Is EMR a high-quality business?

AlphaMadera's AlphaQuality grade scores Emerson Electric Co. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how EMR compares to a Buffett-style quality bar.

What is Emerson Electric Co.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to EMR based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes EMR a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

EMR - Emerson Electric Co.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $161.31 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B 73.0 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C- 50.9

5yr Avg ROIC 6.0% 40/100
Operating Margin Trend +0.71 pp/yr 76/100

Capital Efficiency

Weight: 15%

A 91.9

5yr Avg ROE 22.7% 96/100
5yr Share-Count CAGR -1.5% 84/100

Growth Quality

Weight: 15%

C+ 60.7

5yr Revenue CAGR 8.6% 77/100
5yr EPS CAGR 1.4% 29/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

A 87.1

5yr FCF Margin 14.7% 81/100
5yr FCF/NI Conversion 0.94x 94/100

Balance Sheet

Weight: 20%

B 74.5

Net Debt / EBITDA 2.52x 60/100
Interest Coverage (EBIT/Int) 8.58x 79/100
Altman Z-Score 4.16 96/100

Stability

Weight: 15%

B+ 79.2

EPS Volatility (σ/μ) 0.18 72/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 1/5 80/100

4 of 4 gurus held; 2 added; 2 trimmed.

Holders: 4 +1
Avg Δ position: +1940.7%
New buys: 0
Full exits: 0

Cooperman increased +5852%
Wood decreased -26%
Greenblatt decreased -3%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.