Market Capitalization $31.0 Billion

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1 BUY HOLD SELL A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F Annual Dividend Rate HOLD HOLD RATING SINCE 09/03/2015 BUSINESS DESCRIPTION Emerson Electric Co. provides technology and engineering solutions to industrial, commercial, and consumer markets worldwide. It operates through five segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. Sector: Industrials Sub-Industry: Electrical Components & Equipment Source: S&P Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years STOCK PERFORMANCE (%) 3 Mo. 1 Yr. 3 Yr (Ann) Price Change GROWTH (%) Last Qtr 12 Mo. 3 Yr CAGR Revenues Net Income EPS RETURN ON EQUITY (%) Ind Avg S&P 500 Q Q Q Rating History BUY Volume in Millions COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History HOLD P/E COMPARISON RECOMMENDATION We rate () a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing nesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find nesses including operating cash flow and a generally disappointing performance in the stock itself EPS ANALYSIS¹ ($) Ind Avg S&P 500 HIGHLIGHTS The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 58.0% when compared to the same quarter one year prior, rising from $ million to $ million. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, 's return on equity significantly exceeds that of both the industry average and the S&P 500. Q Q Q Q Q Q Q NA = not available NM = not meaningful Q Q Q Q Compustat fiscal year convention is used for all fundamental data items. Q % is the gross profit margin for which we consider to be. Regardless of 's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, 's net profit margin of 11.14% compares favorably to the industry average. 's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 26.23%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now. Net operating cash flow has decreased to $1, million or 21.80% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower. PAGE 1

2 PEER GROUP ANALYSIS REVENUE GROWTH AND EBITDA MARGIN* Revenue Growth (TTM) -15% 35% UNFAVORABLE 12% NJ ABB AYI RBC HUB.B ETN EBITDA Margin (TTM) HUB.A ROK ST FAVORABLE AME 28% Companies with higher EBITDA margins and revenue growth rates are outperforming companies with lower EBITDA margins and revenue growth rates. Companies for this scatter plot have a market capitalization between $2.8 Billion and $42.8 Billion. Companies with NA or NM values do not appear. *EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization. REVENUE GROWTH AND EARNINGS YIELD Revenue Growth (TTM) -15% 35% AYI RBC UNFAVORABLE 1% ST NJ HUB.A Earnings Yield (TTM) AME HUB.B ROK ABB FAVORABLE ETN Companies that exhibit both a high earnings yield and high revenue growth are generally more attractive than companies with low revenue growth and low earnings yield. Companies for this scatter plot have revenue growth rates between -10.5% and 33.7%. Companies with NA or NM values do not appear. 9% INDUSTRY ANALYSIS The US electrical equipment industry is divided into two segments, electrical components & equipment and heavy electrical equipment. The electrical components & equipment segment includes manufacturers of small-scale electrical equipment, such as motors, electric heating, and cooling systems, small generators, storage batteries, and related equipment. The heavy electrical equipment segment includes manufacturers of power-generating equipment and other equipment, such as power turbines, machinery for fixed-use, and large electrical systems. There are more than 2000 electrical equipment companies operating in the industry. The industry is cyclical and manufacturers distribute their products to other manufacturing industries, wholesalers, and the construction industry. Major players are ABB (ABB), Cooper Industries (CBE), Rockwell Automation (ROK), Emerson Electric (), Roper Industries (ROP), and Ametek (AME). Establishing an efficient and flexible supply chain drives manufacturing excellence. With increasing competition from global players, minimizing inventory and lead times while maximizing top-line with quick-to-market products is crucial. Electric power equipment, including metal-clad switchgear, switchgear relays, and ducts, has growth potential in the electric utilities market due to the increasing investment in automated systems, which results in greater efficiency and lower operating costs. Latin America and Asia, with their increasing population, rapid industrialization, and infrastructure investments, represent a substantial portion of the export market. The industry may incur significant expenditures going forward because of the need to produce manufacturing equipment with lower carbon dioxide emissions. The United Nations Framework Convention on Climate Change expects to reduce total electricity consumption 40% by The industry is dependent on electrical distributors and industry wholesalers, who form the main distribution channel. These distributors control visibility and availability of products to the end market. These distribution companies, which typically work on low margins, make it challenging for smaller players to compete. The largest distributors acquire smaller independent distributors in order to gain market share. Electronics and electrical equipment manufacturers are trying to streamline operations and eliminate waste. Many companies are pursuing reduced operating costs and increased manufacturing flexibility by implementing improvement methodologies such as lean manufacturing and Six Sigma. In order to be cost and price competitive, manufacturers are moving component and final assembly production to facilities outside of the US. Low interest rates may boost capital expenditure and mergers and acquisitions in the domestic market. Demand for electrical transmission and distribution equipment is expected to grow 3.6% per annum due to anticipated increases in non-utility generation and regulatory activities, which will spur investment in the electric grid. PEER GROUP: Electrical Equipment Recent Market Price/ Net Sales Net Income Ticker Company Name Price ($) Cap ($M) Earnings TTM ($M) TTM ($M) , , , AYI ACUITY BRANDS INC , , ST SENSATA TECHNOLOGIES HLDG N , , HUB.A HUBBELL INC , , HUB.B HUBBELL INC , , ABB ABB LTD , , , RBC REGAL BELOIT CORP , , ETN EATON CORP PLC , , , NJ NIDEC CORP , , ROK ROCKWELL AUTOMATION , , AME AMETEK INC , , The peer group comparison is based on Major Electrical Components & Equipment companies of comparable size. PAGE 2

