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Emerson Electric Co.
S&P 500
🏹 Trader: 🎯 Near 52W High | BRS 71 Forming View all →
$85.8B
Market Cap
32.5
P/E
2.19
PEG
10.6%
ROCE
9.4%
ROE
0.65
D/E
24.5%
OPM
-7.1%
% from 52W High
64
α RS
🔍 EMR is showing a near-52W-high setup because it's within 7.1% of its 52-week high, it matches 2 of 39 tracked screener presets, and Sector RRG has Industrials in the Improving quadrant with the trail still strengthening. The main caution: deleveraging's Backtest win rate is only 45.8%. Net: Mixed signal stack, not a recommendation. ? 52W High Conviction RRG Backtest
Sources
7.1% from 52W high · Conviction 2/39 · Industrials in Improving quadrant · Backtest win rate 45.8%
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🌏 Global Investor Returns
Currency-adjusted total returns for EMR including FX impact
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📈 Price History
Ratio Health
Excellent
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By Category
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About

Emerson Electric Co., a technology and software company, provides various solutions in the Americas, Asia, the Middle East, Africa, and Europe. It operates through Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, and Test & Measurement segments. The Final Control segment provides control valves, isolation valves, shutoff valves, pressure relief valves, pressure safety valves, actuators, and regulators for process and hybrid industries under Anderson Greenwood, Bettis, Crosby, Fisher, Keystone, KTM, and Vanessa brands. The Measurement & Analytical segment supplies 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 under the Flexim, Micro Motion, and Rosemount brands. The Discrete Automation segment includes solenoid valves, pneumatic valves, valve position indicators, pneumatic cylinders and actuators, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems and software, electrical distribution equipment, and materials joining solutions used primarily in discrete industries under the Afag, Appleton, ASCO, Aventics, Branson, Movicon, PACSystems, SolaHD, TESCOM, and TopWorx brands. The Safety & Productivity segment delivers tools for professionals and homeowners that support infrastructure, promote safety, and enhance productivity under the Greenlee, Klauke, ProTeam, and RIDGID brands. The Control Systems & Software segment provides control systems and software that control plant processes by collecting and analyzing information from measurement devices in the plant under the DeltaV and Ovation brands. The Test & Measurement offers software-connected automated test and measurement systems. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.

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📈 Growth Pattern
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Good quarter Investor Presentation One-Pager? Q3 2026
Revenue
$4.873B
+7% YoY
Adjusted Segment EBITA
$1.387B
+13% YoY
Adjusted Segment EBITA Margin
28.5%
+140bps YoY
Adjusted EPS
$1.71
+13% YoY
What Went Right
  • Underlying orders grew 7%, led by Software & Systems up 10%
  • Growth verticals up 27%, with semiconductor orders up 70% and Ovation power orders up 31%
  • Adjusted EPS of $1.71 beat guidance and free cash flow rose 36% to $1.323B
What to Watch
  • Middle East conflict remains a drag; Q3 revenue impact was ~$25M vs February guidance, with similar Q4 impact expected
  • Europe and China remain soft — Europe sales down 1%, China down 3%, though showing signs of improvement
  • Software contract renewal dynamics created a 1.5-point Software & Systems margin drag and a 3-point full-year growth headwind in Control Systems & Software
Management Guidance
  • Q4 net sales growth ~5% with minimal FX impact
  • Q4 adjusted EPS ~$1.85 and adjusted segment EBITA margin ~28.5%
  • FY2026: net sales growth ~5%, underlying sales growth ~3.5%, adjusted EPS ~$6.55, free cash flow ~$3.6B, adjusted segment EBITA margin ~28%
Investor Lens
The investment thesis is stronger after this quarter. Emerson delivered a broad-based beat on sales, margin, EPS and cash flow, raised full-year guidance, and orders accelerated 7% with strong momentum in power, semiconductor and software. The main overhang remains the Middle East conflict, but management’s better-than-expected execution and rising project funnel support confidence into 2027.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG EPS beat, orders up 7%, guidance raised
Revenue
Q3 net sales were $4.873B, up 7% YoY, with underlying sales up 6%. Software & Systems led with 11% underlying growth, followed by Intelligent Devices up 5% and Safety & Productivity up 2%; Americas rose 8%, Europe fell 1%, and China improved to down 3%.
Profitability
Adjusted EPS grew 13% to $1.71, exceeding the top of guidance. GAAP EPS rose 24% to $1.28, and pretax earnings were $916M versus $734M in the prior year.
Margins
Adjusted segment EBITA margin expanded 140bps to 28.5%, driven by volume leverage, price cost and cost reductions. Software & Systems margin dipped 30bps to 31.8% due to software contract renewals and lower-margin project mix.
Balance Sheet
Q3 free cash flow was $1.323B, up 36% with a 27.1% margin; year-to-date free cash flow is up 9% at a 19% margin. Emerson completed $898M of share repurchases and remains committed to returning ~$2.2B to shareholders this fiscal year.
Key Risks
Management flagged continued uncertainty in the Middle East, with the Strait of Hormuz effectively closed and supply chains complex. Europe and China remain soft, and the software contract renewal dynamic continues to pressure reported growth and margins in the near term.
Outlook
Emerson guided Q4 sales growth of ~5% and adjusted EPS of ~$1.85. For full-year 2026, it raised adjusted EPS to ~$6.55, maintained ~28% adjusted segment EBITA margin, and expects ~$3.6B of free cash flow.
Generated by AI · Q3 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q3 2026 Q3 2026 2026-08-04
Q3 results exceeded expectations with strong sales, margin, and cash flow growth, led by robust demand in power and semiconductor verticals. Full-year guidance was raised for sales, EPS, and cash flow, while major project wins and continued investment in AI and automation support future growth.
Q2 2026 Q2 2026 2026-05-05
Q2 saw 5% order growth and strong performance in Test & Measurement, but sales were impacted by the Middle East conflict and China weakness. Full-year guidance was adjusted, with EPS raised and robust capital return plans maintained. Growth verticals and software ACV remain strong.
Q1 2026 Q1 2026 2026-02-03
Q1 saw 9% order growth and 2% sales growth year-over-year, with strong performance in Test and Measurement and Power. Adjusted segment EBITDA margin reached 27.7%, and full-year guidance was raised for EPS. North America, India, and the Middle East/Africa led demand, while Europe and China remained soft.
Q4 2025 Q4 2025 2025-11-05
Strong Q4 and FY25 results featured robust growth in test and measurement, record margins, and double-digit software ACV gains. FY26 guidance calls for 5.5% sales growth, margin expansion, and significant capital returns, with continued strength in power, LNG, and life sciences verticals.
Q3 2025 Q3 2025 2025-08-06
Third quarter results showed 3% underlying sales growth, strong free cash flow, and robust order momentum, with Test & Measurement and process/hybrid businesses leading. Guidance for Q4 and full year was raised, supported by improved tariff conditions and continued innovation in automation and software.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
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