EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA - NYSE:EME - US29084Q1004 - Common Stock
648 USD
-129 (-16.6%)
655 USD
+7 (+1.08%)
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. EME gets an excellent profitability rating and is at the same time showing great financial health properties. EME is not overvalued while it is showing excellent growth. This is an interesting combination. 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.
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 13.16%, EME belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
Looking at the Return On Equity, with a value of 36.22%, EME belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
EME has a Return On Invested Capital of 27.02%. This is amongst the best in the industry. EME outperforms 89.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EME is above the industry average of 17.12%.
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
With a decent Profit Margin value of 7.07%, EME is doing good in the industry, outperforming 76.36% 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 9.50%, EME is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Operating Margin of EME has grown nicely.
EME's Gross Margin of 19.49% is in line compared to the rest of the industry. EME outperforms 60.00% of its industry peers.
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.
The number of shares outstanding for EME has been reduced compared to 1 year ago.
EME has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EME has an improved debt to assets ratio.
2.2 Solvency
EME has an Altman-Z score of 6.69. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
EME has a Altman-Z score of 6.69. This is amongst the best in the industry. EME outperforms 83.64% 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.
The Debt to FCF ratio of EME (0.21) is better than 90.91% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that EME is not too dependend on debt financing.
EME has a better Debt to Equity ratio (0.08) than 87.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 6.69 |
ROIC/WACC2.52
WACC10.71%
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 comparable to the rest of the industry.
EME has a Quick Ratio of 1.15. This is a normal value and indicates that EME is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.15, EME perfoms like the industry average, outperforming 43.64% of the companies in the same industry.
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 | 1.18 | ||
| Quick Ratio | 1.15 |
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.
EME shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.76%.
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)15.76%
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 13.00% on average per year.
Based on estimates for the next years, EME will show a quite strong growth in Revenue. The Revenue will grow by 9.43% on average per year.
EPS Next Y18.05%
EPS Next 2Y13.49%
EPS Next 3Y13%
EPS Next 5YN/A
Revenue Next Year14.68%
Revenue Next 2Y10.56%
Revenue Next 3Y9.43%
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
A Price/Earnings ratio of 26.06 indicates a quite expensive valuation of EME.
Based on the Price/Earnings ratio, EME is valued a bit 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 26.19.
EME is valuated rather expensively with a Price/Forward Earnings ratio of 23.36.
Based on the Price/Forward Earnings ratio, EME is valued a bit cheaper than 74.55% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EME to the average of the S&P500 Index (22.50), we can say EME is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.06 | ||
| Fwd PE | 23.36 |
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 67.27% of the companies listed in the same industry.
EME's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EME is cheaper than 74.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24 | ||
| EV/EBITDA | 17.5 |
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.
EME's earnings are expected to grow with 13.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.44
PEG (5Y)0.86
EPS Next 2Y13.49%
EPS Next 3Y13%
5. Dividend
5.1 Amount
EME has a yearly dividend return of 0.13%, which is pretty low.
EME's Dividend Yield is a higher than the industry average which is at 1.69.
Compared to an average S&P500 Dividend Yield of 2.33, EME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
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 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 4.14% 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.
DP4.14%
EPS Next 2Y13.49%
EPS Next 3Y13%
648
-129 (-16.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.74%
Inst Owner Change-0.51%
Ins Owners0.83%
Ins Owner Change-0.5%
Market Cap29.00B
Revenue(TTM)14.57B
Net Income(TTM)1.11B
Analysts80
Price Target688.65 (6.27%)
Short Float %2.12%
Short Ratio1.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
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)0.84%
PT rev (3m)21.84%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)5.1%
EPS NY rev (1m)0.06%
EPS NY rev (3m)5.9%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.06 | ||
| Fwd PE | 23.36 | ||
| P/S | 1.85 | ||
| P/FCF | 24 | ||
| P/OCF | 22.34 | ||
| P/B | 9.5 | ||
| P/tB | 46.95 | ||
| EV/EBITDA | 17.5 |
EPS(TTM)24.87
EY3.84%
EPS(NY)27.75
Fwd EY4.28%
FCF(TTM)27
FCFY4.17%
OCF(TTM)29
OCFY4.48%
SpS349.39
BVpS68.18
TBVpS13.8
PEG (NY)1.44
PEG (5Y)0.86
Graham Number195.32
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%
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-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 | 6.69 |
F-Score6
WACC10.71%
ROIC/WACC2.52
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 Y18.05%
EPS Next 2Y13.49%
EPS Next 3Y13%
EPS Next 5YN/A
Revenue 1Y (TTM)15.76%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%16.35%
Revenue Next Year14.68%
Revenue Next 2Y10.56%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
EBIT growth 1Y32.77%
EBIT growth 3Y36.33%
EBIT growth 5Y23.8%
EBIT Next Year31.42%
EBIT Next 3Y14.79%
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%
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 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 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 4.14%.