Emerson Electric Co. (EMR) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Industrials · Specialty Industrial Machinery
Is Emerson Electric Co. a safe investment right now?
Emerson Electric Co.'s Altman Z-Score of 4.23 places it in the safe zone. Our fair value estimate is $143.75 (Watch Zone). Moat rating: 3.3/5 stars.
Could Emerson Electric Co. go bankrupt? Altman Z-Score analysis
Z-Score of 4.23 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives EMR's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | -0.0289 | 1.2 | -0.03 |
| B · Retained Earnings / Total Assets | RE / TA | 0.9676 | 1.4 | 1.35 |
| C · EBIT / Total Assets | EBIT / TA | 0.0791 | 3.3 | 0.26 |
| D · Market Cap / Total Liabilities | MCap / TL | 3.7053 | 0.6 | 2.22 |
| E · Revenue / Total Assets | Rev / TA | 0.4293 | 1.0 | 0.43 |
How has EMR's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 4.25 | Safe |
| 2023 | 5.14 | Safe |
| 2024 | 4.86 | Safe |
| 2025 | 4.23 | Safe |
Source: Calculated from EMR's latest 10-K filing on SEC EDGAR.
What is Emerson Electric Co. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $4.84 | Proprietary blend of reported actuals (1Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $4.04 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $6.49 | 27 analysts consensus |
| Trailing P/E | 35.0x | Current market pricing |
| Fair P/E (β discount) | 29.7x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $164.17 (27 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Emerson Electric Co. have a durable competitive advantage?
Moat rating: 3.3/5.
What makes up EMR's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 3/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is EMR's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 12.8% | — |
| 2023 | 11.0% | Declining |
| 2024 | 8.0% | Declining |
| 2025 | 9.9% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Emerson Electric Co.'s dividend safe?
Can Emerson Electric Co. afford its dividend?
Payout ratio is 52.4%. FCF covers the dividend 2.1x. 55 consecutive years of payments.
Emerson Electric Co.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $18.0B | $17.5B | $13.8B | Rising |
| Net Income | $2.3B | $2.0B | $3.2B | Declining |
| Free Cash Flow | $2.7B | $2.9B | $2.6B | Stable |
| Gross Margin | 52.8% | 50.8% | 45.7% | Rising |
Recent events that affect our EMR analysis
EMR earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.54. Revenue estimate: $4.60B. Our current Fair Value: $143.75 — a significant beat or miss could shift this estimate.
EMR analyst consensus: 62% bullish (18 of 29 analysts)
3 Strong Buy, 15 Buy, 9 Hold, 1 Sell, 1 Strong Sell. Consensus target: $164.17 (15.0% upside). Compare with our independent Fair Value: $143.75.
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR paid $0.5550/share dividend
Dividend Safety Grade: A. Payout ratio: 52.4%.
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR beat EPS estimates by 3.4%
Reported EPS: $1.46 vs estimate $1.41. Earnings strength supports our Fair Value of $143.75 (0.7% above current price).
EMR filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR paid $0.5550/share dividend
Dividend Safety Grade: A. Payout ratio: 52.4%.
EMR filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
EMR beat EPS estimates by 0.3%
Reported EPS: $1.62 vs estimate $1.62. Earnings strength supports our Fair Value of $143.75 (0.7% above current price).
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR paid $0.5280/share dividend
Dividend Safety Grade: A. Payout ratio: 52.4%.
EMR beat EPS estimates by 0.7%
Reported EPS: $1.52 vs estimate $1.51. Earnings strength supports our Fair Value of $143.75 (0.7% above current price).
EMR filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR paid $0.5280/share dividend
Dividend Safety Grade: A. Payout ratio: 52.4%.
EMR beat EPS estimates by 4.6%
Reported EPS: $1.48 vs estimate $1.41. Earnings strength supports our Fair Value of $143.75 (0.7% above current price).
EMR filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR paid $0.5280/share dividend
Dividend Safety Grade: A. Payout ratio: 52.4%.
