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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EME is not valued too expensively and it also shows a decent growth rate. With these ratings, EME could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
EME had positive earnings in the past year.
In the past year EME had a positive cash flow from operations.
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 (13.01%) than 87.76% of its industry peers.
EME has a Return On Equity of 35.62%. This is amongst the best in the industry. EME outperforms 89.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 26.51%, EME belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EME is above the industry average of 16.70%.
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
EME has a better Profit Margin (7.00%) than 77.55% of its industry peers.
EME's Profit Margin has improved in the last couple of years.
EME's Operating Margin of 9.36% is fine compared to the rest of the industry. EME outperforms 73.47% of its industry peers.
EME's Operating Margin has improved in the last couple of years.
EME's Gross Margin of 19.32% is in line compared to the rest of the industry. EME outperforms 57.14% of 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
EME has an Altman-Z score of 6.67. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
EME has a Altman-Z score of 6.67. This is amongst the best in the industry. EME outperforms 87.76% of its industry peers.
The Debt to FCF ratio of EME is 0.20, which is an excellent value as it means it would take EME, only 0.20 years of fcf income to pay off all of its debts.
EME's Debt to FCF ratio of 0.20 is amongst the best of the industry. EME outperforms 91.84% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that EME is not too dependend on debt financing.
EME has a better Debt to Equity ratio (0.09) than 89.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 6.67 |
ROIC/WACC2.84
WACC9.34%
2.3 Liquidity
EME has a Current Ratio of 1.16. 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 worse Current ratio (1.16) than 61.22% of its industry peers.
A Quick Ratio of 1.14 indicates that EME should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.14, EME is not doing good in the industry: 61.22% of the companies in the same industry are doing better.
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 38.03% 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 15.76%.
EME shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.69% yearly.
EPS 1Y (TTM)38.03%
EPS 3Y45.04%
EPS 5Y30.23%
EPS Q2Q%28%
Revenue 1Y (TTM)15.76%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%17.39%
3.2 Future
The Earnings Per Share is expected to grow by 9.98% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.48% on average over the next years.
EPS Next Y11.48%
EPS Next 2Y9.87%
EPS Next 3Y9.98%
EPS Next 5YN/A
Revenue Next Year12.76%
Revenue Next 2Y9.2%
Revenue Next 3Y7.48%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 25.92, EME can be considered very expensive at the moment.
Based on the Price/Earnings ratio, EME is valued a bit cheaper than the industry average as 69.39% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.82. EME is around the same levels.
The Price/Forward Earnings ratio is 24.02, which indicates a rather expensive current valuation of EME.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EME is on the same level as its industry peers.
EME is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.92 | ||
| Fwd PE | 24.02 |
4.2 Price Multiples
EME's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, EME is valued a bit cheaper than 63.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.45 | ||
| EV/EBITDA | 17.84 |
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)2.26
PEG (5Y)0.86
EPS Next 2Y9.87%
EPS Next 3Y9.98%
5. Dividend
5.1 Amount
EME has a yearly dividend return of 0.16%, which is pretty low.
Compared to an average industry Dividend Yield of 1.61, EME pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.16, EME pays less dividend than the S&P500 average, which is at 2.39.
| 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
EME pays out 4.41% 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.
DP4.41%
EPS Next 2Y9.87%
EPS Next 3Y9.98%
624.67
-2.82 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.35%
Inst Owner Change-0.11%
Ins Owners0.83%
Ins Owner Change-1.46%
Market Cap27.96B
Analysts81.67
Price Target543.68 (-12.97%)
Short Float %2.37%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
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)9.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.7%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.92 | ||
| Fwd PE | 24.02 | ||
| P/S | 1.86 | ||
| P/FCF | 21.45 | ||
| P/OCF | 20.2 | ||
| P/B | 9.48 | ||
| P/tB | 54.13 | ||
| EV/EBITDA | 17.84 |
EPS(TTM)24.1
EY3.86%
EPS(NY)26
Fwd EY4.16%
FCF(TTM)29.12
FCFY4.66%
OCF(TTM)30.92
OCFY4.95%
SpS335.15
BVpS65.91
TBVpS11.54
PEG (NY)2.26
PEG (5Y)0.86
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 | 6.67 |
F-Score6
WACC9.34%
ROIC/WACC2.84
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 Y11.48%
EPS Next 2Y9.87%
EPS Next 3Y9.98%
EPS Next 5YN/A
Revenue 1Y (TTM)15.76%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%17.39%
Revenue Next Year12.76%
Revenue Next 2Y9.2%
Revenue Next 3Y7.48%
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%