Emerson Electric Co. (EMR)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Emerson Electric Co. (EMR) trades at $139.05 with AI Score 65/100 (Grade B+). Emerson Electric Co. provides technology and engineering solutions for industrial, commercial, and residential markets. Market cap: $77.88B, Sector: Industrials.
Price live · AI analysis from May 9, 2026EMR stock analysis for 2026: Analysts have set a consensus price target of $162.92 for Emerson Electric Co., suggesting 17.2% upside from the current price of $139.05. The AI MoonshotScore is 65/100, indicating a bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
EMR: 1/1 perspectives are bullish.
How is this calculated? →Emerson Electric Co. (EMR) Industrial Operations Profile
Emerson Electric Co. delivers technology and engineering solutions across industrial, commercial, and residential sectors. With a focus on automation and commercial & residential solutions, Emerson serves global markets, leveraging its established brand and extensive product portfolio to maintain a competitive edge in the industrial machinery landscape.
What Is the Investment Thesis for EMR?
Emerson Electric Co. presents a compelling investment case based on its diversified business model and strategic positioning in key industrial and commercial markets. With a market capitalization of $77.88B and a profit margin of 13.3%, Emerson demonstrates financial stability. Growth catalysts include increasing demand for automation solutions in various industries and expansion in the commercial and residential sectors. The company's dividend yield of 1.53% offers a steady income stream. However, investors may want to evaluate the potential impact of economic cycles on industrial demand and competitive pressures from companies like Johnson Controls International plc (JCI). The company's P/E ratio of 32.8 suggests a premium valuation, requiring sustained earnings growth to justify the price.
Based on FMP financials and quantitative analysis
EMR Key Highlights
- Market Cap of $77.88B indicates a strong market presence and investor confidence.
- Profit Margin of 13.3% demonstrates efficient operations and profitability.
- Gross Margin of 52.7% reflects effective cost management and pricing strategies.
- Dividend Yield of 1.53% provides a steady income stream for investors.
- Beta of 1.28 indicates higher volatility compared to the market, suggesting potential for higher returns but also greater risk.
Who Are EMR's Competitors?
EMR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| HWM Howmet Aerospace Inc. | $270.41 | +1.12% | $108.19B | 89 |
| CMI Cummins Inc. | $661.70 | -3.02% | $91.31B | 74 |
| UPS United Parcel Service, Inc. | $110.69 | +1.05% | $82.64B | 59 |
| JCI Johnson Controls International plc | $140.76 | -2.79% | $85.88B | 53 |
| NOC Northrop Grumman Corporation | $549.01 | +5.59% | $77.98B | 64 |
| BLDP Ballard Power Systems Inc. | $3.52 | -7.61% | $1.06B | 64 |
| JBT John Bean Technologies Corporation (JBT) provides technology solutions to the food and beverage and air transportation industries. The company | $125.32 | -1.40% | $3.99B | 62 |
| MWA Mueller Water Products, Inc. | $24.97 | -0.56% | $3.91B | 59 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are EMR's Key Strengths?
- Diversified business model with exposure to multiple industries.
- Strong brand reputation and established market presence.
- Global distribution network and customer base.
- Technological expertise and innovation capabilities.
What Are EMR's Weaknesses?
- Exposure to cyclical industries, such as oil and gas.
- Dependence on economic conditions and capital spending.
- Competition from established players and emerging market entrants.
- Potential for disruptions from new technologies and business models.
What Could Drive EMR Stock Higher?
- Increasing demand for automation solutions in various industries.
- Expansion in emerging markets with growing industrialization.
- Potential acquisitions to expand product portfolio and market reach.
- Development of sustainable solutions and energy-efficient products.
What Are the Key Risks for EMR?
- Insider selling — insiders were net sellers of roughly $6.4M recently.
- Economic downturns and reduced capital spending.
- Increased competition and pricing pressures.
- Regulatory changes and environmental mandates.
- Disruptions from new technologies and business models.
What Are the Growth Opportunities for EMR?
