EMCOR GROUP INC (EME)
US29084Q1004 - Common Stock
We assign a fundamental rating of 7 out of 10 to EME. EME was compared to 41 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 valied quite expensively at the moment, while it does show a decent growth rate. This makes EME very considerable for 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.
Each year in the past 5 years EME has been profitable.
EME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EME has a better Return On Assets (9.58%) than 97.56% of its industry peers.
With an excellent Return On Equity value of 25.63%, EME belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
The Return On Invested Capital of EME (20.63%) is better than 95.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EME is significantly above the industry average of 8.20%.
The 3 year average ROIC (15.98%) for EME is below the current ROIC(20.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.58% | ||
| ROE | 25.63% | ||
| ROIC | 20.63% |
ROA(3y)7.99%
ROA(5y)6.67%
ROE(3y)21.08%
ROE(5y)17.1%
ROIC(3y)15.98%
ROIC(5y)14.37%
1.3 Margins
EME's Profit Margin of 5.03% is fine compared to the rest of the industry. EME outperforms 73.17% of its industry peers.
EME's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 6.98%, EME is doing good in the industry, outperforming 70.73% of the companies in the same industry.
In the last couple of years the Operating Margin of EME has grown nicely.
EME has a Gross Margin (16.60%) which is in line with its industry peers.
In the last couple of years the Gross Margin of EME has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.98% | ||
| PM (TTM) | 5.03% | ||
| GM | 16.6% |
OM growth 3Y7.67%
OM growth 5Y6.91%
PM growth 3Y49.33%
PM growth 5Y7.61%
GM growth 3Y1.54%
GM growth 5Y2.29%
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
The number of shares outstanding for EME has been reduced compared to 5 years ago.
Compared to 1 year ago, EME has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.75 indicates that EME is not in any danger for bankruptcy at the moment.
EME has a better Altman-Z score (5.75) than 92.68% 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.
Looking at the Debt to FCF ratio, with a value of 0.01, EME belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
EME has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, EME belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 5.75 |
ROIC/WACC2.13
WACC9.68%
2.3 Liquidity
EME has a Current Ratio of 1.26. This is a normal value and indicates that EME is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.26, EME is in line with its industry, outperforming 41.46% of the companies in the same industry.
A Quick Ratio of 1.23 indicates that EME should not have too much problems paying its short term obligations.
The Quick ratio of EME (1.23) 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 | 1.26 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
EME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.91%, 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 22.12% on average per year.
EME shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.60%.
The Revenue has been growing by 9.13% on average over the past years. This is quite good.
EPS 1Y (TTM)62.91%
EPS 3Y27.58%
EPS 5Y22.12%
EPS growth Q2Q69.96%
Revenue 1Y (TTM)13.6%
Revenue growth 3Y12.67%
Revenue growth 5Y9.13%
Revenue growth Q2Q16.59%
3.2 Future
The Earnings Per Share is expected to grow by 7.79% on average over the next years.
EME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.22% yearly.
EPS Next Y9.92%
EPS Next 2Y8.67%
EPS Next 3Y7.79%
EPS Next 5YN/A
Revenue Next Year9.6%
Revenue Next 2Y8%
Revenue Next 3Y7.22%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.18, which means the current valuation is very expensive for EME.
Compared to the rest of the industry, the Price/Earnings ratio of EME is on the same level as its industry peers.
EME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
The Price/Forward Earnings ratio is 24.72, which indicates a rather expensive current valuation of EME.
The rest of the industry has a similar Price/Forward Earnings ratio as EME.
EME's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.18 | ||
| Fwd PE | 24.72 |
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 70.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.73 | ||
| EV/EBITDA | 16.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of EME may justify a higher PE ratio.
PEG (NY)2.74
PEG (5Y)1.23
EPS Next 2Y8.67%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
EME has a yearly dividend return of 0.28%, which is pretty low.
EME's Dividend Yield is rather good when compared to the industry average which is at 0.85. EME pays more dividend than 80.49% of the companies in the same industry.
With a Dividend Yield of 0.28, EME pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
5.2 History
The dividend of EME is nicely growing with an annual growth rate of 16.33%!
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)16.33%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
EME pays out 5.16% 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.
DP5.16%
EPS Next 2Y8.67%
EPS Next 3Y7.79%
EMCOR GROUP INC
NYSE:EME (5/3/2024, 10:37:23 AM)
361.7
+5.41 (+1.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.18 | ||
| Fwd PE | 24.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.74
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.58% | ||
| ROE | 25.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.98% | ||
| PM (TTM) | 5.03% | ||
| GM | 16.6% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)62.91%
EPS 3Y27.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.6%
Revenue growth 3Y12.67%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y