# Emerson Electric (EMR.US)

Canonical: https://gigainvestors.com/s/EMR

Analysis as of: 2026-10-16T07:28:16.144Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $162.15 per share; close as of 2026-10-15.

Estimated value: low $84.58 per share, central $106.67 per share, high $124.15 per share. Buy at or below the central value $106.67 per share. Valuation as of 2026-10-16T07:28:16.144Z; scenarios are not confidence intervals.

Expected annual return: 7.6% at the stated quote. About 7.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.09×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.18×

- FY2018: 0.17×

- FY2019: 0.17×

- FY2020: 0.17×

- FY2021: 0.15×

- FY2022: 0.17×

- FY2023: 0.18×

- FY2024: 0.15×

- FY2025: 0.20×

- LTM to Jun 2026: 0.20×

### moat: pass

- ROIC, median of available years: 32.5%

- ROIC, second-lowest year: 20.2%

- Typical minus recent gross margin: -7.8 pp

- Typical gross margin (annual median): 45.0%

- Recent gross margin (lower of latest and 3-year median): 52.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.2%

- ROIC including acquisitions, ten-year median: 16.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 38.6%

- FY2018: 40.0%

- FY2019: 42.9%

- FY2020: 38.2%

- FY2021: 20.2%

- FY2022: 33.6%

- FY2023: 31.3%

- FY2024: 25.4%

- FY2025: 18.8%

- LTM to Jun 2026: 21.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.15×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $27B

- Net income, five-year total: $23B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 4.0 pp

- Working capital / revenue, final three-year average: 21.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.10×

- FY2023: 1.05×

- FY2024: 1.65×

- FY2025: 1.47×

- LTM to Jun 2026: 1.40×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 38.6% vs 25.4%

- Per-share earnings: 2.53 to 4.05 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.8%

- Ordinary dilution, 5-year annual growth: -1.4%

- Market cap gain: $34B

- Cumulative retained earnings: $19B

- Diluted shares, 10-year annual growth: -1.8%

- Diluted shares, 5-year annual growth: -1.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 6.1%

- Per-share value change: $1.52

- Per-share value, starting three-year median: $2.53

- Per-share value, ending three-year median: $4.05

- Buybacks concentrated in cheaper years (correlation): 0.62

- Average buyback yield: 1.9%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $24B

- Cumulative net income, 10 years: $33B

- ROIC, first three-year median: 38.6%

- ROIC, last three-year median: 25.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.53

- FY2017: $2.36

- FY2018: $3.47

- FY2019: $3.72

- FY2020: $3.24

- FY2021: $3.83

- FY2022: $5.42

- FY2023: $22.90

- FY2024: $3.43

- FY2025: $4.05

### accounting: pass

- Sloan accruals: -1.9%

- Receivables to sales index (DSRI): 1.03×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 8.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.35×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.36×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.7%

- FY2017: -2.0%

- FY2018: -3.4%

- FY2019: -3.4%

- FY2020: -4.9%

- FY2021: -5.1%

- FY2022: 0.9%

- FY2023: 29.4%

- FY2024: -3.1%

- FY2025: -1.9%

## Holders

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [William Browne](https://gigainvestors.com/TB): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 9.4% a year for ten years · "Emerson beats estimates, raises outlook as automation demand stays strong" (seekingalpha.com, Aug 2026) · sales +3.4%

Story as of 2026-10-16T09:58:41.672Z; price observation 2026-10-15.

Price needs cash profits to grow 9.4% a year for ten years

- 2025-05-07: Emerson Delivers Q2 Profit Thanks To Cost Discipline, Raises The Bar for FY25 ([finance.yahoo.com](https://finance.yahoo.com/news/emerson-delivers-q2-profit-thanks-190015181.html))

- 2025-06-11: EMR Q1 Earnings Call: Demand Resilience, Tariff Mitigation, and Integration Progress Drive Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/emr-q1-earnings-call-demand-083956888.html))

- 2025-08-12: EMR Q2 Deep Dive: Automation Demand Steady, Margin Expansion Faces Tariff and FX Headwinds ([finance.yahoo.com](https://finance.yahoo.com/news/emr-q2-deep-dive-automation-071553013.html))

- 2025-11-05: Emerson Electric Offers Downbeat Full-Year Outlook as Fourth-Quarter Sales Miss Views ([finance.yahoo.com](https://finance.yahoo.com/news/emerson-electric-offers-downbeat-full-155741334.html))

- 2026-02-04: Emerson Q1 Earnings Top Estimates, Intelligent Devices Sales Rise ([finance.yahoo.com](https://finance.yahoo.com/news/emerson-q1-earnings-top-estimates-181100221.html))

- 2026-05-06: Emerson Electric Growth Verticals, Backlog to Support Outlook, RBC Says ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/emerson-electric-growth-verticals-backlog-173237319.html))

### Sales · FY2025–2026

sales +3.4%; source https://www.sec.gov/Archives/edgar/data/32604/000003260425000087/emr-20250930.htm; observed 2025-11-10.

