📊 EME Key Takeaways
Is EMCOR Group, Inc. (EME) a Good Investment?
EMCOR demonstrates exceptional financial health with industry-leading profitability metrics (34.6% ROE, 13.7% ROA) and fortress-like balance sheet strength (0.00x Debt/Equity, 142.5x interest coverage). Strong free cash flow generation ($1.2B) and 31% EPS growth despite flat revenue indicate operational leverage and effective capital allocation in a capital-intensive business.
EMCOR shows unusually strong fundamentals for an engineering and construction contractor, with double-digit operating margins, 7.5% net margins, and robust free cash flow generation on a nearly debt-free balance sheet. Financial health is excellent, supported by high liquidity, minimal leverage, and very strong interest coverage. The main offset is that latest-period revenue and net income were flat, so the story depends more on sustaining margin strength and disciplined execution than on obvious top-line acceleration.
Why Buy EMCOR Group, Inc. Stock? EME Key Strengths
- Exceptional Return on Equity (34.6%) and Return on Assets (13.7%) well above peer averages
- Minimal financial risk with zero net debt position and $1.1B cash reserves
- Strong free cash flow generation ($1.2B) exceeding net income, indicating high-quality earnings
- EPS growth of 31% YoY despite flat revenue suggests share buybacks and operational efficiency gains
- Healthy operating margin (10.1%) in capital-intensive electrical/mechanical contracting sector
- Fortress balance sheet with interest coverage ratio of 142.5x providing strategic flexibility
- High profitability for the industry, including 19.3% gross margin and 10.1% operating margin
- Excellent balance sheet with $1.11B in cash and only $2.84M of long-term debt
- Strong cash generation, with $1.30B operating cash flow and $1.19B free cash flow
EME Stock Risks: EMCOR Group, Inc. Investment Risks
- Revenue flat YoY indicating potential market headwinds or market share challenges in core business
- Relatively modest current ratio (1.22x) suggests limited liquidity cushion despite strong cash position
- High insider trading activity (17 Form 4 filings in 90 days) warrants monitoring for potential concerns
- Exposure to cyclical construction and facilities services sectors vulnerable to economic downturns
- Thin net margin (7.5%) leaves limited pricing power or margin expansion opportunity
- Flat year-over-year revenue suggests growth may be slowing or becoming more project-cycle dependent
- EPS growth outpaced net income growth materially, indicating per-share gains may rely partly on capital allocation rather than underlying profit expansion
- Current ratio of 1.22x is adequate but not exceptionally high for a project-based business with working-capital demands
Key Metrics to Watch
- Revenue growth acceleration - current flat trend needs reversal to confirm sustainable growth
- Operating margin trend - monitor for potential margin compression from competitive pricing pressure
- Free cash flow conversion ratio - ensure sustainability of current 92% FCF/Net Income conversion
- Debt/Equity ratio - track any increase in leverage from current fortress position
- Order backlog and bid pipeline - forward indicators of revenue growth potential
- Revenue growth and backlog conversion
- Operating margin and free cash flow consistency
EMCOR Group, Inc. (EME) Financial Metrics & Key Ratios
💡 AI Analyst Insight
EMCOR Group, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
EME Profit Margin, ROE & Profitability Analysis
EME vs Utilities Sector: How EMCOR Group, Inc. Compares
How EMCOR Group, Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EMCOR Group, Inc. Stock Overvalued? EME Valuation Analysis 2026
Based on fundamental analysis, EMCOR Group, Inc. appears fundamentally strong relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
EMCOR Group, Inc. Balance Sheet: EME Debt, Cash & Liquidity
EME Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: EMCOR Group, Inc.'s revenue has grown significantly by 72% over the 5-year period, indicating strong business expansion. The most recent EPS of $13.31 reflects profitable operations.
EME Revenue Growth, EPS Growth & YoY Performance
EME Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.7B | $270.3M | $5.80 |
| Q2 2025 | $3.7B | $247.6M | $5.25 |
| Q1 2025 | $3.4B | $197.1M | $4.17 |
| Q3 2024 | $3.2B | $169.4M | $3.57 |
| Q2 2024 | $3.0B | $140.6M | $2.95 |
| Q1 2024 | $2.9B | $111.5M | $2.32 |
| Q3 2023 | $2.8B | $105.8M | $2.16 |
| Q2 2023 | $2.7B | $100.7M | $1.99 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EMCOR Group, Inc. Dividends, Buybacks & Capital Allocation
EME SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for EMCOR Group, Inc. (CIK: 0000105634)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EME
What is the AI rating for EME?
EMCOR Group, Inc. (EME) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EME's key strengths?
Claude: Exceptional Return on Equity (34.6%) and Return on Assets (13.7%) well above peer averages. Minimal financial risk with zero net debt position and $1.1B cash reserves. ChatGPT: High profitability for the industry, including 19.3% gross margin and 10.1% operating margin. Excellent balance sheet with $1.11B in cash and only $2.84M of long-term debt.
What are the risks of investing in EME?
Claude: Revenue flat YoY indicating potential market headwinds or market share challenges in core business. Relatively modest current ratio (1.22x) suggests limited liquidity cushion despite strong cash position. ChatGPT: Flat year-over-year revenue suggests growth may be slowing or becoming more project-cycle dependent. EPS growth outpaced net income growth materially, indicating per-share gains may rely partly on capital allocation rather than underlying profit expansion.
What is EME's revenue and growth?
EMCOR Group, Inc. reported revenue of $17.0B.
Does EME pay dividends?
EMCOR Group, Inc. pays dividends, with $45.0M distributed to shareholders in the trailing twelve months.
Where can I find EME SEC filings?
Official SEC filings for EMCOR Group, Inc. (CIK: 0000105634) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EME's EPS?
EMCOR Group, Inc. has a diluted EPS of $28.19.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EME a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, EMCOR Group, Inc. has a BUY rating with 84% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is EME stock overvalued or undervalued?
Valuation metrics for EME: ROE of 34.6% (sector avg: 10%), net margin of 7.5% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy EME stock in 2026?
Our dual AI analysis gives EMCOR Group, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EME's free cash flow?
EMCOR Group, Inc.'s operating cash flow is $1.3B, with capital expenditures of $112.8M. FCF margin is 7.0%.
How does EME compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 7.5% (avg: 12%), ROE 34.6% (avg: 10%), current ratio 1.22 (avg: 0.8).
Why is EME's return on equity (ROE) so high?
EMCOR Group, Inc. has a return on equity of 34.6%, significantly above the Utilities sector average of 10%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 7.5% net margin.