EMCOR GROUP INC (EME) Fundamental Analysis & Valuation

NYSE:EME • US29084Q1004

Current stock price

903.5 USD
+11.83 (+1.33%)
At close:
901 USD
-2.5 (-0.28%)
After Hours:

This EME fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. EME Profitability Analysis

1.1 Basic Checks

  • In the past year EME was profitable.
  • In the past year EME had a positive cash flow from operations.
  • EME had positive earnings in each of the past 5 years.
  • EME had a positive operating cash flow in each of the past 5 years.
EME Yearly Net Income VS EBIT VS OCF VS FCFEME Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • EME has a Return On Assets of 13.70%. This is amongst the best in the industry. EME outperforms 90.91% of its industry peers.
  • The Return On Equity of EME (34.64%) is better than 89.09% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 26.05%, EME belongs to the top of the industry, outperforming 92.73% 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 14.27%.
  • The last Return On Invested Capital (26.05%) for EME is above the 3 year average (24.90%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 13.7%
ROE 34.64%
ROIC 26.05%
ROA(3y)12.11%
ROA(5y)10.15%
ROE(3y)31.52%
ROE(5y)26.43%
ROIC(3y)24.9%
ROIC(5y)20.47%
EME Yearly ROA, ROE, ROICEME Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • With a decent Profit Margin value of 7.49%, EME is doing good in the industry, outperforming 78.18% of the companies in the same industry.
  • In the last couple of years the Profit Margin of EME has grown nicely.
  • Looking at the Operating Margin, with a value of 9.23%, EME is in the better half of the industry, outperforming 69.09% of the companies in the same industry.
  • EME's Operating Margin has improved in the last couple of years.
  • EME has a Gross Margin (19.33%) which is in line with its industry peers.
  • EME's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 9.23%
PM (TTM) 7.49%
GM 19.33%
OM growth 3Y21.88%
OM growth 5Y10.56%
PM growth 3Y26.9%
PM growth 5Y37.75%
GM growth 3Y10.11%
GM growth 5Y4.03%
EME Yearly Profit, Operating, Gross MarginsEME Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

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9

2. EME Health Analysis

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
  • The debt/assets ratio for EME has been reduced compared to a year ago.
EME Yearly Shares OutstandingEME Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
EME Yearly Total Debt VS Total AssetsEME Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • EME has an Altman-Z score of 7.73. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of EME (7.73) is better than 85.45% 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.
  • EME has a Debt to FCF ratio of 0.01. This is amongst the best in the industry. EME outperforms 94.55% 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 has a better Debt to Equity ratio (0.00) than 90.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.01
Altman-Z 7.73
ROIC/WACC2.36
WACC11.06%
EME Yearly LT Debt VS Equity VS FCFEME Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 1.22 indicates that EME should not have too much problems paying its short term obligations.
  • The Current ratio of EME (1.22) is comparable to the rest of the industry.
  • A Quick Ratio of 1.19 indicates that EME should not have too much problems paying its short term obligations.
  • EME has a Quick ratio of 1.19. This is comparable to the rest of the industry: EME outperforms 41.82% 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 RankSector Rank
Current Ratio 1.22
Quick Ratio 1.19
EME Yearly Current Assets VS Current LiabilitesEME Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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6

3. EME Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 31.73% over the past year.
  • EME shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.51% yearly.
  • Looking at the last year, EME shows a quite strong growth in Revenue. The Revenue has grown by 16.62% in the last year.
  • EME shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.07% yearly.
EPS 1Y (TTM)31.73%
EPS 3Y51.18%
EPS 5Y34.51%
EPS Q2Q%30.04%
Revenue 1Y (TTM)16.62%
Revenue growth 3Y15.32%
Revenue growth 5Y14.07%
Sales Q2Q%19.67%

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 10.53% yearly.
  • EME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.73% yearly.
EPS Next Y1.06%
EPS Next 2Y5.8%
EPS Next 3Y8.13%
EPS Next 5Y10.53%
Revenue Next Year8.25%
Revenue Next 2Y7.65%
Revenue Next 3Y7.05%
Revenue Next 5Y6.73%

