EMCOR GROUP INC (EME) Stock Fundamental Analysis
NYSE:EME - US29084Q1004 - Common Stock
610.24 USD
-0.61 (-0.1%)
610.24 USD
0 (0%)
Taking everything into account, EME scores 8 out of 10 in our fundamental rating. EME was compared to 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make EME suitable for growth and 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.
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.
1.2 Ratios
EME's Return On Assets of 13.16% is amongst the best of the industry. EME outperforms 87.76% of its industry peers.
EME has a Return On Equity of 36.22%. This is amongst the best in the industry. EME outperforms 91.84% of its industry peers.
EME has a Return On Invested Capital of 27.02%. This is amongst the best in the industry. EME outperforms 91.84% 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 16.83%.
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
EME has a Profit Margin of 7.07%. This is in the better half of the industry: EME outperforms 77.55% of its industry peers.
EME's Profit Margin has improved in the last couple of years.
EME's Operating Margin of 9.50% is fine compared to the rest of the industry. EME outperforms 73.47% of its industry peers.
In the last couple of years the Operating Margin of EME has grown nicely.
EME has a better Gross Margin (19.49%) than 61.22% of its industry peers.
EME's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, EME has less shares outstanding
EME has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EME has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.50 indicates that EME is not in any danger for bankruptcy at the moment.
EME has a better Altman-Z score (6.50) than 87.76% of its industry peers.
EME has a debt to FCF ratio of 0.21. This is a very positive value and a sign of high solvency as it would only need 0.21 years to pay back of all of its debts.
EME has a Debt to FCF ratio of 0.21. This is amongst the best in the industry. EME outperforms 91.84% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that EME is not too dependend on debt financing.
EME has a Debt to Equity ratio of 0.08. This is amongst the best in the industry. EME outperforms 89.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 6.5 |
ROIC/WACC2.44
WACC11.08%
2.3 Liquidity
A Current Ratio of 1.18 indicates that EME should not have too much problems paying its short term obligations.
EME has a Current ratio of 1.18. This is comparable to the rest of the industry: EME outperforms 40.82% of its industry peers.
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.
The Quick ratio of EME (1.15) is worse than 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 | 1.18 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
EME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.03%, 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 30.23% on average per year.
The Revenue has grown by 13.77% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 11.96% on average over the next years. This is quite good.
EME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.68% yearly.
EPS Next Y17.96%
EPS Next 2Y13.38%
EPS Next 3Y11.96%
EPS Next 5YN/A
Revenue Next Year14.5%
Revenue Next 2Y10.47%
Revenue Next 3Y8.68%
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
EME is valuated quite expensively with a Price/Earnings ratio of 25.32.
Based on the Price/Earnings ratio, EME is valued a bit cheaper than the industry average as 67.35% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.24, EME is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.04, the valuation of EME can be described as rather expensive.
63.27% of the companies in the same industry are more expensive than EME, based on the Price/Forward Earnings ratio.
EME is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 22.04 |
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 the industry average as 63.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.6 | ||
| EV/EBITDA | 16.47 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EME has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.41
PEG (5Y)0.84
EPS Next 2Y13.38%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
With a yearly dividend of 0.16%, EME is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.55, 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 2.32.
| 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 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)23.83%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
EME pays out 4.14% 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.
DP4.14%
EPS Next 2Y13.38%
EPS Next 3Y11.96%
610.24
-0.61 (-0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners97.41%
Inst Owner Change-1.78%
Ins Owners0.83%
Ins Owner Change-1.46%
Market Cap27.31B
Analysts81.54
Price Target656.9 (7.65%)
Short Float %2.01%
Short Ratio2.18
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)20.82%
PT rev (3m)32.68%
EPS NQ rev (1m)4.78%
EPS NQ rev (3m)6.59%
EPS NY rev (1m)5.81%
EPS NY rev (3m)6.38%
Revenue NQ rev (1m)1.29%
Revenue NQ rev (3m)6.91%
Revenue NY rev (1m)1.55%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 22.04 | ||
| P/S | 1.75 | ||
| P/FCF | 22.6 | ||
| P/OCF | 21.04 | ||
| P/B | 8.95 | ||
| P/tB | 44.22 | ||
| EV/EBITDA | 16.47 |
EPS(TTM)24.1
EY3.95%
EPS(NY)27.69
Fwd EY4.54%
FCF(TTM)27
FCFY4.42%
OCF(TTM)29
OCFY4.75%
SpS349.39
BVpS68.18
TBVpS13.8
PEG (NY)1.41
PEG (5Y)0.84
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 | 6.5 |
F-Score6
WACC11.08%
ROIC/WACC2.44
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 Y17.96%
EPS Next 2Y13.38%
EPS Next 3Y11.96%
EPS Next 5YN/A
Revenue 1Y (TTM)13.77%
Revenue growth 3Y13.72%
Revenue growth 5Y9.69%
Sales Q2Q%17.39%
Revenue Next Year14.5%
Revenue Next 2Y10.47%
Revenue Next 3Y8.68%
Revenue Next 5YN/A
EBIT growth 1Y32.77%
EBIT growth 3Y36.33%
EBIT growth 5Y23.8%
EBIT Next Year28.33%
EBIT Next 3Y12.25%
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%