Is EMERSON ELECTRIC CO (EMR) Halal?
Shariah Screening — 5 Standards
Based on financial data from September 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 17.7% / 30% | 2.0% / 30% | 4.0% / 30% | 0.83% / 5% | ✓ HALAL |
| DJIM | 17.7% / 33% | 2.0% / 33% | 4.0% / 33% | 0.83% / 5% | ✓ HALAL |
| MSCI | 32.8% / 33% | 3.7% / 33% | 7.4% / 33% | 0.83% / 5% | ✓ HALAL |
| S&P | 17.7% / 33% | 2.0% / 33% | 4.0% / 33% | 0.83% / 5% | ✓ HALAL |
| FTSE | 32.8% / 33% | 3.7% / 33% | 7.4% / 50% | 0.83% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 52.8% | |
| Operating Margin | 24.6% | |
| Net Margin | 12.7% | |
| Return on Equity (ROE) | 9.6% | |
| Return on Assets (ROA) | 6.6% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $3.1B |
| Free Cash Flow | $2.7B |
| Total Debt | $13.8B |
| Debt-to-Equity | 69.3 |
| Current Ratio | 0.8 |
| Total Assets | $42.0B |
Price & Trading
| Last Close | $126.31 |
| 50-Day MA | $144.46 |
| 200-Day MA | $137.07 |
| Avg Volume | 3.3M |
| Beta | 1.2 |
|
52-Week Range
$90.06
| |
About EMERSON ELECTRIC CO (EMR)
Emerson Electric Co., a technology and software company, provides various solutions in the Americas, Asia, the Middle East, Africa, and Europe. It operates through Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, and Test & Measurement segments. The Final Control segment provides control valves, isolation valves, shutoff valves, pressure relief valves, pressure safety valves, actuators, and regulators for process and hybrid industries under Anderson Greenwood, Bettis, Crosby, Fisher, Keystone, KTM, and Vanessa brands. The Measurement & Analytical segment supplies intelligent instrumentation measuring the physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame under the Flexim, Micro Motion, and Rosemount brands. The Discrete Automation segment includes solenoid valves, pneumatic valves, valve position indicators, pneumatic cylinders and actuators, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems and software, electrical distribution equipment, and materials joining solutions used primarily in discrete industries under the Afag, Appleton, ASCO, Aventics, Branson, Movicon, PACSystems, SolaHD, TESCOM, and TopWorx brands. The Safety & Productivity segment delivers tools for professionals and homeowners that support infrastructure, promote safety, and enhance productivity under the Greenlee, Klauke, ProTeam, and RIDGID brands. The Control Systems & Software segment provides control systems and software that control plant processes by collecting and analyzing information from measurement devices in the plant under the DeltaV and Ovation brands. The Test & Measurement offers software-connected automated test and measurement systems. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.
Purification Calculator
As a halal stock with 0.83% impermissible income, you need to purify your dividends.
Related Halal Stocks in Industrials
Frequently Asked Questions
Is EMERSON ELECTRIC CO (EMR) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), EMERSON ELECTRIC CO is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is EMERSON ELECTRIC CO's debt ratio?
EMERSON ELECTRIC CO's debt ratio is 17.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 32.8%.
Does EMERSON ELECTRIC CO require dividend purification?
Yes, EMERSON ELECTRIC CO has an impermissible income ratio of 0.83%, which means 0.83% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are EMERSON ELECTRIC CO's key financial metrics?
EMERSON ELECTRIC CO has a market capitalization of $70.5B, trailing P/E ratio of 30.7, and revenue of $18.0B. The company maintains a gross margin of 52.8% and a net margin of 12.7%. Return on equity stands at 9.6%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.