EMCOR Group (EME) AI Stock Analysis

• Market Cap: $27.14B
• Dividend Yield: 0.16%
• Average Volume (3M): 474.35K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 1.61
• 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: 377,704
• 30 Day Avg. Volume: 474,353
• 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: 1.07
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 9.20
• Enterprise Value/Ebitda: 16.66
• 1Y Price Target: $700.33
• Price Target Upside: 10.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 25.32
• Revenue Forecast (FY): $16.76B

• Rating: 73 Outperform
• Price Target: $676.00 ▲(6.40% Upside)

EMCOR Group's overall stock score is driven by strong financial performance and positive earnings call sentiment. However, technical analysis indicates bearish trends, and the valuation suggests potential overvaluation. The company's strategic growth initiatives and robust financial management provide a solid foundation, but market conditions and valuation concerns temper the outlook.

Positive Factors

Revenue Growth

The significant increase in revenue demonstrates EMCOR's strong market position and ability to capitalize on growth opportunities, supporting long-term business expansion.

Strategic Acquisition

The acquisition aligns with EMCOR's growth strategy, enhancing its service offerings and market reach, which can drive sustained revenue and competitive advantage.

Strong Financial Performance

High operating margins and strong cash flow indicate efficient operations and financial health, providing flexibility for future investments and stability.

Negative Factors

Industrial Services Challenges

Delays in large projects can impact revenue and profitability in the short to medium term, highlighting potential volatility in this segment.

High-Tech Manufacturing RPO Decrease

A decrease in RPOs suggests potential challenges in securing new projects, which could affect future revenue streams in this sector.

Impact on Margins

Margin pressures from new market investments and amortization could affect profitability, indicating challenges in maintaining margin sustainability.

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 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: Positive
• Last Price: 635.36
• 50DMA: Negative
• 100DMA: Negative
• 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 635.36 is above the 20-day moving average (MA) of 618.74, below the 50-day MA of 656.11, and above the 200-day MA of 536.71, indicating a neutral trend. The MACD of -13.16 indicates Negative momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 79.56 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
PWR	76 Outperform	$69.32B	67.65	13.16%	0.09%	18.72%	23.97%
FIX	75 Outperform	$35.44B	40.20	43.84%	0.19%	27.71%	80.54%
APG	74 Outperform	$16.31B	106.63	8.71%	―	10.69%	―
EME	73 Outperform	$27.14B	24.39	37.10%	0.16%	14.11%	26.26%
ACM	68 Neutral	$13.86B	24.65	27.29%	0.99%	0.21%	53.80%
J	68 Neutral	$16.03B	56.72	7.67%	0.91%	-23.00%	-61.88%
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.