EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EME - US29084Q1004 - Common Stock
698.69 USD
+16.56 (+2.43%)
627.39 USD
-71.3 (-10.2%)
We assign a fundamental rating of 8 out of 10 to EME. EME was compared to 55 industry peers in the Construction & Engineering industry. EME has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. EME is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make EME suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year EME was profitable.
- EME had a positive operating cash flow in the past year.
- EME had positive earnings in each of the past 5 years.
- Each year in the past 5 years EME had a positive operating cash flow.
1.2 Ratios
- EME has a better Return On Assets (13.08%) than 85.45% of its industry peers.
- The Return On Equity of EME (33.89%) is better than 85.45% of its industry peers.
- EME's Return On Invested Capital of 27.41% is amongst the best of the industry. EME outperforms 89.09% 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 15.97%.
- 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
- Looking at the Profit Margin, with a value of 6.96%, EME is in the better half of the industry, outperforming 70.91% of the companies in the same industry.
- EME's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 9.41%, EME is in the better half of the industry, outperforming 69.09% of the companies in the same industry.
- In the last couple of years the Operating Margin of EME has grown nicely.
- Looking at the Gross Margin, with a value of 19.39%, EME is in line with its industry, outperforming 58.18% of the companies in the same industry.
- EME's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.41% | ||
| 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
- EME has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, EME has less shares outstanding
- 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 7.03. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
- EME has a better Altman-Z score (7.03) than 87.27% of its industry peers.
- 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.
- EME has a Debt to FCF ratio of 0.01. This is amongst the best in the industry. EME outperforms 96.36% of its industry peers.
- A Debt/Equity ratio of 0.00 indicates that EME is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.00, EME belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 7.03 |
ROIC/WACC2.72
WACC10.09%
2.3 Liquidity
- A Current Ratio of 1.19 indicates that EME should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.19, EME is in line with its industry, outperforming 41.82% of the companies in the same industry.
- EME has a Quick Ratio of 1.17. 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 Quick ratio of 1.17. This is comparable to the rest of the industry: EME outperforms 45.45% of its industry peers.
- 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 | 1.19 | ||
| 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.
- The Earnings Per Share has been growing by 30.23% on average over the past years. This is a very strong growth
- Looking at the last year, EME shows a quite strong growth in Revenue. The Revenue has grown by 14.11% in the last year.
- The Revenue has been growing by 9.69% on average over the past years. This is quite good.
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
- Based on estimates for the next years, EME will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.11% on average per year.
- The Revenue is expected to grow by 9.16% on average over the next years. This is quite good.
EPS Next Y18.26%
EPS Next 2Y14.5%
EPS Next 3Y12.11%
EPS Next 5YN/A
Revenue Next Year14.73%
Revenue Next 2Y10.5%
Revenue Next 3Y9.16%
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.
- 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
- With a Price/Earnings ratio of 28.09, EME can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of EME indicates a somewhat cheap valuation: EME is cheaper than 69.09% of the companies listed in the same industry.
- EME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
- EME is valuated rather expensively with a Price/Forward Earnings ratio of 24.74.
- 72.73% of the companies in the same industry are more expensive than EME, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. EME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 24.74 |
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.
- EME's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EME is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.23 | ||
| EV/EBITDA | 18.02 |
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.
- A more expensive valuation may be justified as EME's earnings are expected to grow with 12.11% in the coming years.
PEG (NY)1.54
PEG (5Y)0.93
EPS Next 2Y14.5%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.23%, EME is not a good candidate for dividend investing.
- EME's Dividend Yield is rather good when compared to the industry average which is at 0.43. EME pays more dividend than 83.64% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, EME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
5.2 History
- The dividend of EME is nicely growing with an annual growth rate of 23.83%!
- EME has been paying a dividend for at least 10 years, so it has a reliable track record.
- EME has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)23.83%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
- EME pays out 4.01% 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.
DP4.01%
EPS Next 2Y14.5%
EPS Next 3Y12.11%
698.69
+16.56 (+2.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-24 2026-02-24/bmo
Inst Owners95.78%
Inst Owner Change-0.04%
Ins Owners0.83%
Ins Owner Change0.57%
Market Cap31.28B
Revenue(TTM)16.24B
Net Income(TTM)1.13B
Analysts81.43
Price Target721.17 (3.22%)
Short Float %1.93%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
Yearly Dividend0.93
Dividend Growth(5Y)23.83%
DP4.01%
Div Incr Years4
Div Non Decr Years11
Ex-Date01-14 2026-01-14 (0.4)
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)0.07%
EPS NQ rev (3m)0.37%
EPS NY rev (1m)0%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 24.74 | ||
| P/S | 1.93 | ||
| P/FCF | 27.23 | ||
| P/OCF | 25.08 | ||
| P/B | 9.38 | ||
| P/tB | 34.03 | ||
| EV/EBITDA | 18.02 |
EPS(TTM)24.87
EY3.56%
EPS(NY)28.24
Fwd EY4.04%
FCF(TTM)25.66
FCFY3.67%
OCF(TTM)27.86
OCFY3.99%
SpS362.82
BVpS74.5
TBVpS20.53
PEG (NY)1.54
PEG (5Y)0.93
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 | 7.03 |
F-Score7
WACC10.09%
ROIC/WACC2.72
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 Year14.73%
Revenue Next 2Y10.5%
Revenue Next 3Y9.16%
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 6 / 10 and the dividend payout ratio is 4.01%.