS target | $8 | FY2028 |
| 2028 free cash flow margin target | 20% | FY2028 |
| Cumulative shareholder capital return | $10 billion | Multi-year plan |
Sales growth (FY2026): “we now expect sales growth of 4.5% with underlying growth of 3%”
Underlying sales growth (FY2026): “we now expect sales growth of 4.5% with underlying growth of 3%”
Adjusted segment EBITDA margin (FY2026): “Adjusted segment EBITDA margin is still expected to be approximately 28%”
Adjusted EPS (FY2026): “we are raising the bottom and midpoint of our adjusted EPS guide, now expecting $6.45-$6.55 per share”
Free cash flow (FY2026): “We still expect to return approximately $2.2 billion to shareholders through $1.2 billion in dividends and $1 billion of share repurchase, of which we completed $542 million in the first half.”
Annual Contract Value (ACV) growth (FY2026): “We are seeing healthy growth in ACV and expect to finish the year up 10% +”
Q3 FY2026 sales growth (Q3 FY2026): “Moving to the third quarter, sales growth is expected to be approximately 5.5%, with underlying sales growth of approximately 5%”
Q3 FY2026 underlying sales growth (Q3 FY2026): “Moving to the third quarter, sales growth is expected to be approximately 5.5%, with underlying sales growth of approximately 5%”