Aureus
BGood

Emerson Electric Company(EMR)

B

Financial data as of Sep 30, 2025Declining · Industrials

FCF Margin14.8%Free Cash Flow / Revenue
Cash Conversion135.1%Operating CF / Net Income
Free Cash Flow$2.7B
Revenue$18.0B
Net Cash-$12.2BNet debt position
Debt / FCF5.2xElevated debt burden
Current Ratio0.88Tight short-term liquidity
YoY FCF Growth-13.3%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-0.5Elevated debt-to-FCF ratio (5.2x)
→
+0.5Healthy FCF margin with manageable debt (14.8%, 5.2x)
→
-1Current ratio below 1.0 (0.88)
→
-0.5FCF trend declining (-13.3% YoY)
→
FinalB

Analysis Summary

Strengths

  • Healthy FCF margin (14.8%)
  • Excellent cash conversion (135%)

Concerns

  • Heavy debt position ($12.2B)
  • High debt-to-FCF ratio (5.2x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Significant FCF decline (-13.3% YoY)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin14.8%
Net Margin12.7%
Operating CF Margin17.2%
CapEx Ratio2.4%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$12.2BNet debt position
Debt / FCF5.2xElevated debt burden
Current Ratio0.88Tight liquidity
Debt / Equity0.68Low leverage

Quarterly FCF Trend

-13.3% YoYDeclining (-13.3%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameEmerson Electric Company
SectorIndustrials
Free Cash Flow$2.7B
Revenue$18.0B
Net Income$2.3B
Operating Cash Flow$3.1B
Capital Expenditure$431.0M
FCF Margin14.8%
Cash Conversion Rate135.1%
Net Margin12.7%
Total Debt$13.8B
Total Cash$1.5B
Net Cash-$12.2B
Current Ratio0.88
Debt / Equity0.68
Debt / FCF5.2x
YoY FCF Growth-13.3%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateSep 30, 2025
GradeB
Data SourceYahoo Finance