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Emerson Electric Company
(NYSE:EMR)
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Rating:76Outperform
Price Target:
$179.00
â–²(20.99% Upside)
Action:Reiterated
Date:08/05/26
EMR scores well on financial quality and momentum: strong free cash flow and healthy profitability support the business, and the stock’s technical trend remains strong. The main constraint on the overall score is valuation (high P/E with a modest yield), alongside execution risks noted on the call (geographic softness and Middle East disruption) despite raised guidance.
Positive Factors
Free cash flow strength
Consistent, sizable free cash flow provides durable funding for R&D, targeted M&A, capital expenditures, dividends and buybacks without relying on external financing. High FCF-to-income quality improves resilience through cycles and supports capital returns and reinvestment over the medium term.
Negative Factors
Leverage drift
Rising leverage reduces financial flexibility and increases sensitivity to higher rates or cash-flow shocks. Elevated debt levels constrain the ability to pursue opportunistic investments or large buybacks, and raise refinancing and covenant risks if macro or cyclical conditions deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow strength
Consistent, sizable free cash flow provides durable funding for R&D, targeted M&A, capital expenditures, dividends and buybacks without relying on external financing. High FCF-to-income quality improves resilience through cycles and supports capital returns and reinvestment over the medium term.
Read all positive factors
Emerson Electric Company Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyEmerson Electric Company (EMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$83.91B
Dividend Yield1.46%
Average Volume (3M)2.68M
Price to Earnings (P/E)34.4
Beta (1Y)1.41
Revenue Growth4.03%
EPS Growth3.51%
CountryUS
Employees71,000
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)4.59
Shares Outstanding560,100,000
10 Day Avg. Volume2,514,519
30 Day Avg. Volume2,676,075
Financial Highlights & Ratios
PEG Ratio1.78
Price to Book (P/B)3.64
Price to Sales (P/S)4.10
P/FCF Ratio27.68
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$164.40Price Target Upside11.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)6.51
Revenue Forecast (FY)$18.82B
Emerson Electric Company Business Overview & Revenue Model
Company Description
Emerson Electric Co. is an international technology and engineering firm that delivers diverse solutions to industrial, commercial, and residential clients across the Americas, Asia, the Middle East, Africa, and Europe. The company's operations ar...
How the Company Makes Money
Emerson makes money primarily by selling industrial automation hardware, software, and services to industrial customers. Key revenue streams include: (1) Product sales: revenue from manufacturing and selling automation and measurement equipment su...
Emerson Electric Company Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call reported broad-based growth, strong cash generation, margin expansion, raised guidance, and notable wins in key growth verticals (semiconductor, power, Test & Measurement and software). These positives were tempered by regional softness in China and Europe, ongoing Middle East conflict-related disruptions (modeled as a meaningful but manageable headwind), a software renewal dynamic that weighed on margins, and continued tariff/inflation noise. On balance the upbeat operational and financial results, raised guidance, and strong cash returns to shareholders outweigh the headwinds.Positive Updates
Underlying Orders and Sales Growth
Underlying orders grew 7% in Q3 FY2026 and underlying sales grew 6% in Q3; company raised full-year sales growth expectations to 5% GAAP (3.5% underlying).
Negative Updates
Geographic Softness — China and Europe
China sales remained soft but improved to down ~3% YoY in Q3 (sequential improvement); Europe declined ~1% in Q3. Management expects gradual improvement but near-term weakness persists.
Read all updates
Q3-2026 Updates
Positive
Negative
Underlying Orders and Sales Growth
Underlying orders grew 7% in Q3 FY2026 and underlying sales grew 6% in Q3; company raised full-year sales growth expectations to 5% GAAP (3.5% underlying).
