EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:EME • US29084Q1004
779.33 USD
+3.09 (+0.4%)
Last: Feb 10, 2026, 01:42 PM
We assign a fundamental rating of 8 out of 10 to EME. EME was compared to 55 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make EME suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- EME had positive earnings in the past year.
- In the past year EME had a positive cash flow from operations.
- 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
- The Return On Assets of EME (13.08%) is better than 85.45% of its industry peers.
- With an excellent Return On Equity value of 33.89%, EME belongs to the best of the industry, outperforming 85.45% of the companies in the same industry.
- EME's Return On Invested Capital of 27.41% is amongst the best of the industry. EME outperforms 89.09% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EME is significantly above the industry average of 15.84%.
- 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 better Profit Margin (6.96%) than 70.91% of its industry peers.
- EME's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 9.41%, EME is doing good in the industry, outperforming 69.09% of the companies in the same industry.
- EME's Operating Margin has improved in the last couple of years.
- EME has a Gross Margin of 19.39%. This is comparable to the rest of the industry: EME outperforms 58.18% of its industry peers.
- In the last couple of years the Gross Margin of EME has grown nicely.
| 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
- EME has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- EME has less shares outstanding than it did 1 year ago.
- 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 7.42. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
- EME's Altman-Z score of 7.42 is amongst the best of the industry. EME outperforms 89.09% 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.
- EME has a Debt to FCF ratio of 0.01. This is amongst the best in the industry. EME outperforms 94.55% 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 92.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 7.42 |
ROIC/WACC2.78
WACC9.87%
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 has a Current ratio (1.19) which is in line with its industry peers.
- EME has a Quick Ratio of 1.17. 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 Quick ratio of 1.17. This is comparable to the rest of the industry: EME outperforms 45.45% of 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.
- The Revenue has grown by 14.11% in the past year. This is quite good.
- 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
- The Earnings Per Share is expected to grow by 12.92% on average over the next years. This is quite good.
- Based on estimates for the next years, EME will show a quite strong growth in Revenue. The Revenue will grow by 9.12% on average per year.
EPS Next Y18.31%
EPS Next 2Y14.44%
EPS Next 3Y12.92%
EPS Next 5YN/A
Revenue Next Year14.75%
Revenue Next 2Y10.46%
Revenue Next 3Y9.12%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
- The Price/Earnings ratio is 31.34, which means the current valuation is very expensive for EME.
- Based on the Price/Earnings ratio, EME is valued a bit cheaper than 67.27% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.06, EME is valued at the same level.
- A Price/Forward Earnings ratio of 27.62 indicates a quite expensive valuation of EME.
- Based on the Price/Forward Earnings ratio, EME is valued a bit cheaper than the industry average as 67.27% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.86, EME is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.34 | ||
| Fwd PE | 27.62 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EME is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EME indicates a somewhat cheap valuation: EME is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.38 | ||
| EV/EBITDA | 20.06 |
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 12.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.71
PEG (5Y)1.04
EPS Next 2Y14.44%
EPS Next 3Y12.92%
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 0.14. EME pays more dividend than 85.45% 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 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
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 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.
- The dividend of EME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP4.01%
EPS Next 2Y14.44%
EPS Next 3Y12.92%
NYSE:EME (2/10/2026, 1:42:52 PM)
779.33
+3.09 (+0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)03-04 2026-03-04/bmo
Inst Owners95.78%
Inst Owner Change-0.1%
Ins Owners0.83%
Ins Owner Change0.57%
Market Cap34.89B
Revenue(TTM)16.24B
Net Income(TTM)1.13B
Analysts81.43
Price Target731.49 (-6.14%)
Short Float %1.96%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend0.93
Dividend Growth(5Y)23.83%
DP4.01%
Div Incr Years4
Div Non Decr Years11
Ex-Date01-14 2026-01-14 (0.4)
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)1.43%
PT rev (3m)6.22%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.34 | ||
| Fwd PE | 27.62 | ||
| P/S | 2.15 | ||
| P/FCF | 30.38 | ||
| P/OCF | 27.98 | ||
| P/B | 10.46 | ||
| P/tB | 37.96 | ||
| EV/EBITDA | 20.06 |
EPS(TTM)24.87
EY3.19%
EPS(NY)28.21
Fwd EY3.62%
FCF(TTM)25.66
FCFY3.29%
OCF(TTM)27.86
OCFY3.57%
SpS362.82
BVpS74.5
TBVpS20.53
PEG (NY)1.71
PEG (5Y)1.04
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 | 7.42 |
F-Score7
WACC9.87%
ROIC/WACC2.78
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 Y18.31%
EPS Next 2Y14.44%
EPS Next 3Y12.92%
EPS Next 5YN/A
Revenue 1Y (TTM)14.11%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%16.35%
Revenue Next Year14.75%
Revenue Next 2Y10.46%
Revenue Next 3Y9.12%
Revenue Next 5YN/A
EBIT growth 1Y22.7%
EBIT growth 3Y36.33%
EBIT growth 5Y23.8%
EBIT Next Year32.03%
EBIT Next 3Y15.32%
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 8 / 10 to EME.
What is the valuation status of EMCOR GROUP INC (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 9 / 10.
What is the financial health of EMCOR GROUP INC (EME) stock?
The financial health rating of EMCOR GROUP INC (EME) is 9 / 10.
How sustainable is the dividend of EMCOR GROUP INC (EME) stock?
The dividend rating of EMCOR GROUP INC (EME) is 6 / 10 and the dividend payout ratio is 4.01%.