EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA - NYSE:EME - US29084Q1004 - Common Stock
607.96 USD
-3.44 (-0.56%)
Taking everything into account, EME scores 7 out of 10 in our fundamental rating. EME was compared to 55 industry peers in the Construction & Engineering industry. Both the health and profitability get an excellent rating, making EME a very profitable company, without any liquidiy or solvency issues. EME is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make EME a good candidate 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.
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 13.08%, EME belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
EME's Return On Equity of 33.89% is amongst the best of the industry. EME outperforms 87.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 27.41%, EME belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
EME had an Average Return On Invested Capital over the past 3 years of 21.01%. This is above the industry average of 16.87%.
The 3 year average ROIC (21.01%) for EME is below the current ROIC(27.41%), indicating increased profibility in the last year.
| 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 72.73% of its industry peers.
EME's Profit Margin has improved in the last couple of years.
The Operating Margin of EME (9.41%) is better than 70.91% of its industry peers.
In the last couple of years the Operating Margin of EME has grown nicely.
With a Gross Margin value of 19.39%, EME perfoms like the industry average, 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EME is creating value.
Compared to 1 year ago, EME has less shares outstanding
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 6.59 indicates that EME is not in any danger for bankruptcy at the moment.
EME has a Altman-Z score of 6.59. This is amongst the best in the industry. EME outperforms 85.45% 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.
Looking at the Debt to FCF ratio, with a value of 0.01, EME belongs to the top of the industry, outperforming 96.36% 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 92.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 6.59 |
ROIC/WACC2.68
WACC10.22%
2.3 Liquidity
A Current Ratio of 1.19 indicates that EME should not have too much problems paying its short term obligations.
EME has a Current ratio (1.19) which is in line with its industry peers.
A Quick Ratio of 1.17 indicates that EME should not have too much problems paying its short term obligations.
EME has a Quick ratio of 1.17. This is comparable to the rest of the industry: EME outperforms 43.64% 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 | 1.19 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.31% over the past year.
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.
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 12.63% on average per year.
EME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.09% yearly.
EPS Next Y18.15%
EPS Next 2Y14.13%
EPS Next 3Y12.63%
EPS Next 5YN/A
Revenue Next Year14.62%
Revenue Next 2Y10.56%
Revenue Next 3Y9.09%
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
With a Price/Earnings ratio of 24.45, EME is valued on the expensive side.
EME's Price/Earnings ratio is a bit cheaper when compared to the industry. EME is cheaper than 76.36% of the companies in the same industry.
EME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.56.
The Price/Forward Earnings ratio is 21.67, which indicates a rather expensive current valuation of EME.
72.73% of the companies in the same industry are more expensive than EME, based on the Price/Forward Earnings ratio.
EME is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 21.67 |
4.2 Price Multiples
67.27% of the companies in the same industry are more expensive than EME, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EME is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.69 | ||
| EV/EBITDA | 15.72 |
4.3 Compensation for Growth
EME's 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 12.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)0.81
EPS Next 2Y14.13%
EPS Next 3Y12.63%
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 1.76, EME pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.16, EME pays less dividend than the S&P500 average, which is at 2.44.
| 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 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.
EME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP4.01%
EPS Next 2Y14.13%
EPS Next 3Y12.63%
NYSE:EME (11/18/2025, 9:52:07 AM)
607.96
-3.44 (-0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.74%
Inst Owner Change-2.1%
Ins Owners0.83%
Ins Owner Change0.04%
Market Cap27.21B
Revenue(TTM)16.24B
Net Income(TTM)1.13B
Analysts81.43
Price Target688.65 (13.27%)
Short Float %2.11%
Short Ratio1.34
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-Date
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)3.97%
PT rev (3m)7.55%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)3.59%
EPS NY rev (1m)0.15%
EPS NY rev (3m)5.99%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 21.67 | ||
| P/S | 1.68 | ||
| P/FCF | 23.69 | ||
| P/OCF | 21.82 | ||
| P/B | 8.16 | ||
| P/tB | 29.61 | ||
| EV/EBITDA | 15.72 |
EPS(TTM)24.87
EY4.09%
EPS(NY)28.06
Fwd EY4.61%
FCF(TTM)25.66
FCFY4.22%
OCF(TTM)27.86
OCFY4.58%
SpS362.9
BVpS74.52
TBVpS20.54
PEG (NY)1.35
PEG (5Y)0.81
Graham Number204.2
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 | 6.59 |
F-Score7
WACC10.22%
ROIC/WACC2.68
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 Y18.15%
EPS Next 2Y14.13%
EPS Next 3Y12.63%
EPS Next 5YN/A
Revenue 1Y (TTM)14.11%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%16.35%
Revenue Next Year14.62%
Revenue Next 2Y10.56%
Revenue Next 3Y9.09%
Revenue Next 5YN/A
EBIT growth 1Y22.7%
EBIT growth 3Y36.33%
EBIT growth 5Y23.8%
EBIT Next Year31.42%
EBIT Next 3Y14.79%
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 7 / 10 to EME.
What is the valuation status for EME stock?
ChartMill assigns a valuation rating of 5 / 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 8 / 10.
How financially healthy is EMCOR GROUP INC?
The financial health rating of EMCOR GROUP INC (EME) is 9 / 10.
Can you provide the dividend sustainability for EME stock?
The dividend rating of EMCOR GROUP INC (EME) is 5 / 10 and the dividend payout ratio is 4.01%.