EMCOR GROUP INC (EME) Stock Fundamental Analysis
NYSE:EME - New York Stock Exchange, Inc. - US29084Q1004 - Common Stock - Currency: USD
Overall EME gets a fundamental rating of 7 out of 10. We evaluated EME against 52 industry peers in the Construction & Engineering industry. Both the health and profitability get an excellent rating, making EME a very profitable company, without any liquidiy or solvency issues. EME has a decent growth rate and is not valued too expensively. These ratings could make EME a good candidate 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.
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 better Return On Assets (13.01%) than 88.46% of its industry peers.
The Return On Equity of EME (35.62%) is better than 90.38% of its industry peers.
The Return On Invested Capital of EME (26.51%) is better than 92.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EME is above the industry average of 16.60%.
The 3 year average ROIC (21.01%) for EME is below the current ROIC(26.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.01% | ||
| ROE | 35.62% | ||
| ROIC | 26.51% |
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's Profit Margin of 7.00% is fine compared to the rest of the industry. EME outperforms 78.85% of its industry peers.
EME's Profit Margin has improved in the last couple of years.
EME's Operating Margin of 9.36% is fine compared to the rest of the industry. EME outperforms 75.00% of its industry peers.
EME's Operating Margin has improved in the last couple of years.
EME's Gross Margin of 19.32% is in line compared to the rest of the industry. EME outperforms 59.62% of its industry peers.
EME's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.36% | ||
| PM (TTM) | 7% | ||
| GM | 19.32% |
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.
EME has less shares outstanding than it did 1 year ago.
EME has less shares outstanding than it did 5 years ago.
EME has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.89 indicates that EME is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.89, EME belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
The Debt to FCF ratio of EME is 0.20, which is an excellent value as it means it would take EME, only 0.20 years of fcf income to pay off all of its debts.
EME's Debt to FCF ratio of 0.20 is amongst the best of the industry. EME outperforms 92.31% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that EME is not too dependend on debt financing.
EME has a better Debt to Equity ratio (0.09) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 5.89 |
ROIC/WACC2.6
WACC10.18%
2.3 Liquidity
A Current Ratio of 1.16 indicates that EME should not have too much problems paying its short term obligations.
EME has a Current ratio (1.16) which is in line with its industry peers.
EME has a Quick Ratio of 1.14. This is a normal value and indicates that EME is financially healthy and should not expect problems in meeting its short term obligations.
EME's Quick ratio of 1.14 is in line compared to the rest of the industry. EME outperforms 40.38% 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 | 1.16 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
EME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.27%, 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 14.30% in the last year.
Measured over the past years, EME shows a quite strong growth in Revenue. The Revenue has been growing by 9.69% on average per year.
EPS 1Y (TTM)49.27%
EPS 3Y45.04%
EPS 5Y30.23%
EPS Q2Q%26.14%
Revenue 1Y (TTM)14.3%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%12.68%
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 8.98% on average per year.
EME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.02% yearly.
EPS Next Y10.89%
EPS Next 2Y9.49%
EPS Next 3Y8.98%
EPS Next 5YN/A
Revenue Next Year12.69%
Revenue Next 2Y9.13%
Revenue Next 3Y7.02%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.99, which indicates a rather expensive current valuation of EME.
EME's Price/Earnings ratio is rather cheap when compared to the industry. EME is cheaper than 80.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. EME is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.39, which indicates a rather expensive current valuation of EME.
Based on the Price/Forward Earnings ratio, EME is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EME to the average of the S&P500 Index (22.39), we can say EME is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.99 | ||
| Fwd PE | 18.39 |
4.2 Price Multiples
76.92% 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 78.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.31 | ||
| EV/EBITDA | 13.51 |
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)1.93
PEG (5Y)0.69
EPS Next 2Y9.49%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
EME has a yearly dividend return of 0.21%, 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 2.39, EME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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
4.41% 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.
DP4.41%
EPS Next 2Y9.49%
EPS Next 3Y8.98%
474.93
+3.04 (+0.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners93.72%
Inst Owner Change2.66%
Ins Owners0.88%
Ins Owner Change-0.7%
Market Cap21.26B
Analysts80
Price Target495.11 (4.25%)
Short Float %3.17%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
Yearly Dividend0.93
Dividend Growth(5Y)23.83%
DP4.41%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.64%
Min EPS beat(2)8.66%
Max EPS beat(2)12.61%
EPS beat(4)4
Avg EPS beat(4)18.71%
Min EPS beat(4)8.66%
Max EPS beat(4)38.31%
EPS beat(8)8
Avg EPS beat(8)24.9%
EPS beat(12)12
Avg EPS beat(12)21.81%
EPS beat(16)14
Avg EPS beat(16)16.27%
Revenue beat(2)1
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)1.19%
Revenue beat(4)2
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)3.09%
Revenue beat(8)6
Avg Revenue beat(8)0.88%
Revenue beat(12)9
Avg Revenue beat(12)1.15%
Revenue beat(16)13
Avg Revenue beat(16)2.05%
PT rev (1m)0%
PT rev (3m)-6.62%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)-1.02%
EPS NY rev (1m)2.02%
EPS NY rev (3m)3.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.86%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.99 | ||
| Fwd PE | 18.39 | ||
| P/S | 1.42 | ||
| P/FCF | 16.31 | ||
| P/OCF | 15.36 | ||
| P/B | 7.21 | ||
| P/tB | 41.15 | ||
| EV/EBITDA | 13.51 |
EPS(TTM)22.63
EY4.76%
EPS(NY)25.82
Fwd EY5.44%
FCF(TTM)29.12
FCFY6.13%
OCF(TTM)30.92
OCFY6.51%
SpS335.15
BVpS65.91
TBVpS11.54
PEG (NY)1.93
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.01% | ||
| ROE | 35.62% | ||
| ROCE | 36.4% | ||
| ROIC | 26.51% | ||
| ROICexc | 31.17% | ||
| ROICexgc | 120.78% | ||
| OM | 9.36% | ||
| PM (TTM) | 7% | ||
| GM | 19.32% | ||
| FCFM | 8.69% |
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-Score6
Asset Turnover1.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.2 | ||
| Debt/EBITDA | 0.16 | ||
| Cap/Depr | 55.33% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 501.13 | ||
| Cash Conversion | 89.31% | ||
| Profit Quality | 124.04% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 5.89 |
F-Score6
WACC10.18%
ROIC/WACC2.6
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)49.27%
EPS 3Y45.04%
EPS 5Y30.23%
EPS Q2Q%26.14%
EPS Next Y10.89%
EPS Next 2Y9.49%
EPS Next 3Y8.98%
EPS Next 5YN/A
Revenue 1Y (TTM)14.3%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%12.68%
Revenue Next Year12.69%
Revenue Next 2Y9.13%
Revenue Next 3Y7.02%
Revenue Next 5YN/A
EBIT growth 1Y42.77%
EBIT growth 3Y36.33%
EBIT growth 5Y23.8%
EBIT Next Year24.57%
EBIT Next 3Y11.87%
EBIT Next 5YN/A
FCF growth 1Y190.77%
FCF growth 3Y67.7%
FCF growth 5Y34.11%
OCF growth 1Y171.84%
OCF growth 3Y64.06%
OCF growth 5Y31.67%