EMCOR GROUP INC (EME) Stock Fundamental Analysis
NYSE:EME - New York Stock Exchange, Inc. - US29084Q1004 - Common Stock
EME gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 45 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. With these ratings, EME could be worth investigating further 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.
In the past 5 years EME has always been profitable.
Each year in the past 5 years EME had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.65%, EME belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
The Return On Equity of EME (33.59%) is better than 93.18% 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 93.18% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EME is above the industry average of 11.60%.
The 3 year average ROIC (15.98%) for EME is below the current ROIC(26.63%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 6.51%, EME belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Profit Margin of EME has grown nicely.
EME has a Operating Margin of 8.75%. This is in the better half of the industry: EME outperforms 75.00% 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.
EME's Gross Margin has improved in the last couple of years.
| 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.
EME has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EME has less shares outstanding
The debt/assets ratio for EME has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.61 indicates that EME is not in any danger for bankruptcy at the moment.
EME's Altman-Z score of 6.61 is amongst the best of the industry. EME outperforms 88.64% 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 better Debt to FCF ratio (0.01) than 95.45% 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.
With an excellent Debt to Equity ratio value of 0.00, EME belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 6.61 |
ROIC/WACC2.33
WACC11.44%
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 has a Current ratio of 1.28. This is in the lower half of the industry: EME underperforms 61.36% 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.
EME has a Quick ratio of 1.25. This is in the lower half of the industry: EME underperforms 63.64% 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 | 1.28 | ||
| 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.
EME shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.13% yearly.
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
The Earnings Per Share is expected to grow by 22.85% on average over the next years. This is a very strong growth
EME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.95% yearly.
EPS Next Y59%
EPS Next 2Y31.22%
EPS Next 3Y22.85%
EPS Next 5YN/A
Revenue Next Year16.75%
Revenue Next 2Y11.92%
Revenue Next 3Y9.95%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 26.77, EME can be considered very expensive at the moment.
Based on the Price/Earnings ratio, EME is valued a bit cheaper than the industry average as 70.45% of the companies are valued more expensively.
EME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
EME is valuated rather expensively with a Price/Forward Earnings ratio of 23.00.
EME's Price/Forward Earnings ratio is in line with the industry average.
EME's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.77 | ||
| Fwd PE | 23 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EME.
65.91% of the companies in the same industry are more expensive than EME, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.57 | ||
| EV/EBITDA | 16.19 |
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.
EME's earnings are expected to grow with 22.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.45
PEG (5Y)1.21
EPS Next 2Y31.22%
EPS Next 3Y22.85%
5. Dividend
5.1 Amount
EME has a yearly dividend return of 0.20%, which is pretty low.
EME's Dividend Yield is a higher than the industry average which is at 0.62.
With a Dividend Yield of 0.20, EME pays less dividend than the S&P500 average, which is at 2.28.
| 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 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)16.33%
Div Incr Years4
Div Non Decr Years11
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 2Y31.22%
EPS Next 3Y22.85%
EMCOR GROUP INC
NYSE:EME (1/21/2025, 8:04:00 PM)
After market: 529 +1.84 (+0.35%)527.16
+20.69 (+4.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.75%
Inst Owner Change-0.25%
Ins Owners0.99%
Ins Owner Change0.77%
Market Cap24.25B
Analysts80
Price Target547.74 (3.9%)
Short Float %1.08%
Short Ratio1.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
Yearly Dividend0.69
Dividend Growth(5Y)16.33%
DP4.36%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.78%
Min EPS beat(2)15.25%
Max EPS beat(2)38.31%
EPS beat(4)4
Avg EPS beat(4)30.98%
Min EPS beat(4)15.25%
Max EPS beat(4)45.63%
EPS beat(8)8
Avg EPS beat(8)27.56%
EPS beat(12)10
Avg EPS beat(12)18.75%
EPS beat(16)14
Avg EPS beat(16)18.21%
Revenue beat(2)1
Avg Revenue beat(2)0.09%
Min Revenue beat(2)-2.92%
Max Revenue beat(2)3.09%
Revenue beat(4)3
Avg Revenue beat(4)1.73%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)5.41%
Revenue beat(8)6
Avg Revenue beat(8)1.08%
Revenue beat(12)10
Avg Revenue beat(12)1.74%
Revenue beat(16)14
Avg Revenue beat(16)2.49%
PT rev (1m)0%
PT rev (3m)29.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)32.74%
EPS NY rev (1m)0%
EPS NY rev (3m)7.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.77 | ||
| Fwd PE | 23 | ||
| P/S | 1.7 | ||
| P/FCF | 20.57 | ||
| P/OCF | 19.28 | ||
| P/B | 8.79 | ||
| P/tB | 21.89 | ||
| EV/EBITDA | 16.19 |
EPS(TTM)19.69
EY3.74%
EPS(NY)22.92
Fwd EY4.35%
FCF(TTM)25.62
FCFY4.86%
OCF(TTM)27.35
OCFY5.19%
SpS309.46
BVpS59.96
TBVpS24.08
PEG (NY)0.45
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 33.59% | ||
| ROCE | 36.67% | ||
| ROIC | 26.63% | ||
| ROICexc | 38.31% | ||
| ROICexgc | 127.24% | ||
| OM | 8.75% | ||
| PM (TTM) | 6.51% | ||
| GM | 18.45% | ||
| FCFM | 8.28% |
ROA(3y)7.99%
ROA(5y)6.67%
ROE(3y)21.08%
ROE(5y)17.1%
ROIC(3y)15.98%
ROIC(5y)14.37%
ROICexc(3y)20.83%
ROICexc(5y)18.73%
ROICexgc(3y)61.56%
ROICexgc(5y)57.46%
ROCE(3y)22.01%
ROCE(5y)19.79%
ROICexcg growth 3Y9.82%
ROICexcg growth 5Y7.8%
ROICexc growth 3Y15.72%
ROICexc growth 5Y13.33%
OM growth 3Y7.67%
OM growth 5Y6.91%
PM growth 3Y49.33%
PM growth 5Y7.61%
GM growth 3Y1.54%
GM growth 5Y2.29%
F-Score9
Asset Turnover1.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 61.25% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | 261.82 | ||
| Cash Conversion | 91.49% | ||
| Profit Quality | 127.21% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 6.61 |
F-Score9
WACC11.44%
ROIC/WACC2.33
Cap/Depr(3y)47.83%
Cap/Depr(5y)48.21%
Cap/Sales(3y)0.48%
Cap/Sales(5y)0.5%
Profit Quality(3y)104.63%
Profit Quality(5y)195.82%
High Growth Momentum
Growth
EPS 1Y (TTM)71.67%
EPS 3Y27.58%
EPS 5Y22.12%
EPS Q2Q%62.46%
EPS Next Y59%
EPS Next 2Y31.22%
EPS Next 3Y22.85%
EPS Next 5YN/A
Revenue 1Y (TTM)17.71%
Revenue growth 3Y12.67%
Revenue growth 5Y9.13%
Sales Q2Q%15.26%
Revenue Next Year16.75%
Revenue Next 2Y11.92%
Revenue Next 3Y9.95%
Revenue Next 5YN/A
EBIT growth 1Y62.58%
EBIT growth 3Y21.32%
EBIT growth 5Y16.66%
EBIT Next Year74.9%
EBIT Next 3Y26.14%
EBIT Next 5YN/A
FCF growth 1Y198.93%
FCF growth 3Y2.69%
FCF growth 5Y29.27%
OCF growth 1Y183.82%
OCF growth 3Y3.72%
OCF growth 5Y27.12%