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EME

EMCOR Group NYSE:EME Stock Report

Last Price

US$123.72

Market Cap

US$6.1b

7D

4.6%

1Y

3.9%

Updated

18 Aug, 2022

Data

Company Financials +
EME fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends0/6

EME Stock Overview

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

EMCOR Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for EMCOR Group
Historical stock prices
Current Share PriceUS$123.72
52 Week HighUS$135.98
52 Week LowUS$95.64
Beta1.15
1 Month Change18.05%
3 Month Change20.68%
1 Year Change3.93%
3 Year Change48.90%
5 Year Change98.11%
Change since IPO6,086.00%

Recent News & Updates

Aug 14
Is EMCOR Group, Inc. (NYSE:EME) Potentially Undervalued?

Is EMCOR Group, Inc. (NYSE:EME) Potentially Undervalued?

While EMCOR Group, Inc. ( NYSE:EME ) might not be the most widely known stock at the moment, it saw a significant share...

Aug 09

EMCOR Groupm announces acquisition of Gaston Electrical

EMCOR Groupm (NYSE:EME) has acquired Gaston Electrical, a full service electrical construction contractor headquartered in Norwood, MA.  Terms of the transaction were not disclosed. Gaston has estimated revenues of ~$140M and remaining unsatisfied performance obligations of ~$120M, and will further strengthen EMCOR’s specialty construction services operations in the Greater Boston area.

Shareholder Returns

EMEUS ConstructionUS Market
7D4.6%2.5%1.4%
1Y3.9%19.7%-8.4%

Return vs Industry: EME underperformed the US Construction industry which returned 17.8% over the past year.

Return vs Market: EME exceeded the US Market which returned -9% over the past year.

Price Volatility

Is EME's price volatile compared to industry and market?
EME volatility
EME Average Weekly Movement4.1%
Construction Industry Average Movement6.1%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

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.

About the Company

FoundedEmployeesCEOWebsite
198734,000Tony Guzzihttps://www.emcorgroup.com

EMCOR Group, Inc. provides electrical and mechanical construction, and facilities services primarily in the United States and the United Kingdom. It offers design, integration, installation, starts-up, operation, and maintenance services related to electrical power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation in the refining, chemical processing, and food processing industries; low-voltage systems, such as fire alarm, security, and process control systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and high-purity piping systems; controls and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging services; millwright services; and steel fabrication, erection, and welding services. The company also provides building services that cover commercial and government site-based operations and maintenance; facility management, maintenance, and services; outage services to utilities and industrial plants; military base operations support services; mobile mechanical maintenance and services; services for indoor air quality; floor care and janitorial services; landscaping, lot sweeping, and snow removal services; vendor management and call center services; installation and support for building systems; program development, management, and maintenance for energy systems; technical consulting and diagnostic services; infrastructure and building projects; small modification and retrofit projects; and other building services.

EMCOR Group Fundamentals Summary

How do EMCOR Group's earnings and revenue compare to its market cap?
EME fundamental statistics
Market CapUS$6.11b
Earnings (TTM)US$375.46m
Revenue (TTM)US$10.46b

16.3x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EME income statement (TTM)
RevenueUS$10.46b
Cost of RevenueUS$8.94b
Gross ProfitUS$1.52b
Other ExpensesUS$1.14b
EarningsUS$375.46m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)7.61
Gross Margin14.53%
Net Profit Margin3.59%
Debt/Equity Ratio13.0%

How did EME perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

0.28%

Payout Ratio

Does EME pay a reliable dividends?

See EME dividend history and benchmarks
When do you need to buy EME by to receive an upcoming dividend?
EMCOR Group dividend dates
Ex Dividend DateOct 17 2022
Dividend Pay DateOct 31 2022
Days until Ex dividend59 days
Days until Dividend pay date73 days

Does EME pay a reliable dividends?

See EME dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is EME undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EME?

Other financial metrics that can be useful for relative valuation.

EME key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA10.1x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

How does EME's PE Ratio compare to its peers?

EME PE Ratio vs Peers
The above table shows the PE ratio for EME vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.7x
MTZ MasTec
36.3x75.5%US$6.1b
MDU MDU Resources Group
19.9x15.1%US$6.5b
VMI Valmont Industries
28.4x15.6%US$6.2b
FIX Comfort Systems USA
18.1x-0.4%US$3.8b
EME EMCOR Group
16.3x10.4%US$6.1b

Price-To-Earnings vs Peers: EME is good value based on its Price-To-Earnings Ratio (16.3x) compared to the peer average (25.7x).


Price to Earnings Ratio vs Industry

How does EME's PE Ratio compare vs other companies in the US Construction Industry?

Price-To-Earnings vs Industry: EME is good value based on its Price-To-Earnings Ratio (16.3x) compared to the US Construction industry average (29.6x)


Price to Earnings Ratio vs Fair Ratio

What is EME's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EME PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.3x
Fair PE Ratio19.1x

Price-To-Earnings vs Fair Ratio: EME is good value based on its Price-To-Earnings Ratio (16.3x) compared to the estimated Fair Price-To-Earnings Ratio (19.1x).


Share Price vs Fair Value

What is the Fair Price of EME when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EME ($123.72) is trading below our estimate of fair value ($386.18)

Significantly Below Fair Value: EME is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is EMCOR Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EME's forecast earnings growth (10.4% per year) is above the savings rate (1.9%).

Earnings vs Market: EME's earnings (10.4% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: EME's revenue (4.5% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: EME's revenue (4.5% 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 (17.2%).


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Past Performance

How has EMCOR Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EME has high quality earnings.

Growing Profit Margin: EME's current net profit margins (3.6%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: EME's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: EME's earnings growth over the past year (16.2%) exceeds its 5-year average (7.2% per year).

Earnings vs Industry: EME earnings growth over the past year (16.2%) exceeded the Construction industry 13.1%.


Return on Equity

High ROE: EME's Return on Equity (19.2%) is considered low.


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Financial Health

How is EMCOR Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EME's short term assets ($3.1B) exceed its short term liabilities ($2.4B).

Long Term Liabilities: EME's short term assets ($3.1B) exceed its long term liabilities ($790.7M).


Debt to Equity History and Analysis

Debt Level: EME has more cash than its total debt.

Reducing Debt: EME's debt to equity ratio has reduced from 26.4% to 13% over the past 5 years.

Debt Coverage: EME's debt is well covered by operating cash flow (120.8%).

Interest Coverage: EME's interest payments on its debt are well covered by EBIT (95.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.48%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 19 2022Ex Dividend DateOct 17 2022Dividend Pay DateOct 31 202214 days from Ex DividendBuy in the next 59 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: EME's dividend (0.48%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: EME's dividend (0.48%) is low compared to the top 25% of dividend payers in the US market (3.99%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

8.6yrs

Average management tenure


CEO

Tony Guzzi (58 yo)

17.83yrs

Tenure

US$11,024,040

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 ($USD11.02M) is above average for companies of similar size in the US market ($USD8.19M).

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 (8.6 years average tenure).


Board Members

Experienced Board: EME's board of directors are considered experienced (6.2 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 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
  • Implied Market Cap: US$6.105b
  • Shares outstanding: 49.35m
  • Website: https://www.emcorgroup.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.