EMCOR Group (EME) AI Stock Analysis

• Market Cap: $28.40B
• Dividend Yield: 0.16%
• Average Volume (3M): 371.05K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 1.44
• Revenue Growth: 13.77%
• EPS Growth: 37.96%
• Country: US
• Employees: 40,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 6.72
• Shares Outstanding: 44,764,250
• 10 Day Avg. Volume: 431,729
• 30 Day Avg. Volume: 371,054
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 1.55
• Enterprise Value/Gross Profit: 7.96
• Enterprise Value/Ebitda: 14.43
• 1Y Price Target: $665.83
• Price Target Upside: 4.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 76 Outperform
• Price Target: $690.00 ▲(7.81% Upside)

EMCOR Group's overall stock score reflects strong financial performance and positive earnings call sentiment as the most significant factors. While technical indicators show moderate strength, the valuation suggests potential overvaluation. Corporate events indicate shareholder confidence, contributing positively to the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for EMCOR's services and effective market penetration, supporting long-term business expansion.

Operating Margins

Sustained high operating margins reflect EMCOR's efficient cost management and pricing power, enhancing profitability and competitive positioning.

Acquisitions and Integration

Successful integration of acquisitions like Miller Electric boosts EMCOR's capabilities and market reach, driving long-term growth and diversification.

Negative Factors

Industrial Services Challenges

Declines in the Industrial Services segment highlight vulnerabilities in specific markets, potentially affecting overall revenue stability and diversification.

High-Tech Manufacturing Decline

Revenue declines in high-tech manufacturing suggest challenges in adapting to sector shifts, which may impact future growth in this segment.

Operating Cash Flow Decrease

Decreased operating cash flow could indicate potential cash management issues, affecting EMCOR's ability to fund operations and growth initiatives.

EMCOR Group Business Overview & Revenue Model

Company Description

EMCOR Group, Inc. provides electrical and mechanical construction, and facilities services primarily in the United States and the United Kingdom. It offers design, integration, installation, starts-up, operation, and maintenance services related to electrical power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation in the refining, chemical processing, and food processing industries; low-voltage systems, such as fire alarm, security, and process control systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and high-purity piping systems; controls and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging services; millwright services; and steel fabrication, erection, and welding services. The company also provides building services that cover commercial and government site-based operations and maintenance; facility management, maintenance, and services; outage services to utilities and industrial plants; military base operations support services; mobile mechanical maintenance and services; services for indoor air quality; floor care and janitorial services; landscaping, lot sweeping, and snow removal services; vendor management and call center services; installation and support for building systems; program development, management, and maintenance for energy systems; technical consulting and diagnostic services; infrastructure and building projects; small modification and retrofit projects; and other building services. It offers industrial services to oil, gas, and petrochemical industries. EMCOR Group, Inc. was incorporated in 1987 and is headquartered in Norwalk, Connecticut.

How the Company Makes Money

EMCOR generates revenue through a combination of its construction and facilities services. The company primarily earns money by providing mechanical and electrical contracting services, which include installation, maintenance, and repair of systems in commercial and industrial buildings. Key revenue streams include project-based contracts for construction and installation, ongoing maintenance contracts, and facilities management services. EMCOR also benefits from long-term relationships with clients, which often lead to repeat business and steady revenue. Strategic partnerships with suppliers and technology providers enhance its service offerings, while its diversified portfolio across various sectors helps mitigate risks and stabilize earnings.

EMCOR Group Financial Statement Overview

Summary

EMCOR Group demonstrates strong financial performance with consistent revenue growth, healthy profit margins, and effective cost management. The balance sheet is solid with a stable debt-to-equity ratio and improved return on equity. Cash flow management is robust, though a slight decrease in operating cash flow warrants monitoring.

