EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA - NYSE:EME - US29084Q1004 - Common Stock
649.34 USD
-4.41 (-0.67%)
649.34 USD
0 (0%)
Overall EME gets a fundamental rating of 7 out of 10. We evaluated EME 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 growing strongly while it is still valued neutral. This is a good combination! With these ratings, EME could be worth investigating further 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.
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
The Return On Assets of EME (13.08%) is better than 83.64% of its industry peers.
EME has a Return On Equity of 33.89%. This is amongst the best in the industry. EME outperforms 87.27% of its industry peers.
EME has a better Return On Invested Capital (27.41%) than 89.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EME is above the industry average of 17.19%.
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 74.55% of its industry peers.
EME's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 9.41%, EME is doing good in the industry, outperforming 72.73% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EME is creating value.
Compared to 1 year ago, EME has less shares outstanding
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
EME has an Altman-Z score of 6.78. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
EME's Altman-Z score of 6.78 is amongst the best of the industry. EME outperforms 83.64% 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.
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 92.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 6.78 |
ROIC/WACC2.64
WACC10.37%
2.3 Liquidity
A Current Ratio of 1.19 indicates that EME should not have too much problems paying its short term obligations.
EME has a Current ratio (1.19) which 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.
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.
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
EME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.63% yearly.
Based on estimates for the next years, EME will show a quite strong growth in Revenue. The Revenue will grow by 9.09% on average per year.
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.
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
A Price/Earnings ratio of 26.11 indicates a quite expensive valuation of EME.
Based on the Price/Earnings ratio, EME is valued a bit cheaper than 72.73% of the companies in the same industry.
EME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
Based on the Price/Forward Earnings ratio of 23.14, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, EME is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.11 | ||
| Fwd PE | 23.14 |
4.2 Price Multiples
65.45% of the companies in the same industry are more expensive than EME, based on the Enterprise Value to EBITDA ratio.
EME's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EME is cheaper than 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.3 | ||
| EV/EBITDA | 16.72 |
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 12.63% in the coming years.
PEG (NY)1.44
PEG (5Y)0.86
EPS Next 2Y14.13%
EPS Next 3Y12.63%
5. Dividend
5.1 Amount
EME has a yearly dividend return of 0.15%, which is pretty low.
Compared to an average industry Dividend Yield of 1.78, EME pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, EME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
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 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
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%
649.34
-4.41 (-0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.74%
Inst Owner Change-1.97%
Ins Owners0.83%
Ins Owner Change-0.43%
Market Cap29.06B
Revenue(TTM)16.24B
Net Income(TTM)1.13B
Analysts81.43
Price Target688.65 (6.05%)
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 | 26.11 | ||
| Fwd PE | 23.14 | ||
| P/S | 1.79 | ||
| P/FCF | 25.3 | ||
| P/OCF | 23.3 | ||
| P/B | 8.71 | ||
| P/tB | 31.62 | ||
| EV/EBITDA | 16.72 |
EPS(TTM)24.87
EY3.83%
EPS(NY)28.06
Fwd EY4.32%
FCF(TTM)25.66
FCFY3.95%
OCF(TTM)27.86
OCFY4.29%
SpS362.9
BVpS74.52
TBVpS20.54
PEG (NY)1.44
PEG (5Y)0.86
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 | 6.78 |
F-Score7
WACC10.37%
ROIC/WACC2.64
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%.