Emerson Electric (EMR) Stock Analysis
This is a peer-relative look at Emerson Electric (EMR): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | EMR |
|---|---|
| Name | Emerson Electric Co. |
| Country/Region | United States |
| GICS Sector | Industrials |
| GICS Industry Group | Capital Goods |
| GICS Industry | Electrical Equipment |
| GICS Sub-Industry | Electrical Components & Equipment |
| Market Capitalization | 90.56 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | June 1, 1972 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: EMR | Industry group median |
|---|---|---|
| Total Return (1Y) | 34.39% | 6.84% |
| Total Return (3Y, Annualized) | 28.46% | 17.66% |
| Total Return (5Y, Annualized) | 14.17% | 9.09% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: EMR | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 32.47% | 44.38% |
| Beta (5Y) | 1.20 | 1.19 |
| Max Drawdown (5Y) | -29.61% | -49.95% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: EMR | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.93 | 0.06 |
| Sortino Ratio (1Y) | 1.37 | 0.09 |
Profitability
ROE (TTM)
Emerson Electric (EMR) posts ROE of 13.12%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
EMR
Capital Goods industry group
13.12%
Group distribution
- Max
- 40.55%
- Q3
- 19.29%
- EMR
- 13.12%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
Largest peers
- GEV
- 93.04%
- CAT
- 56.14%
- GE
- 50.17%
- DE
- 18.24%
- EMR
- 13.12%
- RTX
- 12.85%
- BA
- --
Net Margin (TTM)
Emerson Electric (EMR) keeps 14.18% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
EMR
Capital Goods industry group
14.18%
Group distribution
- Max
- 27.47%
- EMR
- 14.18%
- Q3
- 12.10%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
Largest peers
- GEV
- 23.54%
- GE
- 17.31%
- CAT
- 15.21%
- EMR
- 14.18%
- DE
- 10.17%
- RTX
- 8.75%
- BA
- 8.07%
Operating Margin (TTM)
Emerson Electric (EMR) turns 25.90% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
EMR
Capital Goods industry group
25.90%
Group distribution
- Max
- 36.60%
- EMR
- 25.90%
- Q3
- 18.33%
- Median
- 11.12%
- Q1
- 5.14%
- Min
- -12.63%
Largest peers
- EMR
- 25.90%
- CAT
- 20.19%
- GE
- 18.49%
- RTX
- 15.54%
- DE
- 13.37%
- GEV
- 12.77%
- BA
- 0.30%
Profitability Metrics
| Metric | Current stock: EMR | Industry group median |
|---|---|---|
| ROE (TTM) | 13.12% | 12.12% |
| ROA (TTM) | 5.98% | 5.29% |
| Net Margin (TTM) | 14.18% | 6.30% |
| Operating Margin (TTM) | 25.90% | 11.12% |
| Gross Margin (TTM) | 53.36% | 29.63% |
Growth
Revenue Growth
No usable revenue growth is available for Emerson Electric (EMR) this period, so the top-line momentum read is skipped.
EPS Growth
Emerson Electric (EMR) grew earnings per share 18.56%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: EMR | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | -- | 8.11% |
| Revenue Growth (3Y CAGR) | -- | 6.45% |
| EPS Growth (YoY) | 18.56% | 5.45% |
| EPS Growth (3Y CAGR) | -40.62% | 7.15% |
Financial Strength
Current Ratio (MRQ)
Emerson Electric (EMR) has current ratio of 0.94, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
EMR
Capital Goods industry group
0.94
Group distribution
- Max
- 5.22
- Q3
- 2.95
- Median
- 2.08
- Q1
- 1.43
- EMR
- 0.94
- Min
- 0.36
Largest peers
- DE
- 2.13
- CAT
- 1.42
- BA
- 1.13
- RTX
- 1.05
- GE
- 0.98
- EMR
- 0.94
- GEV
- 0.83
Debt / Equity (MRQ)
Emerson Electric (EMR) has debt-to-equity ratio of 0.59, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
EMR
Capital Goods industry group
0.59
Group distribution
- Max
- 2.33
- Q3
- 1.12
- Median
- 0.60
- EMR
- 0.59
- Q1
- 0.29
- Min
- 0.00
Largest peers
- BA
- 7.39
- DE
- 2.30
- CAT
- 2.10
- GE
- 1.16
- EMR
- 0.59
- RTX
- 0.55
- GEV
- 0.30
Financial Strength Metrics
| Metric | Current stock: EMR | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.94 | 2.08 |
| Debt / Equity (MRQ) | 0.59 | 0.60 |
| Net Debt / EBITDA | 1.89 | 1.78 |
Dividends
Dividend Yield (TTM)
Emerson Electric (EMR) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.
EMR
Capital Goods industry group
0.00%
Group distribution
- Max
- 2.66%
- Q3
- 1.14%
- Median
- 0.24%
- EMR
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RTX
- 1.47%
- CAT
- 1.13%
- DE
- 0.98%
- GE
- 0.56%
- GEV
- 0.26%
- EMR
- 0.00%
- BA
- 0.00%
Dividend Payout Ratio (TTM)
Emerson Electric (EMR) has payout ratio of 48.51%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
EMR
Capital Goods industry group
48.51%
Group distribution
- Max
- 67.39%
- EMR
- 48.51%
- Q3
- 28.02%
- Median
- 6.86%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- EMR
- 48.51%
- RTX
- 45.85%
- DE
- 36.02%
- CAT
- 24.18%
- GE
- 20.23%
- GEV
- 4.59%
- BA
- 0.00%
Dividend Metrics
| Metric | Current stock: EMR | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.24% |
| Dividend Payout Ratio (TTM) | 48.51% | 6.86% |
Valuation
P/E Ratio (TTM)
Emerson Electric (EMR) trades at P/E ratio of 33.89, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
EMR
Capital Goods industry group
33.89
Group distribution
- Max
- 59.38
- Q3
- 35.92
- EMR
- 33.89
- Median
- 25.41
- Q1
- 19.47
- Min
- 3.03
Largest peers
- DE
- 37.33
- GE
- 36.94
- EMR
- 33.89
- RTX
- 30.82
- CAT
- 21.92
- GEV
- 20.32
- BA
- 17.89
P/S Ratio (TTM)
Emerson Electric (EMR) trades at 4.77 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
EMR
Capital Goods industry group
4.77
Group distribution
- Max
- 7.54
- EMR
- 4.77
- Q3
- 3.76
- Median
- 2.15
- Q1
- 1.03
- Min
- 0.03
Largest peers
- GE
- 6.38
- EMR
- 4.77
- GEV
- 4.65
- DE
- 3.78
- CAT
- 3.29
- RTX
- 2.66
- BA
- 1.45
P/B Ratio (MRQ)
Emerson Electric (EMR) trades at 4.38 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
EMR
Capital Goods industry group
4.38
Group distribution
- Max
- 9.66
- Q3
- 5.00
- EMR
- 4.38
- Median
- 3.12
- Q1
- 1.81
- Min
- -1.08
Largest peers
- BA
- 20.99
- GE
- 19.06
- GEV
- 18.00
- CAT
- 11.90
- DE
- 6.47
- EMR
- 4.38
- RTX
- 3.69
Valuation Metrics
| Metric | Current stock: EMR | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 33.89 | 25.41 |
| P/S Ratio (TTM) | 4.77 | 2.15 |
| P/B Ratio (MRQ) | 4.38 | 3.12 |
| Free Cash Flow Yield (TTM) | 3.85% | 3.03% |