EMCOR GROUP INC (EME) Fundamental Analysis & Valuation

NYSE:EME • US29084Q1004

Current stock price

732.89 USD
+6.58 (+0.91%)
At close:
744 USD
+11.11 (+1.52%)
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

  • EME had positive earnings in the past year.
  • In the past year EME had a positive cash flow from operations.
  • EME had positive earnings in each of the past 5 years.
  • EME had a positive operating cash flow in each of the past 5 years.
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

  • The Return On Assets of EME (13.70%) is better than 87.50% of its industry peers.
  • EME has a Return On Equity of 34.64%. This is amongst the best in the industry. EME outperforms 87.50% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 26.05%, EME belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
  • EME had an Average Return On Invested Capital over the past 3 years of 24.90%. This is significantly above the industry average of 17.25%.
  • 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

  • Looking at the Profit Margin, with a value of 7.49%, EME is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • EME's Profit Margin has improved in the last couple of years.
  • With a decent Operating Margin value of 9.23%, EME is doing good in the industry, outperforming 62.50% of the companies in the same industry.
  • EME's Operating Margin has improved in the last couple of years.
  • EME's Gross Margin of 19.33% is in line compared to the rest of the industry. EME outperforms 55.36% of its industry peers.
  • 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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EME is creating value.
  • The number of shares outstanding for EME has been reduced compared to 1 year ago.
  • EME has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, EME has an improved debt to assets ratio.
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 6.91. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
  • EME has a better Altman-Z score (6.91) than 85.71% 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.
  • The Debt to FCF ratio of EME (0.01) is better than 94.64% 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.
  • EME's Debt to Equity ratio of 0.00 is amongst the best of the industry. EME outperforms 92.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.01
Altman-Z 6.91
ROIC/WACC2.6
WACC10.01%
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

  • A Current Ratio of 1.22 indicates that EME should not have too much problems paying its short term obligations.
  • EME has a Current ratio (1.22) which is comparable to the rest of the industry.
  • A Quick Ratio of 1.19 indicates that EME should not have too much problems paying its short term obligations.
  • EME's Quick ratio of 1.19 is in line compared to the rest of the industry. EME outperforms 48.21% of its industry peers.
  • 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

  • The Earnings Per Share has grown by an impressive 31.06% over the past year.
  • The Earnings Per Share has been growing by 34.51% on average over the past years. This is a very strong growth
  • The Revenue has grown by 16.62% in the past year. This is quite good.
  • The Revenue has been growing by 14.07% on average over the past years. This is quite good.
EPS 1Y (TTM)31.06%
EPS 3Y51.18%
EPS 5Y34.51%
EPS Q2Q%53.16%
Revenue 1Y (TTM)16.62%
Revenue growth 3Y15.32%
Revenue growth 5Y14.07%
Sales Q2Q%19.71%

3.2 Future

  • The Earnings Per Share is expected to grow by 6.64% on average over the next years.
  • Based on estimates for the next years, EME will show a quite strong growth in Revenue. The Revenue will grow by 9.77% on average per year.
EPS Next Y0.43%
EPS Next 2Y5.61%
EPS Next 3Y6.64%
EPS Next 5YN/A
Revenue Next Year8.37%
Revenue Next 2Y7.85%
Revenue Next 3Y7.7%
Revenue Next 5Y9.77%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • 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 25B
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 10 20 30

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4

4. EME Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.96, which means the current valuation is very expensive for EME.
  • Based on the Price/Earnings ratio, EME is valued a bit cheaper than the industry average as 69.64% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of EME to the average of the S&P500 Index (24.89), we can say EME is valued inline with the index average.
  • The Price/Forward Earnings ratio is 25.85, which means the current valuation is very expensive for EME.
  • EME's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EME is cheaper than 62.50% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.19. EME is around the same levels.
Industry RankSector Rank
PE 25.96
Fwd PE 25.85
EME Price Earnings VS Forward Price EarningsEME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 67.86% of the companies in the same industry.
Industry RankSector Rank
P/FCF 27.44
EV/EBITDA 17.97
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)61.01
PEG (5Y)0.75
EPS Next 2Y5.61%
EPS Next 3Y6.64%

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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 0.22%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.14, EME pays a better dividend. On top of this EME pays more dividend than 83.93% of the companies listed in the same industry.
  • With a Dividend Yield of 0.22, EME pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.22%

5.2 History

  • On average, the dividend of EME grows each year by 25.60%, 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)25.6%
Div Incr Years4
Div Non Decr Years11
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.
  • EME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP3.54%
EPS Next 2Y5.61%
EPS Next 3Y6.64%
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 (3/27/2026, 7:15:14 PM)

Premarket: 744 +11.11 (+1.52%)

732.89

+6.58 (+0.91%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)02-26
Earnings (Next)04-23
Inst Owners97.74%
Inst Owner Change4.54%
Ins Owners0.86%
Ins Owner Change-2.99%
Market Cap32.64B
Revenue(TTM)16.99B
Net Income(TTM)1.27B
Analysts81.43
Price Target853 (16.39%)
Short Float %1.68%
Short Ratio1.93
Dividend
Industry RankSector Rank
Dividend Yield 0.22%
Yearly Dividend1
Dividend Growth(5Y)25.6%
DP3.54%
Div Incr Years4
Div Non Decr Years11
Ex-Date01-14
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)16.61%
PT rev (3m)18.28%
EPS NQ rev (1m)0.85%
EPS NQ rev (3m)0.95%
EPS NY rev (1m)0.49%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)1.53%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)1.92%
Revenue NY rev (3m)1.98%
Valuation
Industry RankSector Rank
PE 25.96
Fwd PE 25.85
P/S 1.92
P/FCF 27.44
P/OCF 25.06
P/B 8.88
P/tB 28.31
EV/EBITDA 17.97
EPS(TTM)28.23
EY3.85%
EPS(NY)28.35
Fwd EY3.87%
FCF(TTM)26.71
FCFY3.64%
OCF(TTM)29.24
OCFY3.99%
SpS381.46
BVpS82.5
TBVpS25.89
PEG (NY)61.01
PEG (5Y)0.75
Graham Number228.92
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 6.91
F-Score7
WACC10.01%
ROIC/WACC2.6
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)31.06%
EPS 3Y51.18%
EPS 5Y34.51%
EPS Q2Q%53.16%
EPS Next Y0.43%
EPS Next 2Y5.61%
EPS Next 3Y6.64%
EPS Next 5YN/A
Revenue 1Y (TTM)16.62%
Revenue growth 3Y15.32%
Revenue growth 5Y14.07%
Sales Q2Q%19.71%
Revenue Next Year8.37%
Revenue Next 2Y7.85%
Revenue Next 3Y7.7%
Revenue Next 5Y9.77%
EBIT growth 1Y16.63%
EBIT growth 3Y40.56%
EBIT growth 5Y26.11%
EBIT Next Year21.99%
EBIT Next 3Y11.24%
EBIT Next 5YN/A
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.


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 3.54%.