Emerson Electric Company (EMR)
NYSE:EMR
Top Page
Emerson Electric Company
(NYSE:EMR)
Select Model
Select Model
Rating:69Neutral
Price Target:
$147.00
â–²(2.25% Upside)
Action:DowngradedDate:02/04/26
EMR scores well on trend/momentum and a constructive earnings outlook (raised EPS guidance, strong orders/backlog, and committed shareholder returns). The overall score is held back by softer recent cash-flow trajectory and increased leverage, and by a demanding valuation (high P/E with a modest dividend yield).
Positive Factors
Order Momentum & Backlog
A sustained 9% underlying orders gain, a $7.9B backlog and a 1.13 book-to-bill provide multi-month revenue visibility and a healthy project funnel (~$11.1B). This underpins durable top-line conversion for industrial automation projects and cushions near-term cyclical weakness.
Negative Factors
Rising Total Debt
A material increase in gross debt materially reduces balance-sheet flexibility and raises sensitivity to cash flow variability. Higher leverage can constrain capital allocation choices, increase interest expense volatility, and amplify refinancing or covenant risks if cash generation weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Order Momentum & Backlog
A sustained 9% underlying orders gain, a $7.9B backlog and a 1.13 book-to-bill provide multi-month revenue visibility and a healthy project funnel (~$11.1B). This underpins durable top-line conversion for industrial automation projects and cushions near-term cyclical weakness.
Read all positive factors
Emerson Electric Company (EMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$80.84B
Dividend Yield1.58%
Average Volume (3M)2.94M
Price to Earnings (P/E)30.8
Beta (1Y)1.41
Revenue Growth2.97%
EPS Growth18.14%
CountryUS
Employees73,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.46
Shares Outstanding562,302,060
10 Day Avg. Volume2,862,357
30 Day Avg. Volume2,936,934
Financial Highlights & Ratios
PEG Ratio1.77
Price to Book (P/B)3.64
Price to Sales (P/S)4.10
P/FCF Ratio27.68
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue5.14
Enterprise Value/Gross Profit9.74
Enterprise Value/Ebitda18.80
Forecast
1Y Price Target
$162.13Price Target Upside12.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)6.5
Revenue Forecast (FY)$18.92B
Emerson Electric Company Business Overview & Revenue Model
Company Description
Emerson Electric Co., a technology and engineering company, provides various solutions for customers in industrial, commercial, and residential markets in the Americas, Asia, the Middle East, Africa, and Europe. The company operates through Automa...
How the Company Makes Money
Emerson makes money mainly by selling industrial automation hardware, software, and related lifecycle services to industrial customers. (1) Product/equipment sales: A significant portion of revenue comes from engineered and configured automation s...
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 Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed a largely constructive tone: strong order growth (9%), backlog expansion, prominent wins (Ovation, AI data center, Sempra LNG), solid profitability (27.7% adjusted segment EBITDA margin) and raised EPS guidance support a positive operational narrative. Offsetting risks include an accounting-driven software renewal headwind that dents near-term revenue and margins, regional softness in China and parts of Europe, and margin pressure in certain groups. On balance, the positives (broad order momentum, large project wins, margin outperformance, and improved EPS guidance) meaningfully outweigh the lowlights, though near-term execution and regional demand will be important to monitor.Positive Updates
Order Momentum and Backlog Growth
Underlying orders grew 9% year-over-year (fourth consecutive quarter of strong order growth); twelve-month orders up 6%; backlog ended the quarter at $7.9 billion, up 9% YoY; book-to-bill was 1.13 and the project funnel is $11.1 billion.
Negative Updates
Software Contract Renewal Accounting Drag
A software contract renewal dynamic negatively impacted results: reduced Q1 year-over-year sales growth by ~1 percentage point, adjusted segment EBITDA margin by ~70 basis points, and EPS by ~$0.06; additional headwinds expected in H1 (GAAP revenue headwind ~$110M in H1, ~$120M full year) and Q2 margin dilution (~150 bps vs Q2 2025) with ~ $65M headwind in Q2.
Read all updates
Q1-2026 Updates
Positive
Negative
Order Momentum and Backlog Growth
Underlying orders grew 9% year-over-year (fourth consecutive quarter of strong order growth); twelve-month orders up 6%; backlog ended the quarter at $7.9 billion, up 9% YoY; book-to-bill was 1.13 and the project funnel is $11.1 billion.
