Emerson Electric Company (EMR) AI Stock Analysis

• Market Cap: $74.71B
• Dividend Yield: 1.61%
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 32.9
• Beta (1Y): 1.30
• Revenue Growth: 2.97%
• EPS Growth: 18.14%
• Country: US
• Employees: 73,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.62
• Shares Outstanding: 561,800,000
• 10 Day Avg. Volume: 2,435,593
• 30 Day Avg. Volume: 2,407,852
• PEG Ratio: 1.82
• Price to Book (P/B): 3.66
• Price to Sales (P/S): 4.13
• P/FCF Ratio: 27.87
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 4.80
• Enterprise Value/Gross Profit: 9.08
• Enterprise Value/Ebitda: 17.46
• 1Y Price Target: $148.17
• Price Target Upside: 11.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 6.48
• Revenue Forecast (FY): $18.92B

• Rating: 76 Outperform
• Price Target: $154.00 ▲(15.81% Upside)

Emerson Electric Company demonstrates strong financial performance and positive momentum, supported by strategic initiatives and a positive earnings outlook. However, high valuation metrics and regional challenges temper the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market strategies and product demand, supporting long-term business expansion and sustainability.

Strategic Projects

Winning significant contracts enhances Emerson's market position and revenue potential, reinforcing its competitive edge in strategic sectors.

Shareholder Returns

The share repurchase plan reflects confidence in future growth and commitment to returning value to shareholders, supporting stockholder interests.

Negative Factors

Free Cash Flow Concerns

Decreasing free cash flow growth may limit Emerson's ability to invest in new opportunities and manage financial obligations effectively.

Regional Challenges

Continued regional challenges could hinder revenue growth and market expansion, affecting Emerson's global competitive position.

Software Contract Renewals

The impact of software contract renewals poses a risk to earnings, potentially affecting Emerson's profitability and financial stability.

Emerson Electric Company Business Overview & Revenue Model

Company Description

Emerson Electric Company (EMR) is a global technology and engineering company that provides innovative solutions across various sectors, including automation, climate technologies, and commercial and residential solutions. Headquartered in St. Louis, Missouri, Emerson operates through two primary business segments: Automation Solutions, which offers process control systems, measurement instruments, and software for industrial applications, and Commercial & Residential Solutions, which includes heating, ventilation, air conditioning (HVAC), and refrigeration technologies. The company is committed to enhancing efficiency and sustainability in its offerings, catering to a diverse range of industries, including oil and gas, manufacturing, and residential construction.

How the Company Makes Money

Emerson Electric Company generates revenue through multiple streams primarily from the sale of products and services in its two main business segments. The Automation Solutions segment earns money by providing advanced technologies for process automation, including control systems, software, and related services, which are essential for industries aiming to enhance operational efficiency and reliability. The segment also benefits from recurring revenue through service agreements and long-term contracts. In the Commercial & Residential Solutions segment, the company earns income from HVAC systems, tools, and appliances, which are sold directly to consumers and businesses. Additionally, Emerson has established significant partnerships with other companies and industries, allowing it to expand its market reach and enhance its product offerings, all of which contribute to its overall revenue growth and sustainability.

Emerson Electric Company Financial Statement Overview

Summary

Emerson Electric Company shows strong revenue growth and improved operational efficiency, with a 33.3% increase in revenue and a gross profit margin of 52.8%. However, the net profit margin decreased slightly, and there are concerns about declining free cash flow growth.

Income Statement

Emerson Electric Company has demonstrated strong revenue growth with a 33.3% increase in the latest year. The gross profit margin improved to 52.8%, indicating efficient cost management. However, the net profit margin slightly decreased to 12.7% from the previous year, suggesting some pressure on profitability. Overall, the income statement reflects solid growth and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved significantly, indicating better leverage management. However, the return on equity is not available for the latest year, which limits the assessment of profitability relative to shareholder equity. The equity ratio suggests a stable financial position with stockholders' equity covering a substantial portion of total assets.

Cash Flow

There is a decline in free cash flow growth, which is a concern for cash generation. The operating cash flow to net income ratio is not available, limiting the analysis of cash flow efficiency. Despite these challenges, the company maintains a positive free cash flow to net income ratio, indicating some level of cash profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.02B	18.02B	17.49B	15.16B	13.80B	12.93B
Gross Profit	9.52B	9.52B	8.88B	7.43B	6.31B	5.73B
EBITDA	4.95B	4.86B	4.03B	4.21B	3.50B	2.69B
Net Income	2.29B	2.29B	1.97B	13.22B	3.23B	2.30B
Balance Sheet
Total Assets	41.96B	41.96B	44.25B	42.75B	35.67B	24.71B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.54B	3.59B	8.05B	1.80B	2.35B
Total Debt	13.76B	13.76B	8.36B	8.56B	10.69B	7.08B
Total Liabilities	21.67B	21.67B	16.74B	16.15B	19.36B	14.79B
Stockholders Equity	20.28B	20.28B	21.64B	20.69B	10.36B	9.88B
Cash Flow
Free Cash Flow	2.67B	2.67B	2.91B	274.00M	2.39B	2.99B
Operating Cash Flow	3.10B	3.10B	3.33B	637.00M	2.92B	3.58B
Investing Cash Flow	-666.00M	-593.00M	-5.36B	12.41B	-5.33B	-2.12B
Financing Cash Flow	-4.44B	-4.51B	-2.46B	-6.82B	2.05B	-2.42B

Emerson Electric Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 132.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMR, the sentiment is Positive. The current price of 132.98 is below the 20-day moving average (MA) of 133.86, above the 50-day MA of 132.01, and above the 200-day MA of 125.61, indicating a neutral trend. The MACD of 0.67 indicates Positive momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 15.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EMR.

Emerson Electric Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PH	79 Outperform	$110.39B	31.16	27.30%	0.80%	0.22%	26.66%
EMR	76 Outperform	$74.71B	32.87	10.91%	1.61%	2.97%	18.14%
ETN	75 Outperform	$123.43B	31.78	20.69%	1.31%	8.24%	6.21%
CMI	72 Outperform	$69.95B	26.30	23.84%	1.51%	-1.78%	27.35%
ITW	71 Outperform	$72.57B	24.27	91.71%	2.44%	-0.41%	-10.88%
ROK	71 Outperform	$44.45B	51.64	24.24%	1.34%	0.98%	-7.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Emerson Electric Company Corporate Events

Emerson Electric Approves Special Performance Awards for Executives

On November 13, 2025, Emerson Electric’s Compensation Committee approved a Special Performance-based Award for CEO Lal Karsanbhai and COO Ram Krishnan, recognizing their leadership in the company’s automation transformation. The awards, consisting of long-term stock options with exercise prices set at significant premiums, aim to align the executives’ interests with shareholders, ensuring leadership continuity and supporting Emerson’s pay-for-performance philosophy.

Emerson Electric Announces Major Share Repurchase Plan

On November 5, 2025, Emerson Electric Co. announced its Board of Directors authorized the repurchase of up to 50 million shares of its common stock, supplementing a previous authorization from March 2020. This move is part of Emerson’s strategy to return cash to shareholders, alongside a 5% increase in its quarterly cash dividend. The company reported strong financial results for the fourth quarter and full fiscal year 2025, with significant margin expansion and robust cash generation. Emerson’s performance was bolstered by the successful integration of AspenTech and Test & Measurement, achieving $200 million in cost synergies. The company remains optimistic about sustainable growth driven by long-term secular trends and plans to return approximately $2.2 billion to shareholders in 2026 through share repurchases and dividends.