3 Annual Dividend Rate COMPANY DESCRIPTION Emerson Electric Co. provides technology and engineering solutions to industrial, commercial, and consumer markets worldwide. It operates through five segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. The Process Management segment offers products and technology, and engineering, project management, and consulting services for precision measurement, control, monitoring, asset optimization, and safety and reliability of oil and gas reservoirs and plants. This segment serves end markets in oil and gas, refining, chemicals, power generation, pharmaceuticals, food and beverages, pulp and paper, metals and mining, and municipal water supplies. The Industrial Automation segment offers integrated manufacturing solutions for products, including motors, drives, power generating alternators, fluid controls, electrical distribution devices, and materials joining equipment. The Network Power segment designs, manufactures, installs, and maintains products that offer electric power conditioning, power reliability, and environmental control for telecommunications networks, data centers, and other critical applications, as well as offers comprehensive data center infrastructure management solutions. The Climate Technologies segment provides products and services for various areas of the climate control industry, including residential heating and cooling, commercial air conditioning, and commercial and industrial refrigeration. The Commercial & Residential Solutions segment offers a range of professional and do-it-yourself tools; residential, commercial, healthcare, and food service storage solutions; and appliance solutions. The company was formerly known as The Emerson Electric Manufacturing Company and changed its name to Emerson Electric Co. in Emerson Electric Co. was founded in 1890 and is headquartered in St. Louis, Missouri West Florissant Avenue, PO Box 4100 St. Louis, MO USA Phone: STOCK-AT-A-GLANCE Below is a summary of the major fundamental and technical factors we consider when determining our overall recommendation of shares. It is provided in order to give you a deeper understanding of our rating methodology as well as to paint a more complete picture of a stock's strengths and nesses. It is important to note, however, that these factors only tell part of the story. To gain an even more comprehensive understanding of our stance on the stock, these factors must be assessed in combination with the stock s valuation. Please refer to our Valuation section on page 5 for further information. FACTOR SCORE Growth 3.5 out of 5 stars Measures the growth of both the company's income statement and cash flow. On this factor, has a growth score better than 60% of the stocks we rate. Total Return 2.0 out of 5 stars Measures the historical price movement of the stock. The stock performance of this company has beaten 30% of the companies we cover. Efficiency 4.5 out of 5 stars Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 80% of the companies we review. Price volatility 2.0 out of 5 stars Measures the volatility of the company's stock price historically. The stock is less volatile than 30% of the stocks we monitor. Solvency 4.0 out of 5 stars Measures the solvency of the company based on several ratios. The company is more solvent than 70% of the companies we analyze. Income 4.5 out of 5 stars Measures dividend yield and payouts to shareholders. The company's dividend is higher than 80% of the companies we track. THESTREET RATINGS RESEARCH METHODOLOGY TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates. While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenues, financial strength, and company cash flows. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's performance. These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks. PAGE 3