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 decreasing: in the next years the growth will be less than in the last years.
EME Yearly Revenue VS EstimatesEME Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
EME Yearly EPS VS EstimatesEME Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30 40

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4

4. EME Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 30.31, which means the current valuation is very expensive for EME.
  • EME's Price/Earnings ratio is a bit cheaper when compared to the industry. EME is cheaper than 74.55% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.51. EME is around the same levels.
  • Based on the Price/Forward Earnings ratio of 28.59, the valuation of EME can be described as expensive.
  • 69.09% of the companies in the same industry are more expensive than EME, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 21.41. EME is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 30.31
Fwd PE 28.59
EME Price Earnings VS Forward Price EarningsEME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • EME's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of EME indicates a somewhat cheap valuation: EME is cheaper than 63.64% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 33.83
EV/EBITDA 22.3
EME Per share dataEME EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

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)28.52
PEG (5Y)0.88
EPS Next 2Y5.8%
EPS Next 3Y8.13%

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6

5. EME Dividend Analysis

5.1 Amount

  • EME has a yearly dividend return of 0.18%, which is pretty low.
  • EME's Dividend Yield is rather good when compared to the industry average which is at 0.14. EME pays more dividend than 85.45% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, EME's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.18%

5.2 History

  • On average, the dividend of EME grows each year by 25.60%, which is quite nice.
  • EME has been paying a dividend for at least 10 years, so it has 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)25.6%
Div Incr Years5
Div Non Decr Years12
EME Yearly Dividends per shareEME Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • EME pays out 3.54% 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.
DP3.54%
EPS Next 2Y5.8%
EPS Next 3Y8.13%
EME Yearly Income VS Free CF VS DividendEME Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
EME Dividend Payout.EME Dividend Payout, showing the Payout Ratio.EME Dividend Payout.PayoutRetained Earnings

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EME Fundamentals: All Metrics, Ratios and Statistics

EMCOR GROUP INC

NYSE:EME (5/1/2026, 8:23:42 PM)

After market: 901 -2.5 (-0.28%)