Read all positive updates
Company Guidance
Emerson reiterated full‑year 2026 guidance for 5.5% sales growth (4% underlying), an adjusted segment EBITDA margin of ~28% and raised adjusted EPS to $6.40–$6.55, while reaffirming plans to return ≈$2.2B to shareholders in 2026 ($1.2B dividends, $1.0B buybacks; $250M repurchased in Q1) and expecting ACV growth >10%; Q2 guidance is sales +3–4% (underlying +1–2%), adjusted segment EBITDA ≈27% and adjusted EPS $1.50–$1.55. Management said excluding a software contract‑renewal accounting dynamic growth would be ~3–4% in Q2 and ~5% for the year (the renewal dynamic reduced Q1 growth by ~1 percentage point, Q1 EBITDA by ~70 bps and Q1 EPS by ~$0.06, will hit Q2 EPS by ~$0.09 and Q2 EBITDA ~150 bps vs. prior year, and reduces full‑year EPS by ~$0.05 and margin by ~40 bps). They expect operations to deliver roughly $0.50 of incremental full‑year EPS, ~80 bps of margin expansion from price/cost and synergies, second‑half growth of ~6%, backlog of $7.9B (book‑to‑bill 1.13), and reiterated longer‑term 2028 targets of $21B revenue, 30% adjusted segment EBITDA margin, $8 adjusted EPS, 20% FCF margin and $10B returned to shareholders ($6B buybacks, $4B dividends).Emerson Electric Company Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.19B | 18.02B | 17.49B | 15.16B | 13.80B | 12.93B |
| Gross Profit | 9.59B | 9.52B | 8.88B | 7.43B | 6.31B | 5.73B |
| EBITDA | 4.97B | 4.84B | 4.03B | 4.21B | 3.50B | 2.69B |
| Net Income | 2.31B | 2.29B | 1.97B | 13.22B | 3.23B | 2.30B |
Balance Sheet | ||||||
| Total Assets | 41.94B | 41.96B | 44.25B | 42.75B | 35.67B | 24.71B |
| Cash, Cash Equivalents and Short-Term Investments | 1.75B | 1.54B | 3.59B | 8.05B | 1.80B | 2.35B |
| Total Debt | 13.92B | 13.76B | 8.36B | 8.56B | 10.69B | 7.08B |
| Total Liabilities | 21.65B | 21.67B | 16.74B | 16.15B | 19.36B | 14.79B |
| Stockholders Equity | 20.29B | 20.28B | 21.64B | 20.69B | 10.36B | 9.88B |
Cash Flow | ||||||
| Free Cash Flow | 2.58B | 2.67B | 2.91B | 274.00M | 2.39B | 2.99B |
| Operating Cash Flow | 3.02B | 3.10B | 3.33B | 637.00M | 2.92B | 3.58B |
| Investing Cash Flow | -649.00M | -593.00M | -5.36B | 12.41B | -5.33B | -2.12B |
| Financing Cash Flow | -3.51B | -4.51B | -2.46B | -6.82B | 2.05B | -2.42B |
Emerson Electric Company Technical Analysis
Positive
143.77
Price Trends
141.96
Positive
139.57
Positive
136.58
Positive
Market Momentum
0.02
Negative
61.52
Neutral
92.55
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 143.77 is above the 20-day moving average (MA) of 132.25, above the 50-day MA of 141.96, and above the 200-day MA of 136.58, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.52 is Neutral, neither overbought nor oversold. The STOCH value of 92.55 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 (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $124.23B | 32.82 | 25.65% | 0.79% | 0.22% | 26.66% | |
76 Outperform | $156.36B | 30.24 | 21.67% | 1.29% | 8.24% | 6.21% | |
72 Outperform | $77.96B | 23.48 | 95.18% | 2.43% | -0.41% | -10.88% | |
69 Neutral | $80.84B | 30.81 | 11.60% | 1.58% | 2.97% | 18.14% | |
68 Neutral | $44.49B | 35.94 | 27.69% | 1.33% | 0.98% | -7.51% | |
67 Neutral | $85.13B | 24.76 | 24.13% | 1.48% | -1.78% | 27.35% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
EMR
Emerson Electric Company
143.77
44.38
44.66%
CMI
Cummins
616.14
332.84
117.49%
ETN
Eaton
403.00
128.54
46.83%
ITW
Illinois Tool Works
270.52
42.73
18.76%
PH
Parker Hannifin
984.23
419.84
74.39%
ROK
Rockwell Automation
396.00
166.11
72.25%
Emerson Electric Company Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Emerson Establishes New 364-Day $2 Billion Credit Facility
Neutral
Feb 13, 2026
On February 10, 2026, Emerson Electric Co. entered into a new unsecured $2 billion 364-day credit facility with a syndicate of major banks, replacing a prior $3 billion 364-day agreement that had expired. The facility, which runs until February 9,...
Executive/Board ChangesShareholder Meetings
Emerson shareholders back directors but reject board declassification
Neutral
Feb 6, 2026
At Emerson Electric Company’s 2026 Annual Meeting of Shareholders, held on February 3, 2026, shareholders elected three directors — Martin S. Craighead, Gloria A. Flach and Matthew S. Levatich — to the board, reaffirmed the compa...
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.