EMCOR Group (EME) AI Stock Analysis

• Market Cap: $19.25B
• Dividend Yield: 0.23%
• Average Volume (3M): 601.01K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 1.40
• Revenue Growth: 14.30%
• EPS Growth: 49.19%
• Country: US
• Employees: 40,400
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): 22.63
• Shares Outstanding: 44,758,003
• 10 Day Avg. Volume: 563,678
• 30 Day Avg. Volume: 601,007
• PEG Ratio: 0.41
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.14
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $503.00
• Price Target Upside: 16.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

EMCOR Group's overall stock score reflects its strong financial performance, positive earnings call outcomes, and a favorable technical analysis outlook. The company shows robust growth potential, supported by effective management and strategic acquisitions. However, the valuation suggests some caution, and challenges in specific segments could impact future performance.

Positive Factors

Corporate Strategy

EMCOR Group, Inc. has shown productivity gains, margin expansion, and a strong track record in value-added mergers and acquisitions.

End Market Growth

EME’s high tech manufacturing and data centers end markets are up 63% year over year combined.

Market Positioning

EME has leveraged its competitive positioning as a market share leader in mechanical and electrical contracting to expand its presence in the highest growth pockets of private-non residential construction.

Negative Factors

Cyclical Challenges

EME faces a challenging cyclical backdrop in the medium term with EBIT margin leading indicators turning lower.

Growth Forecasts

The EBITDA growth forecast is at the bottom quartile of the coverage, with estimates below consensus for 2025-2026.

Valuation Concerns

Valuation is over 2 standard deviations above the historical average, indicating an unfavorable risk/reward skew.

EMCOR Group Business Overview & Revenue Model

Company Description

EMCOR Group, Inc. (EME) is a leading provider of mechanical and electrical construction, industrial and energy infrastructure, and facilities services. Operating predominantly in the United States and the United Kingdom, the company serves a wide range of sectors including commercial, industrial, healthcare, and institutional markets. EMCOR's core offerings include design, installation, and maintenance of electrical and mechanical systems, as well as comprehensive building and industrial services.

How the Company Makes Money

EMCOR Group makes money through its diversified service offerings in the construction and facilities services sectors. The company's revenue model is primarily based on contractual agreements for both project-based and ongoing services. Key revenue streams include mechanical and electrical construction services, where EMCOR designs and installs complex systems, and facilities services, which encompass maintenance, repair, and operations for client facilities. Additionally, EMCOR benefits from long-term service contracts and partnerships with prominent companies across various industries, ensuring a steady flow of income. The company's strategic focus on infrastructure and energy-efficient solutions also plays a significant role in its earnings by aligning with growing market demands.

EMCOR Group Financial Statement Overview

Summary

EMCOR Group demonstrates strong financial performance with steady revenue growth and robust profitability margins. Supported by a solid balance sheet with low leverage and high equity, and excellent cash flow management, the company is well-positioned to sustain growth and manage financial risks effectively.

Income Statement

EMCOR Group demonstrates strong financial performance in terms of revenue and profit growth. The company's Gross Profit Margin for TTM is approximately 19.32%, with a Net Profit Margin of 7.00%. The Revenue Growth Rate from the previous year is 3.00% indicating a steady growth trajectory. The EBIT Margin stands at 9.36%, and EBITDA Margin is 10.12%, reflecting solid operational efficiency. The company shows consistent growth with increasing profitability, highlighting its ability to manage costs and generate revenue effectively.

Balance Sheet

The balance sheet of EMCOR Group is robust, with a Debt-to-Equity Ratio of 0.25, indicating a conservative use of debt financing, which reduces financial risk. The Return on Equity (ROE) for the TTM is 35.61%, showing effective use of equity to generate profits. The Equity Ratio is 36.50%, underlining a strong capital structure with ample equity buffer. The company maintains a stable financial position, mitigating potential leverage risks and supporting sustainable growth.

Cash Flow

EMCOR Group exhibits excellent cash flow management, with an Operating Cash Flow to Net Income Ratio of 1.32, indicating efficient cash generation from operations. The Free Cash Flow for the TTM is $1,303.3 million, with a slight growth from the previous year. The Free Cash Flow to Net Income Ratio is 1.24, reflecting a strong ability to convert earnings to cash, supporting reinvestment and shareholder returns. The company’s cash flow stability underlines its operational strength and financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.57B	12.58B	11.08B	9.90B	8.80B
	Gross Profit
2.77B	2.09B	1.60B	1.50B	1.40B
	EBIT
1.34B	875.76M	564.88M	530.80M	494.78M
	EBITDA
1.51B	1.01B	682.40M	646.86M	601.45M
	Net Income Common Stockholders
1.01B	632.99M	406.12M	383.53M	132.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.34B	789.75M	456.44M	821.35M	902.87M
	Total Assets
7.72B	6.61B	5.52B	5.44B	5.06B
	Total Debt
705.16M	339.97M	535.17M	540.34M	535.52M
	Net Debt
-634.39M	-449.78M	78.73M	-281.01M	-367.34M
	Total Liabilities
4.78B	4.14B	3.55B	3.19B	3.01B
	Stockholders Equity
2.94B	2.47B	1.97B	2.25B	2.05B
Cash Flow		Free Cash Flow
1.33B	821.25M	448.64M	282.63M	758.40M
	Operating Cash Flow
1.41B	899.65M	497.93M	318.82M	806.37M
	Investing Cash Flow
-299.28M	-161.29M	-140.80M	-153.08M	-94.86M
	Financing Cash Flow
-555.37M	-412.05M	-710.12M	-245.46M	-171.91M

EMCOR Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 430.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EME, the sentiment is Positive. The current price of 430.19 is above the 20-day moving average (MA) of 386.46, above the 50-day MA of 387.58, and above the 200-day MA of 425.32, indicating a bullish trend. The MACD of 7.98 indicates Negative momentum. The RSI at 63.31 is Neutral, neither overbought nor oversold. The STOCH value of 85.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EME.

EMCOR Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EME	85 Outperform	$19.25B	19.01	37.76%	0.23%	14.30%	49.19%
ACM	80 Outperform	$13.58B	29.12	26.35%	0.94%	8.89%	669.67%
FIX	78 Outperform	$15.24B	25.92	37.81%	0.31%	31.47%	64.96%
J	71 Outperform	$15.52B	26.10	10.92%	0.94%	-13.76%	-13.39%
PWR	71 Outperform	$47.59B	53.26	13.48%	0.12%	15.77%	19.58%
MTZ	69 Neutral	$11.12B	68.55	7.70%	―	3.03%	―
Sector *	64 Neutral	$4.27B	11.81	5.31%	249.66%	4.08%	-8.61%

EMCOR Group Corporate Events

EMCOR Group Expands Board with New Director

EMCOR Group, Inc. announced the election of Amy E. Dahl to its Board of Directors, effective December 18, 2024. With her extensive experience in strategic, legal, and operational leadership from her roles in the construction and outdoor environment solutions sector, Dahl is expected to significantly contribute to EMCOR’s strategic growth and value delivery for shareholders.