Emerson Electric
EMR
$137.80
+0.97%
Emerson Electric Co. is a leading industrial automation company that provides automation software, power tools, and hardware such as valves, gauges, and switches across seven business segments. Founded in 1890, it has transformed through acquisitions into a pure-play industrial automation player, distinct from its legacy consumer and climate technology roots. The current investor narrative centers on Emerson's strategic pivot to automation, which is driving attention amid a broader industrial digitization trend, though recent mixed earnings and macroeconomic headwinds have sparked debate about growth sustainability and margin expansion.…
EMR
Emerson Electric
$137.80
EMR 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Emerson Electric's 12-month outlook, with a consensus price target around $179.14 and implied upside of +30.0% versus the current price.
Average Target
$179.14
8 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
8
covering this stock
Price Range
$110 - $179
Analyst target range
Emerson is covered by 8 analysts, with a consensus leaning neutral to bullish. The average EPS estimate for the current fiscal year is $10.87, with a range of $10.67 to $11.04. Revenue estimates average $24.94 billion, with a low of $24.59 billion and high of $25.23 billion. The analyst ratings show a mix: 3 Buy, 3 Hold, and 2 Sell (based on recent actions: UBS Buy, Citigroup Buy, Evercore Outperform, while Deutsche Bank downgraded to Hold, and JP Morgan and Barclays are Neutral/Equal Weight). The average target price is not explicitly provided, but based on forward PE of 19.4x and estimated EPS of $10.87, the implied target is ~$211, representing 52% upside from the current price of $139. The high target of $11.04 EPS suggests a potential $214, while the low of $10.67 implies $207. The wide range of analyst actions (downgrades from Deutsche Bank and Oppenheimer) indicates uncertainty, but the overall consensus remains cautiously optimistic. The implied upside is substantial, but the stock's recent underperformance and mixed ratings suggest that achieving these targets depends on successful execution of the automation strategy and margin improvement.
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EMR Technical Analysis
Emerson's stock is in a range-bound consolidation phase, with a 1-year price change of +91.44% reflecting a strong long-term uptrend, but the current price of $139.05 sits at 84.2% of its 52-week range ($122.64-$165.15), indicating it is below the highs but above the midpoint. This positioning suggests the stock is in a corrective phase after peaking, offering a potential value entry if support holds, but also risk of further downside if the downtrend resumes. The 1-month price change of -2.10% contrasts with the 3-month change of +5.58%, showing short-term weakness that diverges from the medium-term recovery, which could signal a temporary pullback within a broader consolidation pattern. The 1-year relative strength of -18.19% versus SPY underscores significant underperformance, while the 3-month relative strength of -7.98% indicates the stock is still lagging the market. The 52-week low of $122.64 provides key support, while the 52-week high of $165.15 is a major resistance level; a breakout above $165 would signal renewed momentum, while a breakdown below $122 could trigger further declines. With a beta of 1.244, Emerson is 24.4% more volatile than the S&P 500, meaning larger swings in both directions, which requires careful position sizing.
Beta
1.24
1.24x market volatility
Max Drawdown
-23.7%
Largest decline past year
52-Week Range
$123-$165
Price range past year
Annual Return
-1.4%
Cumulative gain past year
| Period | EMR Return | S&P 500 |
|---|---|---|
| 1m | -3.2% | +2.0% |
| 3m | -4.2% | +10.6% |
| 6m | -4.4% | +8.3% |
| 1y | -1.4% | +20.4% |
| ytd | +1.5% | +10.2% |
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EMR Fundamental Analysis
Revenue growth is modest but steady, with the most recent quarter (Q1 FY2026, ending Dec 2025) reporting $4.345 billion, up 4.07% YoY from $4.175 billion in the prior-year quarter. However, the multi-quarter trend shows deceleration from 6.2% YoY growth in Q4 FY2025 to 4.1% in Q1 FY2026, suggesting a slowing pace. Segment data reveals Intelligent Devices ($2.39B) and Software & Systems ($1.453B) are the primary growth drivers, while Safety & Productivity ($503M) is smaller. The company is profitable, with net income of $605 million in Q1 FY2026 and a net margin of 13.9%, which is healthy for the industrial sector. Gross margin improved to 48.6% from 53.5% a year ago, but operating margin dipped to 19.9% from 18.7% in Q1 FY2025, indicating some cost pressure. The balance sheet is solid: debt-to-equity of 0.68 is manageable, and free cash flow of $602 million in Q1 FY2026 provides ample liquidity. ROE of 11.3% and ROA of 6.7% reflect efficient capital use, while the current ratio of 0.88 suggests some short-term liquidity tightness, but strong operating cash flow of $699 million mitigates risk.
Quarterly Revenue
$4.3B
2025-12
Revenue YoY Growth
+4.07%
YoY Comparison
Gross Margin
48.56%
Latest Quarter
Free Cash Flow
$2.6B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is EMR Overvalued?
Since net income is positive ($605 million), the PE ratio is the primary valuation metric. The trailing PE is 32.2x, while the forward PE is 19.4x, indicating the market expects significant earnings growth in the coming year. The gap between trailing and forward PE (a 40% compression) implies that current earnings are depressed and a sharp rebound is anticipated. Compared to the industry average (not provided, but typically for industrial machinery around 20-25x), Emerson's trailing PE of 32.2x appears elevated, but the forward PE of 19.4x is more in line with peers. The PS ratio of 4.1x is also above the sector median of ~2.5x, suggesting a premium that may be justified by Emerson's automation focus and higher margins. Historically, Emerson's trailing PE has ranged from 6x to 98x over the past five years, with the current 32.2x near the middle of that range. The forward PE of 19.4x is below the 5-year average of ~25x, indicating that the stock is not overvalued relative to its own history if earnings materialize as expected.
PE
32.2x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 1x~98x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
17.8x
Enterprise Value Multiple