- Expansion in Automation Solutions: Emerson can capitalize on the growing demand for automation in industries such as oil and gas, chemicals, and manufacturing. The global industrial automation market is projected to reach $350 billion by 2027. By leveraging its expertise in process control and instrumentation, Emerson can secure a larger share of this market, driving revenue growth and enhancing its competitive position. This includes developing advanced software and systems that improve operational efficiency and reduce costs for its customers.
- Penetration of Emerging Markets: Emerging markets in Asia, Latin America, and Africa offer significant growth opportunities for Emerson. As these economies industrialize, the demand for automation solutions and commercial & residential products will increase. Emerson can establish a stronger presence in these regions through strategic partnerships, localized product offerings, and targeted marketing campaigns. This expansion will diversify its revenue streams and reduce its reliance on mature markets.
- Development of Sustainable Solutions: With increasing focus on sustainability, Emerson can develop and market eco-friendly products and solutions. This includes energy-efficient heating and cooling systems, smart thermostats, and technologies that reduce emissions and waste. By aligning its offerings with sustainability trends, Emerson can attract environmentally conscious customers and gain a competitive advantage. The market for sustainable solutions is expected to grow significantly in the coming years, driven by regulatory mandates and consumer preferences.
- Strategic Acquisitions: Emerson can pursue strategic acquisitions to expand its product portfolio, enter new markets, and enhance its technological capabilities. By acquiring companies with complementary technologies or strong market positions, Emerson can accelerate its growth and strengthen its competitive advantage. This includes acquiring companies specializing in software, data analytics, and artificial intelligence, which are increasingly important in the automation and commercial & residential sectors.
- Enhancement of Digital Capabilities: Investing in digital technologies such as cloud computing, data analytics, and the Internet of Things (IoT) can enable Emerson to offer more advanced and integrated solutions. By leveraging these technologies, Emerson can improve its operational efficiency, enhance its customer service, and develop new revenue streams. This includes offering predictive maintenance services, remote monitoring solutions, and data-driven insights that help customers optimize their operations. The digital transformation of the industrial and commercial sectors is creating significant opportunities for companies with strong digital capabilities.
What Opportunities Does EMR Have?
- Expansion in emerging markets with growing industrialization.
- Development of sustainable solutions and energy-efficient products.
- Strategic acquisitions to expand product portfolio and market reach.
- Leveraging digital technologies to enhance operational efficiency and customer service.
What Threats Does EMR Face?
- Economic downturns and reduced capital spending.
- Increased competition and pricing pressures.
- Regulatory changes and environmental mandates.
- Disruptions from new technologies and business models.
What Are EMR's Competitive Advantages?
- Strong brand reputation and established market presence.
- Extensive product portfolio and diversified revenue streams.
- Global distribution network and customer base.
- Technological expertise and innovation capabilities.
- High switching costs for industrial customers due to integrated solutions.
What Does EMR Do?
Emerson Electric Co. was founded in 1890 in Saint Louis, Missouri, initially as a manufacturer of electric motors and fans. Over the decades, Emerson evolved into a diversified technology and engineering company. Today, it operates through two primary segments: Automation Solutions and Commercial & Residential Solutions. The Automation Solutions segment provides measurement and analytical instrumentation, industrial valves and equipment, and process control software and systems, catering to industries like oil and gas, refining, chemicals, and power generation. The Commercial & Residential Solutions segment offers heating, air conditioning, and refrigeration products, including compressors, thermostats, and controls for residential and commercial buildings. Emerson's global presence spans the Americas, Asia, the Middle East, Africa, and Europe, serving a wide range of customers from industrial enterprises to homeowners. The company's strategy focuses on innovation, operational excellence, and strategic acquisitions to drive growth and maintain its leadership position in the industrial and commercial sectors.
What Products and Services Does EMR Offer?
- Provides automation solutions for industrial processes.
- Offers measurement and analytical instrumentation.
- Manufactures industrial valves and equipment.
- Develops process control software and systems.
- Provides heating and air conditioning products for residential and commercial use.
- Offers compressors, thermostats, and control systems.
- Provides facility design, product management, and energy modeling services.
