Recent News
On November 20, 2025 Emerson presented at its 2025 Investor Conference, introduced 2028 financial targets and announced plans to return $10 billion to shareholders through 2028, including $12 billion of cumulative free cash flow guidance from 2026–2028. The presentation reiterates the company’s strategic focus on autonomous operations and expanded software-driven offerings.
Technical Analysis
ADX at 26.65 indicates a strong trend environment and supports the view that recent directional moves carry conviction rather than idle noise; that strength raises the consequence of any directional reversal for near-term price action.
DI+ registers 30.72 with a peak & reversal, while DI- sits at 16.44 with a dip & reversal; those paired directional signals favor a near-term bearish bias as the positive-direction indicator has peaked and the negative-direction indicator has begun rising.
MACD stands at 3.45 with a peak & reversal and the signal line at 3.10; although MACD currently sits above its signal line (a bullish crossover historically), the MACD_trend peak & reversal implies momentum has likely topped and weakens that bullish crossover for the immediate outlook.
MRO sits at 30.41 with a peak & reversal; the positive MRO value indicates price presently trades above the model target and, combined with the peak & reversal, suggests a heightened probability of price contraction toward fair value in the near term.
RSI at 57.83 with an increasing trend signals continued upside momentum without overbought extremes; this momentum can cap abrupt declines but does not eliminate reversal risk given the other bearish signals.
Price sits above its key averages—200-day average $129.99 and 50-day average $137.01—with the 12-day EMA 146.73 trending increasing, and the close at $149.13 near the upper 1x Bollinger band ($149.56). Those relationships show short-term technical strength, but proximity to the upper band combined with the MRO and DI/MACD reversals raises the chance of consolidation or pullback.
Fundamental Analysis
Profitability: Operating margin stands at 20.23% and EBIT margin at 21.38%. The EBIT margin sits above the industry peer mean of 17.63% and above the industry peer median of 19.56%, reflecting better-than-average operating efficiency. QoQ EBIT margin rose ~17.42% and YoY EBIT margin rose ~16.87%, indicating meaningful sequential and annual margin expansion.
Top-line and earnings momentum: Total revenue reached $4,855,000,000 with YoY revenue growth of 21.55% and QoQ revenue growth of 142.97%, showing strong recent revenue acceleration. Net income from continuing operations totaled $636,000,000. Reported EPS $1.62 matched the estimate $1.62 with an EPS surprise ratio of ~0.28% (essentially in line with consensus).
Cash flow and capital returns: Free cash flow equals $842,000,000 and free cash flow yield sits at 1.13%, modestly below the industry peer mean of 1.41%. The company maintains a dividend yield of 0.40% with a payout ratio of 46.70% and dividend coverage of 2.14, supporting ongoing distributions while preserving cash for strategic actions announced at the investor conference.
Leverage and coverage: Total debt $13,759,000,000 produces debt-to-assets of 32.79% and debt-to-equity of 0.678; debt-to-assets exceeds the industry peer mean of 20.72% and debt-to-equity exceeds the industry peer mean of 0.398, indicating higher leverage relative to peers. Interest coverage stands at 4.29, below the industry peer mean of 14.21, highlighting tighter coverage capacity despite current ability to service interest.
Returns and efficiency: Return on equity equals 3.14% (below the industry peer mean of 3.84%) and return on assets equals 1.51% (below the industry peer mean of 2.15%). Asset turnover sits at 0.115, below the industry peer mean of 0.179, indicating lower revenue generation per dollar of assets even as margins boost profitability.
