EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EME - US29084Q1004 - Common Stock
626.07 USD
+0.38 (+0.06%)
626.07 USD
0 (0%)
Taking everything into account, EME scores 7 out of 10 in our fundamental rating. EME was compared to 54 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 is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make EME a good candidate 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 better Return On Assets (13.08%) than 85.19% of its industry peers.
EME's Return On Equity of 33.89% is amongst the best of the industry. EME outperforms 85.19% of its industry peers.
The Return On Invested Capital of EME (27.41%) is better than 87.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EME is above the industry average of 18.23%.
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 70.37% 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 68.52% of the companies in the same industry.
EME's Operating Margin has improved in the last couple of years.
EME has a Gross Margin (19.39%) which 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
EME has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, EME has less shares outstanding
EME has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EME has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.66 indicates that EME is not in any danger for bankruptcy at the moment.
EME has a Altman-Z score of 6.66. This is amongst the best in the industry. EME outperforms 88.89% of its industry peers.
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.
EME has a better Debt to FCF ratio (0.01) than 96.30% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that EME is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, EME belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 6.66 |
ROIC/WACC2.57
WACC10.68%
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.
EME's Current ratio of 1.19 is in line compared to the rest of the industry. EME outperforms 40.74% of its industry peers.
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.
EME has a Quick ratio of 1.17. This is comparable to the rest of the industry: EME outperforms 44.44% 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 | 1.19 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
EME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.31%, which is quite impressive.
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.
The Revenue has grown by 14.11% in the past year. This is quite good.
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)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
The Earnings Per Share is expected to grow by 12.18% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.02% on average over the next years. This is quite good.
EPS Next Y18.26%
EPS Next 2Y14.57%
EPS Next 3Y12.18%
EPS Next 5YN/A
Revenue Next Year14.77%
Revenue Next 2Y10.6%
Revenue Next 3Y9.02%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 25.17, the valuation of EME can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of EME indicates a somewhat cheap valuation: EME is cheaper than 77.78% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, EME is valued at the same level.
EME is valuated rather expensively with a Price/Forward Earnings ratio of 22.14.
Based on the Price/Forward Earnings ratio, EME is valued a bit cheaper than 74.07% of the companies in the same industry.
EME is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.17 | ||
| Fwd PE | 22.14 |
4.2 Price Multiples
EME's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EME is cheaper than 62.96% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EME indicates a somewhat cheap valuation: EME is cheaper than 70.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.4 | ||
| EV/EBITDA | 16.11 |
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.
A more expensive valuation may be justified as EME's earnings are expected to grow with 12.18% in the coming years.
PEG (NY)1.38
PEG (5Y)0.83
EPS Next 2Y14.57%
EPS Next 3Y12.18%
5. Dividend
5.1 Amount
With a yearly dividend of 0.16%, EME is not a good candidate for dividend investing.
EME's Dividend Yield is a higher than the industry average which is at 0.41.
With a Dividend Yield of 0.16, EME pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
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
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 2Y14.57%
EPS Next 3Y12.18%
626.07
+0.38 (+0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.82%
Inst Owner Change-2.17%
Ins Owners0.83%
Ins Owner Change-0.07%
Market Cap28.03B
Revenue(TTM)16.24B
Net Income(TTM)1.13B
Analysts81.43
Price TargetN/A
Short Float %2.03%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
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)4.72%
PT rev (3m)9.78%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)0.45%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.17 | ||
| Fwd PE | 22.14 | ||
| P/S | 1.73 | ||
| P/FCF | 24.4 | ||
| P/OCF | 22.47 | ||
| P/B | 8.4 | ||
| P/tB | 30.49 | ||
| EV/EBITDA | 16.11 |
EPS(TTM)24.87
EY3.97%
EPS(NY)28.28
Fwd EY4.52%
FCF(TTM)25.66
FCFY4.1%
OCF(TTM)27.86
OCFY4.45%
SpS362.82
BVpS74.5
TBVpS20.53
PEG (NY)1.38
PEG (5Y)0.83
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 | 6.66 |
F-Score7
WACC10.68%
ROIC/WACC2.57
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 2Y14.57%
EPS Next 3Y12.18%
EPS Next 5YN/A
Revenue 1Y (TTM)14.11%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%16.35%
Revenue Next Year14.77%
Revenue Next 2Y10.6%
Revenue Next 3Y9.02%
Revenue Next 5YN/A
EBIT growth 1Y22.7%
EBIT growth 3Y36.33%
EBIT growth 5Y23.8%
EBIT Next Year32.03%
EBIT Next 3Y14.71%
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%.