EMCOR GROUP INC (EME)
US29084Q1004 - Common Stock
We assign a fundamental rating of 8 out of 10 to EME. EME was compared to 45 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 growing strongly while it is still valued neutral. This is a good combination! EME also has an excellent dividend rating. These ratings could make EME a good candidate for dividend and 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.
EME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EME has a better Return On Assets (12.65%) than 93.18% of its industry peers.
With an excellent Return On Equity value of 33.59%, EME belongs to the best of the industry, outperforming 93.18% of the companies in the same industry.
With an excellent Return On Invested Capital value of 26.63%, EME belongs to the best of the industry, outperforming 93.18% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EME is above the industry average of 11.39%.
The last Return On Invested Capital (26.63%) for EME is above the 3 year average (15.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 33.59% | ||
| ROIC | 26.63% |
ROA(3y)7.99%
ROA(5y)6.67%
ROE(3y)21.08%
ROE(5y)17.1%
ROIC(3y)15.98%
ROIC(5y)14.37%
1.3 Margins
Looking at the Profit Margin, with a value of 6.51%, EME belongs to the top of the industry, outperforming 81.82% 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 8.75%, EME is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of EME has grown nicely.
EME has a Gross Margin (18.45%) which is in line with its industry peers.
In the last couple of years the Gross Margin of EME has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.75% | ||
| PM (TTM) | 6.51% | ||
| GM | 18.45% |
OM growth 3Y7.67%
OM growth 5Y6.91%
PM growth 3Y49.33%
PM growth 5Y7.61%
GM growth 3Y1.54%
GM growth 5Y2.29%
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.
The number of shares outstanding for EME has been reduced compared to 5 years ago.
The debt/assets ratio for EME has been reduced compared to a year ago.
2.2 Solvency
EME has an Altman-Z score of 6.36. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
EME has a better Altman-Z score (6.36) than 90.91% of its industry peers.
The Debt to FCF ratio of EME is 0.01, which is an excellent value as it means it would take EME, only 0.01 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EME (0.01) is better than 95.45% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that EME is not too dependend on debt financing.
The Debt to Equity ratio of EME (0.00) is better than 95.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 6.36 |
ROIC/WACC2.55
WACC10.43%
2.3 Liquidity
EME has a Current Ratio of 1.28. This is a normal value and indicates that EME is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of EME (1.28) is worse than 61.36% of its industry peers.
EME has a Quick Ratio of 1.25. 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 worse Quick ratio (1.25) than 65.91% of its industry peers.
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 | 1.28 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
EME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.67%, which is quite impressive.
Measured over the past years, EME shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.12% on average per year.
EME shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.71%.
The Revenue has been growing by 9.13% on average over the past years. This is quite good.
EPS 1Y (TTM)71.67%
EPS 3Y27.58%
EPS 5Y22.12%
EPS Q2Q%62.46%
Revenue 1Y (TTM)17.71%
Revenue growth 3Y12.67%
Revenue growth 5Y9.13%
Sales Q2Q%15.26%
3.2 Future
The Earnings Per Share is expected to grow by 22.85% on average over the next years. This is a very strong growth
EME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.95% yearly.
EPS Next Y59%
EPS Next 2Y31.22%
EPS Next 3Y22.85%
EPS Next 5YN/A
Revenue Next Year16.75%
Revenue Next 2Y11.92%
Revenue Next 3Y9.95%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 23.66, EME is valued on the expensive side.
Based on the Price/Earnings ratio, EME is valued a bit cheaper than the industry average as 70.45% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.73. EME is around the same levels.
The Price/Forward Earnings ratio is 20.33, which indicates a rather expensive current valuation of EME.
Based on the Price/Forward Earnings ratio, EME is valued a bit cheaper than the industry average as 63.64% 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 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 20.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EME indicates a somewhat cheap valuation: EME is cheaper than 63.64% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EME is valued a bit cheaper than 70.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.18 | ||
| EV/EBITDA | 14.83 |
4.3 Compensation for Growth
EME's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of EME may justify a higher PE ratio.
EME's earnings are expected to grow with 22.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)1.07
EPS Next 2Y31.22%
EPS Next 3Y22.85%
5. Dividend
5.1 Amount
EME has a yearly dividend return of 0.22%, which is pretty low.
EME's Dividend Yield is rather good when compared to the industry average which is at 0.65. EME pays more dividend than 81.82% of the companies in the same industry.
With a Dividend Yield of 0.22, EME pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
5.2 History
On average, the dividend of EME grows each year by 16.33%, which is quite nice.
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)16.33%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
EME pays out 4.36% of its income as dividend. This is a sustainable payout ratio.
