EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA - NYSE:EME - US29084Q1004 - Common Stock
631.71 USD
+14.99 (+2.43%)
We assign a fundamental rating of 8 out of 10 to EME. EME was compared to 52 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 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.
In the past year EME had a positive cash flow from operations.
EME had positive earnings in each of the past 5 years.
EME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.16%, EME belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
EME's Return On Equity of 36.22% is amongst the best of the industry. EME outperforms 90.38% of its industry peers.
EME's Return On Invested Capital of 27.02% is amongst the best of the industry. EME outperforms 88.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EME is above the industry average of 17.22%.
The 3 year average ROIC (21.01%) for EME is below the current ROIC(27.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.16% | ||
| ROE | 36.22% | ||
| ROIC | 27.02% |
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
EME has a Profit Margin of 7.07%. This is in the better half of the industry: EME outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of EME has grown nicely.
EME has a Operating Margin of 9.50%. This is in the better half of the industry: EME outperforms 71.15% of its industry peers.
EME's Operating Margin has improved in the last couple of years.
EME has a Gross Margin of 19.49%. This is in the better half of the industry: EME outperforms 61.54% of its industry peers.
EME's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 7.07% | ||
| GM | 19.49% |
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.
The number of shares outstanding for EME has been reduced compared to 1 year ago.
EME has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EME has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.54 indicates that EME is not in any danger for bankruptcy at the moment.
EME has a better Altman-Z score (6.54) than 84.62% of its industry peers.
The Debt to FCF ratio of EME is 0.21, which is an excellent value as it means it would take EME, only 0.21 years of fcf income to pay off all of its debts.
EME has a better Debt to FCF ratio (0.21) than 88.46% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that EME is not too dependend on debt financing.
EME's Debt to Equity ratio of 0.08 is amongst the best of the industry. EME outperforms 86.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 6.54 |
ROIC/WACC2.71
WACC9.96%
2.3 Liquidity
EME has a Current Ratio of 1.18. This is a normal value and indicates that EME is financially healthy and should not expect problems in meeting its short term obligations.
EME has a Current ratio of 1.18. This is comparable to the rest of the industry: EME outperforms 44.23% of its industry peers.
EME has a Quick Ratio of 1.15. This is a normal value and indicates that EME is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.15, EME is in line with its industry, outperforming 42.31% of the companies in the same industry.
The current and quick ratio evaluation for EME is rather negative, while it does have 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 | 1.18 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
EME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.03%, which is quite impressive.
The Earnings Per Share has been growing by 30.23% on average over the past years. This is a very strong growth
EME shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.77%.
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)38.03%
EPS 3Y45.04%
EPS 5Y30.23%
EPS Q2Q%28%
Revenue 1Y (TTM)13.77%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%17.39%
3.2 Future
The Earnings Per Share is expected to grow by 11.96% on average over the next years. This is quite good.
Based on estimates for the next years, EME will show a quite strong growth in Revenue. The Revenue will grow by 9.08% on average per year.
EPS Next Y17.96%
EPS Next 2Y13.38%
EPS Next 3Y11.96%
EPS Next 5YN/A
Revenue Next Year14.58%
Revenue Next 2Y10.56%
Revenue Next 3Y9.08%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.21, the valuation of EME can be described as expensive.
Based on the Price/Earnings ratio, EME is valued a bit cheaper than 69.23% of the companies in the same industry.
EME is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.82, the valuation of EME can be described as rather expensive.
EME's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EME is cheaper than 69.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. EME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 22.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EME is valued a bit cheaper than 65.38% of the companies in the same industry.
67.31% of the companies in the same industry are more expensive than EME, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.4 | ||
| EV/EBITDA | 16.65 |
4.3 Compensation for Growth
EME's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of EME may justify a higher PE ratio.
PEG (NY)1.46
PEG (5Y)0.87
EPS Next 2Y13.38%
EPS Next 3Y11.96%
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 1.57, EME pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, EME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
5.2 History
On average, the dividend of EME grows each year by 23.83%, which is quite nice.
