EMCOR Group, Inc. (EME) Stock Analysis

Analysis from 10-Q filed 2025-10-30. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 33.5%. FCF margin 6.3%. Source: 10-Q filed 2025-10-30.

Metric	Value	Context
ROIC	33.5%	Above industry average
FCF Margin	6.3%	Healthy cash flow

ROIC 33.5% — Top 5% of sector peers. FCF margin 6.3% — Top 50%.

Explore EMCOR Group, Inc.: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for EME: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: EMCOR Group, Inc. earns 33.5% ROIC, Top 5% in Materials

ROIC TTM 33.5%, sector median 4.6%, Top 5%. DuPont: NOPAT margin 7.7% × asset turnover 2.0x. Gross margin 19.4%. Operating margin 10.4%. Source: 10-Q filed 2025-10-30.

Metric	EME	Rating	Context
Return on Invested Capital (ROIC)	33.5%	Excellent	Above sector median of 4.6%
Return on Equity (ROE)	39.9%	Excellent	Efficient use of shareholder equity
Gross Margin	19.4%	Warning	Competitive pricing environment
Operating Margin	10.4%	Good	Moderate operational efficiency

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Cash Flow: EMCOR Group, Inc. generates $1.2B FCF at 6.3% margin, positive NaN/8 quarters

FCF TTM $1.2B. FCF margin 6.3%, Top 50%. OCF/Net income 0.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-30.

Metric	EME	Rating	Context
Free Cash Flow Margin	6.3%	Adequate	Healthy cash generation
Free Cash Flow (TTM)	$1.2B	Good	Positive cash generation
OCF/Net Income	0.9x	Good	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet Analysis for EMCOR Group, Inc.

Source: 10-Q filed 2025-10-30.

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Valuation: EMCOR Group, Inc. trades at 25.7x earnings

P/E 25.7x. EV/Sales 1.6x. FCF yield 3.2%. Dividend yield 0.2%. Source: 10-Q filed 2025-10-30.

Metric	EME	Rating	Context
P/E Ratio	25.7x	Adequate	Premium valuation
EV/Sales	1.6x	Excellent	Attractive revenue multiple
FCF Yield	3.2%	Adequate	Lower cash yield
Dividend Yield	0.2%	Adequate	Growth focus over income

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Capital Allocation: EMCOR Group, Inc. returns 1.3% shareholder yield

Total shareholder yield 1.3% (div 0.2% + buyback 1.1%). Capital returned $480.6M TTM. Source: 10-Q filed 2025-10-30.

Metric	EME	Rating	Context
Total Shareholder Yield	1.3%	Adequate	Dividend + buyback yield combined
Buyback Yield	1.1%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$480.6M	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	33.5%	Top 5%	7.3x above
Free Cash Flow Margin	6.3%	Top 50%	4.8x above
Gross Margin	19.4%	Bottom 50%	0.7x below
Operating Margin	10.4%	Top 50%	1.4x above
Return on Equity (ROE)	39.9%	Top 10%	6.0x above
P/E Ratio	25.7x	N/A	-

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Financial Scorecard

Metric	EME	Rating	Sector Context
Return on Invested Capital (ROIC)	33.5%	Excellent	Top 5% of sector (median: 4.6%)
Free Cash Flow Margin	6.3%	Adequate	Top 50% of sector (median: 1.3%)
Gross Margin	19.4%	Warning	Bottom 50% of sector (median: 28.2%)
P/E Ratio (Price-to-Earnings)	25.7x	Adequate	Growth premium
Free Cash Flow Yield	3.2%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is EMCOR Group, Inc.'s Return on Invested Capital (ROIC)?

EMCOR Group, Inc. (EME) has a trailing twelve-month Return on Invested Capital (ROIC) of 33.5%. Sector median 4.6%. Source: 10-Q filed 2025-10-30.

Q: What is EMCOR Group, Inc.'s Free Cash Flow Margin?

EMCOR Group, Inc. (EME) has a free cash flow margin of 6.3%, generating $1.2 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-30.

Q: What is EMCOR Group, Inc.'s P/E ratio and how does it compare to peers?

EMCOR Group, Inc. (EME) trades at a P/E ratio of 25.7x, which is above the sector median of N/A. EV/Sales 1.6x. FCF yield 3.2%. Source: 10-Q filed 2025-10-30.

Q: Does EMCOR Group, Inc. pay a dividend?

EMCOR Group, Inc. (EME) currently pays a dividend yield of 0.2%. Total shareholder yield (dividend + buybacks) 1.3%. Source: 10-Q filed 2025-10-30.

Q: What is EMCOR Group, Inc.'s revenue and earnings growth?

EMCOR Group, Inc. (EME) grew revenue by 18.9% year-over-year. EPS +33.5% YoY. Source: 10-Q filed 2025-10-30.

Q: Is EMCOR Group, Inc. buying back stock?

EMCOR Group, Inc. (EME) repurchased $422.6 million of stock over the trailing twelve months. This represents a buyback yield of 1.1%. Source: 10-Q filed 2025-10-30.

Q: How does EMCOR Group, Inc. compare to competitors in Materials?

Compared to other companies in Materials, EMCOR Group, Inc. (EME) shows: ROIC 33.5%, sector median 4.6% (Top 5%). FCF margin 6.3%, sector median 1.3% (Top 50%). Gross margin 19.4%, 8.8pp below sector median. These rankings are based on MetricDuck's analysis of all Materials companies with available SEC filings.

Q: What warning signs should I watch for with EMCOR Group, Inc.?

No quantitative warning flags fired for EMCOR Group, Inc. (EME) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-30.

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Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.