tiprankstipranks
Trending News
More News >
EMCOR Group, Inc. (EME)
:EME

EMCOR Group (EME) AI Stock Analysis

Compare
788 Followers

Top Page

EM

EMCOR Group

(NYSE:EME)

Rating:81Outperform
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 (EME) vs. SPDR S&P 500 ETF (SPY)

EMCOR Group Business Overview & Revenue Model

Company DescriptionEMCOR 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 MoneyEMCOR 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 Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 32.49%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
EMCOR Group reported a strong first quarter with significant revenue and RPO growth, driven by successful integrations and market expansions. However, challenges remain in the Industrial Services and U.S. Building Services segments, and there is some uncertainty in high-tech manufacturing RPOs.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
EMCOR reported revenues of $3.87 billion for Q1 2025, reflecting year-over-year growth of 12.7%.
Increased Operating Income and Margin
Operating income reached $318.8 million with an operating margin of 8.2%, marking a 26% increase from Q1 2024.
Record Bookings and RPO Growth
RPOs grew 17.1% organically year-over-year, totaling $11.8 billion, with an organic book-to-bill ratio of 1.18.
Successful Integration of Miller Electric
The acquisition of Miller Electric contributed $183 million to the Electrical Construction segment revenue.
Expanded Market Presence
Significant growth in various sectors, including a 112% increase in RPOs within the data center market.
Negative Updates
Industrial Services Segment Challenges
A slower start to the turnaround season and increased allowance for credit losses impacted operating income and margin in this segment.
U.S. Building Services Revenue Decline
A decrease of 4.9% in revenues for U.S. Building Services, driven by a reduction in site-based services.
High-Tech Manufacturing RPO Decline
RPOs in high-tech manufacturing decreased, though future awards are expected later in the year.
Company Guidance
During EMCOR Group's Q1 2025 earnings call, the company raised the lower end of its diluted EPS guidance by $0.40, setting a new range of $22.65 to $24. The revenue guidance remains unchanged at $16.1 billion to $16.9 billion. The company reported record quarterly revenues of $3.87 billion, a 12.7% year-over-year increase, and operating income of $318.8 million with an operating margin of 8.2%. The Electrical and Mechanical Construction segments showed significant growth, with year-over-year increases of 42.3% and 10.2% in revenue, respectively. The company ended the quarter with RPOs totaling $11.8 billion, marking a 28.1% increase, largely due to the acquisition of Miller Electric. EMCOR expects to maintain strong operating margins throughout the year, attributing continued success to excellent execution and proactive management of potential challenges, such as tariffs.

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
88
Very Positive
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
85
Very Positive
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
90
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue15.00B14.57B12.58B11.08B9.90B8.80B
Gross Profit2.90B2.77B2.09B1.60B1.50B1.40B
EBITDA1.56B1.51B1.01B682.40M646.86M601.45M
Net Income1.05B1.01B632.99M406.12M383.53M132.94M
Balance Sheet
Total Assets8.08B7.72B6.61B5.52B5.44B5.06B
Cash, Cash Equivalents and Short-Term Investments576.70M1.34B789.75M456.44M821.35M902.87M
Total Debt635.57M705.16M339.97M535.17M540.34M535.52M
Total Liabilities5.13B4.78B4.14B3.55B3.19B3.01B
Stockholders Equity2.95B2.94B2.47B1.97B2.25B2.05B
Cash Flow
Free Cash Flow1.30B1.33B821.25M448.64M282.63M758.40M
Operating Cash Flow1.38B1.41B899.65M497.93M318.82M806.37M
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 Price547.22
Price Trends
50DMA
467.87
Positive
100DMA
430.02
Positive
200DMA
449.09
Positive
Market Momentum
MACD
20.88
Negative
RSI
79.64
Negative
STOCH
94.41
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 Risk Analysis

EMCOR Group disclosed 34 risk factors in its most recent earnings report. EMCOR Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

EMCOR Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
EMEME
81
Outperform
$24.49B24.1837.76%0.18%14.30%49.19%
FIFIX
77
Outperform
$19.08B32.4537.81%0.33%31.47%64.96%
PWPWR
76
Outperform
$57.28B62.4913.48%0.10%15.77%19.58%
MTMTZ
73
Outperform
$13.56B63.467.70%3.03%
JJ
71
Outperform
$15.91B36.578.46%0.96%-22.81%-30.13%
ACACM
70
Outperform
$15.31B25.2528.07%0.90%4.55%
65
Neutral
$10.81B15.655.50%1.89%3.10%-27.09%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EME
EMCOR Group
547.22
184.24
50.76%
ACM
Aecom Technology
115.75
33.13
40.10%
FIX
Comfort Systems
540.98
240.05
79.77%
J
Jacobs Engineering
132.61
19.87
17.62%
MTZ
MasTec
171.89
69.65
68.12%
PWR
Quanta Services
386.51
132.17
51.97%

EMCOR Group Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
EMCOR Group Holds Annual Stockholders Meeting
Positive
Jun 5, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025