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Emerson Electric CoMEX:EMR 76 Return-on-Tangible-Asset is 16.75% as of Mar. 2026, which is 4% above its 10-year median of 16.14. GuruFocus rates MEX:EMR with a GF Score™ of 76/100 and a GF Value™ of MXN2,162.81 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 3,074 Industrial Products companies, Emerson Electric Co ranks better than 95.32% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Emerson Electric Co's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN44,577 Mil. Emerson Electric Co's average total tangible assets for the quarter that ended in Mar. 2026 was MXN266,083 Mil. Therefore, Emerson Electric Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 16.75%.
The historical rank and industry rank for Emerson Electric Co's Return-on-Tangible-Asset or its related term are showing as below:
MEX:EMR'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 9.55 Med: 16.14 Max: 71.15
Current: 16.82
During the past 13 years, Emerson Electric Co's highest Return-on-Tangible-Asset was 71.15%. The lowest was 9.55%. And the median was 16.14%.
MEX:EMR's Return-on-Tangible-Asset is ranked better than 95.32% of 3074
companies
in the Industrial Products industry
Industry Median: 3.24
vs MEX:EMR: 16.82
Emerson Electric Co (MEX:EMR) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Emerson Electric Co Return-on-Tangible-Asset Related Terms
Emerson Electric Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Emerson Electric Co's Return-on-Tangible-Asset 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.
Emerson Electric Co Return-on-Tangible-Asset Chart
MEX:EMR vs ITW, CMI, AME: Return-on-Tangible-Asset Comparison
For the Specialty Industrial Machinery subindustry, Emerson Electric Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emerson Electric Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Emerson Electric Co's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 16.75% mean?
Emerson Electric Co (MEX:EMR) has a Return-on-Tangible-Asset of 16.75% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Emerson Electric Co and its competitors. This is near median its historical median of 16.14. Over the past decade, Emerson Electric Co's Return-on-Tangible-Asset has ranged from 9.55 to 71.15. According to the industry distribution chart, Emerson Electric Co ranks #144 out of 3074 companies in the Industrial Products industry, placing it in the top 4.7%.
Is Emerson Electric Co's Return-on-Tangible-Asset too high?
Emerson Electric Co's current Return-on-Tangible-Asset of 16.75% is near median its 10-year median of 16.14. Over the past 10 years, this metric has ranged from a low of 9.55 to a high of 71.15. The Industrial Products industry median Return-on-Tangible-Asset is 3.24. Emerson Electric Co's value of 16.75% is 417% above this industry median. Based on the distribution chart, Emerson Electric Co ranks #144 out of 3074 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 Return-on-Tangible-Asset compare to ITW and CMI?
According to the Industrial Products industry distribution chart, Emerson Electric Co ranks #144 out of 3074 companies for Return-on-Tangible-Asset. This places Emerson Electric Co in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.24. Emerson Electric Co's value of 16.75% is 417% above this benchmark. Historically, Emerson Electric Co's own Return-on-Tangible-Asset has ranged from 9.55 to 71.15 over the past decade. While the company's 10-year median is 16.14 vs. the industry median of 3.24, 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 Return-on-Tangible-Asset for an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.24, based on 3,074 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Emerson Electric Co's current Return-on-Tangible-Asset of 16.75% is 417% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Emerson Electric Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emerson Electric Co's current Return-on-Tangible-Asset is 16.75%, which is near median its own 10-year median of 16.14. 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 MXN2,162.81, compared to a current price of MXN2,439.00 — trading 12.8% above its estimated fair value. The current Return-on-Tangible-Asset is 16.75%, which is near median its 10-year median of 16.14 and 417% above the Industrial Products industry median of 3.24. Emerson Electric Co's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Emerson Electric Co (MEX:EMR), the current Return-on-Tangible-Asset is 16.75% 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 MXN2,162.81.
GuruFocus considers Emerson Electric Co to be Modestly Overvalued.
Key valuation signals for MEX:EMR:
Return-on-Tangible-Asset: 16.75% (near median its 10-year median of 16.14)
GF Value™: MXN2,162.81 vs. price of MXN2,439.00 (12.8% above fair value)
Industry Position: 417% above the Industrial Products median (#144 of 3074)
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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