Skip to main content

Emerson Electric Company (EMR) Stock

Emerson Electric Company Stock Details, Movements and Public Alerts

Emerson Electric Company (EMR): The $75B Automation Giant Powering Industrial AI and Energy Transition

When Lal Karsanbhai became CEO of Emerson Electric in early 2024, he inherited a streamlined $19 billion automation and climate technology powerhouse following years of portfolio optimization. Under his predecessor's strategic restructuring, Emerson divested underperforming businesses and spun off AspenTech software, transforming from a conglomerate into a focused industrial automation leader. Today, Emerson's DeltaV distributed control systems manage 30% of global process manufacturing, Rosemount pressure transmitters set the standard for accuracy, and Copeland compressors power cold chains from vaccine storage to data center cooling. With industrial automation spending projected to grow 8-10% annually through 2030 driven by AI-powered smart factories, energy transition infrastructure, and manufacturing digitization, Karsanbhai's Emerson is positioned to capitalize on multiple secular growth trends while maintaining the 67-year dividend growth streak that defines shareholder commitment.

52-Week Range

$149.03 - $88.93

-7.88% from high · +54.37% from low

Avg Daily Volume

2,694,673

20-day average

100-day avg: 3,044,151

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

34.04

Above market average

Forward P/E

21.23

Earnings expected to grow

PEG Ratio

2.12

Potentially overvalued

Price to Book

3.79

EV/EBITDA

18.43

EPS (TTM)

$4.10

Price to Sales

4.36

Beta

1.25

Similar volatility to market

How is EMR valued relative to its earnings and growth?
Emerson Electric Company trades at a P/E ratio of 34.04, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 21.23 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.12 indicates a premium valuation even accounting for growth.
What is EMR's risk profile compared to the market?
With a beta of 1.25, Emerson Electric Company is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 3.79 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

12.70%

Operating Margin

20.70%

EBITDA

$5.04B

Return on Equity

9.36%

Return on Assets

5.24%

Revenue Growth (YoY)

5.10%

Earnings Growth (YoY)

-35.30%

How profitable and efficient is EMR's business model?
Emerson Electric Company achieves a profit margin of 12.70%, meaning it retains $12.70 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 20.70% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 9.36% and ROA at 5.24%, the company achieves moderate returns on invested capital.
What are EMR's recent growth trends?
Emerson Electric Company's revenue grew by 5.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 35.30% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against SPECIALTY INDUSTRIAL MACHINERY industry averages for proper context.

Dividend Information

Dividend Per Share

$2.11

Dividend Yield

1.54%

Ex-Dividend Date

Nov 14, 2025

Dividend Date

Dec 10, 2025

What dividend income can investors expect from EMR?
Emerson Electric Company offers a dividend yield of 1.54%, paying $2.11 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Nov 14, 2025.
How reliable is EMR's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Emerson Electric Company pays $2.11 per share in dividends against earnings of $4.10 per share, resulting in a payout ratio of 51.46%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Dec 10, 2025.

Company Size & Market

Market Cap

$78.5B

Revenue (TTM)

$18.02B

Revenue/Share (TTM)

$31.94

Shares Outstanding

561.80M

Book Value/Share

$36.04

Asset Type

Common Stock

What is EMR's market capitalization and position?
Emerson Electric Company has a market capitalization of $78.5B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 561.80M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SPECIALTY INDUSTRIAL MACHINERY industry, it competes with other firms in this sector.
How does EMR's price compare to its book value?
Emerson Electric Company's book value per share is $36.04, while the current stock price is $137.28, resulting in a price-to-book (P/B) ratio of 3.81. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$150.51

9.64% upside potential

Analyst Recommendations

Strong Buy

3

Buy

17

Hold

6

Sell

1

Strong Sell

1

How reliable are analyst predictions for EMR?
28 analysts cover EMR with 71% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $150.51 implies 9.6% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on EMR?
Current analyst recommendations:3 Strong Buy, 17 Buy, 6 Hold, 1 Sell, 1 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:25 AM

Technical Indicators

RSI (14-day)

45.39

Neutral

50-Day Moving Average

$131.90

4.08% above MA-50

200-Day Moving Average

$123.80

10.89% above MA-200

MACD Line

-0.95

MACD Signal

-0.77

MACD Histogram

-0.18

Bearish

What does EMR's RSI value tell investors?
The RSI (Relative Strength Index) for EMR is currently 45.39, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this shows mixed signals requiring careful analysis.
How should traders interpret EMR's MACD and moving average crossovers?
MACD analysis shows the MACD line at -0.95 below the signal line at -0.77, with histogram at -0.18. This bearish crossover indicates downward pressure. The 50-day MA ($131.90) is above the 200-day MA ($123.80), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Oct 18, 2025, 12:48 AM

Active Alerts

No active alerts for this stock.

