EMCOR Group (EME) AI Stock Analysis

• Market Cap: $24.49B
• Dividend Yield: 0.18%
• Average Volume (3M): 438.44K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 1.43
• Revenue Growth: 14.30%
• EPS Growth: 49.19%
• Country: US
• Employees: 40,400
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): 5.41
• Shares Outstanding: 44,758,003
• 10 Day Avg. Volume: 523,846
• 30 Day Avg. Volume: 438,445
• PEG Ratio: 1.24
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.48
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 2.58
• Enterprise Value/Ebitda: 1.32
• 1Y Price Target: $544.33
• Price Target Upside: -0.53% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 81 Outperform
• Price Target: $625.00 ▲(14.21%Upside)

EMCOR Group's strong financial performance and positive earnings call are the most significant factors driving the score. The technical analysis indicates a strong upward trend, although the stock appears overbought. Valuation metrics suggest the stock is slightly overvalued, which could limit upside potential. Corporate events reinforce confidence in the company's strategic direction.

Positive Factors

Business Model

EMCOR Group's asset light business model supports consistent and strong free cash flow generation with a rock-solid balance sheet offering flexibility and lower risk.

Earnings Growth

Earnings growth should support continued strong free cash flow, driving upside from capital allocation.

Market Trends

EMCOR sits at a unique confluence of multiple attractive secular investment trends, including energy transition, on-shoring/near-shoring, sustainability/efficiency, and AI-driven power demand.

Negative Factors

Construction Backdrop

EME is poised to outgrow a choppy non-residential construction backdrop.

Valuation

The valuation reflects a price target that indicates a premium to historical averages, suggesting confidence in future performance.

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 Group makes money through its diversified portfolio of services catering to construction and facilities management. The company generates revenue from its two main segments: Construction and Building Services. In the Construction segment, EMCOR earns by providing electrical and mechanical systems installation, where it manages large-scale projects requiring complex system integrations. The Building Services segment contributes to revenue by offering maintenance and operational services for existing facilities, ensuring optimal performance and efficiency. Additionally, EMCOR benefits from long-term contracts and partnerships with government and private entities, securing a steady stream of revenue through recurring service agreements. These contracts often involve multi-year agreements that provide predictable cash flows. The company also leverages its expertise in energy infrastructure to tap into the growing demand for sustainable and efficient energy systems, further supporting its financial performance.

EMCOR Group Financial Statement Overview

Summary

EMCOR Group demonstrates strong financial performance with steady revenue growth and robust profitability margins. The company has a solid balance sheet with low leverage and high equity, supported by excellent cash flow management. This financial strength positions the company well for sustained growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.00B	14.57B	12.58B	11.08B	9.90B	8.80B
Gross Profit	2.90B	2.77B	2.09B	1.60B	1.50B	1.40B
EBITDA	1.56B	1.51B	1.01B	682.40M	646.86M	601.45M
Net Income	1.05B	1.01B	632.99M	406.12M	383.53M	132.94M
Balance Sheet
Total Assets	8.08B	7.72B	6.61B	5.52B	5.44B	5.06B
Cash, Cash Equivalents and Short-Term Investments	576.70M	1.34B	789.75M	456.44M	821.35M	902.87M
Total Debt	635.57M	705.16M	339.97M	535.17M	540.34M	535.52M
Total Liabilities	5.13B	4.78B	4.14B	3.55B	3.19B	3.01B
Stockholders Equity	2.95B	2.94B	2.47B	1.97B	2.25B	2.05B
Cash Flow
Free Cash Flow	1.30B	1.33B	821.25M	448.64M	282.63M	758.40M
Operating Cash Flow	1.38B	1.41B	899.65M	497.93M	318.82M	806.37M
Investing Cash Flow	-1.16B	-299.28M	-161.29M	-140.80M	-153.08M	-94.86M
Financing Cash Flow	-497.25M	-555.37M	-412.05M	-710.12M	-245.46M	-171.91M

EMCOR Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 547.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 547.22 is above the 20-day moving average (MA) of 498.45, above the 50-day MA of 467.87, and above the 200-day MA of 449.09, indicating a bullish trend. The MACD of 20.88 indicates Negative momentum. The RSI at 79.64 is Negative, neither overbought nor oversold. The STOCH value of 94.41 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	81 Outperform	$24.49B	24.18	37.76%	0.18%	14.30%	49.19%
FIX	77 Outperform	$19.08B	32.45	37.81%	0.33%	31.47%	64.96%
PWR	76 Outperform	$57.28B	62.49	13.48%	0.10%	15.77%	19.58%
MTZ	73 Outperform	$13.56B	63.46	7.70%	―	3.03%	―
J	71 Outperform	$15.91B	36.57	8.46%	0.96%	-22.81%	-30.13%
ACM	70 Outperform	$15.31B	25.25	28.07%	0.90%	4.55%	―
Sector *	65 Neutral	$10.81B	15.65	5.50%	1.89%	3.10%	-27.09%

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.

The most recent analyst rating on (EME) stock is a Buy with a $503.00 price target. To see the full list of analyst forecasts on EMCOR Group stock, see the EME Stock Forecast page.