Is EMCOR GROUP INC (NYSE:EME) a Strong Candidate for Quality Investing?

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 course 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.

Key Considerations for Quality Investors.

• EMCOR GROUP INC has shown strong performance in revenue growth over the past 5 years, with a 9.13% 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 84.01%, 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 maintains a healthy Debt/Free Cash Flow Ratio of 0.01, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• EMCOR GROUP INC exhibits impressive Profit Quality (5-year) with a 196.0% 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 16.66% 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.

Fundamental Analysis Observations

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and 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 41 industry peers in the Construction & Engineering industry. EME scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EME has a decent growth rate and is not valued too expensively. With these ratings, EME could be worth investigating further for quality investing!.

Check the latest full fundamental report of EME for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

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.