EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:EME • US29084Q1004
720.73 USD
-9.67 (-1.32%)
At close: Jan 30, 2026
719.49 USD
-1.24 (-0.17%)
After Hours: 1/30/2026, 8:04:00 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. Both the health and profitability get an excellent rating, making EME a very profitable company, without any liquidiy or solvency issues. EME is growing strongly while it is still valued neutral. This is a good combination! These ratings could make EME a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
- EME had positive earnings in the past year.
- 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 better Return On Assets (13.08%) than 85.45% of its industry peers.
- EME has a better Return On Equity (33.89%) than 85.45% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 27.41%, EME belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
- EME had an Average Return On Invested Capital over the past 3 years of 21.01%. This is significantly above the industry average of 15.97%.
- The last Return On Invested Capital (27.41%) for EME is above the 3 year average (21.01%), which is a sign of increasing profitability.
| 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
- The Profit Margin of EME (6.96%) is better than 70.91% of its industry peers.
- In the last couple of years the Profit Margin of EME has grown nicely.
- EME's Operating Margin of 9.41% is fine compared to the rest of the industry. EME outperforms 69.09% of its industry peers.
- In the last couple of years the Operating Margin of EME has grown nicely.
- With a Gross Margin value of 19.39%, EME perfoms like the industry average, outperforming 58.18% 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.
- 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
- An Altman-Z score of 7.19 indicates that EME is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.19, EME belongs to the best of the industry, outperforming 89.09% 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.
- Looking at the Debt to FCF ratio, with a value of 0.01, EME belongs to the top of the industry, outperforming 96.36% of the companies in the same industry.
- A Debt/Equity ratio of 0.00 indicates that EME is not too dependend on debt financing.
- EME has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. EME outperforms 94.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 7.19 |
ROIC/WACC2.62
WACC10.48%
2.3 Liquidity
- A Current Ratio of 1.19 indicates that EME should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.19, EME perfoms like the industry average, outperforming 41.82% of the companies in the same industry.
- A Quick Ratio of 1.17 indicates that EME should not have too much problems paying its short term obligations.
- EME's Quick ratio of 1.17 is in line compared 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.
- Measured over the past years, EME shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.23% on average per year.
- 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.
- The Revenue is expected to grow by 9.16% on average over the next years. This is quite good.
EPS Next Y18.26%
EPS Next 2Y14.44%
EPS Next 3Y12.92%
EPS Next 5YN/A
Revenue Next Year14.73%
Revenue Next 2Y10.5%
Revenue Next 3Y9.16%
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
- With a Price/Earnings ratio of 28.98, EME can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of EME indicates a somewhat cheap valuation: EME is cheaper than 69.09% of the companies listed in the same industry.
- EME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.30.
- The Price/Forward Earnings ratio is 25.55, which means the current valuation is very expensive for EME.
- Based on the Price/Forward Earnings ratio, EME is valued a bit cheaper than the industry average as 69.09% of the companies are valued more expensively.
- EME is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.98 | ||
| Fwd PE | 25.55 |
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.
- Based on the Price/Free Cash Flow ratio, EME is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.09 | ||
| EV/EBITDA | 18.85 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of EME may justify a higher PE ratio.
- A more expensive valuation may be justified as EME's earnings are expected to grow with 12.92% in the coming years.
PEG (NY)1.59
PEG (5Y)0.96
EPS Next 2Y14.44%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.23%, EME is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.44, EME pays a better dividend. On top of this EME pays more dividend than 83.64% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, EME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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
- 4.01% of the earnings are spent on dividend by EME. This is a low number and sustainable payout ratio.
- EME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP4.01%
EPS Next 2Y14.44%
EPS Next 3Y12.92%
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%.