NYSE:EME

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: EME has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

EME

-3.1%

US Construction

0.3%

US Market


1 Year Return

31.3%

EME

17.0%

US Construction

18.5%

US Market

Return vs Industry: EME exceeded the US Construction industry which returned 17% over the past year.

Return vs Market: EME exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

EMEIndustryMarket
7 Day-1.9%-3.1%0.3%
30 Day-2.4%-5.0%1.5%
90 Day-0.7%1.9%5.7%
1 Year31.9%31.3%18.0%17.0%21.1%18.5%
3 Year21.6%20.0%-1.3%-3.5%45.9%36.4%
5 Year111.6%106.0%33.5%28.8%71.4%52.5%

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?

15.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EME ($87.28) is trading above our estimate of fair value ($71.46)

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


Price To Earnings Ratio

PE vs Industry: EME is good value based on its PE Ratio (15.5x) compared to the Construction industry average (17.4x).

PE vs Market: EME is good value based on its PE Ratio (15.5x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: EME is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: EME is overvalued based on its PB Ratio (2.5x) compared to the US Construction industry average (1.6x).


Next Steps

Future Growth

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

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EME's forecast earnings growth (4.9% per year) is above the savings rate (1.7%).

Earnings vs Market: EME's earnings (4.9% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: EME's revenue (4.4% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: EME's revenue (4.4% 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 (15.5%).


Next Steps

Past Performance

How has EMCOR Group performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EME has high quality earnings.

Growing Profit Margin: EME's current net profit margins (3.5%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: EME's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: EME's earnings growth over the past year (22.2%) exceeds its 5-year average (14.2% per year).

Earnings vs Industry: EME earnings growth over the past year (22.2%) exceeded the Construction industry -2.7%.


Return on Equity

High ROE: EME's Return on Equity (16.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is EMCOR Group's financial position?


Financial Position Analysis

Short Term Liabilities: EME's short term assets ($2.6B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: EME's short term assets ($2.6B) exceed its long term liabilities ($763.5M).


Debt to Equity History and Analysis

Debt Level: EME's debt to equity ratio (13%) is considered satisfactory.

Reducing Debt: EME's debt to equity ratio has reduced from 22.3% to 13% over the past 5 years.

Debt Coverage: EME's debt is well covered by operating cash flow (149.2%).

Interest Coverage: EME's interest payments on its debt are well covered by EBIT (39.2x coverage).


Balance Sheet

Inventory Level: EME has a low level of unsold assets or inventory.

Debt Coverage by Assets: EME's debt is covered by short term assets (assets are 10x debt).


Next Steps

Dividend

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

0.37%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: EME's dividend (0.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: EME's dividend (0.37%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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

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

8.0yrs

Average management tenure


CEO

Tony Guzzi (55yo)

8.9yrs

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

Compensation vs Market: Tony's total compensation ($USD10.05M) is above average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

8.0yrs

Average Tenure

55yo

Average Age

Experienced Management: EME's management team is seasoned and experienced (8 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: EME's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$317,30415 Nov 19
Anthony Guzzi
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares3,500
Max PriceUS$90.71
SellUS$445,19314 Nov 19
Anthony Guzzi
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceUS$89.18
SellUS$789,06413 Dec 18
Jerry Ryan
EntityIndividual
Shares12,000
Max PriceUS$66.00

Ownership Breakdown

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


Management Team

  • R. Matz (60yo)

    Executive Vice President of Shared Services

    • Tenure: 23.7yrs
    • Compensation: US$3.23m
  • Mark Pompa (54yo)

    Executive VP

    • Tenure: 13.7yrs
    • Compensation: US$4.28m
  • Keith Chanter

    Chief Executive Officer of EMCOR UK

    • Tenure: 11.1yrs
  • Tony Guzzi (55yo)

    Chairman

    • Tenure: 8.9yrs
    • 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: 5.9yrs
  • Maxine Mauricio (47yo)

    Senior VP

    • Tenure: 3.9yrs
    • Compensation: US$2.29m
  • Lisa Haight

    Vice President of Human Resources

    • Tenure: 7yrs
  • Steven Fried

    Vice President of Compliance

    • Tenure: 5.1yrs

Board Members

  • M. McEvoy (68yo)

    Independent Lead Director

    • Tenure: 1.5yrs
    • Compensation: US$340.00k
  • Bill Reid (69yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$360.00k
  • David A. Brown (75yo)

    Independent Director

    • Tenure: 25yrs
    • Compensation: US$370.00k
  • Richard Hamm (59yo)

    Independent Director

    • Tenure: 21.5yrs
    • Compensation: US$370.00k
  • Tony Guzzi (55yo)

    Chairman

    • Tenure: 8.9yrs
    • Compensation: US$10.05m
  • Leo Laidley (72yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: US$365.00k
  • John Altmeyer (59yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$370.00k
  • Carol Lowe (53yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$365.00k
  • Robin Walker-Lee (65yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$90.00k
  • Steve Schwarzwaelder (64yo)

    Independent Director

    • Tenure: 4.2yrs
    • 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$4.840b
  • Shares outstanding: 56.15m
  • 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 Analysis2019/12/08 23:34
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.