EMCOR GROUP INC (EME) Stock Fundamental Analysis
NYSE:EME - New York Stock Exchange, Inc. - US29084Q1004 - Common Stock - Currency: USD
EME gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 51 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 has a correct valuation and a medium growth rate. With these ratings, EME could be worth investigating further for 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.
Each year in the past 5 years EME had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.05%, EME belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
Looking at the Return On Equity, with a value of 34.28%, EME belongs to the top of the industry, outperforming 90.20% of the companies in the same industry.
With an excellent Return On Invested Capital value of 27.50%, EME belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EME is significantly above the industry average of 12.16%.
The last Return On Invested Capital (27.50%) for EME is above the 3 year average (21.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.05% | ||
| ROE | 34.28% | ||
| ROIC | 27.5% |
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 6.91%. This is in the better half of the industry: EME outperforms 76.47% of its industry peers.
In the last couple of years the Profit Margin of EME has grown nicely.
The Operating Margin of EME (9.23%) is better than 72.55% of its industry peers.
In the last couple of years the Operating Margin of EME has grown nicely.
Looking at the Gross Margin, with a value of 18.98%, EME is in line with its industry, outperforming 58.82% of the companies in the same industry.
In the last couple of years the Gross Margin of EME has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.23% | ||
| PM (TTM) | 6.91% | ||
| GM | 18.98% |
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
EME has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
EME has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EME has less shares outstanding
The debt/assets ratio for EME has been reduced compared to a year ago.
2.2 Solvency
EME has an Altman-Z score of 5.68. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.68, EME belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
The Debt to FCF ratio of EME is 0.00, which is an excellent value as it means it would take EME, only 0.00 years of fcf income to pay off all of its debts.
EME's Debt to FCF ratio of 0.00 is amongst the best of the industry. EME outperforms 94.12% 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 94.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.68 |
ROIC/WACC3.03
WACC9.07%
2.3 Liquidity
EME has a Current Ratio of 1.30. 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 (1.30) which is in line with its industry peers.
A Quick Ratio of 1.27 indicates that EME should not have too much problems paying its short term obligations.
EME's Quick ratio of 1.27 is in line compared to the rest of the industry. EME outperforms 49.02% of its industry peers.
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 | 1.3 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
EME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.83%, 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.
EME shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.76%.
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)61.83%
EPS 3Y45.04%
EPS 5Y30.23%
EPS Q2Q%41.39%
Revenue 1Y (TTM)15.76%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%9.62%
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 8.44% yearly.
The Revenue is expected to grow by 6.66% on average over the next years.
EPS Next Y8.69%
EPS Next 2Y8.79%
EPS Next 3Y8.44%
EPS Next 5YN/A
Revenue Next Year12.08%
Revenue Next 2Y8.9%
Revenue Next 3Y6.66%
Revenue Next 5YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.59 indicates a rather expensive valuation of EME.
Based on the Price/Earnings ratio, EME is valued a bit cheaper than the industry average as 78.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of EME to the average of the S&P500 Index (28.29), we can say EME is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.18 indicates a correct valuation of EME.
EME's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EME is cheaper than 70.59% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EME to the average of the S&P500 Index (21.08), we can say EME is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 16.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EME indicates a somewhat cheap valuation: EME is cheaper than 70.59% of the companies listed in the same industry.
74.51% of the companies in the same industry are more expensive than EME, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.92 | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of EME may justify a higher PE ratio.
PEG (NY)2.02
PEG (5Y)0.58
EPS Next 2Y8.79%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
EME has a yearly dividend return of 0.27%, which is pretty low.
In the last 3 months the price of EME has falen by -25.21%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
EME's Dividend Yield is rather good when compared to the industry average which is at 2.15. EME pays more dividend than 80.39% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.57, EME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
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 4.31% 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.
DP4.31%
EPS Next 2Y8.79%
EPS Next 3Y8.44%
378.81
-3.59 (-0.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners93.72%
Inst Owner Change0%
Ins Owners0.88%
Ins Owner Change-0.01%
Market Cap17.22B
Analysts80
Price Target509.8 (34.58%)
Short Float %2.09%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
Yearly Dividend0.93
Dividend Growth(5Y)23.83%
DP4.31%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.96%
Min EPS beat(2)8.66%
Max EPS beat(2)15.25%
EPS beat(4)4
Avg EPS beat(4)26.96%
Min EPS beat(4)8.66%
Max EPS beat(4)45.63%
EPS beat(8)8
Avg EPS beat(8)26.81%
EPS beat(12)11
Avg EPS beat(12)19.54%
EPS beat(16)14
Avg EPS beat(16)17.01%
Revenue beat(2)0
Avg Revenue beat(2)-2.43%
Min Revenue beat(2)-2.92%
Max Revenue beat(2)-1.95%
Revenue beat(4)2
Avg Revenue beat(4)0.91%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)5.41%
Revenue beat(8)5
Avg Revenue beat(8)0.68%
Revenue beat(12)9
Avg Revenue beat(12)1.39%
Revenue beat(16)13
Avg Revenue beat(16)2.19%
PT rev (1m)-3.85%
PT rev (3m)-6.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.47%
EPS NY rev (1m)1.29%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.03%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)4.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 16.18 | ||
| P/S | 1.18 | ||
| P/FCF | 12.92 | ||
| P/OCF | 12.23 | ||
| P/B | 5.86 | ||
| P/tB | 13.55 | ||
| EV/EBITDA | 10.75 |
EPS(TTM)21.54
EY5.69%
EPS(NY)23.41
Fwd EY6.18%
FCF(TTM)29.31
FCFY7.74%
OCF(TTM)30.96
OCFY8.17%
SpS320.35
BVpS64.61
TBVpS27.95
PEG (NY)2.02
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.05% | ||
| ROE | 34.28% | ||
| ROCE | 37.75% | ||
| ROIC | 27.5% | ||
| ROICexc | 44.06% | ||
| ROICexgc | 176.04% | ||
| OM | 9.23% | ||
| PM (TTM) | 6.91% | ||
| GM | 18.98% | ||
| FCFM | 9.15% |
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%
ROICexcg growth 3Y52.49%
ROICexcg 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 Turnover1.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 56.07% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 471.88 | ||
| Cash Conversion | 95.22% | ||
| Profit Quality | 132.35% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 5.68 |
F-Score7
WACC9.07%
ROIC/WACC3.03
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)61.83%
EPS 3Y45.04%
EPS 5Y30.23%
EPS Q2Q%41.39%
EPS Next Y8.69%
EPS Next 2Y8.79%
EPS Next 3Y8.44%
EPS Next 5YN/A
Revenue 1Y (TTM)15.76%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%9.62%
Revenue Next Year12.08%
Revenue Next 2Y8.9%
Revenue Next 3Y6.66%
Revenue Next 5YN/A
EBIT growth 1Y53.16%
EBIT growth 3Y36.33%
EBIT growth 5Y23.8%
EBIT Next Year24.57%
EBIT Next 3Y11.71%
EBIT Next 5YN/A
FCF growth 1Y62.31%
FCF growth 3Y67.7%
FCF growth 5Y34.11%
OCF growth 1Y56.49%
OCF growth 3Y64.06%
OCF growth 5Y31.67%