EMREMR
US • —
$141.93
P/E
32.77
PEG
9.64
FCF Yield
—
Rev Growth YoY
+4.0% YoY
Gross Margin
52.7%
Health Score
7/10
D/E Ratio
0.65
Confidence
MEDIUM
Business Snapshot
Emerson Electric Co. operates as a global technology and software company providing solutions for industrial, commercial, and residential markets. The company’s primary revenue-generating segments include process automation and industrial software, serving sectors such as energy, chemical, and manufacturing. Emerson holds a strong competitive position as a well-established industrial automation provider, benefiting from decades of domain expertise and a large installed base. Based on its substantial revenue scale and industry standing, it is classified as a large-cap industrial company.
Financial Health
Gross margin stands at a healthy 52.7%, though the prior year figure was not provided for comparison. The net margin of 13.3% reflects moderate profitability, typical for an industrial technology firm...
Risk Assessment
- VALUATION — P/E of 32.77x is significantly above the sector average of 22x, implying investors are paying a high premium for future growth already priced in.
- EARNINGS QUALITY — Only 1 of the last 4 quarterly reports beat analyst estimates, which suggests inconsistent earnings delivery and lower management guidance credibility.
- DEBT / LIQUIDITY — Current ratio of 0.88x is below the 1.0x threshold, indicating that short-term liabilities exceed short-term assets and may pressure liquidity.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER SELLING — 6 insider sells versus 0 insider buys over the last 90 days signals caution and potential management concern about current valuation levels....
Gross margin stands at a healthy 52.7%, though the prior year figure was not provided for comparison. The net margin of 13.3% reflects moderate profitability, typical for an industrial technology firm. The balance sheet appears well-managed with a debt-to-equity ratio of 0.65x, indicating a conservative debt posture, while the current ratio of 0.88x suggests limited short-term liquidity coverage, a potential point of caution. Return on equity of 12.1% demonstrates effective capital allocation. Overall financial health is solid with manageable leverage and reasonable returns, supporting ongoing reinvestment and dividend capacity, though the sub-1.0 current ratio warrants monitoring for liquidity risk.
- VALUATION — P/E of 32.77x is significantly above the sector average of 22x, implying investors are paying a high premium for future growth already priced in. - EARNINGS QUALITY — Only 1 of the last 4 quarterly reports beat analyst estimates, which suggests inconsistent earnings delivery and lower management guidance credibility. - DEBT / LIQUIDITY — Current ratio of 0.88x is below the 1.0x threshold, indicating that short-term liabilities exceed short-term assets and may pressure liquidity. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER SELLING — 6 insider sells versus 0 insider buys over the last 90 days signals caution and potential management concern about current valuation levels.
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