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Market Cap

US$6.7b

Last Updated

2021/05/07 03:21 UTC

Data Sources

Company Financials +

Executive Summary

EMCOR Group, Inc. provides electrical and mechanical construction, and facilities services in the United States. More Details


Snowflake Analysis

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

How has EMCOR Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EME is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EME's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.0%

EME

1.0%

US Construction

-1.7%

US Market


1 Year Return

106.7%

EME

130.6%

US Construction

51.8%

US Market

Return vs Industry: EME underperformed the US Construction industry which returned 130.6% over the past year.

Return vs Market: EME exceeded the US Market which returned 51.8% over the past year.


Shareholder returns

EMEIndustryMarket
7 Day2.0%1.0%-1.7%
30 Day8.3%4.0%1.5%
90 Day31.8%16.8%3.1%
1 Year107.7%106.7%131.7%130.6%54.4%51.8%
3 Year64.0%61.8%61.7%58.8%63.0%52.8%
5 Year166.8%160.7%107.6%100.3%127.2%101.9%

Long-Term Price Volatility Vs. Market

How volatile is EMCOR Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is EMCOR Group undervalued compared to its fair value and its price relative to the market?

47.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EME ($124.1) is trading above our estimate of fair value ($84.24)

Significantly Below Fair Value: EME is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EME is poor value based on its PE Ratio (48x) compared to the US Construction industry average (29x).

PE vs Market: EME is poor value based on its PE Ratio (48x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: EME is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: EME is overvalued based on its PB Ratio (3.2x) compared to the US Construction industry average (3.1x).


Future Growth

How is EMCOR Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EME's forecast earnings growth (15.7% per year) is above the savings rate (2%).

Earnings vs Market: EME's earnings (15.7% per year) are forecast to grow faster than the US market (15.4% per year).

High Growth Earnings: EME's earnings are forecast to grow, but not significantly.

Revenue vs Market: EME's revenue (5% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: EME's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EME's Return on Equity is forecast to be low in 3 years time (16%).


Past Performance

How has EMCOR Group performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EME has a large one-off loss of $234.9M impacting its March 31 2021 financial results.

Growing Profit Margin: EME's current net profit margins (1.6%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: EME's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: EME's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EME had negative earnings growth (-56.7%) over the past year, making it difficult to compare to the Construction industry average (9%).


Return on Equity

High ROE: EME's Return on Equity (6.7%) is considered low.


Financial Health

How is EMCOR Group's financial position?


Financial Position Analysis

Short Term Liabilities: EME's short term assets ($3.1B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: EME's short term assets ($3.1B) exceed its long term liabilities ($847.1M).


Debt to Equity History and Analysis

Debt Level: EME's debt to equity ratio (12.6%) is considered satisfactory.

Reducing Debt: EME's debt to equity ratio has reduced from 21.1% to 12.6% over the past 5 years.

Debt Coverage: EME's debt is well covered by operating cash flow (298.4%).

Interest Coverage: EME's interest payments on its debt are well covered by EBIT (79.5x coverage).


Balance Sheet


Dividend

What is EMCOR Group current dividend yield, its reliability and sustainability?

0.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EME's dividend (0.42%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: EME's dividend (0.42%) is low compared to the top 25% of dividend payers in the US market (3.42%).


Stability and Growth of Payments

Stable Dividend: EME is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: EME is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: EME is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EME's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

Tony Guzzi (56 yo)

10.33yrs

Tenure

US$10,808,156

Compensation

Mr. Anthony J. Guzzi, also known as Tony, has been the President and Chief Executive Officer of EMCOR Group Inc., since October 25, 2004 and January 3, 2011 respectively and also has been its Chairman sinc...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD10.81M) is above average for companies of similar size in the US market ($USD6.50M).

Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EME's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: EME's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EME insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

EMCOR Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EMCOR Group, Inc.
  • Ticker: EME
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$6.675b
  • Shares outstanding: 54.56m
  • Website: https://www.emcorgroup.com

Number of Employees


Location

  • EMCOR Group, Inc.
  • 301 Merritt Seven
  • Norwalk
  • Connecticut
  • 06851-1092
  • United States

Listings


Biography

EMCOR Group, Inc. provides electrical and mechanical construction, and facilities services in the United States. The company offers design, integration, installation, starts-up, operation, and maintenance ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 03:21
End of Day Share Price2021/05/06 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.