Munger Mode rating: 3 out of 5 — Hold. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Summary verdict: Emerson has completed one of the more radical portfolio transformations we've seen a 135-year-old company pull off — from a sprawling conglomerate selling garbage disposals and air-conditioning compressors into a focused industrial automation and software franchise. The core business — Fisher valves, Rosemount instruments, DeltaV and Ovation control systems, now fused with AspenTech software — carries genuine, durable switching-cost moats of the kind we prize. Management is honest and capable, and the 70th consecutive annual dividend increase speaks to a culture that respects owners. But the transformation was bought at full prices, returns on total capital remain ordinary because of the goodwill it created, and at ~24x forward adjusted earnings the market is paying up for the story. This is a very good business at a price that leaves no margin of safety.
Recent filings analysed: 10-Q (2026-08-04), 8-K (2026-08-04), 10-Q (2026-05-05), 8-K (2026-05-05).
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