EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA - NYSE:EME - US29084Q1004 - Common Stock
632.02 USD
+3.1 (+0.49%)
630 USD
-2.02 (-0.32%)
Overall EME gets a fundamental rating of 8 out of 10. We evaluated EME against 52 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
EME had positive earnings in each of the past 5 years.
In the past 5 years EME always reported a positive cash flow from operatings.
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 has a Return On Equity of 36.22%. This is amongst the best in the industry. EME outperforms 90.38% of its industry peers.
The Return On Invested Capital of EME (27.02%) is better than 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 last Return On Invested Capital (27.02%) for EME is above the 3 year average (21.01%), which is a sign of increasing profitability.
| 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.
EME's Profit Margin has improved in the last couple of years.
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.
Looking at the Gross Margin, with a value of 19.49%, EME is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EME is creating value.
EME has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EME has less shares outstanding
The debt/assets ratio for EME has been reduced compared to a year ago.
2.2 Solvency
EME has an Altman-Z score of 6.60. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
EME has a Altman-Z score of 6.60. This is amongst the best in the industry. EME outperforms 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 Debt to FCF ratio of 0.21. This is amongst the best in the industry. EME outperforms 88.46% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that EME is not too dependend on debt financing.
The Debt to Equity ratio of EME (0.08) is better than 86.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 6.6 |
ROIC/WACC2.69
WACC10.03%
2.3 Liquidity
A Current Ratio of 1.18 indicates that EME should not have too much problems paying its short term obligations.
EME has a Current ratio (1.18) which is in line with its industry peers.
A Quick Ratio of 1.15 indicates that EME should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.15, EME perfoms like the industry average, outperforming 42.31% 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 | 1.18 | ||
| 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.
EME shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.23% yearly.
EME shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.77%.
The Revenue has been growing by 9.69% on average over the past years. This is quite good.
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.
EME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.08% yearly.
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.
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 26.22, which means the current valuation is very expensive for EME.
EME's Price/Earnings ratio is a bit cheaper when compared to the industry. EME is cheaper than 71.15% 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 27.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.83, the valuation of EME can be described as rather expensive.
Based on the Price/Forward Earnings ratio, EME is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
EME's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.22 | ||
| Fwd PE | 22.83 |
4.2 Price Multiples
65.38% of the companies in the same industry are more expensive than EME, based on the Enterprise Value to EBITDA ratio.
69.23% 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 | 23.41 | ||
| EV/EBITDA | 16.98 |
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.
PEG (NY)1.46
PEG (5Y)0.87
EPS Next 2Y13.38%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
EME has a yearly dividend return of 0.16%, which is pretty low.
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.
EME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP4.14%
EPS Next 2Y13.38%
EPS Next 3Y11.96%
632.02
+3.1 (+0.49%)
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 Cap28.29B
Analysts78.46
Price Target656.9 (3.94%)
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 | 26.22 | ||
| Fwd PE | 22.83 | ||
| P/S | 1.81 | ||
| P/FCF | 23.41 | ||
| P/OCF | 21.79 | ||
| P/B | 9.27 | ||
| P/tB | 45.79 | ||
| EV/EBITDA | 16.98 |
EPS(TTM)24.1
EY3.81%
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 | 6.6 |
F-Score6
WACC10.03%
ROIC/WACC2.69
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%