EMR Industrials

Emerson Electric Co.

$166.39+0.26%

Price as of close on Nov 3, 2026 · Financials updated Oct 8, 2026

Basics

Sector: Industrials
Industry: Specialty Industrial Machinery
Country: United States
Market cap: 92.8B USD
Enterprise value: 101.0B USD
Full-time employees: 71,000

Overall health

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.21 vs a peer median of 0.64) and less short-term liquidity (current ratio 0.90 vs a peer median of 1.62)higher risk: bigger price swings (beta 1.21 vs peers 0.64) and less liquidity (current ratio 0.90 vs peers 1.62)
About average: growth

Ranks #1,447 of 2,308 industrials companies (bottom 38%)

See how it ranks against its peers

Worth knowing

Returning more cash than it generates. Paid out $7.2B vs $5.9B of free cash flow over the 3 fiscal years to FY Sep 2025.
Emerson Electric returned $7.2B to shareholders over three years, 123% of the free cash flow it produced. That gap has to be covered by cash reserves or new debt, which can't last indefinitely.
Share count shrinking. Shares outstanding down 5.7% from September 2022 to June 2026.
Emerson Electric had 5.7% fewer shares at June 2026 than at September 2022, mainly through buybacks, so each remaining share owns a larger slice of the business.
Profit is backed by cash. Free cash flow is 134% of reported profit.
Emerson Electric's free cash flow is 134% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.
Wide margins. Operating margin 19% (12 months to Jun 2026) vs a peer median of 7.7%.Operating margin 19% vs peers 7.7%.
Emerson Electric keeps 19% of revenue as operating profit, more than 87% of peers (median 7.7%).

StockQuotient Score

45/ 100

Oct 5 46 → Nov 4 45 (-1)

Valuation

Is the price right?

37/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why

Weaker than most peers on:

▼ EBITDA yield
▼ Earnings yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield2.8%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score -0.34Sector median: 0.0377 · MAD: 0.0294

EBITDA yield4.8%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score -0.50Sector median: 0.0695 · MAD: 0.0425

Free cash flow yield3.7%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score 0.01Sector median: 0.0370 · MAD: 0.0370

Other data (not scored)

Book yield22.0%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.5027 · MAD: 0.2823

Growth

Is it growing?

50/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Mixed versus peers:

▲ 3-yr revenue
▼ EPS growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth-2.0%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.37Sector median: 0.0709 · MAD: 0.2481

3-year revenue growth7.6%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 0.54Sector median: 0.0421 · MAD: 0.0625

Revenue growth4.8%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.06Sector median: 0.0439 · MAD: 0.0766

Profitability

Does it earn well?

77/100

Moderate▲ 1 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major change

Why it changed since the Oct 27, 2026 close: Score 76 → 77

Peer companies moved+1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Stronger than most peers on:

▲ Operating margin
▲ ROA

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin18.9%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 2.20Sector median: 0.0773 · MAD: 0.0507

Return on assets6.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.25Sector median: 0.0311 · MAD: 0.0241

Return on invested capital8.9%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.31Sector median: 0.0715 · MAD: 0.0558

Other data (not scored)

Gross margin51.1%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.2573 · MAD: 0.1038

Return on equity12.6%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0802 · MAD: 0.0639

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Current ratio
▼ Beta
▼ Debt / equity

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta1.21

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -2.05Sector median: 0.6440 · MAD: 0.2745

Current ratio0.90×

SEC filings · latest balance sheetReported value33% base weight · Z-score -1.35Sector median: 1.6180 · MAD: 0.5360

Debt / equity0.64×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.72Sector median: 0.4019 · MAD: 0.3378

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Emerson Electric

Is Emerson Electric getting weaker?: Its latest SEC filing (Aug 4, 2026) showed no major changes. Its overall score is unchanged at 45/100 since Oct 28, 2026.
How is Emerson Electric valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 37/100 against 2,459 industrials peers. EBITDA yield 4.8% vs a peer median of 6.9% (weaker than 65% of peers).EBITDA yield 4.8% vs peers 6.9% (weaker than 65% of peers).
Is Emerson Electric growing?: At about the same pace as its peers. Growth scores 50/100 against 2,459 industrials peers. 3-year revenue growth 7.6% vs a peer median of 4.2% (stronger than 65% of peers).3-year revenue growth 7.6% vs peers 4.2% (stronger than 65% of peers). Earnings per share growth -2.0% vs a peer median of 7.1% (weaker than 62% of peers).Earnings per share growth -2.0% vs peers 7.1% (weaker than 62% of peers).
How profitable is Emerson Electric?: More profitable than most of its peers. Profitability scores 77/100 against 2,459 industrials peers. Operating margin 18.9% vs a peer median of 7.7% (stronger than 87% of peers).Operating margin 18.9% vs peers 7.7% (stronger than 87% of peers).
How risky is Emerson Electric?: Higher risk relative to 2,459 industrials peers, judged on debt, liquidity and share-price swings. Current ratio 0.90× vs a peer median of 1.62× (weaker than 89% of peers).Current ratio 0.90× vs peers 1.62× (weaker than 89% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 4, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	18.3B USD	18.6B USD	+1.7%
Net income (12 months)	2.4B USD	2.6B USD	+5.4%
Operating margin	18.3%	18.9%	+0.6 pts
Free cash flow (12 months)	3.1B USD	3.5B USD	+11.1%
Debt	13.4B USD	13.1B USD	−1.8%
Cash	1.8B USD	2.2B USD	+21.7%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Specialty Industrial Machinery · 42 companies

Valuations in Specialty Industrial Machinery are above their usual range since 2016.