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR beat EPS estimates by 8.0%
Reported EPS: $1.38 vs estimate $1.28. Earnings strength supports our Fair Value of $143.75 (0.7% above current price).
EMR filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
EMR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Emerson Electric Co.
What is Emerson Electric Co. stock price today?
Emerson Electric Co. (EMR) stock price is $142.77 as of the latest market close, traded on the NYSE exchange.
What does Emerson Electric Co. do?
Emerson Electric Co., a technology and software company, provides various solutions in the Americas, Asia, the Middle East, Africa, and Europe. It operates through Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, and Test & Measurement segments. The Final Control segment provides control valves, isolation valves, shutoff valves, pressure relief valves, pressure safety valves, actuators, and regulators for process and hybrid industries under Anderson Greenwood, Bettis, Crosby, Fisher, Keystone, KTM, and Vanessa brands.
What is Emerson Electric Co. market cap?
Emerson Electric Co. has a market capitalization of $80.28B, classifying it as a large-cap stock in the Industrials sector.
What sector and industry is EMR in?
Emerson Electric Co. operates in the Industrials sector, specifically within the Specialty Industrial Machinery industry. It trades on the NYSE under the ticker symbol EMR.
Is EMR stock overvalued or undervalued?
Based on our valuation model, Emerson Electric Co. trades 0.7% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $143.75
- Current Price: $142.77
- Valuation Zone: Watch Zone
What is EMR stock forecast and analyst target price?
Based on 27 Wall Street analysts, the consensus price target for Emerson Electric Co. is $164.17, implying upside of 15.0% from the current price.
- Analyst High Target: $205.00
- Analyst Low Target: $104.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Emerson Electric Co. revenue and earnings growing?
Here are the analyst consensus growth estimates for Emerson Electric Co.:
- Revenue growth (current year est.): 5.1%
- EPS growth (current year est.): 8.2%
- Revenue growth (next year est.): 5.4%
- EPS growth (next year est.): 10.1%
What are Emerson Electric Co.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $18.0B | Rising |
| Net Income | $2.3B | Declining |
| Free Cash Flow | $2.7B | Stable |
| Gross Margin | 52.8% | Rising |
What is EMR's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 35.0x
- Forward P/E (next 12 months est.): 20.0x
- FairValueLabs Fair P/E: 29.7x
How volatile is EMR stock?
Emerson Electric Co. has a beta of 1.28, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Emerson Electric Co. have?
Emerson Electric Co.'s balance sheet shows:
- Total Cash: $1.75B
- Total Debt: $14.06B
- Net Cash Position: $-12.31B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Emerson Electric Co.'s free cash flow?
Emerson Electric Co. generated $2.88B in trailing twelve-month free cash flow (from $3.02B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Emerson Electric Co. pay a dividend, and is it safe?
Yes, Emerson Electric Co. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 1.5%
- Payout Ratio: 52.4%
- Consecutive Years Paid: 55
- 5-Year Dividend Growth: -22.9%
- FairValueLabs Safety Grade: A
Is Emerson Electric Co. at risk of going bankrupt?
Emerson Electric Co.'s Altman Z-Score is 4.23, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Emerson Electric Co. have a durable competitive advantage?
Emerson Electric Co. scores 3.3/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 3/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is EMR's return on equity (ROE)?
Emerson Electric Co.'s return on equity is 9.7%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy EMR stock?
EMR shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol EMR
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is EMR a value stock or speculative?
FairValueLabs classifies Emerson Electric Co. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Emerson Electric Co.?
The current CEO of Emerson Electric Co. is Mr. Surendralal Lanca Karsanbhai.
What is EMR's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $4.08
- Forward EPS (next 12 months est.): $7.15
- Analyst consensus EPS (this year): $6.49
- Analyst consensus EPS (next year): $7.15
Other Industrials companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
EMR analysis methodology: How we calculate fair value, Z-Scores, and moat ratings