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Emerson Electric Company
🇺🇸 EMR · NYSE/NASDAQ · US2910111044
Industrials
Scores
Key Metrics
Powered by EODHDP/E (TTM)
35.7
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Net Debt/EBITDA (TTM)
2.3x
Latest quarter: 9.6x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
Latest quarter (2026-06-30): 9.6x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
12.8%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
19.1x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
1.46%
TTM: 1.34%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 1.46%
Trailing Yield (TTM, last 12 months): 1.34%
Payout Ratio (Fwd)
35.1% TTM
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 14 Aug 2027 | — | USD | 0.555 |
| Forecast* | Quarterly | — | 15 May 2027 | — | USD | 0.555 |
| Forecast* | Quarterly | — | 13 Feb 2027 | — | USD | 0.555 |
| Forecast* | Quarterly | — | 14 Nov 2026 | — | USD | 0.555 |
| Declared | Quarterly | 04 Aug 2026 | 14 Aug 2026 | 10 Sep 2026 | USD | 0.555 |
| Paid | Quarterly | 05 May 2026 | 15 May 2026 | 10 Jun 2026 | USD | 0.555 |
| Paid | Quarterly | 03 Feb 2026 | 13 Feb 2026 | 10 Mar 2026 | USD | 0.555 |
| Paid | Quarterly | 05 Nov 2025 | 14 Nov 2025 | 10 Dec 2025 | USD | 0.555 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Emerson Electric is a high-quality global automation leader with stellar dividend coverage and a solid B2B moat. Existing holders should maintain their positions as the company continues to benefit from AI-driven automation tailwinds, but the premium 35.7x P/E valuation and low 1.34% yield make it completely unsuited for new positions. It remains on the WATCH list until a material pullback offers a more compelling entry point.
Sector Context
Emerson operates in the Specialty Industrial Machinery sector, providing critical automation and control solutions globally. While industrials are typically cyclical, Emerson's pivot toward software-integrated automation creates a stickier B2B moat, though equipment manufacturers face significant regulatory hurdles concerning legacy specialized materials (PFAS).
📊 Strategy Analysis
- • Robust free cash flow heavily protects the distribution, with dividend coverage at 2.81x and a safe cash flow payout ratio of 31.49%.
- • Transitioned into a highly profitable pure-play global automation leader, achieving a strong 27.6% EBITDA margin.
- • Committed to $2.2 billion in shareholder returns for FY2026, combining secure dividends with a 1.08% net buyback yield.
⚠ What to Watch
- • Severe overvaluation with a TTM P/E of 35.72x, offering zero margin of safety for value-focused investors.
- • The trailing dividend yield of 1.34% falls well short of typical thresholds for pure-income DGI portfolios.
- • Long-term structural blockades exist, including multi-decade legacy asbestos liabilities and impending PFAS 'forever chemical' regulatory bans.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.