EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EME - US29084Q1004 - Common Stock
650.97 USD
-4.97 (-0.76%)
650.97 USD
0 (0%)
Overall EME gets a fundamental rating of 8 out of 10. We evaluated EME against 54 industry peers in the Construction & Engineering industry. EME gets an excellent profitability rating and is at the same time showing great financial health properties. EME is growing strongly while it is still valued neutral. This is a good combination! This makes EME very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
EME had positive earnings in the past year.
EME had a positive operating cash flow in the past year.
In the past 5 years EME has always been profitable.
Each year in the past 5 years EME had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EME (13.08%) is better than 85.19% of its industry peers.
EME has a better Return On Equity (33.89%) than 85.19% of its industry peers.
EME has a better Return On Invested Capital (27.41%) than 88.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EME is significantly above the industry average of 15.99%.
The last Return On Invested Capital (27.41%) for EME is above the 3 year average (21.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.08% | ||
| ROE | 33.89% | ||
| ROIC | 27.41% |
ROA(3y)9.99%
ROA(5y)7.93%
ROE(3y)26.83%
ROE(5y)20.8%
ROIC(3y)21.01%
ROIC(5y)17.59%
1.3 Margins
The Profit Margin of EME (6.96%) is better than 70.37% of its industry peers.
In the last couple of years the Profit Margin of EME has grown nicely.
EME has a better Operating Margin (9.41%) than 68.52% of its industry peers.
EME's Operating Margin has improved in the last couple of years.
EME has a Gross Margin (19.39%) which is in line with its industry peers.
EME's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.41% | ||
| PM (TTM) | 6.96% | ||
| GM | 19.39% |
OM growth 3Y19.88%
OM growth 5Y12.87%
PM growth 3Y21.31%
PM growth 5Y14.3%
GM growth 3Y7.78%
GM growth 5Y5.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EME is creating value.
EME has less shares outstanding than it did 1 year ago.
EME has less shares outstanding than it did 5 years ago.
EME has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.81 indicates that EME is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.81, EME belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
EME has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.01, EME belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that EME is not too dependend on debt financing.
EME has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. EME outperforms 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 6.81 |
ROIC/WACC2.61
WACC10.51%
2.3 Liquidity
A Current Ratio of 1.19 indicates that EME should not have too much problems paying its short term obligations.
EME's Current ratio of 1.19 is in line compared to the rest of the industry. EME outperforms 40.74% of its industry peers.
A Quick Ratio of 1.17 indicates that EME should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.17, EME perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
EME does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
EME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.31%, which is quite impressive.
EME shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.23% yearly.
The Revenue has grown by 14.11% in the past year. This is quite good.
Measured over the past years, EME shows a quite strong growth in Revenue. The Revenue has been growing by 9.69% on average per year.
EPS 1Y (TTM)26.31%
EPS 3Y45.04%
EPS 5Y30.23%
EPS Q2Q%13.28%
Revenue 1Y (TTM)14.11%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%16.35%
3.2 Future
EME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.11% yearly.
Based on estimates for the next years, EME will show a quite strong growth in Revenue. The Revenue will grow by 8.83% on average per year.
EPS Next Y18.26%
EPS Next 2Y14.5%
EPS Next 3Y12.11%
EPS Next 5YN/A
Revenue Next Year14.71%
Revenue Next 2Y10.43%
Revenue Next 3Y8.83%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.17, which means the current valuation is very expensive for EME.
70.37% of the companies in the same industry are more expensive than EME, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.92. EME is around the same levels.
With a Price/Forward Earnings ratio of 23.05, EME is valued on the expensive side.
Based on the Price/Forward Earnings ratio, EME is valued a bit cheaper than 70.37% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.57. EME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.17 | ||
| Fwd PE | 23.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EME is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EME indicates a somewhat cheap valuation: EME is cheaper than 72.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.37 | ||
| EV/EBITDA | 16.89 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EME has an outstanding profitability rating, which may justify a higher PE ratio.
EME's earnings are expected to grow with 12.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.43
PEG (5Y)0.87
EPS Next 2Y14.5%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.16%, EME is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.42, EME pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, EME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
5.2 History
The dividend of EME is nicely growing with an annual growth rate of 23.83%!
EME has paid a dividend for at least 10 years, which is a reliable track record.
EME has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)23.83%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
4.01% of the earnings are spent on dividend by EME. This is a low number and sustainable payout ratio.
