Quality Investor

EMCOR Group, Inc.

Rank #205Capital Return

EME · NYSE · Industrials

EMCOR Group, Inc. (EME) — Rank #205 by gross profitability (GP/assets 0.32) · ROE 31.2% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0000105634 · all metrics point-in-time as of the filing date.

About

EMCOR Group, Inc. provides electrical and mechanical construction and facilities, building, and industrial services in the United States and the United Kingdom.

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It offers design, integration, installation, startup, operation, and maintenance services related to power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation; low-voltage systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; computerized traffic control systems, and signal and communication equipment; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and piping systems; control and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging; millwright; and steel fabrication, erection, and welding services. The company also provides site-based operations and maintenance; facility management and maintenance; energy retrofit; military base operations support; indoor air quality; floor care and janitorial; landscaping, lot sweeping, and snow removal; vendor management and call center; installation and support for building systems; program development, management, and maintenance for energy systems; technical consulting and diagnostic; infrastructure and building projects; modification and retrofit projects; and reception, security, and catering services. In addition, it offers refinery turnaround planning and engineering; welding; overhaul and maintenance; technical; instrumentation, controls, and electrical; electrical panel design, fabrication, and installation; on-site repair and maintenance; and renewable energy services, as well as design, manufacturing, repair, and hydro blast cleaning services.

The company was incorporated in 1987 and is headquartered in Norwalk, Connecticut.

Industry
Engineering & Construction
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

EME+542.3% · +45.1% CAGRSPY+80.3% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$32.61B

P/E (annual)

26.2

P/S (annual)

1.9

P/B

8.0

P/OCF (annual)

25.0

Shareholder Yield

3.7%

Employees

44,000

Industry

Engineering & Construction

Exchange

NYSE

Signal Flags

5 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.32
Return on equity
31.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.49
Current ratio
1.28×
Net cash
$924.41M

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue

Growth

2/2 pass
Revenue growth
16.6%
Piotroski F-Score
N/A
Share dilution
-3.6%

Terry Smith quality gate

Passes 3/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

12.3%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -3.6% — per-share value needs a total required return of 8.8% once share-count change is priced in.

vs. own 6-year median revenue growth: 13.1%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

7.7%

r = 10% (base)

12.3%

r = 12%

16.3%

Net debt / market cap: -2.8%

Base FCF: $1.2B3Y mean FCF: $1.1B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

26.5xExpensive
13.6xmed 20.0x41.7x

P / S

Price / revenue per share

2.0xExpensive
0.5xmed 0.6x2.0x

P / B

Price / book value per share

9.2xExpensive
2.2xmed 2.7x9.2x

P / GP

Price / gross profit per share

10.3xExpensive
3.3xmed 4.0x10.3x

P / FCF

Price / free cash flow per share

28.3xExpensive
7.3xmed 17.2x28.3x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.32

Primary signal (Novy-Marx).

Return on equity

31.2%

Gross margin

19.3%

Revenue growth (YoY)

16.6%

RPO growth (YoY)

31.2%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

15.3%

Revenue CAGR (5Y)

14.1%

Earnings CAGR (3Y)

46.3%

FCF CAGR (3Y)

38.4%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.49

Current ratio

1.28×

Quick ratio

1.15×

Net cash

$924.41M

Cash & equivalents minus total debt.

Recession resistance

Revenue through recessions

Worst single-year YoY revenue decline, 15 years of history

Moderate
2008-2009 (GFC)
N/AN/A
2020 (COVID)
-4.1%Mild decline
Worst year on record(any fiscal year, not recession-limited)
-4.1%Mild decline

Cash-flow health

Free cash flow

$1.19B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.07

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

Stock-based comp intensity.

Dividend safety

Composite score

4.0 / 5

Strong
Payout ratio
3.5%5/5 Strong
FCF coverage
26.42×5/5 Strong
Dividend growth streak
3 yr2/5 Fair
Balance-sheet health
D/E 1.49 · IC 142.55×4/5 Strong

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20202025
Value
Capital Return