EME  Emcor Group Inc.

Exchange

NYSE

Sector

Capital Goods

Industry

Engineering & Construction

Market Cap.

3.77B

Vuru Grade

43.63/100

Current Price

$63.57
-0.48 (-0.75%)

Growth Price

$46.41
Overvalued by 26.99%

Stability Price

$43.85
Overvalued by 31.03%

Company Metrics

  • P/E 19.38
  • P/S 0.49
  • P/B 2.48
  • EPS 3.28
  • Cash ROIC 11.40%
  • Cash Ratio 0.31
  • Dividend 0.32 / 0.50 %
  • Avg. Vol. 371,470.00
  • Shares 59.30M
  • Market Cap. 3.77B

Company Description

EMCOR Group, Inc., together with its subsidiaries, provides electrical and mechanical construction and facilities services worldwide. It engages in the design, integration, installation, start-up, operation, and maintenance of various electrical and mechanical systems, including electric power transmission and distribution systems, such as power cables, conduits, distribution panels, transformers,... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Emcor Group Inc (EME) Given Average Rating of "Hold" by Analysts
BNB Daily (blog) - 23 hours ago
Emcor Group logo Emcor Group Inc (NYSE:EME) has earned an average rating of “Hold” from the six ratings firms that are currently covering the firm.
RidgeWorth Capital Management LLC Has $18.809 Million Stake in Emcor Group Inc ... - The Cerbat Gem
Emcor Group Inc (EME) Shares Bought by Ronald Blue & Co. LLC - Stock Observer
EMCOR Group, Inc. Reports First Quarter 2017 Results
Yahoo Finance - Apr 27, 2017
For the first quarter of 2017, net income from continuing operations attributable to EMCOR was $53.1 million, or $0.88 per diluted share, compared to $34.4 million, or $0.56 per diluted share, for the first quarter of 2016.
Boston Advisors LLC Sells 33190 Shares of Emcor Group Inc (EME) - Sports Perspectives
Emcor Group Inc (EME) Releases Earnings Results, Beats Expectations By $0.21 EPS - Highland Mirror
Ex-Dividend Reminder: Graco, EMCOR Group and Watsco
Forbes - Jan 10, 2017
Looking at the universe of stocks we cover at Dividend Channel, on 1/12/17, Graco Inc (NYSE: GGG), EMCOR Group, Inc.
EMCOR Group's (EME) CEO Tony Guzzi on Q1 2017 Results - Earnings Call Transcript
Seeking Alpha - Apr 27, 2017
Welcome to the EMCOR Group conference call. We are here today to discuss the Company's 2017 first quarter results, which were reported this morning.
Emcor Group Inc (EME) Upgraded to “Hold” at Zacks Investment Research - The Cerbat Gem
Emcor Group (EME) Earns Media Impact Rating of 0.54 - Community Financial News
Trading Options During Earnings in EMCOR Group Inc
CML News - May 25, 2017
We're going to examine buying and selling out of the money strangles in EMCOR Group Inc and find out once and for all what the winning trades have been during earnings releases.
Price Alert: EMCOR Group Inc (NYSE:EME) Stock Nears Resistance -- Technicals ...
CML News - May 26, 2017
Price Alert: EMCOR Group Inc (NYSE:EME) has now crossed into technical strength -- watch the technical oscillators for momentum gaps.
EMCOR Group's (EME) CEO Tony Guzzi on Q4 2016 Results - Earnings Call Transcript
Seeking Alpha - Feb 23, 2017
Certain of the risks and factors associated with EMCOR's business are also discussed in the Company's 2016 Form 10-K and in other reports filed from time to time with the Securities and Exchange Commission.
Analyst Upgrades – EMCOR Group (NYSE:EME) Stock Gets Upgraded By Stifel ... - Market Exclusive
The Secret to Option Trading Right Before Earnings in EMCOR Group Inc
CML News - May 27, 2017
There is a wonderful secret to trading options right before earnings announcements in EMCOR Group Inc (NYSE:EME) , and really many stocks, that benefits from the rising implied volatility but avoids the risk into the actual earnings release and also ...
Emcor Group Inc (EME) Position Cut by Sit Investment Associates Inc.
The Cerbat Gem - May 18, 2017
Emcor Group logo Sit Investment Associates Inc. cut its position in shares of Emcor Group Inc (NYSE:EME) by 1.3% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission.
The Emcor Group Inc (EME) Position Raised by BNP Paribas Arbitrage SA - BangaloreWeekly
What should investors know about EMCOR Group Inc's (EME) future? - Simply Wall St
Emcor Group Inc (EME) Shares Sold by RidgeWorth Capital Management LLC
The Cerbat Gem - May 19, 2017
Emcor Group logo RidgeWorth Capital Management LLC decreased its stake in Emcor Group Inc (NYSE:EME) by 52.3% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC).
Ameriprise Financial Inc. Has $39.521 Million Position in Emcor Group Inc (EME) - Sports Perspectives
The Oregon Public Employees Retirement Fund Has $1.34 Million Stake in Emcor ... - BangaloreWeekly
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for EME to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate EME's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$63.57 Current Price

$46.41 Growth Price (DCF)

Overvalued by 26.99%


Growth Rate Assumed by Market: 10.83%


Future Free Cash Flow Growth Rate: -4.5%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$43.85 Stability Price (EPV)

Overvalued by 31.03%


Discount Rate: 15.0%

$46.07 Book Price

Overvalued by 27.53%


Satisfactory Cash Return on Invested Capital over the past 5 years

EME has somewhat efficiently invested its financial resources in buildings, projects, and equipment. If CROIC is inconsistent, it's likely EME could be benefiting from a one-time event or has a mixed history of investing capital productively. Read the company's Annual Report to determine whether this can improve.

