Aureus
BGood

Emerson Electric Company(EMR)

B

Financial data as of Sep 30, 2025Declining · Industrials

FCF Margin13.3%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 / FCF5.7xElevated debt burden
Current Ratio0.88Tight short-term liquidity
YoY FCF Growth-12.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (13.3%, 5.7x; 4.6x sector-adjusted)
→
-1Current ratio below 1.0 (0.88)
→
-0.5FCF trend declining (-12.6% YoY)
→
FinalB

Analysis Summary

Strengths

  • Healthy FCF margin (13.3%)
  • Excellent cash conversion (135%)

Concerns

  • Heavy debt position ($12.2B net debt, 5.7x FCF)
  • High debt-to-FCF ratio (5.7x)
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin13.3%
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 / FCF5.7xElevated debt burden
Current Ratio0.88Tight liquidity
Debt / Equity0.68Low leverage

Quarterly FCF Trend

-12.6% YoYDeclining (-12.6%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

View all →

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 Margin13.3%
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 / FCF5.7x
YoY FCF Growth-12.6%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateSep 30, 2025
GradeB
Data SourceYahoo Finance