- Offers tools for professionals and homeowners.
How Does EMR Make Money?
- Develops and sells automation solutions to industrial customers.
- Manufactures and distributes commercial and residential heating and cooling products.
- Provides aftermarket services, including maintenance and support.
- Generates revenue through product sales, service contracts, and software licenses.
What Industry Does EMR Operate In?
Emerson Electric Co. operates in the industrial machinery sector, which is influenced by global economic trends, technological advancements, and regulatory changes. The market is characterized by increasing demand for automation solutions, driven by the need for efficiency and productivity improvements across industries. Competitors include Johnson Controls International plc (JCI) and Cummins Inc. (CMI), each vying for market share in specific segments. The industry is also witnessing a growing emphasis on sustainability and energy efficiency, creating opportunities for companies offering innovative and eco-friendly solutions. Overall, the industrial machinery sector is expected to experience moderate growth, driven by infrastructure development and industrial expansion in emerging markets.
Who Are EMR's Key Customers?
- Oil and gas companies.
- Chemical manufacturers.
- Power generation plants.
- Residential and commercial building owners.
- Homeowners and contractors.
Company Profile
Emerson Electric Co. operates in the Industrial - Machinery industry within the Industrials sector. It is headquartered in Saint Louis, US. The company is led by CEO Surendralal Lanca Karsanbhai. EMR has traded publicly since 1972.
How Emerson Electric Co. Is Valued
Emerson Electric Co. carries a market capitalization of $77.88B, placing it in the large-cap category. Relative to its peer group, EMR's quantitative score of 65/100 is roughly in line with the peer average of 68/100.
ROE 12%Key Financial Metrics
Return on equity for Emerson Electric Co. stands at 12.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 5.8%, showing how much profit it generates from its asset base. EMR trades at a trailing price-to-earnings ratio of 32.83, above the Industrials sector average of ~30x. Its free cash flow yield is 3.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.87 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 3.0%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 8/9Financial Health
Emerson Electric Co.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 4.20 places it in the safe zone, indicating low near-term bankruptcy risk.
FY2026 estForward Outlook
Wall Street analysts project Emerson Electric Co. revenue of about $18.84B for fiscal 2026, with EPS near $6.51. The estimate reflects 20 contributing analysts.
Net sellingInsider Activity
Over the past six months, Emerson Electric Co. insiders filed 22 SEC Form 4 transactions — 11 sales and 11 purchases. On net that is roughly 32K shares disposed (about $6.4M), a signal worth weighing alongside the fundamentals.
EMR Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in EMR's future performance, indicating that those closest to the company believe in its potential.
- Community sentiment has been leaning positive, with discussions highlighting EMR's strong market position and innovative product offerings.
- Analysts have pointed out EMR's resilience in adapting to market changes, which has bolstered investor optimism.
- Recent developments in sustainability initiatives have attracted interest from socially-conscious investors, enhancing EMR's appeal.
Bear Case
- Some community members express concerns over potential supply chain disruptions that could impact EMR's operations and profitability.
- The overall market sentiment remains cautious, with macroeconomic factors causing uncertainty that could affect EMR's growth trajectory.
- Recent earnings reports have shown mixed results, leading to skepticism among traders about EMR's ability to meet future expectations.
- Increased competition in EMR's sector has led to fears of market share erosion, making some investors wary of long-term prospects.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · January 2026
From the Earnings Call
“Momentum continued in Test and Measurement, up 11% year over year, and our 20%, driven by the secular demand for power.”
— Surendralal Karsanbhai, CEO
“We are also raising the bottom and midpoint of our adjusted EPS guide and now expect $6.4 to $6.55 per share.”
— Surendralal Karsanbhai, CEO
EMR Q1 FY2026 earnings call transcript · 2026-02-03
EMR Latest News
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Emerson Electric (EMR) Dips More Than Broader Market: What You Should Know
zacks.com · Jul 1, 2026
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Should Emerson’s Russell Defensive Index Inclusion Reframe EMR as a Core Automation Risk-Management Holding?