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
EME pays out 4.14% of its income as dividend. This is a sustainable payout ratio.
The dividend of EME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP4.14%
EPS Next 2Y13.38%
EPS Next 3Y11.96%
NYSE:EME (9/18/2025, 3:09:10 PM)
631.71
+14.99 (+2.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners97.41%
Inst Owner Change-1.77%
Ins Owners0.83%
Ins Owner Change-0.5%
Market Cap28.28B
Analysts78.46
Price Target656.9 (3.99%)
Short Float %2.09%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
Yearly Dividend0.93
Dividend Growth(5Y)23.83%
DP4.14%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.27%
Min EPS beat(2)12.61%
Max EPS beat(2)15.92%
EPS beat(4)4
Avg EPS beat(4)13.11%
Min EPS beat(4)8.66%
Max EPS beat(4)15.92%
EPS beat(8)8
Avg EPS beat(8)23.91%
EPS beat(12)12
Avg EPS beat(12)21.68%
EPS beat(16)14
Avg EPS beat(16)16.54%
Revenue beat(2)2
Avg Revenue beat(2)2.45%
Min Revenue beat(2)1.19%
Max Revenue beat(2)3.72%
Revenue beat(4)2
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)3.72%
Revenue beat(8)6
Avg Revenue beat(8)1.34%
Revenue beat(12)9
Avg Revenue beat(12)1.24%
Revenue beat(16)13
Avg Revenue beat(16)1.84%
PT rev (1m)2.59%
PT rev (3m)32.68%
EPS NQ rev (1m)2.58%
EPS NQ rev (3m)5.02%
EPS NY rev (1m)5.81%
EPS NY rev (3m)6.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)1.62%
Revenue NY rev (3m)1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 22.82 | ||
| P/S | 1.81 | ||
| P/FCF | 23.4 | ||
| P/OCF | 21.78 | ||
| P/B | 9.27 | ||
| P/tB | 45.77 | ||
| EV/EBITDA | 16.65 |
EPS(TTM)24.1
EY3.82%
EPS(NY)27.69
Fwd EY4.38%
FCF(TTM)27
FCFY4.27%
OCF(TTM)29
OCFY4.59%
SpS349.39
BVpS68.18
TBVpS13.8
PEG (NY)1.46
PEG (5Y)0.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.16% | ||
| ROE | 36.22% | ||
| ROCE | 37.1% | ||
| ROIC | 27.02% | ||
| ROICexc | 30.75% | ||
| ROICexgc | 99.66% | ||
| OM | 9.5% | ||
| PM (TTM) | 7.07% | ||
| GM | 19.49% | ||
| FCFM | 7.73% |
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%
ROICexcg growth 3Y52.49%
ROICexcg 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-Score6
Asset Turnover1.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.21 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 56.54% | ||
| Cap/Sales | 0.57% | ||
| Interest Coverage | 152.25 | ||
| Cash Conversion | 78.93% | ||
| Profit Quality | 109.34% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 6.54 |
F-Score6
WACC9.96%
ROIC/WACC2.71
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)38.03%
EPS 3Y45.04%
EPS 5Y30.23%
EPS Q2Q%28%
EPS Next Y17.96%
EPS Next 2Y13.38%
EPS Next 3Y11.96%
EPS Next 5YN/A
Revenue 1Y (TTM)13.77%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%17.39%
Revenue Next Year14.58%
Revenue Next 2Y10.56%
Revenue Next 3Y9.08%
Revenue Next 5YN/A
EBIT growth 1Y32.77%
EBIT growth 3Y36.33%
EBIT growth 5Y23.8%
EBIT Next Year28.33%
EBIT Next 3Y12.25%
EBIT Next 5YN/A
FCF growth 1Y79.41%
FCF growth 3Y67.7%
FCF growth 5Y34.11%
OCF growth 1Y77.4%
OCF growth 3Y64.06%
OCF growth 5Y31.67%