NYSE:EME

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


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


Market Performance


7 Day Return

-1.4%

EME

-1.2%

US Construction

-0.6%

US Market


1 Year Return

14.3%

EME

-7.1%

US Construction

0.7%

US Market

EME outperformed the Construction industry which returned -7.1% over the past year.

EME outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

EMEIndustryMarket
7 Day-1.4%-1.2%-0.6%
30 Day3.2%8.1%2.9%
90 Day2.3%0.7%1.3%
1 Year14.8%14.3%-6.3%-7.1%2.9%0.7%
3 Year50.7%48.7%23.1%20.3%44.6%35.2%
5 Year115.7%109.9%15.0%11.1%61.9%44.2%

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 based on future cash flows and its price relative to the stock market?

15.46x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

EMCOR Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

EMCOR Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

EMCOR Group is good value based on earnings compared to the US Construction industry average.

EMCOR Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

EMCOR Group is poor value based on expected growth next year.


Price Based on Value of Assets

EMCOR Group is overvalued based on assets compared to the US Construction industry average.


Next Steps

Future Growth

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

3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

EMCOR Group's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

EMCOR Group's earnings are expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

EMCOR Group's revenue growth is positive but not above the United States of America market average.

EMCOR Group's earnings growth is positive but not above the United States of America market average.

EMCOR Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

EMCOR Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has EMCOR Group performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

EMCOR Group's year on year earnings growth rate has been positive over the past 5 years.

EMCOR Group's 1-year earnings growth exceeds its 5-year average (28.9% vs 13.2%)

EMCOR Group's earnings growth has exceeded the US Construction industry average in the past year (28.9% vs 2.6%).


Return on Equity

EMCOR Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

EMCOR Group used its assets more efficiently than the US Construction industry average last year based on Return on Assets.


Return on Capital Employed

EMCOR Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is EMCOR Group's financial position?


Financial Position Analysis

EMCOR Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

EMCOR Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

EMCOR Group's level of debt (15%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (22% vs 15% today).

Debt is well covered by operating cash flow (91.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 38.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 8.5x debt.


Next Steps

Dividend

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

0.37%

Expected Dividend Yield


Dividend Yield and Payments Analysis

EMCOR Group's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

EMCOR Group's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

EMCOR Group is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

EMCOR Group is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of EMCOR Group's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of EMCOR Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of EMCOR Group's salary, the management and board of directors tenure and is there insider trading?

7.7yrs

Average management tenure


CEO

Tony Guzzi (55yo)

8.7yrs

Tenure

US$10,053,185

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

Tony's remuneration is higher than average for companies of similar size in United States of America.

Tony's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.7yrs

Average Tenure

55yo

Average Age

The average tenure for the EMCOR Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.1yrs

Average Tenure

64.5yo

Average Age

The tenure for the EMCOR Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$789,06413 Dec 18
Jerry Ryan
EntityIndividual
Shares12,000
Max PriceUS$66.00
SellUS$136,20602 Nov 18
William Reid
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,900
Max PriceUS$71.69

Ownership Breakdown


Management Team

  • R. Matz (60yo)

    Executive Vice President of Shared Services

    • Tenure: 23.4yrs
    • Compensation: US$3.23m
  • Mark Pompa (54yo)

    Executive VP

    • Tenure: 13.4yrs
    • Compensation: US$4.28m
  • Keith Chanter

    Chief Executive Officer of EMCOR UK

    • Tenure: 10.8yrs
  • Tony Guzzi (55yo)

    Chairman

    • Tenure: 8.7yrs
    • Compensation: US$10.05m
  • Mike Parry (73yo)

    CEO & President of EMCOR Construction Services

    • Tenure: 0yrs
  • Mike Bordes

    CEO & President of EMCOR Building Services

    • Tenure: 0yrs
  • Dan Rodstrom

    President of Commercial Site Services

    • Tenure: 5.7yrs
  • Maxine Mauricio (47yo)

    Senior VP

    • Tenure: 3.7yrs
    • Compensation: US$2.29m
  • Lisa Haight

    Vice President of Human Resources

    • Tenure: 6.8yrs
  • Steven Fried

    Vice President of Compliance

    • Tenure: 4.8yrs

Board Members

  • M. McEvoy (68yo)

    Independent Lead Director

    • Tenure: 1.3yrs
    • Compensation: US$340.00k
  • Bill Reid (69yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$360.00k
  • David A. Brown (75yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$370.00k
  • Richard Hamm (59yo)

    Independent Director

    • Tenure: 21.3yrs
    • Compensation: US$370.00k
  • Tony Guzzi (55yo)

    Chairman

    • Tenure: 8.7yrs
    • Compensation: US$10.05m
  • Leo Laidley (72yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$365.00k
  • John Altmeyer (59yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$370.00k
  • Carol Lowe (53yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$365.00k
  • Robin Walker-Lee (65yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$90.00k
  • Steve Schwarzwaelder (64yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$365.00k

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:
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$4.811b
  • Shares outstanding: 56.13m
  • Website: https://www.emcorgroup.com

Number of Employees


Location

  • EMCOR Group, Inc.
  • 301 Merritt Seven
  • Norwalk
  • Connecticut
  • 6851
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMENYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1995
EM4DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1995

Biography

EMCOR Group, Inc. provides electrical and mechanical construction, and facilities services in the United States. The company designs, integrates, installs, starts-up, operates, and maintains electric power ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 23:37
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.