📊 EMR Key Takeaways
Is Emerson Electric Co (EMR) a Good Investment?
Emerson Electric demonstrates solid operational cash generation ($1.3B FCF) and reasonable leverage (0.37x Debt/Equity), but faces headwinds from slow organic growth (3% revenue, 2.1% net income), weak capital returns (6% ROE, 2.9% ROA), and concerning liquidity metrics with current ratio of 0.87x. Heavy reliance on buybacks for EPS growth (17.8%) masks underlying margin compression and operational challenges.
Emerson shows decent core fundamentals with positive revenue and net income growth, solid operating profitability, and healthy free cash flow generation relative to sales. However, growth appears modest rather than exceptional, liquidity is somewhat tight, and the reported data contains at least one major inconsistency that limits conviction. Overall, the business looks fundamentally sound but not strong enough on this dataset alone to justify a more aggressive rating.
Why Buy Emerson Electric Co Stock? EMR Key Strengths
- Strong interest coverage ratio of 10.7x provides substantial debt service cushion
- Solid free cash flow generation of $1.3B with 14.5% FCF margin supports dividends and shareholder returns
- Operating margin of 17.6% reflects reasonable operational efficiency in industrial equipment sector
- Positive top-line and net income growth with diluted EPS rising faster than earnings, suggesting improving per-share profitability
- Solid operating margin and free cash flow generation, with free cash flow margin of 13.9% indicating good cash conversion
- Manageable leverage profile with debt-to-equity of 0.37x and adequate interest coverage of 5.3x
EMR Stock Risks: Emerson Electric Co Investment Risks
- Current ratio of 0.87x and quick ratio of 0.64x indicate potential short-term liquidity constraints
- Gross margin of 106.9% is anomalous and suggests either data quality issues or material one-time gains masking underlying business trends
- Sluggish revenue growth of 3% YoY with net income growth of only 2.1% demonstrates limited organic growth trajectory; EPS growth of 17.8% driven primarily by buybacks rather than fundamental business expansion
- Current ratio of 0.84x and quick ratio of 0.62x point to weaker near-term liquidity
- ROE of 3.0% and ROA of 1.4% are relatively low, suggesting limited balance-sheet efficiency
- Reported gross profit and gross margin are inconsistent with revenue, raising data quality concerns and reducing confidence in the margin profile
Key Metrics to Watch
- Quarterly cash flow trends and working capital management to assess liquidity stress
- Reconciliation of gross margin calculation for data quality verification
- Organic revenue growth acceleration and net margin expansion independent of financial engineering
- Organic revenue growth and operating margin trend
- Free cash flow generation and short-term liquidity ratios
Emerson Electric Co (EMR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
EMR Profit Margin, ROE & Profitability Analysis
EMR vs Technology Sector: How Emerson Electric Co Compares
How Emerson Electric Co compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Emerson Electric Co Stock Overvalued? EMR Valuation Analysis 2026
Based on fundamental analysis, Emerson Electric Co has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Emerson Electric Co Balance Sheet: EMR Debt, Cash & Liquidity
EMR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Emerson Electric Co's revenue has remained relatively flat over the 5-year period, with a 2% decline. The most recent EPS of $22.88 reflects profitable operations.
EMR Revenue Growth, EPS Growth & YoY Performance
EMR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $4.4B | $485.0M | N/A |
| Q1 2026 | $4.2B | $585.0M | $1.02 |
| Q3 2025 | $4.4B | $329.0M | $0.57 |
| Q2 2025 | $4.4B | $485.0M | $0.86 |
| Q1 2025 | $4.1B | $142.0M | $0.25 |
| Q3 2024 | $3.9B | $329.0M | $0.57 |
| Q2 2024 | $3.8B | $501.0M | $0.87 |
| Q1 2024 | $3.4B | $142.0M | $0.25 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Emerson Electric Co Dividends, Buybacks & Capital Allocation
EMR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Emerson Electric Co (CIK: 0000032604)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EMR
What is the AI rating for EMR?
Emerson Electric Co (EMR) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EMR's key strengths?
Claude: Strong interest coverage ratio of 10.7x provides substantial debt service cushion. Solid free cash flow generation of $1.3B with 14.5% FCF margin supports dividends and shareholder returns. ChatGPT: Positive top-line and net income growth with diluted EPS rising faster than earnings, suggesting improving per-share profitability. Solid operating margin and free cash flow generation, with free cash flow margin of 13.9% indicating good cash conversion.
What are the risks of investing in EMR?
Claude: Current ratio of 0.87x and quick ratio of 0.64x indicate potential short-term liquidity constraints. Gross margin of 106.9% is anomalous and suggests either data quality issues or material one-time gains masking underlying business trends. ChatGPT: Current ratio of 0.84x and quick ratio of 0.62x point to weaker near-term liquidity. ROE of 3.0% and ROA of 1.4% are relatively low, suggesting limited balance-sheet efficiency.
What is EMR's revenue and growth?
Emerson Electric Co reported revenue of $8.9B.
Does EMR pay dividends?
Emerson Electric Co pays dividends, with $624.0M distributed to shareholders in the trailing twelve months.
Where can I find EMR SEC filings?
Official SEC filings for Emerson Electric Co (CIK: 0000032604) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EMR's EPS?
Emerson Electric Co has a diluted EPS of $1.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EMR a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Emerson Electric Co has a HOLD rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EMR stock overvalued or undervalued?
Valuation metrics for EMR: ROE of 6.0% (sector avg: 22%), net margin of 13.7% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy EMR stock in 2026?
Our dual AI analysis gives Emerson Electric Co a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EMR's free cash flow?
Emerson Electric Co's operating cash flow is $1.5B, with capital expenditures of $182.0M. FCF margin is 14.5%.
How does EMR compare to other Technology stocks?
Vs Technology sector averages: Net margin 13.7% (avg: 18%), ROE 6.0% (avg: 22%), current ratio 0.87 (avg: 2.5).