Valuation: Price multiples show a trailing P/E ~81.95 and forward P/E ~83.62; price-to-book equals 3.68, which falls below the industry peer mean price-to-book of 4.40. The current valuation as determined by WMDST: fair-valued. Those elevated earnings multiples reflect market expectations for durable software-driven margin expansion even as cash yields and coverage metrics temper valuation support.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 2.2 B |
| Operating Cash Flow | $ 1.0 B | |
| Capital Expenditures | $ -168.00 M | |
| Change In Working Capital | $ 71.0 M | |
| Dividends Paid | $ -297.00 M | |
| Cash Flow Delta | $ -675.00 M | |
| End Period Cash Flow | $ 1.5 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 4.9 B | |
| Forward Revenue | $ 1.7 B | |
| COSTS | ||
| Cost Of Revenue | $ 2.3 B | |
| Depreciation | $ 98.0 M | |
| Depreciation and Amortization | $ 379.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 3.9 B | |
| PROFITABILITY | ||
| Gross Profit | $ 2.5 B | |
| EBITDA | $ 1.4 B | |
| EBIT | $ 1.0 B | |
| Operating Income | $ 982.0 M | |
| Interest Income | $ 150.0 M | |
| Interest Expense | $ 242.0 M | |
| Net Interest Income | $ -92.00 M | |
| Income Before Tax | $ 796.0 M | |
| Tax Provision | $ 160.0 M | |
| Tax Rate | 20.101 % | |
| Net Income | $ 636.0 M | |
| Net Income From Continuing Operations | $ 636.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.62 | |
| EPS Actual | $ 1.62 | |
| EPS Difference | $ 0.00 | |
| EPS Surprise | 0.28 % | |
| Forward EPS | $ 1.58 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 42.0 B | |
| Intangible Assets | $ 27.7 B | |
| Net Tangible Assets | $ -7.37 B | |
| Total Current Assets | $ 8.6 B | |
| Cash and Short-Term Investments | $ 1.5 B | |
| Cash | $ 1.5 B | |
| Net Receivables | $ 3.1 B | |
| Inventory | $ 2.2 B | |
| Long-Term Investments | $ 238.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 1.4 B | |
| Short-Term Debt | $ 4.8 B | |
| Total Current Liabilities | $ 9.8 B | |
| Net Debt | $ 11.6 B | |
| Total Debt | $ 13.8 B | |
| Total Liabilities | $ 21.7 B | |
| EQUITY | ||
| Total Equity | $ 20.3 B | |
| Retained Earnings | $ 40.6 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 36.04 | |
| Shares Outstanding | 562.800 M | |
| Revenue Per-Share | $ 8.63 | |
| VALUATION | Market Capitalization | $ 74.7 B |
| Enterprise Value | $ 86.9 B | |
| Enterprise Multiple | 61.351 | |
| Enterprise Multiple QoQ | -15.393 % | |
| Enterprise Multiple YoY | 34.36 % | |
| Enterprise Multiple IPRWA | high: 115.779 median: 75.554 mean: 68.238 EMR: 61.351 low: -88.558 |
|
| EV/R | 17.906 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.069 | |
| Asset To Liability | 1.937 | |
| Debt To Capital | 0.404 | |
| Debt To Assets | 0.328 | |
| Debt To Assets QoQ | -6.245 % | |
| Debt To Assets YoY | 2627.787 % | |
| Debt To Assets IPRWA | high: 0.393 EMR: 0.328 mean: 0.207 median: 0.152 low: 0.004 |
|
| Debt To Equity | 0.678 | |
| Debt To Equity QoQ | -9.345 % | |
| Debt To Equity YoY | 2658.764 % | |
| Debt To Equity IPRWA | high: 0.875 EMR: 0.678 mean: 0.398 median: 0.234 low: -0.03 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.684 | |
| Price To Book QoQ | -1.661 % | |
| Price To Book YoY | 30.472 % | |
| Price To Book IPRWA | high: 9.111 mean: 4.398 median: 4.037 EMR: 3.684 low: -1.835 |
|
| Price To Earnings (P/E) | 81.953 | |
| Price To Earnings QoQ | -6.07 % | |
| Price To Earnings YoY | 13.206 % | |
| Price To Earnings IPRWA | high: 157.791 mean: 97.915 median: 97.671 EMR: 81.953 low: -33.071 |
|
| PE/G Ratio | 12.457 | |
| Price To Sales (P/S) | 15.39 | |
| Price To Sales QoQ | -5.866 % | |
| Price To Sales YoY | 16.362 % | |
| Price To Sales IPRWA | high: 31.268 mean: 15.849 median: 15.587 EMR: 15.39 low: 0.276 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 83.623 | |
| Forward PE/G | 12.711 | |
| Forward P/S | 44.03 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.801 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.115 | |
| Asset Turnover Ratio QoQ | 6.653 % | |
| Asset Turnover Ratio YoY | 11.766 % | |
| Asset Turnover Ratio IPRWA | high: 0.442 mean: 0.179 median: 0.12 EMR: 0.115 low: 0.026 |
|
| Receivables Turnover | 1.616 | |
| Receivables Turnover Ratio QoQ | 3.084 % | |
| Receivables Turnover Ratio YoY | -0.506 % | |
| Receivables Turnover Ratio IPRWA | high: 3.065 mean: 1.936 median: 1.755 EMR: 1.616 low: 0.264 |
