EMCOR Group, Inc. (EME) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Comfort Systems USA, Inc.

Tetra Tech, Inc.

EMCOR Group, Inc.

APi Group Corp.

Exponent, Inc.

MasTec, Inc.

Quanta Services, Inc.

AECOM

Fluor Corp.

Installed Building Products, Inc.

TopBuild Corp.

Why is EMCOR Group, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 24.02%

Healthy long term growth as Net Sales has grown by an annual rate of 11.67% and Operating profit at 26.82%
Company has a low Debt to Equity ratio (avg) at times

The company has declared Positive results for the last 7 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 1,298.09 MM
ROCE(HY) Highest at 38.14%
INVENTORY TURNOVER RATIO(HY) Highest at 118.75 times

With ROE of 35.62%, it has a fair valuation with a 8.63 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 32.98%, its profits have risen by 45.8% ; the PEG ratio of the company is 0.5

Consistent Returns over the last 3 years

Along with generating 32.98% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to EMCOR Group, Inc. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is EMCOR Group, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

EMCOR Group, Inc.

74.42%

1.54

44.62%

S&P 500

22.93%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.07%

EBIT Growth (5y)

26.26%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

4.78

Tax Ratio

26.72%

Dividend Payout Ratio

3.55%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

38.30%

ROE (avg)

24.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

10.35

EV to EBIT

23.45

EV to EBITDA

20.97

EV to Capital Employed

13.89

EV to Sales

2.18

PEG Ratio

0.97

Dividend Yield

0.14%

ROCE (Latest)

59.24%

ROE (Latest)

34.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

ROCE(HY)

Highest at 39.25%

DIVIDEND PER SHARE(HY)

Highest at USD 3.9

RAW MATERIAL COST(Y)

Fallen by 0.11% (YoY

CASH AND EQV(HY)

Highest at USD 2,028.39 MM

NET SALES(Q)

Highest at USD 4,628.23 MM

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.9 times

Here's what is working for EMCOR Group, Inc.

Dividend per share

Highest at USD 3.9 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 4,628.23 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 2,028.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.11% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 52.57 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for EMCOR Group, Inc.

Debtors Turnover Ratio

Lowest at 3.9 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio