CluenexEmerson Electric EMR
Emerson Electric scores average on business quality (5.8 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Emerson Electric does
Emerson Electric designs and sells industrial automation and software solutions, helping process manufacturers control complex factory operations. Its revenue stems from enterprise customers upgrading plants for higher efficiency.
- What it does best
Emerson leads its sector in gross margin efficiency at 53.2% compared to peers like Hubbell at 35.3%, driven by deep process control software integration that makes switching costs prohibitive for industrial plants.
- The main risk
Net debt has jumped significantly to $11.5B from $4.1B in 2024, leaving the balance sheet exposed to higher debt servicing costs if industrial demand softens.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 21.3% with free cash flow margin in the top decile of its sector at 86%, proving the business scales efficiently.
Embedded control systems lock in enterprise process plants, backed by a gross margin ranking in the top quartile of its sector at 86th percentile.
Revenue growth registers at 3.0%, landing in the middle of the pack for its sector and showing slower momentum compared to historical highs.
Interest coverage sits at 8.7x alongside $1.5B in cash, while free cash flow reached $3.5B: overall the capital structure is manageable but leverage has increased.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 sold $2.7M outside pre-planned sales.
Our sealed record on EMR
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Emerson Electric scores average on the Cluenex quality check (5.8 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 2 sold $2.7M outside pre-planned sales.
Nov 3, 2026, after the close.
See EMR today
- Today's verdict on EMR, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Emerson Electric (EMR)”, https://cluenex.com/stocks/emr/, data as of Oct 10, 2026.