- FY2017: $15B 

- FY2018: $17B 

- FY2019: $18B 

- FY2020: $17B 

- FY2021: $13B 

- FY2022: $14B 

- FY2023: $15B 

- FY2024: $17B 

- FY2025: $18B 

- FY2026: $19B 

### Gross margin · FY2026

gross margin 53.2%; source https://www.sec.gov/Archives/edgar/data/32604/000003260425000087/emr-20250930.htm; observed 2025-11-10.

- FY2017: 42.1% 

- FY2018: 42.7% 

- FY2019: 42.5% 

- FY2020: 41.8% 

- FY2021: 44.3% 

- FY2022: 45.7% 

- FY2023: 49.0% 

- FY2024: 50.8% 

- FY2025: 52.8% 

- FY2026: 53.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty industrial machinery; annual sales are USD 18 billion.

- Source: https://www.sec.gov/Archives/edgar/data/32604/000003260425000087/emr-20250930.htm (filed 2025-11-10); FY2025: revenue 18016000000; grossProfit 9519000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 49% to 52.8% during 2023–25; it earns 32.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2023: grossProfit / revenue = 49%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2024: grossProfit / revenue = 50.8%.

- Source: https://www.sec.gov/Archives/edgar/data/32604/000003260425000087/emr-20250930.htm (filed 2025-11-10); FY2025: grossProfit / revenue = 52.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); 10-year return on capital observations [[2017,0.38595330225636615],[2018,0.39968506128648196],[2019,0.42885291339832354],[2020,0.3817633996633826],[2021,0.20196479159856104],[2022,0.3360641580692704],[2023,0.3131058832705785],[2024,0.25408206527741656],[2025,0.18834893381461504],[2026,0.21225135711260565]]; median 0.32458502066992445. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 1.2 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2016: growth capex 0; upkeep 447000000; owner earnings 1756000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2017: growth capex 0; upkeep 476000000; owner earnings 1678000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2018: growth capex 0; upkeep 617000000; owner earnings 2344000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2019: growth capex 0; upkeep 594000000; owner earnings 2534000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2020: growth capex 0; upkeep 538000000; owner earnings 2281000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2021: growth capex 0; upkeep 581000000; owner earnings 2484000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2022: growth capex 0; upkeep 531000000; owner earnings 3542000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2023: growth capex 0; upkeep 363000000; owner earnings 13907000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2024: growth capex 0; upkeep 419000000; owner earnings 3238000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/32604/000003260425000087/emr-20250930.htm (filed 2025-11-10); FY2025: growth capex 0; upkeep 431000000; owner earnings 3380000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); Dividend observations: [[2016,1227000000],[2017,1239000000],[2018,1229000000],[2019,1209000000],[2020,1209000000],[2021,1210000000],[2022,1223000000],[2023,1198000000],[2024,1201000000],[2025,1192000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/32604/000003260425000087/emr-20250930.htm (filed 2025-11-10); FY2025: cash repurchases 1243000000 USD.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EMR.US SharesStats.PercentInsiders = 0.253 percentage points; cache date 2026-10-16.

### What could break it

Our businesses are 5 largely dependent on the current and future business environment, including capital and consumer spending.

- Source: https://www.sec.gov/Archives/edgar/data/32604/000003260425000087/emr-20250930.htm (filed 2025-11-10); Business and Operational Risks We Operate in Businesses That Are Subject to Competitive Pressures That Could Affect Prices or Demand for Our Products Our businesses operate in markets that are highly competitive and potentially volatile, and we compete on the basis of product performance, quality, service and/or price across the industries and markets served. Our businesses are 5 largely dependent on the current and future business environment, including capital and consumer spending. A significant element of our competitive strategy is to deliver solutions to our customers by manufacturing high-quality products at the best relevant global cost.

### What the price says

The price assumes cash profits grow 9.4% yearly over ten years; actual growth was 4.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); Ten-year compound average after fade. Initial solved rate 0.15952498490637862. Price 162.15; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.8403547671840355 → FY2025 5.964355037938945. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $50.68 per share

