EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EME - US29084Q1004 - Common Stock
623.26 USD
-3.83 (-0.61%)
623.26 USD
0 (0%)
Taking everything into account, EME scores 7 out of 10 in our fundamental rating. EME was compared to 54 industry peers in the Construction & Engineering industry. EME scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EME is growing strongly while it is still valued neutral. This is a good combination! This makes EME very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year EME was profitable.
EME had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 13.08%, EME belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
Looking at the Return On Equity, with a value of 33.89%, EME belongs to the top of the industry, outperforming 85.19% 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 88.89% 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 16.29%.
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
Looking at the Profit Margin, with a value of 6.96%, EME is in the better half of the industry, outperforming 70.37% 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 9.41%. This is in the better half of the industry: EME outperforms 68.52% of its industry peers.
In the last couple of years the Operating Margin of EME has grown nicely.
The Gross Margin of EME (19.39%) is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EME is creating value.
Compared to 1 year ago, EME has less shares outstanding
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 6.67. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.67, EME belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
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 96.30% 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 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 6.67 |
ROIC/WACC2.59
WACC10.6%
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.
With a Quick ratio value of 1.17, EME perfoms like the industry average, outperforming 44.44% of the companies in the same 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 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.
EME shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.23% yearly.
Looking at the last year, EME shows a quite strong growth in Revenue. The Revenue has grown by 14.11% in the last year.
EME shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.69% yearly.
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 12.11% on average per year.
EME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.83% yearly.
EPS Next Y18.26%
EPS Next 2Y14.5%
EPS Next 3Y12.11%
EPS Next 5YN/A
Revenue Next Year14.71%
Revenue Next 2Y10.43%
Revenue Next 3Y8.83%
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 25.06, which means the current valuation is very expensive for EME.
75.93% of the companies in the same industry are more expensive than EME, based on the Price/Earnings ratio.
EME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.84.
A Price/Forward Earnings ratio of 22.07 indicates a rather expensive valuation of EME.
Based on the Price/Forward Earnings ratio, EME is valued a bit cheaper than the industry average as 74.07% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, EME is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.06 | ||
| Fwd PE | 22.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EME is valued a bit cheaper than 64.81% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EME indicates a somewhat cheap valuation: EME is cheaper than 70.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.29 | ||
| EV/EBITDA | 16.13 |
4.3 Compensation for Growth
EME's 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 12.11% in the coming years.
PEG (NY)1.37
PEG (5Y)0.83
EPS Next 2Y14.5%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.16%, EME is not a good candidate for dividend investing.
EME's Dividend Yield is a higher than the industry average which is at 0.41.
With a Dividend Yield of 0.16, EME pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
5.2 History
On average, the dividend of EME grows each year by 23.83%, which is quite nice.
EME has paid a dividend for at least 10 years, which is 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 2Y14.5%
EPS Next 3Y12.11%
623.26
-3.83 (-0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.82%
Inst Owner Change-2.17%
Ins Owners0.83%
Ins Owner Change-0.07%
Market Cap27.90B
Revenue(TTM)16.24B
Net Income(TTM)1.13B
Analysts81.43
Price Target721.17 (15.71%)
Short Float %2.03%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
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)0%
PT rev (3m)9.78%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)0.45%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.06 | ||
| Fwd PE | 22.07 | ||
| P/S | 1.72 | ||
| P/FCF | 24.29 | ||
| P/OCF | 22.37 | ||
| P/B | 8.37 | ||
| P/tB | 30.36 | ||
| EV/EBITDA | 16.13 |
EPS(TTM)24.87
EY3.99%
EPS(NY)28.24
Fwd EY4.53%
FCF(TTM)25.66
FCFY4.12%
OCF(TTM)27.86
OCFY4.47%
SpS362.82
BVpS74.5
TBVpS20.53
PEG (NY)1.37
PEG (5Y)0.83
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 | 6.67 |
F-Score7
WACC10.6%
ROIC/WACC2.59
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 Y18.26%
EPS Next 2Y14.5%
EPS Next 3Y12.11%
EPS Next 5YN/A
Revenue 1Y (TTM)14.11%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%16.35%
Revenue Next Year14.71%
Revenue Next 2Y10.43%
Revenue Next 3Y8.83%
Revenue Next 5YN/A
EBIT growth 1Y22.7%
EBIT growth 3Y36.33%
EBIT growth 5Y23.8%
EBIT Next Year32.03%
EBIT Next 3Y15.03%
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%.