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.

What matters for quality investors.

• Over the past 5 years, EMCOR GROUP INC has experienced impressive revenue growth, with 9.13% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• EMCOR GROUP INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 87.26% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• The Debt/Free Cash Flow Ratio of EMCOR GROUP INC stands at 0.01, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• 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.
• 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 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.

Fundamental analysis 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 8 out of 10 to EME. EME was compared to 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. With these ratings, EME could be worth investigating further for quality investing!.

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

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.