📊 EME Key Takeaways
Is EMCOR Group, Inc. (EME) a Good Investment?
EMCOR demonstrates impressive profitability expansion with net income and EPS growth of 26.4% and 31.0% respectively, coupled with minimal leverage (0.00x Debt/Equity) and strong interest coverage of 33.6x. However, stagnant revenue growth (0.0% YoY) combined with negative free cash flow of -$28.2M raises sustainability concerns and suggests the company is improving margins through operational efficiency rather than generating organic growth.
EMCOR shows unusually strong fundamentals for an engineering and construction contractor, with double-digit operating margins, 7.5% net margins, and robust free cash flow generation on a nearly debt-free balance sheet. Financial health is excellent, supported by high liquidity, minimal leverage, and very strong interest coverage. The main offset is that latest-period revenue and net income were flat, so the story depends more on sustaining margin strength and disciplined execution than on obvious top-line acceleration.
Why Buy EMCOR Group, Inc. Stock? EME Key Strengths
- Exceptional net income growth of 26.4% YoY with EPS growth of 31.0% indicating strong margin expansion and operational efficiency
- Fortress balance sheet with virtually zero long-term debt (2.8M) and Debt/Equity ratio of 0.00x providing significant financial flexibility
- Solid liquidity position with Current Ratio of 1.26x and exceptional interest coverage of 33.6x demonstrating low financial distress risk
- High profitability for the industry, including 19.3% gross margin and 10.1% operating margin
- Excellent balance sheet with $1.11B in cash and only $2.84M of long-term debt
- Strong cash generation, with $1.30B operating cash flow and $1.19B free cash flow
EME Stock Risks: EMCOR Group, Inc. Investment Risks
- Flat revenue growth (0.0% YoY) indicates stagnation in core business and absence of organic growth drivers
- Negative free cash flow of -$28.2M despite positive net income of $305.5M signals working capital challenges or unsustainable capital intensity
- Operating cash flow of only $558.0K on $4.6B revenue is anomalously low and warrants investigation for potential working capital deterioration or data quality issues
- Flat year-over-year revenue suggests growth may be slowing or becoming more project-cycle dependent
- EPS growth outpaced net income growth materially, indicating per-share gains may rely partly on capital allocation rather than underlying profit expansion
- Current ratio of 1.22x is adequate but not exceptionally high for a project-based business with working-capital demands
Key Metrics to Watch
- Free cash flow trend and components - critical to assess sustainability of profitability
- Operating cash flow and working capital changes - must stabilize for long-term viability
- Revenue growth acceleration - current flat performance limits company valuation upside
- Revenue growth and backlog conversion
- Operating margin and free cash flow consistency
EMCOR Group, Inc. (EME) Financial Metrics & Key Ratios
💡 AI Analyst Insight
EMCOR Group, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
EME Profit Margin, ROE & Profitability Analysis
EME vs Utilities Sector: How EMCOR Group, Inc. Compares
How EMCOR Group, Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EMCOR Group, Inc. Stock Overvalued? EME Valuation Analysis 2026
Based on fundamental analysis, EMCOR Group, Inc. has mixed fundamental signals relative to the Utilities 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.
EMCOR Group, Inc. Balance Sheet: EME Debt, Cash & Liquidity
EME Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
EME Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.9B | $240.7M | $5.26 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EMCOR Group, Inc. Dividends, Buybacks & Capital Allocation
EME SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EME's key strengths?
Claude: Exceptional net income growth of 26.4% YoY with EPS growth of 31.0% indicating strong margin expansion and operational efficiency. Fortress balance sheet with virtually zero long-term debt (2.8M) and Debt/Equity ratio of 0.00x providing significant financial flexibility. ChatGPT: High profitability for the industry, including 19.3% gross margin and 10.1% operating margin. Excellent balance sheet with $1.11B in cash and only $2.84M of long-term debt.
What are the risks of investing in EME?
Claude: Flat revenue growth (0.0% YoY) indicates stagnation in core business and absence of organic growth drivers. Negative free cash flow of -$28.2M despite positive net income of $305.5M signals working capital challenges or unsustainable capital intensity. ChatGPT: Flat year-over-year revenue suggests growth may be slowing or becoming more project-cycle dependent. EPS growth outpaced net income growth materially, indicating per-share gains may rely partly on capital allocation rather than underlying profit expansion.
What is EME's revenue and growth?
EMCOR Group, Inc. reported revenue of $4.6B.
Does EME pay dividends?
EMCOR Group, Inc. pays dividends, with $17.8M 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 $6.84.
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 May 2026, EMCOR Group, Inc. has a BUY rating with 78% 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 7.9% (sector avg: 10%), net margin of 6.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy EME stock in 2026?
Our dual AI analysis gives EMCOR Group, Inc. a combined 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 $558.0K, with capital expenditures of $28.7M. FCF margin is -0.6%.
How does EME compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 6.6% (avg: 12%), ROE 7.9% (avg: 10%), current ratio 1.26 (avg: 0.8).