Be the first to set up an alert for EMR and get notified when the price changes.

Emerson Electric Company (EMR) Stock Analysis 2025: Complete Investment Guide

The Industrial Tech Stock Hiding in Plain Sight

While investors chase AI chip makers and software companies, they're overlooking the industrial technology enabling intelligent manufacturing: sensors, valves, controllers, and optimization software that transform raw data into automated decisions. Emerson Electric is the invisible infrastructure behind this revolution, providing the DeltaV control systems managing chemical plants, Rosemount sensors measuring refinery flows, and Fisher valves regulating power generation.

Under new CEO Lal Karsanbhai's leadership, Emerson enters 2025 as a pure-play automation and climate technology company after years of portfolio reshaping. The recent spin-off of AspenTech software and divestiture of tools/storage businesses leaves Emerson focused on two core segments: Automation Solutions (65% of revenue, serving process/hybrid/discrete industries) and Commercial & Residential Solutions (35%, including Copeland HVAC compressors). This strategic clarity positions Emerson to capture $750 billion in industrial automation spending driven by energy transition, manufacturing digitization, and industrial AI adoption.

Business Model & Competitive Moat

Emerson operates as a systems integrator and technology provider for industrial automation. The Automation Solutions segment sells measurement instruments (Rosemount, Micro Motion), final control devices (Fisher valves, Bettis actuators), control systems (DeltaV DCS, PACSystems), and services (lifecycle management, optimization consulting). Commercial & Residential Solutions provides Copeland compressors, Sensi smart thermostats, and InSinkErator food waste disposers. Critically, 60% of revenue is recurring—spare parts, maintenance contracts, and software subscriptions—creating predictable cash flows.

The competitive moat stems from installed base lock-in and domain expertise. Once a refinery installs DeltaV across 200+ control loops, switching to competitors requires $50M+ reengineering and operational risk customers won't accept. Emerson's 40,000+ engineers develop deep process knowledge—understanding how to optimize polyethylene reactors or LNG liquefaction—that generic automation vendors can't replicate. Network effects strengthen as Emerson integrates more equipment: a DeltaV system with Rosemount sensors and Fisher valves operates seamlessly, creating switching costs at every integration point.

Financial Performance

Emerson's financials reflect a mature, cash-generative industrial with improving margins:

  • •Revenue: $19B TTM (up 5% YoY organic) with growth accelerating in Automation Solutions offset by Copeland cyclicality
  • •Profitability: 22% EBITDA margin expanding toward 25% target through mix shift and cost discipline
  • •Orders Growth: Automation backlog up 8% YoY reflecting strong demand for energy transition infrastructure
  • •Free Cash Flow: $2.5B+ annually (13% FCF margin) supporting dividends, buybacks, and strategic M&A
  • •Returns: 18% ROE demonstrates capital efficiency despite capital-intensive automation projects
  • •Balance Sheet: Investment-grade credit with 1.8x net debt/EBITDA providing acquisition capacity

Growth Catalysts

  • •Energy Transition Infrastructure: $1T+ investment in hydrogen, carbon capture, sustainable fuels requiring extensive automation—Emerson's core expertise
  • •Industrial AI Adoption: Smart factory initiatives driving 15%+ growth in AI-powered optimization software and edge computing devices
  • •Manufacturing Reshoring: $500B+ US factory construction (CHIPS Act, IRA incentives) creating 3-5 year automation equipment supercycle
  • •Copeland Heat Pump Transition: Building electrification and HVAC efficiency regulations driving compressor upgrades across commercial/residential
  • •Margin Expansion: Software and services mix shift targeting 300+ basis points EBITDA margin improvement by 2027

