Emerson Electric CoMEX:EMR 76 ROC (Joel Greenblatt) % is 59.28% as of Mar. 2026, which is 2% below its 10-year median of 60.38. GuruFocus rates MEX:EMR with a GF Score™ of 76/100 and a GF Value™ of MXN2,163.11 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 3,057 Industrial Products companies, Emerson Electric Co ranks better than 92.51% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Emerson Electric Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 59.28%.
The historical rank and industry rank for Emerson Electric Co's ROC (Joel Greenblatt) % or its related term are showing as below:
MEX:EMR'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 42.84 Med: 60.38 Max: 91.38
Current: 66
During the past 13 years, Emerson Electric Co's highest ROC (Joel Greenblatt) % was 91.38%. The lowest was 42.84%. And the median was 60.38%.
MEX:EMR's ROC (Joel Greenblatt) % is ranked better than 92.51% of 3057
companies
in the Industrial Products industry
Industry Median: 11.71
vs MEX:EMR: 66.00
Emerson Electric Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 4.90% per year.
Emerson Electric Co (MEX:EMR) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Emerson Electric Co ROC (Joel Greenblatt) % Related Terms
Emerson Electric Co ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Emerson Electric Co's ROC (Joel Greenblatt) % 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 ITW, CMI, AME: ROC (Joel Greenblatt) % Comparison
For the Specialty Industrial Machinery subindustry, Emerson Electric Co's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emerson Electric Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Emerson Electric Co's ROC (Joel Greenblatt) % falls into.
Emerson Electric Co ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 59.28% mean?
Emerson Electric Co (MEX:EMR) has a ROC (Joel Greenblatt) % of 59.28% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Emerson Electric Co and its competitors. This is near median its historical median of 60.38. Over the past decade, Emerson Electric Co's ROC (Joel Greenblatt) % has ranged from 42.84 to 91.38. According to the industry distribution chart, Emerson Electric Co ranks #229 out of 3057 companies in the Industrial Products industry, placing it in the top 7.5%.
Is Emerson Electric Co's ROC (Joel Greenblatt) % too high?
Emerson Electric Co's current ROC (Joel Greenblatt) % of 59.28% is near median its 10-year median of 60.38. Over the past 10 years, this metric has ranged from a low of 42.84 to a high of 91.38. The Industrial Products industry median ROC (Joel Greenblatt) % is 11.71. Emerson Electric Co's value of 59.28% is 406.2% above this industry median. Based on the distribution chart, Emerson Electric Co ranks #229 out of 3057 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 ROC (Joel Greenblatt) % compare to ITW and CMI?
According to the Industrial Products industry distribution chart, Emerson Electric Co ranks #229 out of 3057 companies for ROC (Joel Greenblatt) %. This places Emerson Electric Co in the top 8% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.71. Emerson Electric Co's value of 59.28% is 406.2% above this benchmark. Historically, Emerson Electric Co's own ROC (Joel Greenblatt) % has ranged from 42.84 to 91.38 over the past decade. While the company's 10-year median is 60.38 vs. the industry median of 11.71, 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 ROC (Joel Greenblatt) % for an Industrial Products company?
The median ROC (Joel Greenblatt) % among Industrial Products companies is 11.71, based on 3,057 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Emerson Electric Co's current ROC (Joel Greenblatt) % of 59.28% is 406.2% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Emerson Electric Co and its competitors. For the Industrial Products industry, the median ROC (Joel Greenblatt) % is 11.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emerson Electric Co's current ROC (Joel Greenblatt) % is 59.28%, which is near median its own 10-year median of 60.38. 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 MXN2,163.11, compared to a current price of MXN2,439.00 — trading 12.8% above its estimated fair value. The current ROC (Joel Greenblatt) % is 59.28%, which is near median its 10-year median of 60.38 and 406.2% above the Industrial Products industry median of 11.71. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Emerson Electric Co (MEX:EMR), the current ROC (Joel Greenblatt) % is 59.28% 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 MXN2,163.11.
GuruFocus considers Emerson Electric Co to be Modestly Overvalued.
Key valuation signals for MEX:EMR:
ROC (Joel Greenblatt) %: 59.28% (near median its 10-year median of 60.38)
GF Value™: MXN2,163.11 vs. price of MXN2,439.00 (12.8% above fair value)
Industry Position: 406.2% above the Industrial Products median (#229 of 3057)
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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