903.5

+11.83 (+1.33%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Industry Strength91.93
Industry Growth91.93
Earnings (Last)04-29
Earnings (Next)07-29
Inst Owners97.86%
Inst Owner Change0.83%
Ins Owners0.74%
Ins Owner Change-2.91%
Market Cap40.23B
Revenue(TTM)16.99B
Net Income(TTM)1.27B
Analysts81.43
Price Target863.68 (-4.41%)
Short Float %2.08%
Short Ratio2.42
Dividend
Industry RankSector Rank
Dividend Yield 0.18%
Yearly Dividend1
Dividend Growth(5Y)25.6%
DP3.54%
Div Incr Years5
Div Non Decr Years12
Ex-Date04-16
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.45%
Min EPS beat(2)-0.55%
Max EPS beat(2)43.44%
EPS beat(4)3
Avg EPS beat(4)17.86%
Min EPS beat(4)-0.55%
Max EPS beat(4)43.44%
EPS beat(8)7
Avg EPS beat(8)22.41%
EPS beat(12)11
Avg EPS beat(12)23.82%
EPS beat(16)14
Avg EPS beat(16)19.12%
Revenue beat(2)1
Avg Revenue beat(2)1.91%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)4.33%
Revenue beat(4)3
Avg Revenue beat(4)2.18%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)4.33%
Revenue beat(8)5
Avg Revenue beat(8)1.55%
Revenue beat(12)8
Avg Revenue beat(12)1.18%
Revenue beat(16)12
Avg Revenue beat(16)1.59%
PT rev (1m)1.25%
PT rev (3m)19.76%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)0.79%
EPS NY rev (1m)0.63%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)1.72%
Valuation
Industry RankSector Rank
PE 30.31
Fwd PE 28.59
P/S 2.37
P/FCF 33.83
P/OCF 30.9
P/B 10.95
P/tB 34.9
EV/EBITDA 22.3
EPS(TTM)29.81
EY3.3%
EPS(NY)31.6
Fwd EY3.5%
FCF(TTM)26.71
FCFY2.96%
OCF(TTM)29.24
OCFY3.24%
SpS381.46
BVpS82.5
TBVpS25.89
PEG (NY)28.52
PEG (5Y)0.88
Graham Number235.241 (-73.96%)
Profitability
Industry RankSector Rank
ROA 13.7%
ROE 34.64%
ROCE 35.44%
ROIC 26.05%
ROICexc 34.8%
ROICexgc 145.39%
OM 9.23%
PM (TTM) 7.49%
GM 19.33%
FCFM 7%
ROA(3y)12.11%
ROA(5y)10.15%
ROE(3y)31.52%
ROE(5y)26.43%
ROIC(3y)24.9%
ROIC(5y)20.47%
ROICexc(3y)35.78%
ROICexc(5y)28.51%
ROICexgc(3y)136.05%
ROICexgc(5y)102.02%
ROCE(3y)33.86%
ROCE(5y)27.84%
ROICexgc growth 3Y41.04%
ROICexgc growth 5Y17.75%
ROICexc growth 3Y24.7%
ROICexc growth 5Y13.96%
OM growth 3Y21.88%
OM growth 5Y10.56%
PM growth 3Y26.9%
PM growth 5Y37.75%
GM growth 3Y10.11%
GM growth 5Y4.03%
F-Score7
Asset Turnover1.83
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.01
Debt/EBITDA 0
Cap/Depr 60.48%
Cap/Sales 0.66%
Interest Coverage 140.93
Cash Conversion 74.19%
Profit Quality 93.44%
Current Ratio 1.22
Quick Ratio 1.19
Altman-Z 7.73
F-Score7
WACC11.06%
ROIC/WACC2.36
Cap/Depr(3y)60.82%
Cap/Depr(5y)52%
Cap/Sales(3y)0.6%
Cap/Sales(5y)0.52%
Profit Quality(3y)118.51%
Profit Quality(5y)107.94%
High Growth Momentum
Growth
EPS 1Y (TTM)31.73%
EPS 3Y51.18%
EPS 5Y34.51%
EPS Q2Q%30.04%
EPS Next Y1.06%
EPS Next 2Y5.8%
EPS Next 3Y8.13%
EPS Next 5Y10.53%
Revenue 1Y (TTM)16.62%
Revenue growth 3Y15.32%
Revenue growth 5Y14.07%
Sales Q2Q%19.67%
Revenue Next Year8.25%
Revenue Next 2Y7.65%
Revenue Next 3Y7.05%
Revenue Next 5Y6.73%
EBIT growth 1Y16.63%
EBIT growth 3Y40.56%
EBIT growth 5Y26.11%
EBIT Next Year21.73%
EBIT Next 3Y12.32%
EBIT Next 5Y10.98%
FCF growth 1Y-10.78%
FCF growth 3Y38.4%
FCF growth 5Y9.42%
OCF growth 1Y-7.52%
OCF growth 3Y37.77%
OCF growth 5Y10.06%

EMCOR GROUP INC / EME Fundamental Analysis 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 of EMCOR GROUP INC (EME) stock?

ChartMill assigns a valuation rating of 4 / 10 to EMCOR GROUP INC (EME). This can be considered as Fairly Valued.


Can you provide the profitability details for EMCOR GROUP INC?

EMCOR GROUP INC (EME) has a profitability rating of 9 / 10.


How financially healthy is EMCOR GROUP INC?

The financial health rating of EMCOR GROUP INC (EME) is 9 / 10.


What is the earnings growth outlook for EMCOR GROUP INC?

The Earnings per Share (EPS) of EMCOR GROUP INC (EME) is expected to grow by 1.06% in the next year.