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Why NYSE:EME qualifies as a quality stock.

By Mill Chart

Last update: Aug 17, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if EMCOR GROUP INC (NYSE:EME) is suited for quality investing. Investors should of couse do their own research, but we spotted EMCOR GROUP INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • EMCOR GROUP INC has shown strong performance in revenue growth over the past 5 years, with a 7.58% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a robust ROIC excluding cash and goodwill at 51.7%, EMCOR GROUP INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a favorable Debt/Free Cash Flow Ratio of 0.37, EMCOR GROUP INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • The Profit Quality (5-year) of EMCOR GROUP INC stands at 186.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • With a robust 5-year EBIT growth of 7.78%, EMCOR GROUP INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • The EBIT 5-year growth of EMCOR GROUP INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental analysis of NYSE:EME

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 7 out of 10 to EME. EME was compared to 38 industry peers in the Construction & Engineering industry. Both the health and profitability get an excellent rating, making EME a very profitable company, without any liquidiy or solvency issues. EME is not valued too expensively and it also shows a decent growth rate. With these ratings, EME could be worth investigating further for quality investing!.

Our latest full fundamental report of EME contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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