Risks & Challenges

  • •Industrial Cycle Exposure: 40% of revenue tied to capex-driven process industries vulnerable to commodity price swings and recession
  • •Competition from Software Players: Pure-play industrial software (Aveva, Siemens) eroding hardware-centric business models
  • •China Revenue Concentration: 15% of revenue from China creates geopolitical risk and exposure to property sector weakness
  • •Execution Risk on Integration: Recent AspenTech spin and upcoming Copeland separation require flawless execution to capture value
  • •Valuation Sensitivity: 35x trailing P/E leaves little room for disappointment; forward 20x assumes significant earnings growth

Competitive Landscape

Industrial automation is an oligopoly where Emerson competes against Honeywell ($36B revenue), Schneider Electric ($36B), Siemens ($75B), ABB ($30B), and Rockwell Automation ($9B). Market share varies by subsegment: Emerson leads process automation (30%+), trails in discrete manufacturing (Rockwell dominates), and holds strong positions in measurement/instrumentation. Copeland competes with Carrier and Trane in HVAC.

Emerson's competitive advantage is vertical integration in process industries. While Honeywell and Siemens serve broader markets, Emerson's laser focus on oil/gas, chemicals, power, and life sciences creates deeper expertise. The company's engineering support—free application assistance, training, and troubleshooting—builds stickiness competitors struggle to match. However, Emerson lags in software where Aveva (owned by Schneider) and AspenTech (now separate) lead. Lal Karsanbhai's strategy emphasizes hardware-software integration through partnerships rather than owning all software stack layers.

Who Is This Stock Suitable For?

Perfect For

  • ✓Industrial investors seeking exposure to automation and energy transition
  • ✓Dividend growth investors wanting 67-year track record with 45% payout ratio
  • ✓Quality-focused buyers seeking market leaders with recurring revenue (60%)
  • ✓Long-term holders (5+ years) comfortable with industrial cyclicality

Less Suitable For

  • ✗High-growth investors expecting 20%+ annual returns (expect mid-single digits)
  • ✗Value investors (forward 20x P/E is premium despite quality)
  • ✗Income seekers (1.55% yield below industrials average of 2-2.5%)
  • ✗Risk-averse investors concerned about China exposure and execution risk

Investment Thesis

Emerson Electric represents a pure-play bet on industrial automation and energy transition after years of portfolio optimization. Lal Karsanbhai inherits a streamlined business with 30%+ market share in process automation, 60% recurring revenue, and exposure to multi-decade secular trends. The $750 billion automation market is growing 8-10% annually—faster than Emerson's 5% organic growth—suggesting market share and margin expansion opportunities as industrial AI adoption accelerates.

The 20x forward P/E reflects quality and growth expectations. Emerson's installed base lock-in, 67-year dividend streak, and margin expansion runway justify a premium to industrial peers trading at 15-17x. Energy transition infrastructure alone could drive 3-5 years of double-digit Automation Solutions growth as oil/gas companies invest $1T+ in hydrogen, carbon capture, and sustainable fuels. While the stock won't double quickly, Emerson offers 8-10% total returns (5% EPS growth plus 1.5% yield plus modest multiple expansion) with above-average quality and defensive characteristics. For investors seeking industrial exposure to automation megatrends with manageable downside, Emerson merits consideration.

Conclusion

Emerson Electric is a HOLD/BUY for quality-focused industrial investors. The 20x forward P/E is fair for a market leader with recurring revenue, margin expansion potential, and secular tailwinds, though it limits near-term upside. The 67-year dividend growth record appeals to income investors seeking safety, while industrial AI and energy transition exposure provides growth optionality. For investors comfortable with industrial cyclicality and seeking 8-10% total returns, Emerson offers attractive risk-reward. However, valuation-sensitive buyers may prefer waiting for 15-17x P/E entry points that emerge during industrial downturns.
Bull Case
$155 (20% upside) - Energy transition accelerates, margins expand to 25%+, automation spending surges
Base Case
$140 (8% upside) - Steady 5-7% organic growth, modest margin gains, dividend growth continues
Bear Case
$105 (19% downside) - Industrial recession, China weakness, software competition intensifies

Stay Ahead of the Market with Emerson Electric Company Alerts

Set up price alerts for Emerson Electric Company and get notified instantly when the price hits your target. Never miss an important price movement again.