EME has created $11.40 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 146.53M 114.57M 208.62M 231.21M 224.91M
divided by
Invested Capital 1.21B 1.73B 1.67B 1.65B 1.92B
Cash ROIC 12.14% 6.63% 12.47% 14.05% 11.73%

Satisfactory Return on Equity over the past 5 years

EME has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

EME has generated $11.11 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 148.89M 127.35M 173.43M 172.51M 182.15M
divided by
Stockholders' Equity 1.35B 1.47B 1.42B 1.48B 1.54B
Return on Equity 11.06% 8.69% 12.25% 11.68% 11.85%

Excellent Business Performance over the past 10 years

EME has been able to maintain profitability in good times and bad. This could mean EME has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

EME has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 237.52M 297.51M 335.01M 49.29M 119.84M 146.53M 114.57M 208.62M 231.21M 224.91M

Weak Balance Sheet

EME's financial position is not ideal. The key is to check whether EME is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 251.64M 405.87M 726.98M 710.84M 511.32M 605.30M 439.81M 432.06M 486.83M 464.62M
Current Assets 1.94B 2.01B 1.98B 1.98B 1.94B 2.04B 1.93B 1.89B 2.07B 2.21B
Total Assets 2.87B 3.01B 2.98B 2.76B 3.01B 3.11B 3.47B 3.39B 3.55B 3.89B
Current Liabilities 1.51B 1.51B 1.33B 1.23B 1.33B 1.29B 1.30B 1.28B 1.41B 1.51B
Total Liabilities 1.99B 1.97B 1.76B 1.60B 1.78B 1.76B 2.00B 1.97B 2.07B 2.36B
Stockholder' Equity 885.04M 1.04B 1.22B 1.15B 1.23B 1.35B 1.47B 1.42B 1.48B 1.54B
Current Ratio 1.28 1.33 1.48 1.61 1.46 1.58 1.49 1.47 1.46 1.46
TL-to-TA 0.69 0.65 0.59 0.58 0.59 0.57 0.58 0.58 0.58 0.61

Consistent Reinvestment of Profits over the past 10 years

EME has consistently retained profits. This may put EME in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, EME can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 526.31M 708.51M 869.27M 782.58M 910.04M 1.02B 1.13B 1.28B 1.43B 1.60B
Retained Earnings Growth - 34.62% 22.69% -9.97% 16.29% 12.33% 10.92% 12.97% 11.86% 11.40%

Highly Competitive Industry over the past 10 years

It's likely that EME is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely EME invests heavily in R&D and Sales, General & Administrative expenses.

Only $2.05 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 126.81M 182.20M 163.08M -86.69M 133.67M 148.89M 127.35M 173.43M 172.51M 182.15M
divided by
Revenue 5.93B 6.79B 5.55B 5.12B 5.61B 6.35B 6.42B 6.42B 6.72B 7.55B
Net Profit Margin 2.14% 2.69% 2.94% -1.69% 2.38% 2.35% 1.98% 2.70% 2.57% 2.41%

Inconsistent Gross Profit Margins over the past 10 years

EME has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$22.11 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 702.82M 886.65M 824.90M 719.54M 5.61B 806.35M 813.06M 907.25M 944.48M 1.04B
divided by
Revenue 5.93B 6.79B 5.55B 5.12B 5.61B 6.35B 6.42B 6.42B 6.72B 7.55B
Gross Margin 11.86% 13.07% 14.87% 14.05% 100.00% 12.71% 12.67% 14.12% 14.06% 13.74%

Low Capital Intensity over the past 10 years

EME has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that EME may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

21.34% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 21.50M 37.51M 24.10M 19.36M 29.58M 37.88M 35.50M 38.04M 35.46M 39.65M
divided by
Net Income 126.81M 182.20M 163.08M -86.69M 133.67M 148.89M 127.35M 173.43M 172.51M 182.15M
Capital Expenditure Ratio 16.96% 20.59% 14.78% -22.33% 22.13% 25.44% 27.87% 21.93% 20.56% 21.77%

Strong Dividend History over the past 10 years

EME has consistently distributed a dividend for the past 8 years. This suggests EME is established and will likely continue to distribute its dividend for the foreseeable future.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - 1.35M 2.50M 5.69M 35.67M 13.38M 26.04M 30.35M 19.45M
divided by
Shares Outstanding 66.74M 67.12M 67.45M 66.39M 68.38M 67.74M 68.08M 67.06M 63.31M 61.21M
Dividend Paid Per Share - - 0.02 0.04 0.08 0.53 0.20 0.39 0.48 0.32
Price at Year End 24.44 21.52 27.41 29.21 26.76 34.05 42.20 44.90 48.37 70.76
Dividend Yield - - 0.07% 0.13% 0.31% 1.55% 0.47% 0.86% 0.99% 0.45%

History of Stock Buybacks over the past 10 years

EME has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 66.74M 67.12M 67.45M 66.39M 68.38M 67.74M 68.08M 67.06M 63.31M 61.21M
Stock Bought Back - -0.56% -0.49% 1.58% -2.90% 0.94% -0.50% 1.51% 5.93% 3.43%
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