EMCOR Group, Inc. (EME) stock analysis

P/E below its 5-year median

Emcor's P/E of 19.3 is below its own 5-year median of 21.1.

P/E below the industry

Emcor's P/E of 19.3 is below the Construction Special Trade Contractors median of 25.1.

EV/EBITDA below its 5-year median

Emcor's EV/EBITDA of 13.7 is below its 5-year median of 14.6.

P/B above the industry

Emcor's price-to-book of 6.83 is above the Construction Special Trade Contractors median of 3.14.

Trading above fair value

The share price of $666.74 is above our fair value estimate of $657.10.

Margin of safety under 20%

The price is 1.5% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 15.3% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 51.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 36.6% over the last twelve months, against a 5-year average of 57.1% a year.

Growing faster than the industry

Revenue grew 22.1% over the last twelve months; the Construction Special Trade Contractors median is 10.2%.

Guidance raised

Emcor raised its full year 2026 Revenues outlook on Jul 30, 2026.

Gross margin improving

Gross margin was 19.6% over the last twelve months, against 19.4% a year earlier.

Return on equity over 15%

Return on equity was 40.6% over the last twelve months and averaged 28.3% over five years.

Return on capital over 10%

Return on invested capital was 49.5%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Emcor's return on equity of 40.6% is above the Construction Special Trade Contractors median of -1.8%.

Earnings grew over 5 years

Net income grew 57.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 7.8% over the last twelve months, against a 5-year average of 5.4%.

Net margin above the industry

Emcor's net margin of 7.8% is above the Construction Special Trade Contractors median of -7.4%.

No debt

Emcor has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.17 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.88; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Emcor paid dividends worth 0.2% of the share price over the last twelve months.

Yield below Treasuries

The 0.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Emcor yields 0.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 4.2% of net income.

Covered by free cash flow

Dividends take 4.3% of free cash flow.