EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA - NYSE:EME - US29084Q1004 - Common Stock
748.24 USD
+51.96 (+7.46%)
754.05 USD
+5.81 (+0.78%)
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! This makes EME very considerable 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.
In the past 5 years EME has always been profitable.
EME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EME's Return On Assets of 13.16% is amongst the best of the industry. EME outperforms 83.64% of its industry peers.
The Return On Equity of EME (36.22%) is better than 90.91% of its industry peers.
EME's Return On Invested Capital of 27.02% is amongst the best of the industry. EME outperforms 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 17.10%.
The last Return On Invested Capital (27.02%) for EME is above the 3 year average (21.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.16% | ||
| ROE | 36.22% | ||
| ROIC | 27.02% |
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 better Profit Margin (7.07%) than 76.36% of its industry peers.
In the last couple of years the Profit Margin of EME has grown nicely.
With a decent Operating Margin value of 9.50%, EME is doing good in the industry, outperforming 72.73% of the companies in the same industry.
EME's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 19.49%, EME is in line with its industry, outperforming 60.00% of the companies in the same industry.
EME's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 7.07% | ||
| GM | 19.49% |
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.
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 6.94. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
EME has a better Altman-Z score (6.94) than 83.64% of its industry peers.
The Debt to FCF ratio of EME is 0.21, which is an excellent value as it means it would take EME, only 0.21 years of fcf income to pay off all of its debts.
EME has a better Debt to FCF ratio (0.21) than 90.91% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that EME is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.08, EME belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 6.94 |
ROIC/WACC2.69
WACC10.03%
2.3 Liquidity
EME has a Current Ratio of 1.18. This is a normal value and indicates that EME is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of EME (1.18) is comparable to the rest of the industry.
A Quick Ratio of 1.15 indicates that EME should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.15, EME perfoms like the industry average, outperforming 45.45% of the companies in the same 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 | 1.18 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
EME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.03%, 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 13.77% 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)38.03%
EPS 3Y45.04%
EPS 5Y30.23%
EPS Q2Q%28%
Revenue 1Y (TTM)13.77%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%17.39%
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 12.08% yearly.
The Revenue is expected to grow by 9.20% on average over the next years. This is quite good.
EPS Next Y17.98%
EPS Next 2Y13.42%
EPS Next 3Y12.08%
EPS Next 5YN/A
Revenue Next Year14.59%
Revenue Next 2Y10.41%
Revenue Next 3Y9.2%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.05, which means the current valuation is very expensive for EME.
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.
EME is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.00, the valuation of EME can be described as expensive.
EME's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EME is cheaper than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, EME is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.05 | ||
| Fwd PE | 27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EME is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, EME is valued a bit cheaper than 65.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.71 | ||
| EV/EBITDA | 18.81 |
4.3 Compensation for Growth
The 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 12.08% in the coming years.
PEG (NY)1.73
PEG (5Y)1.03
EPS Next 2Y13.42%
EPS Next 3Y12.08%
5. Dividend
5.1 Amount
With a yearly dividend of 0.15%, EME is not a good candidate for dividend investing.
EME's Dividend Yield is a higher than the industry average which is at 1.66.
Compared to an average S&P500 Dividend Yield of 2.34, 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 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 4.14% of its income as dividend. This is a sustainable payout ratio.
The dividend of EME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP4.14%
EPS Next 2Y13.42%
EPS Next 3Y12.08%
748.24
+51.96 (+7.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.74%
Inst Owner Change-0.3%
Ins Owners0.83%
Ins Owner Change-0.5%
Market Cap33.49B
Revenue(TTM)15.64B
Net Income(TTM)1.11B
Analysts80
Price Target662.39 (-11.47%)
Short Float %1.92%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
Yearly Dividend0.93
Dividend Growth(5Y)23.83%
DP4.14%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.27%
Min EPS beat(2)12.61%
Max EPS beat(2)15.92%
EPS beat(4)4
Avg EPS beat(4)13.11%
Min EPS beat(4)8.66%
Max EPS beat(4)15.92%
EPS beat(8)8
Avg EPS beat(8)23.91%
EPS beat(12)12
Avg EPS beat(12)21.68%
EPS beat(16)14
Avg EPS beat(16)16.54%
Revenue beat(2)2
Avg Revenue beat(2)2.45%
Min Revenue beat(2)1.19%
Max Revenue beat(2)3.72%
Revenue beat(4)2
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)3.72%
Revenue beat(8)6
Avg Revenue beat(8)1.34%
Revenue beat(12)9
Avg Revenue beat(12)1.24%
Revenue beat(16)13
Avg Revenue beat(16)1.84%
PT rev (1m)0.84%
PT rev (3m)21.84%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)5.15%
EPS NY rev (1m)0.02%
EPS NY rev (3m)5.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.05 | ||
| Fwd PE | 27 | ||
| P/S | 2.14 | ||
| P/FCF | 27.71 | ||
| P/OCF | 25.8 | ||
| P/B | 10.97 | ||
| P/tB | 54.21 | ||
| EV/EBITDA | 18.81 |
EPS(TTM)24.1
EY3.22%
EPS(NY)27.71
Fwd EY3.7%
FCF(TTM)27
FCFY3.61%
OCF(TTM)29
OCFY3.88%
SpS349.39
BVpS68.18
TBVpS13.8
PEG (NY)1.73
PEG (5Y)1.03
Graham Number192.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.16% | ||
| ROE | 36.22% | ||
| ROCE | 37.1% | ||
| ROIC | 27.02% | ||
| ROICexc | 30.75% | ||
| ROICexgc | 99.66% | ||
| OM | 9.5% | ||
| PM (TTM) | 7.07% | ||
| GM | 19.49% | ||
| FCFM | 7.73% |
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-Score6
Asset Turnover1.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.21 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 56.54% | ||
| Cap/Sales | 0.57% | ||
| Interest Coverage | 152.25 | ||
| Cash Conversion | 78.93% | ||
| Profit Quality | 109.34% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 6.94 |
F-Score6
WACC10.03%
ROIC/WACC2.69
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)38.03%
EPS 3Y45.04%
EPS 5Y30.23%
EPS Q2Q%28%
EPS Next Y17.98%
EPS Next 2Y13.42%
EPS Next 3Y12.08%
EPS Next 5YN/A
Revenue 1Y (TTM)13.77%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%17.39%
Revenue Next Year14.59%
Revenue Next 2Y10.41%
Revenue Next 3Y9.2%
Revenue Next 5YN/A
EBIT growth 1Y32.77%
EBIT growth 3Y36.33%
EBIT growth 5Y23.8%
EBIT Next Year31.42%
EBIT Next 3Y14.79%
EBIT Next 5YN/A
FCF growth 1Y79.41%
FCF growth 3Y67.7%
FCF growth 5Y34.11%
OCF growth 1Y77.4%
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 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 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 4.14%.