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.

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 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.
• With a favorable Debt/Free Cash Flow Ratio of 0.01, 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.
• 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.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, EMCOR GROUP INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

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

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to EME. EME was compared to 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 is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make EME a good candidate for quality investing.

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

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

Disclaimer

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.