Emerson Electric CoMEX:EMR 76 Operating Margin % is 19.75% as of Mar. 2026, which is 16% above its 10-year median of 17.03. GuruFocus rates MEX:EMR with a GF Score™ of 76/100 and a GF Value™ of MXN2,162.30 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 3,038 Industrial Products companies, Emerson Electric Co ranks better than 91.47% on this metric.
Emerson Electric Co operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Emerson Electric Co's Operating Margin % or its related term are showing as below:
MEX:EMR'
s Operating Margin % Range Over the Past 10 Years
Min: 15.15 Med: 17.03 Max: 19.96
Current: 19.96
MEX:EMR's Operating Margin % is ranked better than 91.47% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs MEX:EMR: 19.96
Emerson Electric Co's 5-Year Average Operating Margin % Growth Rate was 2.70% per year.
Emerson Electric Co (MEX:EMR) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Emerson Electric Co Operating Margin % Related Terms
Emerson Electric Co Operating Margin % Historical Data
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The historical data trend for Emerson Electric Co's Operating 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.
MEX:EMR vs CMI, ITW, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Emerson Electric Co's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emerson Electric Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Emerson Electric Co's Operating Margin % falls into.
Emerson Electric Co Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Emerson Electric Co's Operating Margin % for the fiscal year that ended in Sep. 2025 is calculated as
* 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.
Emerson Electric Co (MEX:EMR) has a Operating Margin % of 19.75% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Emerson Electric Co and its competitors. This is 16% above median its historical median of 17.03. Over the past decade, Emerson Electric Co's Operating Margin % has ranged from 15.15 to 19.96. According to the industry distribution chart, Emerson Electric Co ranks #259 out of 3038 companies in the Industrial Products industry, placing it in the top 8.5%.
Is Emerson Electric Co's Operating Margin % too high?
Emerson Electric Co's current Operating Margin % of 19.75% is 16% above median its 10-year median of 17.03. Over the past 10 years, this metric has ranged from a low of 15.15 to a high of 19.96. The Industrial Products industry median Operating Margin % is 6.53. Emerson Electric Co's value of 19.75% is 202.5% above this industry median. Based on the distribution chart, Emerson Electric Co ranks #259 out of 3038 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 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Emerson Electric Co's Operating Margin % compare to CMI and ITW?
According to the Industrial Products industry distribution chart, Emerson Electric Co ranks #259 out of 3038 companies for Operating Margin %. This places Emerson Electric Co in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.53. Emerson Electric Co's value of 19.75% is 202.5% above this benchmark. Historically, Emerson Electric Co's own Operating Margin % has ranged from 15.15 to 19.96 over the past decade. While the company's 10-year median is 17.03 vs. the industry median of 6.53, 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 Operating Margin % for an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Emerson Electric Co's current Operating Margin % of 19.75% is 202.5% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Emerson Electric Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emerson Electric Co's current Operating Margin % is 19.75%, which is 16% above median its own 10-year median of 17.03. 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 (MEX:EMR) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN2,162.30, compared to a current price of MXN2,439.00 — trading 12.8% above its estimated fair value. The current Operating Margin % is 19.75%, which is 16% above median its 10-year median of 17.03 and 202.5% above the Industrial Products industry median of 6.53. Emerson Electric Co's overall GF Score™ is 76/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Emerson Electric Co (MEX:EMR), the current Operating Margin % is 19.75% 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 (MEX:EMR) Overvalued in 2026?
Based on GuruFocus' analysis, Emerson Electric Co stock appears to be overvalued.
The current stock price of MXN2,439.00 is trading 12.8% above its estimated GF Value™ of MXN2,162.30.
GuruFocus considers Emerson Electric Co to be Modestly Overvalued.
Key valuation signals for MEX:EMR:
Operating Margin %: 19.75% (16% above median its 10-year median of 17.03)
GF Value™: MXN2,162.30 vs. price of MXN2,439.00 (12.8% above fair value)
Industry Position: 202.5% above the Industrial Products median (#259 of 3038)
No single metric tells the full story. See the MEX: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.
76GF Score
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