Emerson Electric CoMEX:EMR 76 ROA % is 5.89% as of Mar. 2026, which is 37% below its 10-year median of 9.37. 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 3,081 Industrial Products companies, Emerson Electric Co ranks better than 69.56% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Emerson Electric Co's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN44,577 Mil.
Emerson Electric Co's average Total Assets over the quarter that ended in Mar. 2026 was MXN757,051 Mil. Therefore, Emerson Electric Co's annualized ROA % for the quarter that ended in Mar. 2026 was 5.89%.
The historical rank and industry rank for Emerson Electric Co's ROA % or its related term are showing as below:
MEX:EMR'
s ROA % Range Over the Past 10 Years
Min: 4.52 Med: 9.37 Max: 33.71
Current: 5.81
During the past 13 years, Emerson Electric Co's highest ROA % was 33.71%. The lowest was 4.52%. And the median was 9.37%.
MEX:EMR's ROA % is ranked better than 69.56% of 3081
companies
in the Industrial Products industry
Industry Median: 3.06
vs MEX:EMR: 5.81
Emerson Electric Co (MEX:EMR) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Emerson Electric Co ROA % Related Terms
Emerson Electric Co ROA % Historical Data
* Premium members only.
The historical data trend for Emerson Electric Co's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emerson Electric Co's ROA % distribution charts can be found below:
* The bar in red indicates where Emerson Electric Co's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Emerson Electric Co (MEX:EMR) has a ROA % of 5.89% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Emerson Electric Co and its competitors. This is 37% below median its historical median of 9.37. Over the past decade, Emerson Electric Co's ROA % has ranged from 4.52 to 33.71. According to the industry distribution chart, Emerson Electric Co ranks #938 out of 3081 companies in the Industrial Products industry, placing it in the top 30.4%.
Is Emerson Electric Co's ROA % too high?
Emerson Electric Co's current ROA % of 5.89% is 37% below median its 10-year median of 9.37. Over the past 10 years, this metric has ranged from a low of 4.52 to a high of 33.71. The Industrial Products industry median ROA % is 3.06. Emerson Electric Co's value of 5.89% is 92.5% above this industry median. Based on the distribution chart, Emerson Electric Co ranks #938 out of 3081 companies in the Industrial Products industry, which is above the industry midpoint. 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 ROA % compare to CMI and ITW?
According to the Industrial Products industry distribution chart, Emerson Electric Co ranks #938 out of 3081 companies for ROA %. This puts Emerson Electric Co in the upper half of its industry. The industry median ROA % is 3.06. Emerson Electric Co's value of 5.89% is 92.5% above this benchmark. Historically, Emerson Electric Co's own ROA % has ranged from 4.52 to 33.71 over the past decade. While the company's 10-year median is 9.37 vs. the industry median of 3.06, 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 ROA % for an Industrial Products company?
The median ROA % among Industrial Products companies is 3.06, based on 3,081 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Emerson Electric Co's current ROA % of 5.89% is 92.5% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Emerson Electric Co and its competitors. For the Industrial Products industry, the median ROA % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emerson Electric Co's current ROA % is 5.89%, which is 37% below median its own 10-year median of 9.37. 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 ROA % is 5.89%, which is 37% below median its 10-year median of 9.37 and 92.5% above the Industrial Products industry median of 3.06. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Emerson Electric Co (MEX:EMR), the current ROA % is 5.89% 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:
ROA %: 5.89% (37% below median its 10-year median of 9.37)
GF Value™: MXN2,162.30 vs. price of MXN2,439.00 (12.8% above fair value)
Industry Position: 92.5% above the Industrial Products median (#938 of 3081)
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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