EME's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.36%
EPS Next 2Y31.22%
EPS Next 3Y22.85%
EMCOR GROUP INC
NYSE:EME (12/20/2024, 8:07:04 PM)
After market: 465.82 0 (0%)465.82
+1.52 (+0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.75%
Inst Owner Change-1.22%
Ins Owners0.99%
Ins Owner Change0.11%
Market Cap21.43B
Analysts80
Price Target547.74 (17.59%)
Short Float %0.95%
Short Ratio1.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Dividend Growth(5Y)16.33%
DP4.36%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.78%
Min EPS beat(2)15.25%
Max EPS beat(2)38.31%
EPS beat(4)4
Avg EPS beat(4)30.98%
Min EPS beat(4)15.25%
Max EPS beat(4)45.63%
EPS beat(8)8
Avg EPS beat(8)27.56%
EPS beat(12)10
Avg EPS beat(12)18.75%
EPS beat(16)14
Avg EPS beat(16)18.21%
Revenue beat(2)1
Avg Revenue beat(2)0.09%
Min Revenue beat(2)-2.92%
Max Revenue beat(2)3.09%
Revenue beat(4)3
Avg Revenue beat(4)1.73%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)5.41%
Revenue beat(8)6
Avg Revenue beat(8)1.08%
Revenue beat(12)10
Avg Revenue beat(12)1.74%
Revenue beat(16)14
Avg Revenue beat(16)2.49%
PT rev (1m)29.4%
PT rev (3m)29.4%
EPS NQ rev (1m)3.94%
EPS NQ rev (3m)32.74%
EPS NY rev (1m)1.03%
EPS NY rev (3m)7.27%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)1.78%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 20.33 | ||
| P/S | 1.51 | ||
| P/FCF | 18.18 | ||
| P/OCF | 17.03 | ||
| P/B | 7.77 | ||
| P/tB | 19.34 | ||
| EV/EBITDA | 14.83 |
EPS(TTM)19.69
EY4.23%
EPS(NY)22.92
Fwd EY4.92%
FCF(TTM)25.62
FCFY5.5%
OCF(TTM)27.35
OCFY5.87%
SpS309.46
BVpS59.96
TBVpS24.08
PEG (NY)0.4
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 33.59% | ||
| ROCE | 36.67% | ||
| ROIC | 26.63% | ||
| ROICexc | 38.31% | ||
| ROICexgc | 127.24% | ||
| OM | 8.75% | ||
| PM (TTM) | 6.51% | ||
| GM | 18.45% | ||
| FCFM | 8.28% |
ROA(3y)7.99%
ROA(5y)6.67%
ROE(3y)21.08%
ROE(5y)17.1%
ROIC(3y)15.98%
ROIC(5y)14.37%
ROICexc(3y)20.83%
ROICexc(5y)18.73%
ROICexgc(3y)61.56%
ROICexgc(5y)57.46%
ROCE(3y)22.01%
ROCE(5y)19.79%
ROICexcg growth 3Y9.82%
ROICexcg growth 5Y7.8%
ROICexc growth 3Y15.72%
ROICexc growth 5Y13.33%
OM growth 3Y7.67%
OM growth 5Y6.91%
PM growth 3Y49.33%
PM growth 5Y7.61%
GM growth 3Y1.54%
GM growth 5Y2.29%
F-Score9
Asset Turnover1.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 61.25% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | 261.82 | ||
| Cash Conversion | 91.49% | ||
| Profit Quality | 127.21% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 6.36 |
F-Score9
WACC10.43%
ROIC/WACC2.55
Cap/Depr(3y)47.83%
Cap/Depr(5y)48.21%
Cap/Sales(3y)0.48%
Cap/Sales(5y)0.5%
Profit Quality(3y)104.63%
Profit Quality(5y)195.82%
High Growth Momentum
Growth
EPS 1Y (TTM)71.67%
EPS 3Y27.58%
EPS 5Y22.12%
EPS Q2Q%62.46%
EPS Next Y59%
EPS Next 2Y31.22%
EPS Next 3Y22.85%
EPS Next 5YN/A
Revenue 1Y (TTM)17.71%
Revenue growth 3Y12.67%
Revenue growth 5Y9.13%
Sales Q2Q%15.26%
Revenue Next Year16.75%
Revenue Next 2Y11.92%
Revenue Next 3Y9.95%
Revenue Next 5YN/A
EBIT growth 1Y62.58%
EBIT growth 3Y21.32%
EBIT growth 5Y16.66%
EBIT Next Year75.02%
EBIT Next 3Y24.45%
EBIT Next 5YN/A
FCF growth 1Y198.93%
FCF growth 3Y2.69%
FCF growth 5Y29.27%
OCF growth 1Y183.82%
OCF growth 3Y3.72%
OCF growth 5Y27.12%