Is NYSE:EME a Suitable Choice 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 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.
• The ROIC excluding cash and goodwill of EMCOR GROUP INC stands at 87.26%, 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.
• EMCOR GROUP INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 16.66%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• 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 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.

Overall EME gets a fundamental rating of 8 out of 10. We evaluated EME against 43 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.

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

More quality stocks can be found 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.