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Should you consider EMCOR GROUP INC (NYSE:EME) for quality investing?

By Mill Chart

Last update: Jan 17, 2024

In this article we will dive into EMCOR GROUP INC (NYSE:EME) as a possible candidate for quality investing. Investors should always do their own research, but we noticed EMCOR GROUP INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

  • EMCOR GROUP INC has achieved substantial revenue growth over the past 5 years, with a 7.58% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • EMCOR GROUP INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 60.87% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • EMCOR GROUP INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.16, 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.
  • EMCOR GROUP INC exhibits impressive Profit Quality (5-year) with a 186.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • The 5-year EBIT growth of EMCOR GROUP INC has been remarkable, with 7.78% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • EMCOR GROUP INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NYSE:EME?

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Taking everything into account, EME scores 7 out of 10 in our fundamental rating. 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 has a decent growth rate and is not valued too expensively. These ratings would make EME suitable for quality investing!

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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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