EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EME - US29084Q1004 - Common Stock
687.76 USD
-10.93 (-1.56%)
687.76 USD
0 (0%)
EME gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. EME gets an excellent profitability rating and is at the same time showing great financial health properties. EME is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, EME could be worth investigating further 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 Return On Assets of 13.08%. This is amongst the best in the industry. EME outperforms 85.45% of its industry peers.
- EME has a better Return On Equity (33.89%) than 85.45% of its industry peers.
- EME has a Return On Invested Capital of 27.41%. This is amongst the best in the industry. EME outperforms 89.09% of its industry peers.
- 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
- EME has a Profit Margin of 6.96%. This is in the better half of the industry: EME outperforms 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.
- EME's Gross Margin of 19.39% is in line compared to the rest of the industry. EME outperforms 58.18% of its industry peers.
- 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.
- The number of shares outstanding for EME has been reduced compared to 1 year ago.
- Compared to 5 years ago, EME has less shares outstanding
- EME has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.03 indicates that EME is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 7.03, EME belongs to the top of the industry, outperforming 87.27% 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.
- With an excellent Debt to FCF ratio value of 0.01, EME belongs to the best 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 | 7.03 |
ROIC/WACC2.72
WACC10.09%
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.
- 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 has a Quick ratio (1.17) which 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 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.
- EME shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.11%.
- 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
- EME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.11% yearly.
- 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 2Y14.5%
EPS Next 3Y12.11%
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 27.65, EME can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, EME is valued a bit cheaper than the industry average as 69.09% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of EME to the average of the S&P500 Index (26.94), we can say EME is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 24.35, 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 72.73% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. EME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.65 | ||
| Fwd PE | 24.35 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as EME.
- EME's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EME is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.81 | ||
| EV/EBITDA | 18.02 |
4.3 Compensation for Growth
- EME's 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 12.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)0.91
EPS Next 2Y14.5%
EPS Next 3Y12.11%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.23%, EME is not a good candidate for dividend investing.
- EME's Dividend Yield is rather good when compared to the industry average which is at 0.43. EME pays more dividend than 83.64% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, EME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
- EME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP4.01%
EPS Next 2Y14.5%
EPS Next 3Y12.11%
687.76
-10.93 (-1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-24 2026-02-24/bmo
Inst Owners95.78%
Inst Owner Change-0.04%
Ins Owners0.83%
Ins Owner Change0.57%
Market Cap30.79B
Revenue(TTM)16.24B
Net Income(TTM)1.13B
Analysts81.43
Price Target721.17 (4.86%)
Short Float %1.74%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
Yearly Dividend0.93
Dividend Growth(5Y)23.83%
DP4.01%
Div Incr Years4
Div Non Decr Years11
Ex-Date01-14 2026-01-14 (0.4)
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)8.87%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)0.37%
EPS NY rev (1m)0%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.65 | ||
| Fwd PE | 24.35 | ||
| P/S | 1.9 | ||
| P/FCF | 26.81 | ||
| P/OCF | 24.69 | ||
| P/B | 9.23 | ||
| P/tB | 33.5 | ||
| EV/EBITDA | 18.02 |
EPS(TTM)24.87
EY3.62%
EPS(NY)28.24
Fwd EY4.11%
FCF(TTM)25.66
FCFY3.73%
OCF(TTM)27.86
OCFY4.05%
SpS362.82
BVpS74.5
TBVpS20.53
PEG (NY)1.51
PEG (5Y)0.91
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 | 7.03 |
F-Score7
WACC10.09%
ROIC/WACC2.72
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 Year14.73%
Revenue Next 2Y10.5%
Revenue Next 3Y9.16%
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 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%.