📊 EME Key Takeaways
Is EME a Good Investment? Thesis Analysis
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.
Why Buy 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
EME Investment Risks to Consider
- 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
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
EME Financial Metrics
💡 AI Analyst Insight
EMCOR Group, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
EME Profitability Ratios
EME vs Default Sector
How EMCOR Group, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EME Overvalued or Undervalued?
Based on fundamental analysis, EMCOR Group, Inc. appears fundamentally strong relative to the Default 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.
EME Balance Sheet & Liquidity
EME 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
EME Quarterly 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.
EME Capital Allocation
EME SEC 10-K & 10-Q Filing 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 an AI rating of STRONG BUY with 85% 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.
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.
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 March 2026, EMCOR Group, Inc. has a STRONG BUY rating with 85% 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: 15%), 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 STRONG 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 Default stocks?
Vs Default sector averages: Net margin 7.5% (avg: 12%), ROE 34.6% (avg: 15%), current ratio 1.22 (avg: 1.8).