EME  Emcor Group Inc.

Exchange

NYSE

Sector

Capital Goods

Industry

Engineering & Construction

Market Cap.

3.70B

Vuru Grade

43.63/100

Current Price

$62.01
+0.36 (+0.58%)

Growth Price

$46.13
Overvalued by 25.60%

Stability Price

$43.58
Overvalued by 29.72%

Company Metrics

  • P/E 20.89
  • P/S 0.49
  • P/B 2.40
  • EPS 2.97
  • Cash ROIC 11.40%
  • Cash Ratio 0.31
  • Dividend 0.32 / 0.52 %
  • Avg. Vol. 437,523.00
  • Shares 59.67M
  • Market Cap. 3.70B

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. Reports Fourth Quarter and Full-Year 2016 Results
Yahoo Finance - Feb 23, 2017
EMCOR Group, Inc. (EME) today reported results for the fourth quarter and fiscal year ended December 31, 2016. For the fourth quarter of 2016, net income from continuing operations attributable to EMCOR was $42.2 million, or $0.69 per diluted share, ...
EMCOR Group Inc. (EME) Moves Higher on Volume Spike for February 24 - Equities.com
EMCOR GROUP, INC. (NYSE:EME) Files An 8-K Results of Operations and Financial ... - Market Exclusive
EMCOR Group Inc versus Primoris Services Corporation Head to Head Compare
CML News - Mar 28, 2017
EMCOR Group Inc has a substantially higher fundamental rating then Primoris Services Corporation which has an impact on the head-to-head comparison.
Institutional Ownership Update on EMCOR Group, Inc. (NYSE:EME)
Midway Monitor - 20 hours ago
EMCOR Group, Inc. (NYSE:EME)'s stock has been a favorite of “smart money” aka institutions, as of late. Institutions are currently holders of 98.60% of the shares.
State Board of Administration of Florida Retirement System Sells 320 Shares of ... - BBNS
Lowest EPS Projection Of EMCOR Group, Inc. (NYSE:EME) At $0.87 - Enterprise Leader
EMCOR Group, Inc. Announces Agreement to Acquire Ardent Services and Rabalais ...
Business Wire (press release) - Mar 21, 2016
NORWALK, Conn.--(BUSINESS WIRE)--EMCOR Group, Inc. (NYSE:EME) today announced that it has entered into a definitive agreement to acquire Ardent Services, L.L.
EMCOR Group (EME) Shares Cross Below 200 DMA
Nasdaq - Mar 21, 2017
In trading on Tuesday, shares of EMCOR Group, Inc. (Symbol: EME) crossed below their 200 day moving average of $60.76, changing hands as low as $60.64 per share.
Stock Returns: Dycom Industries Inc (NYSE:DY) is Beating EMCOR Group Inc (NYSE ... - CML News
Is EMCOR Group, Inc. (EME) Preparing For A Breakout Trade? - Post Analyst
Why EMCOR Group Inc (EME) Delivered An Inferior ROE Compared To The Industry?
Simply Wall St - Mar 27, 2017
EMCOR Group Inc (NYSE:EME) delivered 12.3% ROE over the past year, compared to 32.82% generated by its industry. While an inferior ROE points towards a relatively inefficient performance, knowing the nuts and bolts of ROE calculation may change that ...
EMCOR Group Inc. (EME) Moves Higher on Volume Spike for March 02
Equities.com - Mar 2, 2017
EMCOR Group Inc. (EME) traded on unusually high volume on Mar. 02, as the stock gained 0.31% to close at $63.87. On the day, EMCOR Group Inc. saw 732,537 shares trade hands on 7,539 trades. Considering that the stock averages only a daily volume ...
EMCOR Group, Inc.'s (EME) stock price is Worth at $63.87 while finishes ... - Hot Stocks Point
The EMCOR Group, Inc. (EME) Expected to Post Q1 2017 Earnings of $0.75 Per Share - DailyQuint
EMCOR Group, Inc. Companies Form Giant Human Pink Hard Hat Ribbons & Thousands ...
Yahoo Finance - Sep 22, 2016
EMCOR employees, clients, and others will wear EMCOR Pink Hard Hats and form massive Human Pink Hard Hat Ribbons creating a powerful "Call to Action" at various locations across the U.S.
Moody's says Energy Services Holdings' ratings unaffected at this time ...
Moodys.com (press release) (subscription) - Mar 25, 2016
New York, March 24, 2016 -- Moody's Investors Service said that EMCOR Group, Inc.'s (EMCOR, rated Ba1) announcement that it will acquire Ardent Services and Rabalais Constructors, two primary subsidiaries of Energy Services Holdings, will have no ...
EMCOR Group, Inc. Declares Regular Quarterly Dividend
Business Wire (press release) - Jan 5, 2017
NORWALK, Conn.--(BUSINESS WIRE)--EMCOR Group, Inc. (NYSE: EME) today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.08 per common share.
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.

$62.01 Current Price

$46.13 Growth Price (DCF)

Overvalued by 25.60%


Growth Rate Assumed by Market: 10.06%


Future Free Cash Flow Growth Rate: -4.5%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$43.58 Stability Price (EPV)

Overvalued by 29.72%


Discount Rate: 15.0%

$45.83 Book Price

Overvalued by 26.10%


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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