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.
Some of the quality metrics of NYSE:EME highlighted
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.
The ROIC excluding cash and goodwill of EMCOR GROUP INC stands at 51.7%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
EMCOR GROUP INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.37, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
With a favorable Profit Quality (5-year) ratio of 186.0%, EMCOR GROUP INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
EMCOR GROUP INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 7.78%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
EMCOR GROUP INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.
How does the complete fundamental picture look for NYSE:EME?
ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.
EME gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 38 industry peers in the Construction & Engineering industry. EME gets an excellent profitability rating and is at the same time showing great financial health properties. EME is not valued too expensively and it also shows a decent growth rate. These ratings would make EME suitable for quality investing!
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.