75% of months since 2016 were valued lower than now.
46% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +21% and earnings +11% (medians): prices and earnings moved broadly together.
Median price-to-sales is +32% vs the whole market, against a usual −5%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY Sep 2021	FY Sep 2022	FY Sep 2023	FY Sep 2024	FY Sep 2025	Change
Gross margin	58.5%	45.7%	49.0%	50.8%	52.8%	▲ 2.0 pts
Operating margin	14.3%	18.3%	18.4%	12.1%	17.2%	▲ 5.0 pts
Net margin	17.8%	23.4%	87.2%	11.3%	12.7%	▲ 1.5 pts
Return on assets (ROA)	9.3%	9.1%	30.9%	4.4%	5.5%	▲ 1.0 pts
Return on equity (ROE)	23.3%	31.2%	63.9%	9.1%	11.3%	▲ 2.2 pts
Free cash flow margin	24.5%	19.0%	1.8%	16.7%	14.8%	▼ 1.8 pts
Current ratio	1.35×	1.09×	2.75×	1.77×	0.88×	▼ 51%
Quick ratio	1.02×	0.87×	2.35×	1.40×	0.65×	▼ 53%
Debt to equity	0.67×	1.00×	0.39×	0.36×	0.65×	▲ 82%
Interest coverage	12.56×	—	—	—	—	—

EMR price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.21 vs a peer median of 0.64) and less short-term liquidity (current ratio 0.90 vs a peer median of 1.62)higher risk: bigger price swings (beta 1.21 vs peers 0.64) and less liquidity (current ratio 0.90 vs peers 1.62)

About average: growth

Ranks #1,447 of 2,308 industrials companies (bottom 38%)

See how it ranks against its peers

Worth knowing

Returning more cash than it generates. Paid out $7.2B vs $5.9B of free cash flow over the 3 fiscal years to FY Sep 2025.

Emerson Electric returned $7.2B to shareholders over three years, 123% of the free cash flow it produced. That gap has to be covered by cash reserves or new debt, which can't last indefinitely.

Share count shrinking. Shares outstanding down 5.7% from September 2022 to June 2026.

Emerson Electric had 5.7% fewer shares at June 2026 than at September 2022, mainly through buybacks, so each remaining share owns a larger slice of the business.

Profit is backed by cash. Free cash flow is 134% of reported profit.

Emerson Electric's free cash flow is 134% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.

Wide margins. Operating margin 19% (12 months to Jun 2026) vs a peer median of 7.7%.Operating margin 19% vs peers 7.7%.

Emerson Electric keeps 19% of revenue as operating profit, more than 87% of peers (median 7.7%).

Questions investors ask about Emerson Electric

Is Emerson Electric getting weaker?

Its latest SEC filing (Aug 4, 2026) showed no major changes. Its overall score is unchanged at 45/100 since Oct 28, 2026.

How is Emerson Electric valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 37/100 against 2,459 industrials peers. EBITDA yield 4.8% vs a peer median of 6.9% (weaker than 65% of peers).EBITDA yield 4.8% vs peers 6.9% (weaker than 65% of peers).

Is Emerson Electric growing?

At about the same pace as its peers. Growth scores 50/100 against 2,459 industrials peers. 3-year revenue growth 7.6% vs a peer median of 4.2% (stronger than 65% of peers).3-year revenue growth 7.6% vs peers 4.2% (stronger than 65% of peers). Earnings per share growth -2.0% vs a peer median of 7.1% (weaker than 62% of peers).Earnings per share growth -2.0% vs peers 7.1% (weaker than 62% of peers).

How profitable is Emerson Electric?

More profitable than most of its peers. Profitability scores 77/100 against 2,459 industrials peers. Operating margin 18.9% vs a peer median of 7.7% (stronger than 87% of peers).Operating margin 18.9% vs peers 7.7% (stronger than 87% of peers).

How risky is Emerson Electric?

Higher risk relative to 2,459 industrials peers, judged on debt, liquidity and share-price swings. Current ratio 0.90× vs a peer median of 1.62× (weaker than 89% of peers).Current ratio 0.90× vs peers 1.62× (weaker than 89% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

18.3B USD

18.6B USD

+1.7%

Net income (12 months)

2.4B USD

2.6B USD

+5.4%

Operating margin

18.3%

18.9%

+0.6 pts

Free cash flow (12 months)

3.1B USD

3.5B USD

+11.1%

Debt

13.4B USD

13.1B USD

−1.8%

Cash

1.8B USD

2.2B USD

+21.7%

Key ratios

FY Sep 2021

FY Sep 2022

FY Sep 2023

FY Sep 2024

FY Sep 2025

Change

Gross margin

58.5%

45.7%

49.0%

50.8%

52.8%

▲ 2.0 pts

Operating margin

14.3%

18.3%

18.4%

12.1%

17.2%

▲ 5.0 pts

Net margin

17.8%

23.4%

87.2%

11.3%

12.7%

▲ 1.5 pts

Return on assets (ROA)

9.3%

9.1%

30.9%

4.4%

5.5%

▲ 1.0 pts

Return on equity (ROE)

23.3%

31.2%

63.9%

9.1%

11.3%

▲ 2.2 pts

Free cash flow margin

24.5%

19.0%

1.8%

16.7%

14.8%

▼ 1.8 pts

Current ratio

1.35×

1.09×

2.75×

1.77×

0.88×

▼ 51%

Quick ratio

1.02×

0.87×

2.35×

1.40×

0.65×

▼ 53%

Debt to equity

0.67×

1.00×

0.39×

0.36×

0.65×

▲ 82%

Interest coverage

12.56×

—