EMCOR GROUP INC (EME) Fundamental Analysis & Valuation

NYSE:EME • US29084Q1004

Current stock price

891.67 USD
+58.3 (+7%)
At close:
893.05 USD
+1.38 (+0.15%)
Pre-Market:

This EME fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. EME Profitability Analysis

1.1 Basic Checks

  • In the past year EME was profitable.
  • In the past year EME had a positive cash flow from operations.
  • 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.
EME Yearly Net Income VS EBIT VS OCF VS FCFEME Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 13.70%, EME belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
  • EME has a better Return On Equity (34.64%) than 89.09% of its industry peers.
  • With an excellent Return On Invested Capital value of 26.05%, EME belongs to the best of the industry, outperforming 92.73% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for EME is significantly above the industry average of 14.27%.
  • The 3 year average ROIC (24.90%) for EME is below the current ROIC(26.05%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 13.7%
ROE 34.64%
ROIC 26.05%
ROA(3y)12.11%
ROA(5y)10.15%
ROE(3y)31.52%
ROE(5y)26.43%
ROIC(3y)24.9%
ROIC(5y)20.47%
EME Yearly ROA, ROE, ROICEME Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • EME has a Profit Margin of 7.49%. This is in the better half of the industry: EME outperforms 78.18% of its industry peers.
  • In the last couple of years the Profit Margin of EME has grown nicely.
  • EME's Operating Margin of 9.23% 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.
  • The Gross Margin of EME (19.33%) is comparable to the rest of the industry.
  • EME's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 9.23%
PM (TTM) 7.49%
GM 19.33%
OM growth 3Y21.88%
OM growth 5Y10.56%
PM growth 3Y26.9%
PM growth 5Y37.75%
GM growth 3Y10.11%
GM growth 5Y4.03%
EME Yearly Profit, Operating, Gross MarginsEME Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

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9

2. EME Health Analysis

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.
EME Yearly Shares OutstandingEME Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
EME Yearly Total Debt VS Total AssetsEME Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • EME has an Altman-Z score of 7.67. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
  • EME has a Altman-Z score of 7.67. This is amongst the best in the industry. EME outperforms 85.45% 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.
  • A Debt/Equity ratio of 0.00 indicates that EME is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.00, EME belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.01
Altman-Z 7.67
ROIC/WACC2.44
WACC10.69%
EME Yearly LT Debt VS Equity VS FCFEME Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • EME has a Current Ratio of 1.22. 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 1.22. This is comparable to the rest of the industry: EME outperforms 41.82% of its industry peers.
  • EME has a Quick 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.
  • The Quick ratio of EME (1.19) is comparable to the rest of the industry.
  • EME does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.22
Quick Ratio 1.19
EME Yearly Current Assets VS Current LiabilitesEME Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. EME Growth Analysis

3.1 Past

  • EME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.73%, which is quite impressive.
  • EME shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.51% yearly.
  • EME shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.62%.
  • Measured over the past years, EME shows a quite strong growth in Revenue. The Revenue has been growing by 14.07% on average per year.
EPS 1Y (TTM)31.73%
EPS 3Y51.18%
EPS 5Y34.51%
EPS Q2Q%30.04%
Revenue 1Y (TTM)16.62%
Revenue growth 3Y15.32%
Revenue growth 5Y14.07%
Sales Q2Q%19.67%

3.2 Future

  • EME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.53% yearly.
  • The Revenue is expected to grow by 6.73% on average over the next years.
EPS Next Y1.06%
EPS Next 2Y5.8%
EPS Next 3Y8.13%
EPS Next 5Y10.53%
Revenue Next Year8.25%
Revenue Next 2Y7.65%
Revenue Next 3Y7.05%
Revenue Next 5Y6.73%

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 decreasing.
EME Yearly Revenue VS EstimatesEME Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
EME Yearly EPS VS EstimatesEME Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30 40

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4

4. EME Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 29.91, the valuation of EME can be described as expensive.
  • Based on the Price/Earnings ratio, EME is valued a bit cheaper than the industry average as 74.55% of the companies are valued more expensively.
  • EME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.77.
  • A Price/Forward Earnings ratio of 28.22 indicates a quite expensive valuation of EME.
  • Based on the Price/Forward Earnings ratio, EME is valued a bit cheaper than 67.27% of the companies in the same industry.
  • EME's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.75.
Industry RankSector Rank
PE 29.91
Fwd PE 28.22
EME Price Earnings VS Forward Price EarningsEME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as EME.
  • Based on the Price/Free Cash Flow ratio, EME is valued a bit cheaper than 63.64% of the companies in the same industry.
Industry RankSector Rank
P/FCF 33.39
EV/EBITDA 22
EME Per share dataEME EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EME does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of EME may justify a higher PE ratio.
PEG (NY)28.14
PEG (5Y)0.87
EPS Next 2Y5.8%
EPS Next 3Y8.13%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. EME Dividend Analysis

5.1 Amount

  • EME has a yearly dividend return of 0.19%, 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 0.19, EME pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.19%

5.2 History

  • On average, the dividend of EME grows each year by 25.60%, 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)25.6%
Div Incr Years5
Div Non Decr Years12
EME Yearly Dividends per shareEME Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • 3.54% of the earnings are spent on dividend by EME. This is a low number and sustainable payout ratio.
  • The dividend of EME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP3.54%
EPS Next 2Y5.8%
EPS Next 3Y8.13%
EME Yearly Income VS Free CF VS DividendEME Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
EME Dividend Payout.EME Dividend Payout, showing the Payout Ratio.EME Dividend Payout.PayoutRetained Earnings

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EME Fundamentals: All Metrics, Ratios and Statistics

EMCOR GROUP INC

NYSE:EME (4/30/2026, 8:04:00 PM)

Premarket: 893.05 +1.38 (+0.15%)

891.67

+58.3 (+7%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Industry Strength91.93
Industry Growth91.3
Earnings (Last)04-29
Earnings (Next)07-29
Inst Owners97.86%
Inst Owner Change0.59%
Ins Owners0.74%
Ins Owner Change-2.99%
Market Cap39.71B
Revenue(TTM)16.99B
Net Income(TTM)1.27B
Analysts81.33
Price Target863.68 (-3.14%)
Short Float %2.08%
Short Ratio2.42
Dividend
Industry RankSector Rank
Dividend Yield 0.19%
Yearly Dividend1
Dividend Growth(5Y)25.6%
DP3.54%
Div Incr Years5
Div Non Decr Years12
Ex-Date04-16
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.45%
Min EPS beat(2)-0.55%
Max EPS beat(2)43.44%
EPS beat(4)3
Avg EPS beat(4)17.86%
Min EPS beat(4)-0.55%
Max EPS beat(4)43.44%
EPS beat(8)7
Avg EPS beat(8)22.41%
EPS beat(12)11
Avg EPS beat(12)23.82%
EPS beat(16)14
Avg EPS beat(16)19.12%
Revenue beat(2)1
Avg Revenue beat(2)1.91%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)4.33%
Revenue beat(4)3
Avg Revenue beat(4)2.18%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)4.33%
Revenue beat(8)5
Avg Revenue beat(8)1.55%
Revenue beat(12)8
Avg Revenue beat(12)1.18%
Revenue beat(16)12
Avg Revenue beat(16)1.59%
PT rev (1m)15.34%
PT rev (3m)16.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.95%
EPS NY rev (1m)0.63%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)1.72%
Valuation
Industry RankSector Rank
PE 29.91
Fwd PE 28.22
P/S 2.34
P/FCF 33.39
P/OCF 30.49
P/B 10.81
P/tB 34.45
EV/EBITDA 22
EPS(TTM)29.81
EY3.34%
EPS(NY)31.6
Fwd EY3.54%
FCF(TTM)26.71
FCFY3%
OCF(TTM)29.24
OCFY3.28%
SpS381.46
BVpS82.5
TBVpS25.89
PEG (NY)28.14
PEG (5Y)0.87
Graham Number235.241 (-73.62%)
Profitability
Industry RankSector Rank
ROA 13.7%
ROE 34.64%
ROCE 35.44%
ROIC 26.05%
ROICexc 34.8%
ROICexgc 145.39%
OM 9.23%
PM (TTM) 7.49%
GM 19.33%
FCFM 7%
ROA(3y)12.11%
ROA(5y)10.15%
ROE(3y)31.52%
ROE(5y)26.43%
ROIC(3y)24.9%
ROIC(5y)20.47%
ROICexc(3y)35.78%
ROICexc(5y)28.51%
ROICexgc(3y)136.05%
ROICexgc(5y)102.02%
ROCE(3y)33.86%
ROCE(5y)27.84%
ROICexgc growth 3Y41.04%
ROICexgc growth 5Y17.75%
ROICexc growth 3Y24.7%
ROICexc growth 5Y13.96%
OM growth 3Y21.88%
OM growth 5Y10.56%
PM growth 3Y26.9%
PM growth 5Y37.75%
GM growth 3Y10.11%
GM growth 5Y4.03%
F-Score7
Asset Turnover1.83
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.01
Debt/EBITDA 0
Cap/Depr 60.48%
Cap/Sales 0.66%
Interest Coverage 140.93
Cash Conversion 74.19%
Profit Quality 93.44%
Current Ratio 1.22
Quick Ratio 1.19
Altman-Z 7.67
F-Score7
WACC10.69%
ROIC/WACC2.44
Cap/Depr(3y)60.82%
Cap/Depr(5y)52%
Cap/Sales(3y)0.6%
Cap/Sales(5y)0.52%
Profit Quality(3y)118.51%
Profit Quality(5y)107.94%
High Growth Momentum
Growth
EPS 1Y (TTM)31.73%
EPS 3Y51.18%
EPS 5Y34.51%
EPS Q2Q%30.04%
EPS Next Y1.06%
EPS Next 2Y5.8%
EPS Next 3Y8.13%
EPS Next 5Y10.53%
Revenue 1Y (TTM)16.62%
Revenue growth 3Y15.32%
Revenue growth 5Y14.07%
Sales Q2Q%19.67%
Revenue Next Year8.25%
Revenue Next 2Y7.65%
Revenue Next 3Y7.05%
Revenue Next 5Y6.73%
EBIT growth 1Y16.63%
EBIT growth 3Y40.56%
EBIT growth 5Y26.11%
EBIT Next Year21.73%
EBIT Next 3Y12.32%
EBIT Next 5Y10.98%
FCF growth 1Y-10.78%
FCF growth 3Y38.4%
FCF growth 5Y9.42%
OCF growth 1Y-7.52%
OCF growth 3Y37.77%
OCF growth 5Y10.06%

EMCOR GROUP INC / EME Fundamental Analysis 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 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.


Can you provide the profitability details for EMCOR GROUP INC?

EMCOR GROUP INC (EME) has a profitability rating of 9 / 10.


How financially healthy is EMCOR GROUP INC?

The financial health rating of EMCOR GROUP INC (EME) is 9 / 10.


What is the earnings growth outlook for EMCOR GROUP INC?

The Earnings per Share (EPS) of EMCOR GROUP INC (EME) is expected to grow by 1.06% in the next year.