EMCOR Stock Analysis, Valuation (NYSE:EME)

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$76.53 $0.47 (0.61%) EME stock closing price May 18, 2018 (Closing)
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EMCOR
Updated on : May 18, 2018
previous close
EME 76.5 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Building-Heavy Construction
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
3.8%
Operating Profit
Operating Margin:
4.2%
Sector Average:
7.6%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
307M
Debt/Equity Ratio:
 0.18
Compared to the industry
Cash Flow
Operating cash flow:
-$59.1M
Net Income:
$55.4M
Dividend Yield
EME dividend yield:
0.42%
PROS      CONS
Low Debt Burden
ROIC
ROE
PS Valuation
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
EME PS :
0.6
Industry PS :
0.9
Sector:   Construction.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
12.1%
Return on Equity:
14.2%
Free Cash Flow Margin:
-3.4%
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EMCOR Stock Analysis

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Take a look at Amigobulls EMCOR stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for EME stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Emcor Group Inc Stock Rating 2.7/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for EME stock analysis. We compare EMCOR valuation with its sector peers to gauge relative attractiveness of EME stock. EMCOR stock rating is our opinion about the business fundamentals of the company.

Should you buy EME stock?

  • EMCOR has a lower debt burden than its peers in the Construction sector, with a debt/equity ratio of  0.18.
  • When compared with the Building-Heavy Construction industry average PS ratio of 0.9, the price-to-sales ratio of 0.6 for EME stock is attractive.
  • EMCOR's return on invested capital of 12.1% is good.
  • EMCOR has a good Return On Equity (ROE) of 14.2%.

Should you sell EME stock?

  • 2018 Q1 revenue growth of 0.5% YoY was meagre.
  • Revenue growth of 3.8% has been weak over the last 5 years.
  • EMCOR had a poor average operating margin of 4.2% over the last 4 quarters.
  • EMCOR's LTM Net margins were poor at 3%.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -3.4%.

Comments on this video and EMCOR stock

Investors can use Amigobulls EMCOR stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, EMCOR revenue growth and profit or net income are two main metrics which help in identifying whether EME stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of EMCOR stock.