EME

EMCOR Group, Inc.

MaterialsCIK 0000105634

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Market Cap
$33.02B
P/E (TTM)
24.7x
Rev Growth (TTM)
+18.3%
Net Margin (TTM)
7.5%
FCF Yield (TTM)
3.3%
FCF Margin (TTM)
6.1%

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LATEST EARNINGS

Q1 2026
2 months ago
View source
Revenue
N/A
Net Income
N/A
EPS
N/A
Gross
18.7% -0.0%
Operating
8.7% +0.5%
Net
6.6% +0.4%
  • Record quarterly revenues of $4.63 billion, a 19.7% increase year-over-year.
  • Diluted EPS of $6.84, a 30.0% increase year-over-year.
  • Record Remaining Performance Obligations (RPOs) of $15.62 billion, up 32.9% year-over-year.
  • Operating income increased to $403.8 million, with operating margin improving to 8.7% from 8.2% in the prior year.

Cash Flow Health

Free Cash Flow7/8 positive
TTM$1.1B
Q1 '26
$-28M-106%
Q4 '25
$492M+10%
FCF Margin
TTM6.1%
Q1 '26-0.6%-106%
Sector: 0.3%Above Avg
OCF Margin6.7%
OCF/NI0.89x
CapEx Coverage10.4x
FCF Yield3.3%
FCF Growth (2Y)+34%
Cash Conversion Cycle
57 days
DSO: 86+DIO: 0DPO: 29

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldTTM
TTM1.5%
Div Yield0.2%
+
Buyback (TTM)1.4%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)0.2%
FCF Payout Ratio4.8%
Free Cash Flow (TTM)$1.1B
Stock Repurchases (TTM)$448.5M
Capital Return / FCF46.3%
Est. Dividends Paid (TTM)$51.4M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
32.9%
Stable
+0.0% YoY+1.7%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
7.5%
8Q: 7.0%
Asset Turnover
2.02x
8Q: 2.02x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 15.2%32.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
72.62x
8Q:73.01x
-214.0%
Invested Cap Turn
4.39x
8Q:4.47x
-29.5%
CapEx Intensity
2.9%
8Q:2.7%
CapEx/Depreciation
0.59x
Asset-based ROIC formula

Valuation Analysis

Fair Value
Price-to-EarningsTTM
24.7x
Volatile
8Q: 72.6x+2546%
Valuation Lenses
Earnings
24.7x
vs sector
Cash Flow
29.9x
EV/FCF vs
Growth-Adj
0.8xPEG
Undervalued for growth
Quality-Adj
0.8P/E per %ROIC
ROIC: 32.9%
Shareholder Returns
Dividend
0.2%
Buyback
1.4%
Total Yield
1.5%
Market Cap$33.02B
EV$32.27B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
90/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
39.7%
8Q:
Return on Invested Capital (ROIC)Top 25%
32.9%
8Q:
Flat
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 7.5%
Asset Turnover: 2.02x

Earnings Quality

Cash Conversion

0.89x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin19.3%

Capital Efficiency

Invested Capital Turnover4.39x

Working Capital

Cash Conversion Cycle57 days

Growth Quality & Momentum

Quality Growth
Growth Quality Score
78/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
18.3%
OpInc Growth YoY
26.7%
EPS Growth YoY
31.7%
FCF 3Y CAGR
34.0%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue
Sustainability Index: 7.5/10 - Highly sustainable growth

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
19.3%
Operating
10.1%
Above Avg in sector
Net
7.5%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-1.5 pts
FCF: 6.1% | Net: 7.5%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $916.42M
Interest Coverage
+Net cash position: $916.42M
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis