EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EME - US29084Q1004 - Common Stock
623.74 USD
-5.48 (-0.87%)
623.74 USD
0 (0%)
EME gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 55 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 not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, EME could be worth investigating further 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 Return On Assets of 13.08%. This is amongst the best in the industry. EME outperforms 83.64% 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 87.27% of its industry peers.
EME had an Average Return On Invested Capital over the past 3 years of 21.01%. This is above the industry average of 17.90%.
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
EME has a Profit Margin of 6.96%. This is in the better half of the industry: EME outperforms 70.91% of its industry peers.
EME's Profit Margin has improved in the last couple of years.
EME has a better Operating Margin (9.41%) than 69.09% 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 19.39%, EME is in line with its industry, outperforming 56.36% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EME is creating value.
Compared to 1 year ago, EME has less shares outstanding
The number of shares outstanding for EME has been reduced compared to 5 years ago.
EME has a better debt/assets ratio than last year.
2.2 Solvency
EME has an Altman-Z score of 6.68. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.68, EME belongs to the top of the industry, outperforming 87.27% of the companies in the same industry.
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's Debt to FCF ratio of 0.01 is amongst the best of 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.
Looking at the Debt to Equity ratio, with a value of 0.00, EME belongs to the top 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 | 6.68 |
ROIC/WACC2.7
WACC10.15%
2.3 Liquidity
EME has a Current Ratio of 1.19. This is a normal value and indicates that EME is financially healthy and should not expect problems in meeting its short term obligations.
EME's Current ratio of 1.19 is on the low side compared to the rest of the industry. EME is outperformed by 61.82% of 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 (1.17) which is in line with 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
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.
Looking at the last year, EME shows a quite strong growth in Revenue. The Revenue has grown by 14.11% in the last year.
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)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
EME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.18% yearly.
EME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.02% yearly.
EPS Next Y18.26%
EPS Next 2Y14.57%
EPS Next 3Y12.18%
EPS Next 5YN/A
Revenue Next Year14.77%
Revenue Next 2Y10.6%
Revenue Next 3Y9.02%
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
The Price/Earnings ratio is 25.08, 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 72.73% of the companies in the same industry.
EME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.28.
The Price/Forward Earnings ratio is 22.06, 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 72.73% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.52. EME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.08 | ||
| Fwd PE | 22.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EME is valued a bit cheaper than 67.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EME is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.31 | ||
| EV/EBITDA | 16.19 |
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.
A more expensive valuation may be justified as EME's earnings are expected to grow with 12.18% in the coming years.
PEG (NY)1.37
PEG (5Y)0.83
EPS Next 2Y14.57%
EPS Next 3Y12.18%
5. Dividend
5.1 Amount
EME has a yearly dividend return of 0.16%, which is pretty low.
EME's Dividend Yield is a higher than the industry average which is at 1.66.
Compared to an average S&P500 Dividend Yield of 2.31, EME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
5.2 History
The dividend of EME is nicely growing with an annual growth rate of 23.83%!
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 4.01% 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 2Y14.57%
EPS Next 3Y12.18%
623.74
-5.48 (-0.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.82%
Inst Owner Change-2.15%
Ins Owners0.83%
Ins Owner Change-0.07%
Market Cap27.92B
Revenue(TTM)16.24B
Net Income(TTM)1.13B
Analysts81.43
Price Target721.17 (15.62%)
Short Float %2.08%
Short Ratio1.95
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)4.72%
PT rev (3m)9.78%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)0.45%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.08 | ||
| Fwd PE | 22.06 | ||
| P/S | 1.72 | ||
| P/FCF | 24.31 | ||
| P/OCF | 22.39 | ||
| P/B | 8.37 | ||
| P/tB | 30.38 | ||
| EV/EBITDA | 16.19 |
EPS(TTM)24.87
EY3.99%
EPS(NY)28.28
Fwd EY4.53%
FCF(TTM)25.66
FCFY4.11%
OCF(TTM)27.86
OCFY4.47%
SpS362.82
BVpS74.5
TBVpS20.53
PEG (NY)1.37
PEG (5Y)0.83
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 | 6.68 |
F-Score7
WACC10.15%
ROIC/WACC2.7
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 2Y14.57%
EPS Next 3Y12.18%
EPS Next 5YN/A
Revenue 1Y (TTM)14.11%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%16.35%
Revenue Next Year14.77%
Revenue Next 2Y10.6%
Revenue Next 3Y9.02%
Revenue Next 5YN/A
EBIT growth 1Y22.7%
EBIT growth 3Y36.33%
EBIT growth 5Y23.8%
EBIT Next Year32.03%
EBIT Next 3Y14.71%
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%.