EMCOR GROUP INC (EME)
US29084Q1004 - Common Stock
Taking everything into account, EME scores 8 out of 10 in our fundamental rating. EME was compared to 44 industry peers in the Construction & Engineering industry. EME scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EME is showing excellent growth while it is valued at reasonable prices. 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.
Each year in the past 5 years EME has been profitable.
Each year in the past 5 years EME had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EME (12.65%) is better than 97.62% of its industry peers.
EME has a better Return On Equity (33.59%) than 97.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 26.63%, EME belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EME is significantly above the industry average of 9.25%.
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
The Profit Margin of EME (6.51%) is better than 83.33% of its industry peers.
In the last couple of years the Profit Margin of EME has grown nicely.
EME has a better Operating Margin (8.75%) than 73.81% of its industry peers.
In the last couple of years the Operating Margin of EME has grown nicely.
Looking at the Gross Margin, with a value of 18.45%, EME is in line with its industry, outperforming 50.00% of the companies in the same industry.
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
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
Compared to 1 year ago, EME has an improved debt to assets ratio.
2.2 Solvency
EME has an Altman-Z score of 6.66. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
EME's Altman-Z score of 6.66 is amongst the best of the industry. EME outperforms 95.24% 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.
EME has a Debt to FCF ratio of 0.01. This is amongst the best in the industry. EME outperforms 95.24% of its industry peers.
EME has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, EME belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 6.66 |
ROIC/WACC2.38
WACC11.21%
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.
EME's Current ratio of 1.28 is in line compared to the rest of the industry. EME outperforms 40.48% 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.
Looking at the Quick ratio, with a value of 1.25, EME is doing worse than 61.90% 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 | 1.28 | ||
| 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.
Looking at the last year, EME shows a quite strong growth in Revenue. The Revenue has grown by 17.71% in the last year.
Measured over the past years, EME shows a quite strong growth in Revenue. The Revenue has been growing by 9.13% on average per year.
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
EME is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.17% yearly.
Based on estimates for the next years, EME will show a quite strong growth in Revenue. The Revenue will grow by 10.33% on average per year.
EPS Next Y57.39%
EPS Next 2Y30.13%
EPS Next 3Y22.17%
EPS Next 5YN/A
Revenue Next Year16.44%
Revenue Next 2Y11.93%
Revenue Next 3Y10.33%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 26.76, the valuation of EME can be described as expensive.
Based on the Price/Earnings ratio, EME is valued a bit cheaper than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, EME is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.38, the valuation of EME can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EME is on the same level as its industry peers.
EME's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.76 | ||
| Fwd PE | 23.38 |
4.2 Price Multiples
EME's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, EME is valued a bit cheaper than 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.57 | ||
| EV/EBITDA | 16.51 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 22.17% in the coming years.
PEG (NY)0.47
PEG (5Y)1.21
EPS Next 2Y30.13%
EPS Next 3Y22.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.20%, EME is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.84, EME pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, EME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)16.33%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
4.36% of the earnings are spent on dividend by EME. This is a low number and sustainable payout ratio.
EME's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.36%
EPS Next 2Y30.13%
EPS Next 3Y22.17%
EMCOR GROUP INC
NYSE:EME (11/21/2024, 8:24:36 PM)
After market: 526.95 0 (0%)526.95
+11.13 (+2.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.76 | ||
| Fwd PE | 23.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.47
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 33.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.75% | ||
| PM (TTM) | 6.51% | ||
| GM | 18.45% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)71.67%
EPS 3Y27.58%
EPS 5Y
EPS Q2Q%
EPS Next Y57.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.71%
Revenue growth 3Y12.67%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y