EMCOR GROUP INC (EME) Stock Fundamental Analysis
NYSE:EME - New York Stock Exchange, Inc. - US29084Q1004 - Common Stock - Currency: USD
EME gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 49 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 has a decent growth rate and is not valued too expensively. This makes EME very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year EME was profitable.
In the past year EME had a positive cash flow from operations.
Each year in the past 5 years EME has been profitable.
Each year in the past 5 years EME had a positive operating cash flow.
1.2 Ratios
EME has a Return On Assets of 13.01%. This is amongst the best in the industry. EME outperforms 87.76% of its industry peers.
The Return On Equity of EME (35.62%) is better than 89.80% of its industry peers.
EME's Return On Invested Capital of 26.51% is amongst the best of the industry. EME outperforms 91.84% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EME is above the industry average of 16.67%.
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
The Profit Margin of EME (7.00%) is better than 77.55% of its industry peers.
EME's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.36%, EME is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
EME's Operating Margin has improved in the last couple of years.
EME has a Gross Margin (19.32%) 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EME is creating value.
Compared to 1 year ago, EME has less shares outstanding
EME has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EME has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.33 indicates that EME is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.33, EME belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
EME has a debt to FCF ratio of 0.20. This is a very positive value and a sign of high solvency as it would only need 0.20 years to pay back of all of its debts.
The Debt to FCF ratio of EME (0.20) is better than 91.84% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that EME is not too dependend on debt financing.
The Debt to Equity ratio of EME (0.09) is better than 89.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 6.33 |
ROIC/WACC2.49
WACC10.64%
2.3 Liquidity
A Current Ratio of 1.16 indicates that EME should not have too much problems paying its short term obligations.
The Current ratio of EME (1.16) is worse than 61.22% of 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 on the low side compared to the rest of the industry. EME is outperformed by 61.22% of its industry peers.
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 | 1.16 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.27% over the past year.
EME shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.23% yearly.
EME shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.30%.
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
The Earnings Per Share is expected to grow by 9.98% on average over the next years. This is quite good.
EME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.47% yearly.
EPS Next Y11.48%
EPS Next 2Y9.87%
EPS Next 3Y9.98%
EPS Next 5YN/A
Revenue Next Year12.75%
Revenue Next 2Y9.2%
Revenue Next 3Y7.47%
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.
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
A Price/Earnings ratio of 25.35 indicates a quite expensive valuation of EME.
EME's Price/Earnings ratio is a bit cheaper when compared to the industry. EME is cheaper than 73.47% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, EME is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.06, the valuation of EME can be described as rather expensive.
EME's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EME is cheaper than 65.31% of the companies in the same industry.
EME's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 22.06 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EME indicates a somewhat cheap valuation: EME is cheaper than 67.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.7 | ||
| EV/EBITDA | 15.94 |
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)2.21
PEG (5Y)0.84
EPS Next 2Y9.87%
EPS Next 3Y9.98%
5. Dividend
5.1 Amount
EME has a yearly dividend return of 0.18%, which is pretty low.
Compared to an average industry Dividend Yield of 1.63, EME pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.18, EME pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
5.2 History
The dividend of EME is nicely growing with an annual growth rate of 23.83%!
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 4.41% 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.
DP4.41%
EPS Next 2Y9.87%
EPS Next 3Y9.98%
573.66
+14.68 (+2.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.35%
Inst Owner Change-0.74%
Ins Owners0.83%
Ins Owner Change-1.46%
Market Cap25.68B
Analysts81.67
Price Target543.68 (-5.23%)
Short Float %2.72%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
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)9.81%
PT rev (3m)6.65%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)0.14%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 22.06 | ||
| P/S | 1.71 | ||
| P/FCF | 19.7 | ||
| P/OCF | 18.55 | ||
| P/B | 8.7 | ||
| P/tB | 49.71 | ||
| EV/EBITDA | 15.94 |
EPS(TTM)22.63
EY3.94%
EPS(NY)26
Fwd EY4.53%
FCF(TTM)29.12
FCFY5.08%
OCF(TTM)30.92
OCFY5.39%
SpS335.15
BVpS65.91
TBVpS11.54
PEG (NY)2.21
PEG (5Y)0.84
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 | 6.33 |
F-Score6
WACC10.64%
ROIC/WACC2.49
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 Y11.48%
EPS Next 2Y9.87%
EPS Next 3Y9.98%
EPS Next 5YN/A
Revenue 1Y (TTM)14.3%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%12.68%
Revenue Next Year12.75%
Revenue Next 2Y9.2%
Revenue Next 3Y7.47%
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%