Emerson Electric CoEMR -1.78%84 Gross Margin % is 53.09% as of Mar. 2026, which is 21% above its 10-year median of 43.72. GuruFocus rates EMR with a GF Score™ of 84/100 and a GF Value™ of $129.10 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 3,003 Industrial Products companies, Emerson Electric Co ranks better than 91.61% on this metric.
The historical rank and industry rank for Emerson Electric Co's Gross Margin % or its related term are showing as below:
EMR'
s Gross Margin % Range Over the Past 10 Years
Min: 41.76 Med: 43.72 Max: 52.84
Current: 52.66
During the past 13 years, the highestGross Margin % of Emerson Electric Co was 52.84%. The lowest was 41.76%. And the median was 43.72%.
EMR's Gross Margin % is ranked better than 91.61% of 3003
companies
in the Industrial Products industry
Industry Median: 26.79
vs EMR: 52.66
Emerson Electric Co had a gross margin of 53.09% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Emerson Electric Co was 4.80% per year.
Emerson Electric Co (NYSE:EMR) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Emerson Electric Co had a gross margin of 53.09% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Emerson Electric Co Gross Margin % Related Terms
Emerson Electric Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Emerson Electric Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Industrial Machinery subindustry, Emerson Electric Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Emerson Electric Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emerson Electric Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Emerson Electric Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Emerson Electric Co (EMR) has a Gross Margin % of 53.09% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Emerson Electric Co and its competitors. This is 21% above median its historical median of 43.72. Over the past decade, Emerson Electric Co's Gross Margin % has ranged from 41.76 to 52.84. According to the industry distribution chart, Emerson Electric Co ranks #252 out of 3003 companies in the Industrial Products industry, placing it in the top 8.4%.
Is Emerson Electric Co's Gross Margin % too high?
Emerson Electric Co's current Gross Margin % of 53.09% is 21% above median its 10-year median of 43.72. Over the past 10 years, this metric has ranged from a low of 41.76 to a high of 52.84. The Industrial Products industry median Gross Margin % is 26.79. Emerson Electric Co's value of 53.09% is 98.2% above this industry median. Based on the distribution chart, Emerson Electric Co ranks #252 out of 3003 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Emerson Electric Co has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Emerson Electric Co's Gross Margin % compare to CMI and ITW?
According to the Industrial Products industry distribution chart, Emerson Electric Co ranks #252 out of 3003 companies for Gross Margin %. This places Emerson Electric Co in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.79. Emerson Electric Co's value of 53.09% is 98.2% above this benchmark. Historically, Emerson Electric Co's own Gross Margin % has ranged from 41.76 to 52.84 over the past decade. While the company's 10-year median is 43.72 vs. the industry median of 26.79, Emerson Electric Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 3,003 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Emerson Electric Co's current Gross Margin % of 53.09% is 98.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Emerson Electric Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emerson Electric Co's current Gross Margin % is 53.09%, which is 21% above median its own 10-year median of 43.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Emerson Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Emerson Electric Co (EMR) is currently considered Modestly Overvalued. The stock's GF Value™ is $129.10, compared to a current price of $142.76 — trading 10.6% above its estimated fair value. The current Gross Margin % is 53.09%, which is 21% above median its 10-year median of 43.72 and 98.2% above the Industrial Products industry median of 26.79. Emerson Electric Co's overall GF Score™ is 84/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Emerson Electric Co (EMR), the current Gross Margin % is 53.09% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Emerson Electric Co (EMR) Overvalued in 2026?
Based on GuruFocus' analysis, Emerson Electric Co stock appears to be overvalued.
The current stock price of $142.76 is trading 10.6% above its estimated GF Value™ of $129.10.
GuruFocus considers Emerson Electric Co to be Modestly Overvalued.
Key valuation signals for EMR:
Gross Margin %: 53.09% (21% above median its 10-year median of 43.72)
GF Value™: $129.10 vs. price of $142.76 (10.6% above fair value)
Industry Position: 98.2% above the Industrial Products median (#252 of 3003)
No single metric tells the full story. See the EMR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. Emerson organizes its business into seven segments that sell a wide range of automation software, power tools, and automation hardware such as valves, gauges, and switches. In recent years, Emerson divested its climate technology and consumer businesses to become more of a pure-play industrial automation company. The automation of a factory is an enticing long-term proposition for manufacturers, helping reduce accident rates and raise uptime and productivity.
84GF Score
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