EMR:NYSE

Emerson Electric Company

Data as of 2026-03-10 - not real-time

$141.12

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

Emerson Electric (EMR) is trading at $141.12, comfortably above its 200‑day SMA of $136.32 but below the 20‑day ($149.16) and 50‑day ($147.05) averages, indicating a short‑term pullback within a longer‑term uptrend. The RSI at 42 suggests neutral momentum, while the MACD histogram remains deeply negative, a bearish signal reinforced by decreasing volume and a 30‑day volatility of over 40%, pointing to heightened price swings. Fundamentals show a trailing P/E of 34.6 versus an industry average of 29.5, and a DCF fair value near $62.65, implying the stock is currently overvalued despite solid earnings growth (forward EPS of $7.18 versus $4.08 trailing) and a forward P/E of 19.6. The dividend yield of 1.6% is supported by a payout ratio just above 50% and healthy free cash flow, suggesting sustainability. Recent news highlights a Q1 earnings beat with 9% order growth, a strategic push into AI‑driven water automation, and a downgrade from Deutsche Bank to “Hold,” tempering enthusiasm. Overall, EMR balances strong long‑term growth catalysts against short‑term technical weakness and valuation pressure.

Trading Recommendations

Short Term

< 1 year
hold
Conviction: 6/10

Key Factors

  • Bearish MACD and price below short‑term SMAs
  • Decreasing volume and elevated 30‑day volatility
  • Recent downgrade to Hold by Deutsche Bank

Medium Term

1–3 years
buy
Conviction: 7/10

Key Factors

  • Forward earnings growth and improving EPS outlook
  • Support level near $134.65 offering downside cushion
  • Sustained dividend with payout ratio under 60%

Long Term

> 3 years
buy
Conviction: 8/10

Key Factors

  • Secular IoT and AI‑driven water automation tailwinds
  • Robust cash generation despite high leverage
  • Consistent dividend track record and industry leadership

Key Metrics & Analysis

Financial Health

Revenue Growth4.10%
Profit Margin12.72%
P/E Ratio34.6
ROE9.65%
ROA6.61%
Debt/Equity69.28
P/B Ratio3.9
Op. Cash Flow$3.0B
Free Cash Flow$2.9B
Industry P/E29.5

Technical Analysis

TrendBullish
RSI42.1
Support$134.65
Resistance$165.15
MA 20$149.16
MA 50$147.05
MA 200$136.32
MACDBearish
VolumeDecreasing
Fear & Greed Index75.89

Valuation

Fair Value$62.65
Target Price$166.66
Upside/Downside18.10%
GradeOvervalued
TypeBlend
Dividend Yield1.60%

Risk Assessment

Beta1.27
Volatility41.66%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskMedium

This analysis may contain inaccuracies. Not financial advice. Always do your own research before making any investment decisions.