EMCOR Group (EME) AI Stock Analysis

• Market Cap: $28.80B
• Dividend Yield: 0.16%
• Average Volume (3M): 489.11K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 1.58
• Revenue Growth: 14.11%
• EPS Growth: 26.26%
• Country: US
• Employees: 40,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 6.57
• Shares Outstanding: 44,765,865
• 10 Day Avg. Volume: 541,218
• 30 Day Avg. Volume: 489,106
• PEG Ratio: 0.34
• Price to Book (P/B): 7.20
• Price to Sales (P/S): 1.45
• P/FCF Ratio: 15.87
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 9.20
• Enterprise Value/Ebitda: 16.66
• 1Y Price Target: $700.33
• Price Target Upside: 12.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 25.32
• Revenue Forecast (FY): $16.76B

• Rating: 74 Outperform
• Price Target: $726.00 ▲(17.12% Upside)

EMCOR Group's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. While technical analysis presents mixed signals, the company's robust growth strategy and effective management support a favorable outlook. However, the high P/E ratio and low dividend yield suggest caution regarding valuation.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for EMCOR's services across diverse sectors, enhancing its market position and supporting long-term business expansion.

Operating Margins

High operating margins reflect efficient management and cost control, contributing to sustained profitability and competitive advantage in the industry.

Remaining Performance Obligations

The significant increase in RPOs suggests a strong pipeline of future work, ensuring revenue stability and visibility over the coming months.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth could hinder EMCOR's ability to invest in growth opportunities or manage debt, potentially impacting long-term financial health.

Industrial Services Segment Challenges

Challenges in the Industrial Services segment may affect overall profitability and require strategic adjustments to improve performance in this area.

High-Tech Manufacturing Revenue Decline

Revenue declines in high-tech manufacturing could signal reduced demand or project completion, impacting future growth in this segment.

EMCOR Group Business Overview & Revenue Model

Company Description

EMCOR Group, Inc. is a leading provider of mechanical and electrical construction, industrial and facilities services, and energy infrastructure. Operating primarily in the United States, Canada, and the United Kingdom, EMCOR serves a diverse array of sectors, including commercial, industrial, healthcare, and government. The company specializes in a variety of services such as HVAC systems, electrical contracting, plumbing, and systems integration, as well as comprehensive facilities management solutions.

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 exhibits a strong financial profile with consistent revenue growth, robust profitability, and effective leverage management. While the decline in free cash flow growth is a potential risk, the company's overall cash generation remains solid. The financial statements reflect a well-managed company with a stable outlook in the engineering and construction industry.

Income Statement

EMCOR Group has demonstrated consistent revenue growth with a TTM revenue growth rate of 3.87%. The company maintains strong profitability with a gross profit margin of 19.39% and a net profit margin of 6.96% in the TTM. EBIT and EBITDA margins are robust at 7.13% and 10.39%, respectively, indicating efficient operational management. The upward trajectory in revenue and margins highlights a solid financial performance.

Balance Sheet

The balance sheet reflects a healthy financial position with a low debt-to-equity ratio of 0.25, indicating prudent leverage management. Return on equity is impressive at 36.84%, showcasing effective use of shareholder funds. The equity ratio stands at 38.61%, suggesting a stable capital structure. However, the increase in total debt from the previous year warrants monitoring.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth at -4.96% in the TTM, which could be a concern if it persists. However, the operating cash flow to net income ratio of 1.10 and free cash flow to net income ratio of 0.92 indicate strong cash generation relative to earnings, supporting the company's liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.24B	14.57B	12.58B	11.08B	9.90B	8.80B
Gross Profit	3.15B	2.77B	2.09B	1.60B	1.50B	1.40B
EBITDA	1.74B	1.51B	1.01B	680.56M	647.81M	368.01M
Net Income	1.13B	1.01B	632.99M	406.12M	383.53M	132.94M
Balance Sheet
Total Assets	8.64B	8.01B	6.61B	5.52B	5.44B	5.06B
Cash, Cash Equivalents and Short-Term Investments	655.10M	1.34B	789.75M	456.44M	821.35M	902.87M
Total Debt	761.87M	348.92M	339.97M	535.17M	540.34M	535.52M
Total Liabilities	5.30B	5.07B	4.14B	3.55B	3.19B	3.01B
Stockholders Equity	3.34B	2.94B	2.47B	1.97B	2.25B	2.05B
Cash Flow
Free Cash Flow	1.15B	1.33B	821.25M	448.64M	282.63M	758.40M
Operating Cash Flow	1.25B	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	-595.36M	-555.37M	-412.05M	-710.12M	-245.46M	-171.91M

EMCOR Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 619.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EME, the sentiment is Negative. The current price of 619.86 is below the 20-day moving average (MA) of 679.53, below the 50-day MA of 662.21, and above the 200-day MA of 526.19, indicating a neutral trend. The MACD of -11.82 indicates Positive momentum. The RSI at 39.90 is Neutral, neither overbought nor oversold. The STOCH value of 15.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EME.

EMCOR Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACM	80 Outperform	$17.68B	27.15	28.17%	0.78%	1.50%	164.17%
FIX	80 Outperform	$34.33B	41.21	43.84%	0.21%	27.71%	80.54%
J	77 Outperform	$18.48B	38.64	9.29%	0.81%	-30.12%	-21.04%
PWR	76 Outperform	$64.02B	63.69	13.16%	0.09%	18.72%	23.97%
EME	74 Outperform	$28.80B	25.87	37.10%	0.16%	14.11%	26.26%
APG	74 Outperform	$16.11B	103.30	8.71%	―	10.69%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

EMCOR Group Corporate Events

EMCOR Group Reports Strong Q3 2025 Earnings Growth

EMCOR Group, Inc. is a leading provider of mechanical and electrical construction services, energy infrastructure, and facilities services in the United States and the United Kingdom. The company is known for its diverse range of services catering to various sectors including healthcare, commercial, and industrial markets.

EMCOR Group Appoints Pat Roche to Board

On October 27, 2025, EMCOR Group, Inc. announced the election of Pat Roche to its Board of Directors. Roche, who is the President and CEO of Moog Inc., brings significant strategic and operational leadership experience from the industrial sector. His appointment is expected to enhance EMCOR’s growth and value delivery to shareholders.

The most recent analyst rating on (EME) stock is a Buy with a $787.00 price target. To see the full list of analyst forecasts on EMCOR Group stock, see the EME Stock Forecast page.

EMCOR Group’s Record Earnings and Optimistic Outlook

EMCOR Group’s recent earnings call painted a largely positive picture, highlighting the company’s record-breaking achievements in revenue, earnings, and operating margins. Despite facing some challenges, particularly in the Industrial Services segment and high-tech manufacturing RPOs, the overall sentiment was optimistic, driven by significant accomplishments that overshadowed these hurdles.

EMCOR Group Reports Record Q2 2025 Results

EMCOR Group, Inc. is a Fortune 500 company specializing in mechanical and electrical construction services, industrial and energy infrastructure, and building services. The company operates primarily in the United States and the United Kingdom, offering a diverse range of specialty contracting services.