EMREmerson Electric exhibits strong fundamental performance, particularly in profitability and balance sheet strength, supported by solid demand in its industrial sectors. While valuation is slightly stretched and short-term technicals show mixed signals, the company's consistent dividend growth and broad market presence make it an attractive long-term investment.
Emerson Electric benefits from secular trends in industrial automation, digital transformation, and energy efficiency, though it is not at the forefront of disruptive technologies like AI. Its exposure to these themes is solid but may not offer the same explosive growth potential as more focused tech companies.
Emerson Electric demonstrates robust financial health with high profitability, consistent free cash flow, and a strong balance sheet. Its valuation, particularly the P/E ratio, appears elevated relative to its historical performance, but growth prospects and dividend yield are attractive.
The stock has experienced strong upward momentum over the past year, with price trading above key moving averages. However, recent momentum indicators suggest the stock may be cooling off or entering a period of consolidation, with some oscillators in overbought territory.
| Factor | Score |
|---|---|
| Industrial Automation & Digitalization | 85 |
| Energy Transition & Efficiency | 75 |
| Infrastructure & Utilities Modernization | 70 |
| Technological Disruption (e.g., AI, IoT) | 50 |
| Market Growth & Diversification | 70 |
| Factor | Score |
|---|---|
| Valuation | 50 |
| Profitability | 80 |
| Growth | 60 |
| Balance Sheet Health | 85 |
| Cash Flow | 85 |
| Dividend | 70 |
| Factor | Score |
|---|---|
| Trend Analysis | 80 |
| Momentum | 40 |
| Volume Confirmation | 70 |
| Support & Resistance | 75 |
| Short-term Indicators | 65 |
Consistent EPS Beat
The company has exceeded earnings per share (EPS) estimates in 9 out of the last 10 quarters, with an average surprise of 9.25%. This consistent outperformance suggests strong operational execution and efficient cost management.
Attractive Forward P/E Ratio
The forward Price-to-Earnings (P/E) ratio is 20.5, which is lower than the industry average of 23.0. This suggests the stock may be undervalued relative to its future earnings potential.
High Price-to-Sales Ratio
The current Price-to-Sales (P/S) ratio of 6.2 is at the higher end compared to historical averages and industry peers, suggesting that future growth expectations might be overly optimistic and could lead to a valuation correction if not met.
Declining Net Margin Trend
While revenue has grown, the net profit margin has shown a declining trend over the last few quarters (from 21.6% in Q3 2024 to 10.9% in Q1 2025), indicating potential pressure from rising costs or increased competition.
May 2025
16
Ex-Dividend Date
June 2025
10
Next Dividend Date
August 2025
6
Next Earnings Date
H: $1.59
A: $1.51
L: $1.49
H: 4.90B
A: 4.61B
L: 4.47B
Emerson Electric Co., a technology and software company, provides various solutions in the Americas, Asia, the Middle East, Africa, and Europe. It operates through segments: Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, and Test & Measurement. It provides control, isolation, shutoff, pressure relief, and pressure safety valves, actuators, and regulators for process and hybrid industries. The company also offers intelligent instrumentation measuring the physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame. In addition, it offers solenoid and pneumatic valves, valve position indicators, pneumatic cylinders, actuators, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems, electrical distribution equipment, and materials joining solutions. Further, it provides tools for professionals and homeowners; pipe-working tools, including pipe wrenches, pipe cutters, pipe threading and roll grooving equipment, battery hydraulic tools; electrical tools; and other professional tools. Additionally, the company provides control systems, safety instrumented systems, SCADA systems, application software, digital twins, asset performance management, and cybersecurity; and provides software-connected automated test and measurement systems, as well as provides asset optimization software that enables industrial manufacturers to design, operate, and maintain operations for enhancing performance through a combination of decades of modeling, simulation, and optimization capabilities. The company was incorporated in 1890 and is based in Saint Louis, Missouri.
143.75 USD
The 39 analysts offering 1 year price forecasts for EMR have a max estimate of 185.00 and a min estimate of 105.00.