EMCOR GROUP INC (EME) Stock Fundamental Analysis
USA - NYSE:EME - US29084Q1004 - Common Stock
660.28 USD
+5.36 (+0.82%)
660.28 USD
0 (0%)
Overall EME gets a fundamental rating of 8 out of 10. We evaluated EME against 53 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make EME a good candidate for growth and 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.
EME had positive earnings in each of the past 5 years.
In the past 5 years EME always reported a positive cash flow from operatings.
1.2 Ratios
EME has a better Return On Assets (13.16%) than 84.91% of its industry peers.
With an excellent Return On Equity value of 36.22%, EME belongs to the best of the industry, outperforming 90.57% of the companies in the same industry.
The Return On Invested Capital of EME (27.02%) is better than 88.68% of its industry peers.
EME had an Average Return On Invested Capital over the past 3 years of 21.01%. This is above the industry average of 17.22%.
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
Looking at the Profit Margin, with a value of 7.07%, EME is in the better half of the industry, outperforming 75.47% of the companies in the same industry.
In the last couple of years the Profit Margin of EME has grown nicely.
The Operating Margin of EME (9.50%) is better than 71.70% of its industry peers.
EME's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 19.49%, EME is doing good in the industry, outperforming 62.26% of the companies in the same industry.
In the last couple of years the Gross Margin of EME has grown nicely.
| 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
EME has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for EME has been reduced compared to 1 year ago.
Compared to 5 years ago, EME has less shares outstanding
EME has a better debt/assets ratio than last year.
2.2 Solvency
EME has an Altman-Z score of 6.76. This indicates that EME is financially healthy and has little risk of bankruptcy at the moment.
EME has a Altman-Z score of 6.76. This is amongst the best in the industry. EME outperforms 86.79% 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.
The Debt to FCF ratio of EME (0.21) is better than 88.68% of its industry peers.
EME has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
EME has a Debt to Equity ratio of 0.08. This is amongst the best in the industry. EME outperforms 86.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 6.76 |
ROIC/WACC2.66
WACC10.14%
2.3 Liquidity
A Current Ratio of 1.18 indicates that EME should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.18, EME is in line with its industry, outperforming 45.28% of the companies in the same industry.
EME has a Quick Ratio of 1.15. 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 Quick ratio (1.15) which is in line with 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 | 1.18 | ||
| Quick Ratio | 1.15 |
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 13.77%.
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)13.77%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%17.39%
3.2 Future
Based on estimates for the next years, EME will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.08% on average per year.
The Revenue is expected to grow by 9.08% 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 Year14.58%
Revenue Next 2Y10.56%
Revenue Next 3Y9.08%
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
With a Price/Earnings ratio of 27.40, EME can be considered very expensive at the moment.
Based on the Price/Earnings ratio, EME is valued a bit cheaper than 71.70% of the companies in the same industry.
EME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.86.
With a Price/Forward Earnings ratio of 23.83, EME is valued on the expensive side.
Based on the Price/Forward Earnings ratio, EME is valued a bit cheaper than 69.81% of the companies in the same industry.
EME's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.4 | ||
| Fwd PE | 23.83 |
4.2 Price Multiples
EME's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EME is cheaper than 64.15% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EME indicates a somewhat cheap valuation: EME is cheaper than 67.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.46 | ||
| EV/EBITDA | 17.83 |
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.
EME's earnings are expected to grow with 12.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)0.91
EPS Next 2Y13.42%
EPS Next 3Y12.08%
5. Dividend
5.1 Amount
With a yearly dividend of 0.16%, EME is not a good candidate for dividend investing.
EME's Dividend Yield is a higher than the industry average which is at 1.56.
With a Dividend Yield of 0.16, EME pays less dividend than the S&P500 average, which is at 2.41.
| 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
4.14% of the earnings are spent on dividend by EME. This is a low number and sustainable payout ratio.
EME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP4.14%
EPS Next 2Y13.42%
EPS Next 3Y12.08%
660.28
+5.36 (+0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.74%
Inst Owner Change-1.77%
Ins Owners0.83%
Ins Owner Change-0.5%
Market Cap29.55B
Analysts78.46
Price Target656.9 (-0.51%)
Short Float %1.92%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
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%
PT rev (3m)32.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.02%
EPS NY rev (1m)0.02%
EPS NY rev (3m)5.8%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.4 | ||
| Fwd PE | 23.83 | ||
| P/S | 1.89 | ||
| P/FCF | 24.46 | ||
| P/OCF | 22.77 | ||
| P/B | 9.68 | ||
| P/tB | 47.84 | ||
| EV/EBITDA | 17.83 |
EPS(TTM)24.1
EY3.65%
EPS(NY)27.71
Fwd EY4.2%
FCF(TTM)27
FCFY4.09%
OCF(TTM)29
OCFY4.39%
SpS349.39
BVpS68.18
TBVpS13.8
PEG (NY)1.52
PEG (5Y)0.91
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%
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 | 0.08 | ||
| 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 | 6.76 |
F-Score6
WACC10.14%
ROIC/WACC2.66
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 Year14.58%
Revenue Next 2Y10.56%
Revenue Next 3Y9.08%
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%