Emerson Electric CoMEX:EMR 77 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates MEX:EMR with a GF Score™ of 77/100 and a GF Value™ of MXN2,267.63 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,969 Industrial Products companies, Emerson Electric Co ranks better than 99.97% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Emerson Electric Co's annualized net income for the quarter that ended in Mar. 2026 was MXN44,577 Mil. Emerson Electric Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN-125,358 Mil. Therefore, Emerson Electric Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Emerson Electric Co's Return-on-Tangible-Equity or its related term are showing as below:
MEX:EMR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 54.02 Med: 71.12 Max: 351.64
Current: Negative Tangible Equity
During the past 13 years, Emerson Electric Co's highest Return-on-Tangible-Equity was 351.64%. The lowest was 54.02%. And the median was 71.12%.
MEX:EMR's Return-on-Tangible-Equity is ranked better than 99.97% of 2969
companies
in the Industrial Products industry
Industry Median: 6.72
vs MEX:EMR: Negative Tangible Equity
Emerson Electric Co (MEX:EMR) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Emerson Electric Co Return-on-Tangible-Equity Related Terms
Emerson Electric Co Return-on-Tangible-Equity Historical Data
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The historical data trend for Emerson Electric Co's Return-on-Tangible-Equity 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-Equity Chart
MEX:EMR vs ITW, CMI, AME: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Emerson Electric Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emerson Electric Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Emerson Electric Co's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Emerson Electric Co (MEX:EMR) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Emerson Electric Co and its competitors. Over the past decade, Emerson Electric Co's Return-on-Tangible-Equity has ranged from 54.02 to 351.64. According to the industry distribution chart, Emerson Electric Co ranks #1 out of 2969 companies in the Industrial Products industry, placing it in the top 0%.
Is Emerson Electric Co's Return-on-Tangible-Equity too high?
Emerson Electric Co's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 54.02 to a high of 351.64. Based on the distribution chart, Emerson Electric Co ranks #1 out of 2969 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 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Emerson Electric Co's Return-on-Tangible-Equity compare to ITW and CMI?
According to the Industrial Products industry distribution chart, Emerson Electric Co ranks #1 out of 2969 companies for Return-on-Tangible-Equity. This places Emerson Electric Co in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. Historically, Emerson Electric Co's own Return-on-Tangible-Equity has ranged from 54.02 to 351.64 over the past decade. 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-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,969 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Emerson Electric Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — 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-Equity is Negative Tangible Equity%. 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 MXN2,267.63, compared to a current price of MXN2,439.00 — trading 7.6% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Emerson Electric Co's overall GF Score™ is 77/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Emerson Electric Co (MEX:EMR), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 7.6% above its estimated GF Value™ of MXN2,267.63.
GuruFocus considers Emerson Electric Co to be Modestly Overvalued.
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.
77GF Score
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