Income Statement

EMCOR Group demonstrates strong financial performance with consistent revenue growth, achieving 24.8% over the past two years. The company maintains healthy gross profit margins, improving from 15.9% to 19.5% in the TTM. Net profit margins also show strength, enhancing from 1.5% in 2020 to 7.1% in the TTM, indicating effective cost management and operational efficiency. The EBIT and EBITDA margins have increased, reflecting improved operational profitability. Continued focus on cost control and operational efficiency is apparent.

Balance Sheet

The balance sheet of EMCOR Group is solid with a debt-to-equity ratio that suggests prudent financial management, decreasing from 0.26 in 2020 to 0.26 in the TTM. The company's return on equity improved significantly from 6.5% in 2020 to 36.2% in the TTM, showcasing efficient use of equity to generate profits. The equity ratio has remained stable, indicating a balanced capital structure with adequate shareholder equity relative to total assets.

Cash Flow

EMCOR Group exhibits strong cash flow management with a positive free cash flow trend, growing 59.3% from 2020 to the TTM. The operating cash flow to net income ratio indicates robust conversion of earnings into cash, and the free cash flow to net income ratio suggests effective capital expenditure management. However, a slight decrease in operating cash flow in the TTM compared to 2024 suggests monitoring of operational cash generation is warranted.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.64B	14.57B	12.58B	11.08B	9.90B	8.80B
Gross Profit	3.05B	2.77B	2.09B	1.60B	1.50B	1.40B
EBITDA	1.68B	1.51B	1.01B	680.56M	647.81M	368.01M
Net Income	1.11B	1.01B	632.99M	406.12M	383.53M	132.94M
Balance Sheet
Total Assets	8.40B	7.72B	6.61B	5.52B	5.44B	5.06B
Cash, Cash Equivalents and Short-Term Investments	485.99M	1.34B	789.75M	456.44M	821.35M	902.87M
Total Debt	670.14M	348.92M	345.27M	535.17M	540.34M	535.52M
Total Liabilities	5.35B	4.78B	4.14B	3.55B	3.19B	3.01B
Stockholders Equity	3.05B	2.94B	2.47B	1.97B	2.25B	2.05B
Cash Flow
Free Cash Flow	1.21B	1.33B	821.25M	448.64M	282.63M	758.40M
Operating Cash Flow	1.30B	1.41B	899.65M	497.93M	318.82M	806.37M
Investing Cash Flow	-1.03B	-299.28M	-161.29M	-140.80M	-153.08M	-94.86M
Financing Cash Flow	-605.05M	-555.37M	-412.05M	-710.12M	-245.46M	-171.91M

EMCOR Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 640.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 640 is above the 20-day moving average (MA) of 619.98, above the 50-day MA of 601.09, and above the 200-day MA of 484.83, indicating a bullish trend. The MACD of 9.29 indicates Positive momentum. The RSI at 62.49 is Neutral, neither overbought nor oversold. The STOCH value of 75.35 is Neutral, 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
FIX	81 Outperform	$26.54B	38.65	40.09%	0.22%	26.33%	63.32%
ACM	80 Outperform	$16.61B	25.51	28.17%	0.78%	1.50%	164.17%
APG	78 Outperform	$14.75B	105.05	8.26%	―	7.59%	―
EME	76 Outperform	$28.40B	26.33	38.14%	0.16%	13.77%	37.96%
PWR	74 Outperform	$57.48B	60.51	13.47%	0.10%	18.26%	21.24%
J	73 Outperform	$17.30B	36.16	9.29%	0.84%	-30.12%	-21.04%
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%

EMCOR Group Corporate Events

EMCOR Group Holds Annual Stockholders Meeting

On June 5, 2025, EMCOR Group held its Annual Meeting of Stockholders where several key proposals were voted on. The stockholders re-elected all incumbent directors, approved executive compensation on a non-binding basis, ratified Ernst & Young LLP as independent auditors for 2025, and approved an amendment to the 2010 Incentive Plan. These decisions reflect continued support for the company’s leadership and strategic direction.