Emerson Electric Co. cash flow to debt ratio of 22.52% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Emerson Electric Co.'s free cash flow has decreased 8.44% from $2.91B last year to $2.67B, signaling decreasing performance

Emerson Electric Co.'s debt to equity ratio is 0.64, which means that the company's assets are unhealthy financed, signaling financial risk.

Emerson Electric Co.'s debt has increased relative to shareholder equity from 0.39 last year to 0.64 today, signaling weakened financials

Emerson Electric Co. has a net debt to EBITDA ratio of 2.52x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Emerson Electric Co.'s interest coverage ratio of 6.78 indicates that earnings with good margin can cover interest payments on company debt

Emerson Electric Co.'s profit margin has increased (22.91%) in the last year from 11.25% to 13.83%, signaling increasing performance

Emerson Electric Co.'s short-term liabilities of $9.80B exceed its short-term assets of $8.58B, signaling financial risk

Emerson Electric Co.'s return on assets of 6.11% is higher than the 5.00% threshold, indicating efficient asset utilization

Emerson Electric Co.'s return on equity of 12.69%, is lower than 15.00%, indicating bad performance

Emerson Electric Co.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Emerson Electric Co. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Emerson Electric Co. has positive free cash flow, indicating the company generates cash after capital expenditures

Emerson Electric Co. has a free cash flow yield of 3.00%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Emerson Electric Co.'s yearly earnings has increased 16.51% since last year from $1.97B to $2.29B, signaling increasing performance

Emerson Electric Co.'s yearly revenue has increased 3.00% since last year from $17.49B to $18.02B, signaling increasing performance

ROIC 7.96% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Emerson Electric Co.'s 3-year revenue CAGR of 9.28% is positive, indicating growing revenue over the past 3 years

Emerson Electric Co. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Emerson Electric Co. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Emerson Electric Co. is overvalued relative to its fair value price of 36.09 based on Discounted Cash Flow model

Emerson Electric Co. has an earnings yield of 2.91%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Emerson Electric Co. is overvalued relative to its fair value price of 38.52 based on EBITDA multiple model

Emerson Electric Co. has an EV/EBITDA ratio of 20.89x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Emerson Electric Co. is overvalued relative to its fair value price of 49.45 based on Earnings Fair Value model

Emerson Electric Co. has a PEG-ratio over 1 which is considered overvalued

Emerson Electric Co. has a price-to-book ratio of 4.35x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Emerson Electric Co. has a price-to-sales ratio of 4.76x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue