EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA - NYSE:EME - US29084Q1004 - Common Stock
640.85 USD
-15.48 (-2.36%)
640.85 USD
0 (0%)
We assign a fundamental rating of 7 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 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.
In the past 5 years EME has always been profitable.
In the past 5 years EME always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.08%, EME belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
With an excellent Return On Equity value of 33.89%, EME belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for EME is above the industry average of 16.81%.
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
EME has a Profit Margin of 6.96%. This is in the better half of the industry: EME outperforms 72.73% of its industry peers.
EME's Profit Margin has improved in the last couple of years.
The Operating Margin of EME (9.41%) is better than 72.73% of its industry peers.
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 60.00% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EME is creating value.
EME has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 6.81 indicates that EME is not in any danger for bankruptcy at the moment.
EME's Altman-Z score of 6.81 is amongst the best of the industry. EME outperforms 85.45% 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.
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.
EME has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of EME (0.00) is better than 92.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 6.81 |
ROIC/WACC2.7
WACC10.15%
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.
The Current ratio of EME (1.19) is comparable to the rest of the industry.
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.
The Quick ratio of EME (1.17) is comparable to the rest of the 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 | 1.19 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
EME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.31%, 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 30.23% on average per year.
EME shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.11%.
The Revenue has been growing by 9.69% on average over the past years. This is quite good.
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
Based on estimates for the next years, EME will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.63% on average per year.
The Revenue is expected to grow by 9.09% on average over the next years. This is quite good.
EPS Next Y18.15%
EPS Next 2Y14.13%
EPS Next 3Y12.63%
EPS Next 5YN/A
Revenue Next Year14.62%
Revenue Next 2Y10.56%
Revenue Next 3Y9.09%
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.
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
EME is valuated quite expensively with a Price/Earnings ratio of 25.77.
74.55% of the companies in the same industry are more expensive than EME, based on the Price/Earnings ratio.
EME is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.84, the valuation of EME can be described as rather expensive.
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 rather cheaply when we compare the Price/Forward Earnings ratio to 33.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.77 | ||
| Fwd PE | 22.84 |
4.2 Price Multiples
EME's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EME is cheaper than 65.45% of the companies in the same industry.
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 | 24.97 | ||
| EV/EBITDA | 16.9 |
4.3 Compensation for Growth
The 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 12.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.42
PEG (5Y)0.85
EPS Next 2Y14.13%
EPS Next 3Y12.63%
5. Dividend
5.1 Amount
With a yearly dividend of 0.15%, EME is not a good candidate for dividend investing.
EME's Dividend Yield is a higher than the industry average which is at 1.78.
Compared to an average S&P500 Dividend Yield of 2.36, EME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
5.2 History
The dividend of EME is nicely growing with an annual growth rate of 23.83%!
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.
The dividend of EME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP4.01%
EPS Next 2Y14.13%
EPS Next 3Y12.63%
640.85
-15.48 (-2.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.74%
Inst Owner Change-0.74%
Ins Owners0.83%
Ins Owner Change0.02%
Market Cap28.68B
Revenue(TTM)16.24B
Net Income(TTM)1.13B
Analysts81.43
Price Target688.65 (7.46%)
Short Float %2.12%
Short Ratio1.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
Yearly Dividend0.93
Dividend Growth(5Y)23.83%
DP4.01%
Div Incr Years4
Div Non Decr Years11
Ex-Date
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)3.97%
PT rev (3m)7.55%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)2.92%
EPS NY rev (1m)0.15%
EPS NY rev (3m)5.99%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.77 | ||
| Fwd PE | 22.84 | ||
| P/S | 1.77 | ||
| P/FCF | 24.97 | ||
| P/OCF | 23 | ||
| P/B | 8.6 | ||
| P/tB | 31.21 | ||
| EV/EBITDA | 16.9 |
EPS(TTM)24.87
EY3.88%
EPS(NY)28.06
Fwd EY4.38%
FCF(TTM)25.66
FCFY4%
OCF(TTM)27.86
OCFY4.35%
SpS362.9
BVpS74.52
TBVpS20.54
PEG (NY)1.42
PEG (5Y)0.85
Graham Number204.2
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 | 6.81 |
F-Score7
WACC10.15%
ROIC/WACC2.7
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 Y18.15%
EPS Next 2Y14.13%
EPS Next 3Y12.63%
EPS Next 5YN/A
Revenue 1Y (TTM)14.11%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%16.35%
Revenue Next Year14.62%
Revenue Next 2Y10.56%
Revenue Next 3Y9.09%
Revenue Next 5YN/A
EBIT growth 1Y22.7%
EBIT growth 3Y36.33%
EBIT growth 5Y23.8%
EBIT Next Year31.42%
EBIT Next 3Y14.79%
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 7 / 10 to EME.
What is the valuation status for EME stock?
ChartMill assigns a valuation rating of 5 / 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 8 / 10.
How financially healthy is EMCOR GROUP INC?
The financial health rating of EMCOR GROUP INC (EME) is 9 / 10.
Can you provide the dividend sustainability for EME stock?
The dividend rating of EMCOR GROUP INC (EME) is 5 / 10 and the dividend payout ratio is 4.01%.