Read all positive updates
Company Guidance
Emerson raised 2026 guidance, now targeting 5% GAAP sales growth (3.5% underlying), adjusted segment EBITDA margin of ~28% (28.5% expected in Q4) and adjusted EPS of about $6.55, with free cash flow of ~$3.6 billion and ~$2.2 billion of shareholder returns planned (≈$1.2B dividends, $1.0B buybacks; $898M repurchased through Q3). For Q4 management expects ~5% sales growth (minimal FX) and adjusted EPS ≈ $1.85; by segment they now see Software & Systems ≈ +6% FY and ≈ +10% Q4 (Test & Measurement raised to ~14% FY, Control Systems & Software ~3.5% FY including ~3 points renewal headwind), Intelligent Devices ~2% FY (3% Q4) and Safety & Productivity ~2% FY (1% Q4). Other key metrics: ACV up 9% to $1.68B (ACV growth target 10%+), Q3 underlying orders +7%, Q3 underlying sales +6%, backlog $8.2B with book‑to‑bill 1.0, and management is modeling roughly a $100M FY impact from the Middle East conflict (Q3 ≈ $25M headwind).Emerson Electric Company Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.64B | 18.02B | 17.49B | 15.16B | 13.80B | 12.93B |
| Gross Profit | 9.91B | 9.52B | 8.88B | 7.43B | 6.31B | 5.73B |
| EBITDA | 5.14B | 4.84B | 4.03B | 4.21B | 3.50B | 2.69B |
| Net Income | 2.58B | 2.29B | 1.97B | 13.22B | 3.23B | 2.30B |
Balance Sheet | ||||||
| Total Assets | 42.21B | 41.96B | 44.25B | 42.75B | 35.67B | 24.71B |
| Cash, Cash Equivalents and Short-Term Investments | 2.18B | 1.54B | 3.59B | 8.05B | 1.80B | 2.35B |
| Total Debt | 13.11B | 13.76B | 8.36B | 8.71B | 10.81B | 7.23B |
| Total Liabilities | 21.81B | 21.67B | 16.74B | 16.15B | 19.36B | 14.79B |
| Stockholders Equity | 20.38B | 20.28B | 21.64B | 20.69B | 10.36B | 9.88B |
Cash Flow | ||||||
| Free Cash Flow | 4.76B | 2.67B | 2.91B | 274.00M | 2.39B | 2.99B |
| Operating Cash Flow | 5.39B | 3.10B | 3.33B | 637.00M | 2.92B | 3.58B |
| Investing Cash Flow | -728.00M | -593.00M | -5.36B | 12.41B | -5.33B | -2.12B |
| Financing Cash Flow | -4.42B | -4.51B | -2.46B | -6.82B | 2.05B | -2.42B |
Emerson Electric Company Technical Analysis
Positive
147.94
Price Trends
143.33
Positive
139.73
Positive
139.34
Positive
Market Momentum
4.35
Negative
72.48
Negative
94.83
Negative
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 147.94 is above the 20-day moving average (MA) of 144.64, above the 50-day MA of 143.33, and above the 200-day MA of 139.34, indicating a bullish trend. The MACD of 4.35 indicates Negative momentum. The RSI at 72.48 is Negative, neither overbought nor oversold. The STOCH value of 94.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EMR.
Emerson Electric Company Risk Analysis
Emerson Electric Company disclosed 17 risk factors in its most recent earnings report. Emerson Electric Company reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Emerson Electric Company Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $123.13B | 35.52 | 24.69% | 0.75% | 6.03% | 4.26% | |
76 Outperform | $83.91B | 34.44 | 12.68% | 1.48% | 4.03% | 3.51% | |
76 Outperform | $161.22B | 42.11 | 19.56% | 1.06% | 15.53% | -1.21% | |
76 Outperform | $82.56B | 25.94 | 101.74% | 2.28% | 4.30% | -3.22% | |
69 Neutral | $87.51B | 32.76 | 21.89% | 1.20% | 0.06% | -4.25% | |
68 Neutral | $53.42B | 49.70 | 33.32% | 1.18% | 10.45% | 21.30% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
EMR
Emerson Electric Company
162.47
31.77
24.30%
CMI
Cummins
650.25
271.70
71.78%
ETN
Eaton
447.28
90.20
25.26%
ITW
Illinois Tool Works
297.32
46.87
18.71%
PH
Parker Hannifin
996.90
277.79
38.63%
ROK
Rockwell Automation
450.05
122.10
37.23%
Emerson Electric Company Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Emerson Electric Posts Strong Q2 Results, Reaffirms 2026 Outlook
Positive
May 5, 2026
On May 5, 2026, Emerson reported results for its second quarter ended March 31, 2026, posting a 3% rise in net sales to $4.56 billion, a 28% jump in GAAP EPS to $1.10 and a 5% increase in underlying orders, while margins improved despite sales hea...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.