# Emerson Electric Co. (EMR) — Stock CV

Emerson Electric Co. is a $90.3B technology company. Revenue grew 4.8% over the last year, it keeps 14¢ of every dollar of sales as profit, and its net debt equals ~3.3 years of free cash flow. It trades at 35.0× earnings — in the most expensive third of its own history.

> Founded in 1890 as the first manufacturer of electric fans in North America, Emerson Electric has become a leading industrial automation player through the acquisition of established brands.

## Identity

- **Ticker**: EMR
- **Sector**: Technology
- **Industry**: Electronic & Other Electrical Equipment (No Computer Equip)
- **Headquarters**: ST LOUIS, MO
- **Employees**: 71 000
- **Website**: https://www.emerson.com
- **Market cap**: $90.3B
- **Last price**: $161.83
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $18.6B
- **Net income**: $2.58B
- **Free cash flow**: $3.46B
- **Net debt**: $11.6B
- **P/E**: 35.0
- **Revenue growth (YoY)**: 4.8%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 44 |
| Growth | 31 |
| Profitability | 57 |
| Health | 36 |
| Quality | 97 |
| Moat | 76 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +4.8% YoY
- [x] Profitable — $2.58B TTM
- [ ] Profit growing — -9.3% YoY
- [x] Generates cash — $3.46B TTM
- [x] Debt under control — ~3.3y of cash flow to repay
- [x] Established company — $90.3B market cap
- [x] Not printing shares — -6.6% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 24/100
- [x] Pays a dividend — yield 1.36%
- [x] Valuation not extreme — P/E 35.0

## Experience (career milestones)

- **2024** — The remaining shares were purchased by Blackstone Inc. for $3.5 billion in June 2024
- **FY2023** — Best year on record: $13.2B net income
- **2023** — Following a nearly year-long negotiation, in April 2023, Emerson finalized an agreement to acquire National…
- **Apr 1, 2020** — Emerson acquired American Governor Company, a provider of technologies used to control…
- **2018** — Emerson completed the acquisition of Textron Tools and Test Businesses for a total of $810 million
- **Dec 1, 2016** — Platinum Equity acquired Emerson’s Network Power division for more than $4 billion, rebranding…
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $14.5B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **Dec 15, 1999** — Emerson Electric acquired Jordan Industries Inc.'s telecommunications equipment division for a…
- **1968** — It acquired the InSinkErator company
- **1962** — It acquired the United States Electrical Manufacturing Company as the U.S
- **1892** — It became the first to sell electric fans in the United States
- **1890** — Emerson was established 1890 in St

## Strengths

- High gross margin (53.2%)
- Strong cash conversion — FCF is 18.6% of revenue
- Interest covered 9.9× by operating earnings
- Piotroski F-Score 7/9 — fundamentally strong checklist

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $18.2B | $2.30B | $2.99B |
| FY2022 | $19.6B | $3.23B | $2.39B |
| FY2023 | $15.2B | $13.2B | $274M |
| FY2024 | $17.5B | $1.97B | $2.91B |
| FY2025 | $18.0B | $2.29B | $2.67B |

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Source: https://stockcv.com/EMR — derived from company filings; may be delayed or incomplete. Information, not investment advice.