Emerson Electric Co. (EMR) - Stock Analysis

Last updated: Apr 4, 2026

IndustrialsClosed

Research Idea

Research content for general circulation. Not individualized advice. Methodology & Disclosures

Emerson Electric (EMR) benefits from 9% order growth, raised EPS guidance, solid profitability, and positive technical momentum (+4.4% gain over 21 days) amid mixed industry headwinds, positioning it as a stable industrial growth candidate with moderate near-term appreciation potential.

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Idea window: 2/4/2026 – 2/11/2026Sector: Industrials

AI Analyst Overview

Last Price
$144.67
Market Cap
$81.35B
1D Return
+1.41%
YTD Return
+9.42%

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Valuation Metrics

P/E
35.1
P/B
4.0
P/S
4.5
EV/EBITDA
19.1
Div Yield
1.50%

Fundamental Analysis

7.0

Key Financial Insights: • High gross/EBITDA margins • Strong free cashflow • Low current liquidity EMR delivers strong operating profitability and high annual free cash flow supporting dividends and buybacks, but faces short-term liquidity pressure, elevated leverage, large intangibles versus tangible equity, and rich valuation multiples.

SolidMargins
HighLeverage

Price Behavior

6.0

Key Price Behavior Insights: • Mild downtrend • Nearby support • Resistance cluster Support Level: $123.30 Resistance Level: $141–$142 EMR is trading around its last-month SMA (~$132.4) with the 2026-04-02 close slightly below at $131.70, down ~7.4% from the March high and showing mild short-term bearishness with support at $123.30 and resistance near $141–$142.

bearish
watch

Sentiment & News

7.0

Key News Insights: • Clean‑energy win • Analyst upgrade • Mixed institutional Emerson landed a major clean‑energy automation contract and presented at the J.P. Morgan conference, prompting analyst upgrades and investor attention even as shares showed recent volatility amid mixed institutional flows. #clean-energy​

volatility
AI

AI Summary

6.0
Neutral

Emerson is shifting from a cyclical capex-driven industrial to a higher‑margin, recurring software and clean‑energy automation platform that can meaningfully re‑rate valuation if software ACV growth and AspenTech synergies reliably materialize, but elevated leverage, large intangibles and renewal/backlog timing risk create acute execution and liquidity downside if delivery slips.

SoftwareUpside
IntegrationRisk
Leverage
AI summary updated 5 days ago

Description

Emerson Electric Co., founded in 1890 and headquartered in St. Louis, Missouri, supplies engineering and technology products and services to industrial, commercial and residential customers worldwide. Its Automation Solutions unit delivers measurement instruments, valves and process control systems to sectors such as oil and gas, chemicals, power, life sciences and municipal utilities, while the Commercial & Residential Solutions unit provides HVAC, refrigeration and appliance components plus controls, diagnostics and facility services for building and appliance markets.

Idea History

DateCloseTickerCompanySummaryStatusP/L
Feb 4Feb 11EMREmerson Electric Co.
Emerson Electric (EMR) benefits from 9% order growth, raised EPS guidance, solid profitability, and positive technical momentum (+4.4% gain over 21 days) amid mixed industry headwinds, positioning it as a stable industrial growth candidate with moderate near-term appreciation potential.
Closed-1.7%
Research content for educational purposes only. Not investment advice. All decisions are your responsibility.