Recent News
September 3, 2025: Coverage noted ongoing strength across Intelligent Devices and Software/Control platforms and confirmed AspenTech now operates as a fully owned subsidiary. October 15, 2025: JPMorgan raised its price target for Emerson. November 10, 2025: JP Morgan maintained coverage with a Neutral view. November 14, 2025: Institutional filing showed M&G PLC trimmed its Emerson stake. Recent product and sustainability announcements include a roll-out of an Energy Manager solution for real-time plant energy monitoring and customer-facing efficiency projects in manufacturing.
Technical Analysis
Directional indicators show trend emergence with bearish bias: ADX at 22.31 indicates an emerging trend in play while DI- at 25.91 increasing and DI+ at 17.60 peak-and-reverse both point to bearish directional pressure; that combination suggests near-term downside risk to price momentum relative to the current valuation gap.
MACD displays bearish momentum: MACD at -1.11 below the signal line (-0.40) and declining, signaling accelerating negative momentum that can pressure prices even where valuation appears attractive.
MRO reads 11.21 and sits positive, indicating price currently above the model target and implying a tightening of upside potential; this elevates the likelihood of short-term reversion toward target levels given the existing momentum setup.
RSI at 48.03 with a peak-and-reversal characteristic shows waning upside momentum without entering oversold territory, which aligns with the MACD and directional indicators and supports a guarded short-term bias against the stock’s valuation narrative.
Price structure and volatility context: the 12-day EMA trends lower while the 26-day EMA sits higher (price12dayEMA 129.74 decreasing; price26dayEMA 131.08), producing a short-term moving-average configuration that favors consolidation or downward pressure. Price closed at $128.17, just above the 200-day average of $124.78, and beneath the super trend upper boundary at $134.51; Bollinger bands show a moderate 20-day band width (20-day avg $131.47, 1xStdDev band roughly $126–$137) consistent with contained volatility that can break decisively if momentum persists.
Fundamental Analysis
Profitability and margins: operating margin at 20.23% and EBIT margin at 21.38% outpace the industry peer mean operating/EBIT margin measures, with EBIT margin above the industry peer mean (20.39%) but below the industry peer median (24.86%); QoQ EBIT margin improved ~17.42% and YoY improved ~16.87%, indicating recent margin recovery supporting the current valuation stance.
Revenue and growth: total revenue stands at $4,855,000,000 with YoY revenue growth of 21.55% and QoQ growth shown as 142.97% in the provided metric; YoY top-line expansion materially contributes to operating leverage and links to the improved EBIT margin trajectory.
Cash flow and liquidity: operating cash flow of $1,009,000,000 and free cash flow of $842,000,000 produce a free cash flow yield of 1.13%, slightly below the industry peer mean free cash flow yield of 1.21%. Cash and short-term investments total $1,544,000,000 while net debt equals $11,572,000,000, yielding a debt-to-EBITDA roughly 9.71x and an interest coverage ratio of 4.29x; those leverage metrics exceed industry peer means and suggest balance-sheet capacity has tightened versus peers.
Returns and efficiency: return on equity at 3.14% and return on assets at 1.51% trail industry peer mean returns, yet YoY and QoQ signals show recent improvements (ROE QoQ +6.34%, ROA QoQ +8.58%), implying operational gains are translating into incremental return expansion.
Capital allocation and shareholder metrics: dividend payout ratio near 46.70% and dividend coverage about 2.14 support ongoing distributions. Book value per share about $36.04 and price-to-book at 3.68 sit below the industry peer mean price-to-book of 4.84, while price-to-earnings at 81.95 remains below the industry peer mean P/E of 95.08. Forward P/E near 83.62 and forward EPS $1.58 reflect muted near-term earnings growth expectations embedded in multiples.
Earnings and surprises: reported EPS came in at $1.62 with an EPS surprise ratio of 0.28%, matching the consensus estimate of $1.62; that alignment reduces near-term earnings-based repricing catalysts but preserves the company’s reported operating performance figures.
Valuation summary: WMDST values the stock as under-valued. Key valuation metrics show an enterprise multiple of 61.35 and an EVR of 17.91, with price target mean near $129.58 from aggregate analyst inputs; multiples sit below several industry peer mean benchmarks, while leverage metrics sit above peer means, producing a valuation that reflects both discounted multiples and elevated balance-sheet obligations.
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: 77.621 mean: 70.254 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 | EMR: 0.328 high: 0.325 mean: 0.193 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: 0.368 median: 0.234 low: 0.004 |
|
| 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: 4.839 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 median: 97.671 mean: 95.081 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: 27.527 median: 22.453 mean: 17.339 EMR: 15.39 low: 0.983 |
|
| 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: 0.186 median: 0.12 EMR: 0.115 low: 0.045 |
|
| Receivables Turnover | 1.616 | |
| Receivables Turnover Ratio QoQ | 3.084 % | |
| Receivables Turnover Ratio YoY | -0.506 % | |
| Receivables Turnover Ratio IPRWA | high: 2.824 mean: 1.884 median: 1.755 EMR: 1.616 low: 1.017 |
|
| Inventory Turnover | 1.038 | |
| Inventory Turnover Ratio QoQ | 8.22 % | |
| Inventory Turnover Ratio YoY | 3.499 % | |
| Inventory Turnover Ratio IPRWA | high: 2.883 mean: 1.112 median: 1.066 EMR: 1.038 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 EMR: 95.441 mean: 92.631 low: 31.961 |
|
| 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: 1.712 low: 1.155 median: 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: 1.105 low: 0.72 median: 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: 40.476 median: 20.897 mean: 17.18 EMR: 4.289 low: -1.556 |
|
| 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: 20.96 % EMR: 6.633 % median: 6.444 % mean: 3.408 % 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: -1.386 % low: -35.625 % |
|
| MARGINS | ||
| Gross Margin | 51.885 % | |
| Gross Margin QoQ | -1.282 % | |
| Gross Margin YoY | 1.079 % | |
| Gross Margin IPRWA | EMR: 51.885 % high: 48.879 % mean: 37.262 % median: 36.253 % low: 7.158 % |
|
| EBIT Margin | 21.38 % | |
| EBIT Margin QoQ | 17.421 % | |
| EBIT Margin YoY | 16.869 % | |
| EBIT Margin IPRWA | high: 30.674 % median: 24.858 % EMR: 21.38 % mean: 20.389 % low: -20.823 % |
|
| 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 % median: 25.804 % mean: 21.205 % EMR: 20.227 % low: -21.186 % |
|
| 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: 5.505 % mean: 1.208 % EMR: 1.127 % median: 0.988 % 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: 383.949 % mean: 27.753 % median: 27.328 % EMR: -13.818 % low: -142.754 % |
|
| 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 % mean: 2.481 % median: 2.362 % EMR: 1.506 % low: -3.882 % |
|
| 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: 0.045 median: 0.035 EMR: 0.031 low: -0.055 |
|
| 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: 3.468 % median: 3.002 % EMR: 2.483 % low: -1.351 % |
|