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Reasonable growth and debt and a high ROIC for EMCOR GROUP INC (NYSE:EME).

By Mill Chart

Last update: May 9, 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.

Highlighting Notable Quality Metrics of NYSE:EME.

  • EMCOR GROUP INC has demonstrated significant revenue growth over the past 5 years, with a 9.13% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • EMCOR GROUP INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 80.35% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a Debt/Free Cash Flow Ratio of 0.01, EMCOR GROUP INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • With a robust Profit Quality (5-year) ratio of 196.0%, EMCOR GROUP INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • With a robust 5-year EBIT growth of 16.66%, EMCOR GROUP INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • 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.

Zooming in on the fundamentals.

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.

EME gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 41 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 could make EME a good candidate for quality investing.

For an up to date full fundamental analysis you can check the fundamental report of EME

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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