EMCOR Group (EME) AI Stock Analysis

• Market Cap: $36.12B
• Dividend Yield: 0.16%
• Average Volume (3M): 329.23K
• Price to Earnings (P/E): 32.4
• 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: 348,921
• 30 Day Avg. Volume: 329,227
• 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: 0.99
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 11.40
• Enterprise Value/Ebitda: 20.63
• 1Y Price Target: $754.00
• Price Target Upside: -6.54% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $804.00 ▼(-0.35% Downside)
• Action: Reiterated Date: 12/09/25
• Date: Action: Reiterated 12/09/25

EMCOR Group's overall stock score reflects strong financial performance and positive earnings call sentiment as the most significant factors. Technical analysis and valuation present some concerns, with the stock appearing overvalued and showing bearish technical signals. The appointment of a new board member is a positive corporate event, but its impact is limited.

Positive Factors

Record RPOs and backlog

A $12.6B record in remaining performance obligations and 29% YoY growth gives multi-year revenue visibility, smoothing cyclicality. Large backlog supports forward cash flow, enables better resource planning, and underpins durable revenue and margin predictability over 2–6 months and beyond.

Diversified, recurring revenue model

EMCOR's mix of construction, facilities management and service contracts creates recurring revenue streams and cross-sell opportunities across commercial, healthcare, industrial and government end markets. This diversification reduces exposure to single-project volatility and supports steady cash generation.

Prudent leverage and high ROE

A low D/E of 0.25 combined with a very high ROE signals efficient capital deployment and conservative leverage. This balance sheet strength supports strategic investments, acquisitions, and resilience to downturns while preserving financial flexibility over multiple quarters.

Negative Factors

Declining free cash flow growth

A near-5% TTM decline in free cash flow growth, if persistent, can constrain funding for capex, debt reduction, or acquisitions. Even with solid operating cash metrics, a sustained FCF decline would weaken financial flexibility and could pressure long-term investment capacity and returns.

Industrial Services demand headwinds

Delayed large turnarounds and episodic project awards in Industrial Services introduce revenue timing risk and utilization volatility. Such scheduling shifts reduce near-term revenue visibility and can create underutilized capacity and margin swings that persist across several quarters.

Margin pressure from new geographies and amortization

Lower profitability on early-stage projects in new regions, combined with acquisition-related amortization, can depress reported margins. If expansion execution and integration don't improve, these structural margin headwinds could reduce normalized operating profitability and return on invested capital.

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 generates revenue primarily through its construction and facilities services. The company makes money by executing contracts for mechanical and electrical construction projects, which often involve significant upfront costs but yield substantial returns upon completion. Key revenue streams include service agreements, installation contracts, and ongoing maintenance services for HVAC systems, plumbing, and electrical installations. Additionally, EMCOR benefits from long-term contracts that provide stable, recurring revenue through facilities management services. Strategic partnerships with suppliers and subcontractors enhance its service offerings and competitive positioning, while its reputation for reliability and quality helps in securing repeat business and new contracts.

EMCOR Group Financial Statement Overview

Summary

EMCOR Group demonstrates strong financial performance with consistent revenue growth and robust profitability. The company maintains effective leverage management, although a slight decline in free cash flow growth is noted. Overall, the financial statements reflect a well-managed company with a stable outlook.

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	7.72B	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	424.62M	348.92M	345.27M	535.17M	540.34M	535.52M
Total Liabilities	5.30B	4.78B	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: Positive
• Last Price: 806.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 806.8 is above the 20-day moving average (MA) of 765.98, above the 50-day MA of 694.88, and above the 200-day MA of 617.24, indicating a bullish trend. The MACD of 33.13 indicates Negative momentum. The RSI at 65.70 is Neutral, neither overbought nor oversold. The STOCH value of 59.34 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	82 Outperform	$51.66B	48.95	49.24%	0.20%	27.71%	80.54%
APG	79 Outperform	$19.58B	123.84	8.71%	―	10.69%	―
PWR	76 Outperform	$85.02B	80.78	12.65%	0.09%	18.72%	23.97%
EME	73 Outperform	$36.12B	32.44	37.10%	0.16%	14.11%	26.26%
J	70 Outperform	$15.80B	36.17	12.01%	0.94%	-23.00%	-61.88%
ACM	69 Neutral	$12.33B	21.41	27.11%	1.06%	0.21%	53.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%