Yahoo! Finance: EMR News · Jun 30, 2026
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Global Industrial Process Heating Market to Hit USD 17.47 Billion by 2032
Yahoo! Finance: EMR News · Jun 30, 2026
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Emerson Electric Co. (EMR) is Attracting Investor Attention: Here is What You Should Know
zacks.com · Jun 29, 2026
EMR Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for EMR.
Price Targets
Consensus target: $162.92
EMR MoonshotScore
What does this score mean?
The MoonshotScore rates EMR's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Emerson Electric (EMR) Dips More Than Broader Market: What You Should Know
Should Emerson’s Russell Defensive Index Inclusion Reframe EMR as a Core Automation Risk-Management Holding?
Global Industrial Process Heating Market to Hit USD 17.47 Billion by 2032
Emerson Electric Co. (EMR) is Attracting Investor Attention: Here is What You Should Know
Related Investment Themes
Leadership: Surendralal Lanca Karsanbhai
CEO
Surendralal Lanca Karsanbhai, known as Lal Karsanbhai, is the CEO of Emerson Electric Co. He has a long history with the company, having held various leadership positions across different business units. His experience spans engineering, operations, and strategic planning. Karsanbhai's deep understanding of Emerson's operations and markets makes him well-suited to lead the company. He is focused on driving growth through innovation, operational excellence, and strategic acquisitions.
Track Record: Since becoming CEO, Karsanbhai has focused on streamlining Emerson's operations and investing in high-growth areas such as automation and sustainable solutions. He has overseen several strategic acquisitions aimed at expanding Emerson's product portfolio and market reach. Under his leadership, Emerson has continued to deliver solid financial results and maintain its position as a leading technology and engineering company.
Common Questions About EMR (Industrials)
What does Emerson Electric Co. do?
Emerson Electric Co. is a global technology and engineering company that provides solutions for industrial, commercial, and residential markets. The company operates through two segments: Automation Solutions and Commercial & Residential Solutions. The Automation Solutions segment offers measurement and analytical instrumentation, industrial valves and equipment, and process control software and systems. The Commercial & Residential Solutions segment provides heating, air conditioning, and refrigeration products. Emerson serves a wide range of customers, from industrial enterprises to homeowners, and its products and services are used in various applications, including manufacturing, energy production, and building management.
What do analysts say about EMR stock?
Analysts generally view Emerson Electric Co. as a stable and well-managed company with a diversified business model. The consensus rating on EMR stock is typically a hold or neutral, reflecting the company's mature growth profile and exposure to cyclical industries. Key valuation metrics, such as the P/E ratio and dividend yield, are often compared to those of its peers in the industrial machinery sector. Growth considerations include the company's ability to capitalize on automation trends, expand in emerging markets, and develop sustainable solutions. Analysts also monitor the company's financial performance, including revenue growth, profit margins, and cash flow generation.
What are the main risks for EMR?
Emerson Electric Co. faces several risks, including economic downturns, increased competition, and regulatory changes. Economic downturns can reduce capital spending by industrial customers, impacting demand for Emerson's automation solutions. Increased competition from established players and emerging market entrants can put pressure on pricing and market share. Regulatory changes and environmental mandates can increase compliance costs and require investments in new technologies. Additionally, disruptions from new technologies and business models can pose a threat to Emerson's existing product lines and market positions. Managing these risks effectively is crucial for Emerson to maintain its competitive advantage and deliver sustainable growth.
What are the key factors to evaluate for EMR?
Emerson Electric Co. (EMR) holds an AI score of 65/100 (moderate). P/E: 32.8x vs the S&P 500's ~20-25x. Analysts target $162.92 (+17%). Not financial advice.
How frequently does EMR data refresh on this page?
EMR prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven EMR's recent stock price performance?
Emerson Electric Co. (EMR) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified business model with exposure to multiple industries. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider EMR overvalued or undervalued right now?
Emerson Electric Co. (EMR) trades at 32.8x earnings. Analysts target $162.92 (+17%) — upside seen. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying EMR?
Before investing in Emerson Electric Co. (EMR), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Financial metrics are as of the latest reporting period.