- 2016-11: $56.44 per share

- 2016-12: $55.75 per share

- 2017-01: $58.66 per share

- 2017-02: $60.10 per share

- 2017-03: $59.86 per share

- 2017-04: $60.28 per share

- 2017-05: $59.12 per share

- 2017-06: $59.62 per share

- 2017-07: $59.61 per share

- 2017-08: $59.04 per share

- 2017-09: $62.84 per share

- 2017-10: $64.46 per share

- 2017-11: $64.82 per share

- 2017-12: $69.69 per share

- 2018-01: $72.23 per share

- 2018-02: $71.06 per share

- 2018-03: $68.30 per share

- 2018-04: $66.41 per share

- 2018-05: $70.84 per share

- 2018-06: $69.14 per share

- 2018-07: $72.28 per share

- 2018-08: $76.73 per share

- 2018-09: $76.58 per share

- 2018-10: $67.88 per share

- 2018-11: $67.52 per share

- 2018-12: $59.75 per share

- 2019-01: $65.47 per share

- 2019-02: $68.15 per share

- 2019-03: $68.47 per share

- 2019-04: $70.99 per share

- 2019-05: $60.24 per share

- 2019-06: $66.72 per share

- 2019-07: $64.88 per share

- 2019-08: $59.59 per share

- 2019-09: $66.86 per share

- 2019-10: $70.15 per share

- 2019-11: $73.86 per share

- 2019-12: $76.26 per share

- 2020-01: $71.63 per share

- 2020-02: $64.11 per share

- 2020-03: $47.65 per share

- 2020-04: $57.03 per share

- 2020-05: $61.02 per share

- 2020-06: $62.03 per share

- 2020-07: $62.01 per share

- 2020-08: $69.47 per share

- 2020-09: $65.57 per share

- 2020-10: $64.79 per share

- 2020-11: $76.82 per share

- 2020-12: $80.37 per share

- 2021-01: $79.35 per share

- 2021-02: $85.90 per share

- 2021-03: $90.22 per share

- 2021-04: $90.49 per share

- 2021-05: $95.69 per share

- 2021-06: $96.24 per share

- 2021-07: $100.89 per share

- 2021-08: $105.50 per share

- 2021-09: $94.20 per share

- 2021-10: $97.01 per share

- 2021-11: $87.84 per share

- 2021-12: $92.97 per share

- 2022-01: $91.95 per share

- 2022-02: $92.92 per share

- 2022-03: $98.05 per share

- 2022-04: $90.18 per share

- 2022-05: $88.66 per share

- 2022-06: $79.54 per share

- 2022-07: $90.07 per share

- 2022-08: $81.74 per share

- 2022-09: $73.22 per share

- 2022-10: $86.60 per share

- 2022-11: $95.77 per share

- 2022-12: $96.06 per share

- 2023-01: $90.22 per share

- 2023-02: $82.71 per share

- 2023-03: $87.14 per share

- 2023-04: $83.26 per share

- 2023-05: $77.68 per share

- 2023-06: $90.39 per share

- 2023-07: $91.35 per share

- 2023-08: $98.25 per share

- 2023-09: $96.57 per share

- 2023-10: $88.97 per share

- 2023-11: $88.90 per share

- 2023-12: $97.33 per share

- 2024-01: $91.73 per share

- 2024-02: $106.85 per share

- 2024-03: $113.42 per share

- 2024-04: $107.78 per share

- 2024-05: $112.16 per share

- 2024-06: $110.16 per share

- 2024-07: $117.11 per share

- 2024-08: $105.39 per share

- 2024-09: $109.37 per share

- 2024-10: $108.27 per share

- 2024-11: $132.60 per share

- 2024-12: $123.93 per share

- 2025-01: $129.95 per share

- 2025-02: $121.61 per share

- 2025-03: $109.64 per share

- 2025-04: $105.11 per share

- 2025-05: $119.38 per share

- 2025-06: $133.33 per share

- 2025-07: $145.51 per share

- 2025-08: $132.00 per share

- 2025-09: $131.18 per share

- 2025-10: $139.57 per share

- 2025-11: $133.38 per share

- 2025-12: $132.72 per share

- 2026-01: $146.96 per share

- 2026-02: $150.75 per share

- 2026-03: $131.02 per share

- 2026-04: $140.44 per share

- 2026-05: $143.82 per share

- 2026-06: $143.15 per share

- 2026-07: $149.82 per share

- 2026-08: $152.44 per share

- 2026-09: $155.10 per share

- 2026-10: $163.50 per share

## Annual estimated value (USD per share)

- FY2016: low $31.44 per share, central $35.16 per share, high $40.11 per share

- FY2017: low $32.79 per share, central $36.72 per share, high $41.95 per share

- FY2018: low $37.39 per share, central $42.38 per share, high $49.03 per share

- FY2019: low $53.24 per share, central $68.40 per share, high $79.71 per share

- FY2020: low $45.64 per share, central $51.25 per share, high $58.73 per share

- FY2021: low $35.40 per share, central $39.80 per share, high $45.66 per share

- FY2022: low $36.53 per share, central $41.34 per share, high $47.74 per share

- FY2023: low $65.59 per share, central $73.19 per share, high $83.32 per share

- FY2024: low $68.42 per share, central $77.24 per share, high $88.98 per share

- FY2025: low $79.49 per share, central $100.51 per share, high $117.14 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:33:57.740Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/32604/000003260425000087/emr-20250930.htm); period 2025-09-30, filed 2025-11-10.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.