Emerson Electric CoMEX:EMR 76 ROE % is 12.19% as of Mar. 2026, which is 50% below its 10-year median of 24.28. 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 3,009 Industrial Products companies, Emerson Electric Co ranks better than 75.81% on this metric.
The historical rank and industry rank for Emerson Electric Co's ROE % or its related term are showing as below:
MEX:EMR'
s ROE % Range Over the Past 10 Years
Min: 9.3 Med: 24.28 Max: 85.14
Current: 12.23
During the past 13 years, Emerson Electric Co's highest ROE % was 85.14%. The lowest was 9.30%. And the median was 24.28%.
MEX:EMR's ROE % is ranked better than 75.81% of 3009
companies
in the Industrial Products industry
Industry Median: 5.91
vs MEX:EMR: 12.23
Emerson Electric Co (MEX:EMR) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Emerson Electric Co ROE % Related Terms
Emerson Electric Co ROE % Historical Data
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The historical data trend for Emerson Electric Co's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emerson Electric Co's ROE % distribution charts can be found below:
* The bar in red indicates where Emerson Electric Co's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Emerson Electric Co (MEX:EMR) has a ROE % of 12.19% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Emerson Electric Co and its competitors. This is 50% below median its historical median of 24.28. Over the past decade, Emerson Electric Co's ROE % has ranged from 9.30 to 85.14. According to the industry distribution chart, Emerson Electric Co ranks #728 out of 3009 companies in the Industrial Products industry, placing it in the top 24.2%.
Is Emerson Electric Co's ROE % too high?
Emerson Electric Co's current ROE % of 12.19% is 50% below median its 10-year median of 24.28. Over the past 10 years, this metric has ranged from a low of 9.30 to a high of 85.14. The Industrial Products industry median ROE % is 5.91. Emerson Electric Co's value of 12.19% is 106.3% above this industry median. Based on the distribution chart, Emerson Electric Co ranks #728 out of 3009 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 ROE % compare to CMI and ITW?
According to the Industrial Products industry distribution chart, Emerson Electric Co ranks #728 out of 3009 companies for ROE %. This places Emerson Electric Co in the top 24% of its industry — outperforming the majority of peers. The industry median ROE % is 5.91. Emerson Electric Co's value of 12.19% is 106.3% above this benchmark. Historically, Emerson Electric Co's own ROE % has ranged from 9.30 to 85.14 over the past decade. While the company's 10-year median is 24.28 vs. the industry median of 5.91, 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 ROE % for an Industrial Products company?
The median ROE % among Industrial Products companies is 5.91, based on 3,009 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Emerson Electric Co's current ROE % of 12.19% is 106.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Emerson Electric Co and its competitors. For the Industrial Products industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emerson Electric Co's current ROE % is 12.19%, which is 50% below median its own 10-year median of 24.28. 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 ROE % is 12.19%, which is 50% below median its 10-year median of 24.28 and 106.3% above the Industrial Products industry median of 5.91. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Emerson Electric Co (MEX:EMR), the current ROE % is 12.19% 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:
ROE %: 12.19% (50% below median its 10-year median of 24.28)
GF Value™: MXN2,162.30 vs. price of MXN2,439.00 (12.8% above fair value)
Industry Position: 106.3% above the Industrial Products median (#728 of 3009)
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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