4 Consensus EPS Estimates² ($) IBES consensus estimates are provided by Thomson Financial 0.51 Q1 FY E 2016(E) 3.40 E 2017(E) INCOME STATEMENT Net Sales ($mil) 5, , EBITDA ($mil) 1, , EBIT ($mil) 1, , Net Income ($mil) FINANCIAL ANALYSIS 's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. has liquidity. Currently, the Quick Ratio is 0.95 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having liquidity to begin with. This would indicate deteriorating cash flow. During the same period, stockholders' equity ("net worth") has decreased by 19.67% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit BALANCE SHEET Cash & Equiv. ($mil) 3, , Total Assets ($mil) 22, , Total Debt ($mil) 6, , Equity ($mil) 8, , PROFITABILITY Gross Profit Margin 43.27% 44.69% EBITDA Margin 22.89% 23.34% Operating Margin 19.42% 20.29% Sales Turnover Return on Assets 12.26% 8.88% Return on Equity 33.34% 21.21% DEBT Current Ratio Debt/Capital Interest Expense NA Interest Coverage NA SHARE DATA Shares outstanding (mil) Div / share EPS Book value / share Institutional Own % NA NA Avg Daily Volume 4,660,639 4,356,301 2 Sum of quarterly figures may not match annual estimates due to use of median consensus estimates. PAGE 4

5 RATINGS HISTORY Our rating for was recently downgraded from Buy to Hold on 9/3/2015. As of 11/12/2015, the stock was trading at a price of which is 28.4% below its 52-week high of $65.94 and 12.0% above its 52-week low of $ Year Chart BUY: $ HOLD: $46.43 $80 $70 $60 $50 MOST RECENT RATINGS CHANGES Date Price Action From To 9/3/15 $46.43 Downgrade Buy Hold 11/12/13 $66.30 No Change Buy Buy Price reflects the closing price as of the date listed, if available RATINGS DEFINITIONS & DISTRIBUTION OF THESTREET RATINGS (as of 11/12/2015) 39.39% Buy - We believe that this stock has the opportunity to appreciate and produce a total return of more than 10% over the next 12 months % Hold - We do not believe this stock offers conclusive evidence to warrant the purchase or sale of shares at this time and that its likelihood of positive total return is roughly in balance with the risk of loss % Sell - We believe that this stock is likely to decline by more than 10% over the next 12 months, with the risk involved too great to compensate for any possible returns. TheStreet Ratings 14 Wall Street, 15th Floor New York, NY Research Contact: Sales Contact: VALUATION HOLD. This stock's P/E ratio indicates a discount compared to an average of for the Electrical Equipment industry and a discount compared to the S&P 500 average of For additional comparison, its price-to-book ratio of 3.86 indicates a premium versus the S&P 500 average of 2.72 and a premium versus the industry average of The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, seems to be trading at a discount to investment alternatives within the industry. Price/Earnings Peers Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. is trading at a significant discount to its peers. Price/Projected Earnings Peers Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. is trading at a discount to its peers. Price/Book 3.86 Peers 3.45 Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. is trading at a premium to its peers. Price/Sales 1.41 Peers 1.86 Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. is trading at a discount to its industry on this measurement. DISCLAIMER: Price/CashFlow Peers Discount. The P/CF ratio, a stock s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. is trading at a discount to its peers. Price to Earnings/Growth NM Peers 1.86 Neutral. The PEG ratio is the stock s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. 's negative PEG ratio makes this valuation measure meaningless. Earnings Growth lower higher Peers 8.91 Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. is expected to have an earnings growth rate that significantly exceeds its peers. Sales Growth lower higher Peers Lower. A sales growth rate that trails the industry implies that a company is losing market share. significantly trails its peers on the basis of sales growth The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided via the COMPUSTAT Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as other third-party data providers. TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained in this report constitutes, or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at PAGE 5