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EMR:NYSEEmerson Electric Company Analysis

Data as of 2026-05-24 - not real-time

$136.42

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

Emerson Electric (EMR) is trading at $136.42, roughly 20% above its DCF‑derived fair value of $64.26, indicating a material overvaluation despite a forward PE of 19 versus a trailing PE of 31.5. Technical signals are mixed: the 20‑day SMA (137.55) sits just above price, the 50‑day SMA (136.61) is near‑par, RSI is neutral at 48, and a bearish MACD histogram (-0.50) suggests short‑term downside pressure, while volume remains stable and the overall trend is neutral. Fundamentally, the company delivered 2.9% revenue growth YoY to $4.56 B, maintained solid gross (52.7%) and operating margins (24.2%), and generated $3.28 B of free cash flow, supporting a 1.63% dividend with a 50% payout ratio. The recent earnings release missed revenue expectations but met non‑GAAP EPS consensus, and management projects Q2 revenue near analyst estimates, providing a clearer near‑term outlook.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Bearish MACD and price trading above DCF fair value
  • Neutral RSI and stable volume suggest limited upside
  • Recent revenue miss adds short‑term uncertainty

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Strong free cash flow and sustainable dividend
  • Forward earnings growth (EPS 7.15) narrows valuation gap
  • Analyst consensus remains a Buy with median target $164

Long Term

> 3 years
Positive
Model confidence: 9/10

Key Factors

  • Robust margins and diversified industrial exposure
  • Consistent dividend payout and low payout ratio
  • Long‑term demand for automation and measurement solutions

Key Metrics & Analysis

Financial Health

Revenue Growth2.90%
Profit Margin13.35%
P/E Ratio31.6
ROE12.33%
ROA6.68%
Debt/Equity69.18
P/B Ratio3.8
Op. Cash Flow$3.6B
Free Cash Flow$3.3B
Industry P/E29.7

Technical Analysis

TrendNeutral
RSI48.4
Support$128.13
Resistance$149.47
MA 20$137.55
MA 50$136.61
MA 200$137.19
MACDBearish
VolumeStable
Fear & Greed Index91.61

Valuation

Fair Value$64.26
Target Price$163.72
Upside/Downside20.01%
GradeOvervalued
TypeBlend
Dividend Yield1.63%

Risk Assessment

Beta1.57
Volatility35.95%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.