|
| Inventory Turnover | 1.038 | |
| Inventory Turnover Ratio QoQ | 8.22 % | |
| Inventory Turnover Ratio YoY | 3.499 % | |
| Inventory Turnover Ratio IPRWA | high: 2.298 median: 1.066 EMR: 1.038 mean: 1.012 low: 0.236 |
|
| Days Sales Outstanding (DSO) | 56.47 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 95.441 | |
| Cash Conversion Cycle Days QoQ | -4.649 % | |
| Cash Conversion Cycle Days YoY | -2.688 % | |
| Cash Conversion Cycle Days IPRWA | high: 328.786 median: 97.226 mean: 95.457 EMR: 95.441 low: -31.206 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -3.999 | |
| CapEx To Revenue | -0.035 | |
| CapEx To Depreciation | -1.714 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 28.6 B | |
| Net Invested Capital | $ 33.4 B | |
| Invested Capital | $ 33.4 B | |
| Net Tangible Assets | $ -7.37 B | |
| Net Working Capital | $ -1.21 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.158 | |
| Current Ratio | 0.876 | |
| Current Ratio QoQ | 3.639 % | |
| Current Ratio YoY | -50.643 % | |
| Current Ratio IPRWA | high: 8.334 mean: 1.841 median: 1.712 low: 1.155 EMR: 0.876 |
|
| Quick Ratio | 0.65 | |
| Quick Ratio QoQ | 2.859 % | |
| Quick Ratio YoY | -53.402 % | |
| Quick Ratio IPRWA | high: 7.533 mean: 1.169 median: 0.97 low: 0.72 EMR: 0.65 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 9.71 | |
| Cost Of Debt | 0.505 % | |
| Interest Coverage Ratio | 4.289 | |
| Interest Coverage Ratio QoQ | -50.847 % | |
| Interest Coverage Ratio YoY | -15.738 % | |
| Interest Coverage Ratio IPRWA | high: 45.333 median: 14.634 mean: 14.207 EMR: 4.289 low: -7.298 |
|
| Operating Cash Flow Ratio | 0.103 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 56.102 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.141 | |
| Dividend Payout Ratio | 0.467 | |
| Dividend Rate | $ 0.53 | |
| Dividend Yield | 0.004 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.301 % | |
| Revenue Growth | 6.633 % | |
| Revenue Growth QoQ | 142.967 % | |
| Revenue Growth YoY | 21.55 % | |
| Revenue Growth IPRWA | high: 44.942 % EMR: 6.633 % median: 6.444 % mean: 3.439 % low: -27.734 % |
|
| Earnings Growth | 6.579 % | |
| Earnings Growth QoQ | 143.396 % | |
| Earnings Growth YoY | 88.133 % | |
| Earnings Growth IPRWA | high: 52.778 % EMR: 6.579 % median: 6.18 % mean: -1.221 % low: -57.669 % |
|
| MARGINS | ||
| Gross Margin | 51.885 % | |
| Gross Margin QoQ | -1.282 % | |
| Gross Margin YoY | 1.079 % | |
| Gross Margin IPRWA | high: 71.841 % EMR: 51.885 % mean: 37.147 % median: 36.253 % low: -22.872 % |
|
| EBIT Margin | 21.38 % | |
| EBIT Margin QoQ | 17.421 % | |
| EBIT Margin YoY | 16.869 % | |
| EBIT Margin IPRWA | high: 30.674 % EMR: 21.38 % median: 19.556 % mean: 17.627 % low: -128.385 % |
|
| Return On Sales (ROS) | 20.227 % | |
| Return On Sales QoQ | 1.424 % | |
| Return On Sales YoY | 10.566 % | |
| Return On Sales IPRWA | high: 25.804 % EMR: 20.227 % mean: 18.983 % median: 17.196 % low: -45.932 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 842.0 M | |
| Free Cash Flow Yield | 1.127 % | |
| Free Cash Flow Yield QoQ | -14.166 % | |
| Free Cash Flow Yield YoY | -24.817 % | |
| Free Cash Flow Yield IPRWA | high: 11.554 % mean: 1.408 % EMR: 1.127 % median: 1.04 % low: -2.711 % |
|
| Free Cash Growth | -13.818 % | |
| Free Cash Growth QoQ | -102.586 % | |
| Free Cash Growth YoY | 68.184 % | |
| Free Cash Growth IPRWA | high: 498.477 % mean: 32.463 % median: 27.328 % EMR: -13.818 % low: -316.046 % |
|
| Free Cash To Net Income | 1.324 | |
| Cash Flow Margin | 20.783 % | |
| Cash Flow To Earnings | 1.586 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.506 % | |
| Return On Assets QoQ | 8.58 % | |
| Return On Assets YoY | -32.07 % | |
| Return On Assets IPRWA | high: 4.472 % median: 2.362 % mean: 2.148 % EMR: 1.506 % low: -14.212 % |
|
| Return On Capital Employed (ROCE) | 3.227 % | |
| Return On Equity (ROE) | 0.031 | |
| Return On Equity QoQ | 6.341 % | |
| Return On Equity YoY | -31.871 % | |
| Return On Equity IPRWA | high: 0.147 mean: 0.038 median: 0.035 EMR: 0.031 low: -0.062 |
|
| DuPont ROE | 3.168 % | |
| Return On Invested Capital (ROIC) | 2.483 % | |
| Return On Invested Capital QoQ | 29.256 % | |
| Return On Invested Capital YoY | -111.504 % | |
| Return On Invested Capital IPRWA | high: 5.346 % mean: 3.076 % median: 3.002 % EMR: 2.483 % low: -7.141 % |
|