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.
Looking into the quality metrics of EMCOR GROUP INC
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 60.87%, 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 0.16, 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.
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 has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.
Zooming in on the fundamentals.
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 39 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 overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make EME suitable for growth and 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.