The dividend of EME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP4.01%
EPS Next 2Y14.5%
EPS Next 3Y12.11%
650.97
-4.97 (-0.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.78%
Inst Owner Change0%
Ins Owners0.83%
Ins Owner Change-0.07%
Market Cap29.14B
Revenue(TTM)16.24B
Net Income(TTM)1.13B
Analysts81.43
Price Target721.17 (10.78%)
Short Float %1.93%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
Yearly Dividend0.93
Dividend Growth(5Y)23.83%
DP4.01%
Div Incr Years4
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.68%
Min EPS beat(2)-0.55%
Max EPS beat(2)15.92%
EPS beat(4)3
Avg EPS beat(4)9.16%
Min EPS beat(4)-0.55%
Max EPS beat(4)15.92%
EPS beat(8)7
Avg EPS beat(8)20.07%
EPS beat(12)11
Avg EPS beat(12)21.42%
EPS beat(16)13
Avg EPS beat(16)16.36%
Revenue beat(2)1
Avg Revenue beat(2)1.61%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)3.72%
Revenue beat(4)2
Avg Revenue beat(4)0.62%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)3.72%
Revenue beat(8)5
Avg Revenue beat(8)1.17%
Revenue beat(12)8
Avg Revenue beat(12)0.93%
Revenue beat(16)12
Avg Revenue beat(16)1.46%
PT rev (1m)0%
PT rev (3m)8.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.3%
EPS NY rev (1m)0%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.17 | ||
| Fwd PE | 23.05 | ||
| P/S | 1.79 | ||
| P/FCF | 25.37 | ||
| P/OCF | 23.37 | ||
| P/B | 8.74 | ||
| P/tB | 31.71 | ||
| EV/EBITDA | 16.89 |
EPS(TTM)24.87
EY3.82%
EPS(NY)28.24
Fwd EY4.34%
FCF(TTM)25.66
FCFY3.94%
OCF(TTM)27.86
OCFY4.28%
SpS362.82
BVpS74.5
TBVpS20.53
PEG (NY)1.43
PEG (5Y)0.87
Graham Number204.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.08% | ||
| ROE | 33.89% | ||
| ROCE | 37.63% | ||
| ROIC | 27.41% | ||
| ROICexc | 32.68% | ||
| ROICexgc | 112.5% | ||
| OM | 9.41% | ||
| PM (TTM) | 6.96% | ||
| GM | 19.39% | ||
| FCFM | 7.07% |
ROA(3y)9.99%
ROA(5y)7.93%
ROE(3y)26.83%
ROE(5y)20.8%
ROIC(3y)21.01%
ROIC(5y)17.59%
ROICexc(3y)29.88%
ROICexc(5y)24.94%
ROICexgc(3y)103.88%
ROICexgc(5y)84.98%
ROCE(3y)28.85%
ROCE(5y)24.15%
ROICexgc growth 3Y52.49%
ROICexgc growth 5Y34.99%
ROICexc growth 3Y37.05%
ROICexc growth 5Y27.08%
OM growth 3Y19.88%
OM growth 5Y12.87%
PM growth 3Y21.31%
PM growth 5Y14.3%
GM growth 3Y7.78%
GM growth 5Y5.13%
F-Score7
Asset Turnover1.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 57.38% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | 137.17 | ||
| Cash Conversion | 73.36% | ||
| Profit Quality | 101.61% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 6.81 |
F-Score7
WACC10.51%
ROIC/WACC2.61
Cap/Depr(3y)55.78%
Cap/Depr(5y)48.91%
Cap/Sales(3y)0.53%
Cap/Sales(5y)0.5%
Profit Quality(3y)124.19%
Profit Quality(5y)203.38%
High Growth Momentum
Growth
EPS 1Y (TTM)26.31%
EPS 3Y45.04%
EPS 5Y30.23%
EPS Q2Q%13.28%
EPS Next Y18.26%
EPS Next 2Y14.5%
EPS Next 3Y12.11%
EPS Next 5YN/A
Revenue 1Y (TTM)14.11%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%16.35%
Revenue Next Year14.71%
Revenue Next 2Y10.43%
Revenue Next 3Y8.83%
Revenue Next 5YN/A
EBIT growth 1Y22.7%
EBIT growth 3Y36.33%
EBIT growth 5Y23.8%
EBIT Next Year32.03%
EBIT Next 3Y15.03%
EBIT Next 5YN/A
FCF growth 1Y71.79%
FCF growth 3Y67.7%
FCF growth 5Y34.11%
OCF growth 1Y69.57%
OCF growth 3Y64.06%
OCF growth 5Y31.67%
EMCOR GROUP INC / EME FAQ
Can you provide the ChartMill fundamental rating for EMCOR GROUP INC?
ChartMill assigns a fundamental rating of 8 / 10 to EME.
What is the valuation status of EMCOR GROUP INC (EME) stock?
ChartMill assigns a valuation rating of 4 / 10 to EMCOR GROUP INC (EME). This can be considered as Fairly Valued.
How profitable is EMCOR GROUP INC (EME) stock?
EMCOR GROUP INC (EME) has a profitability rating of 9 / 10.
What is the financial health of EMCOR GROUP INC (EME) stock?
The financial health rating of EMCOR GROUP INC (EME) is 9 / 10.
How sustainable is the dividend of EMCOR GROUP INC (EME) stock?
The dividend rating of EMCOR GROUP INC (EME) is 5 / 10 and the dividend payout ratio is 4.01%.