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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
30.2%
Sector: 8.9%
Dividend Analysis audit
GROWTH
0.15%
Trailing Yield
$0.15
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
5%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, EMCOR Group, Inc. (EME) receives a "Hold" rating with a composite score of 52.0/100, ranked #400 out of 4446 stocks. Key factor scores: Quality 50/100, Value 60/100, Momentum 66/100. This is quantitative analysis only — not investment advice.
EMCOR Group, Inc. (EME) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does EMCOR Group, Inc. Do?
EMCOR Group, Inc. provides electrical and mechanical construction, and facilities services primarily in the United States and the United Kingdom. It offers design, integration, installation, starts-up, operation, and maintenance services related to electrical power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation in the refining, chemical processing, and food processing industries; low-voltage systems, such as fire alarm, security, and process control systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and high-purity piping systems; controls and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging services; millwright services; and steel fabrication, erection, and welding services. The company also provides building services that cover commercial and government site-based operations and maintenance; facility management, maintenance, and services; outage services to utilities and industrial plants; military base operations support services; mobile mechanical maintenance and services; services for indoor air quality; floor care and janitorial services; landscaping, lot sweeping, and snow removal services; vendor management and call center services; installation and support for building systems; program development, management, and maintenance for energy systems; technical consulting and diagnostic services; infrastructure and building projects; small modification and retrofit projects; and other building services. It offers industrial services to oil, gas, and petrochemical industries. EMCOR Group, Inc. was incorporated in 1987 and is headquartered in Norwalk, Connecticut. EMCOR Group, Inc. (EME) is classified as a large-cap stock in the Industrials sector, specifically within the Construction industry. The company is led by CEO Anthony J. Guzzi and employs approximately 35,500 people, headquartered in NORWALK, Connecticut. With a market capitalization of $33.8B, EME is one of the prominent companies in the Industrials sector.
EMCOR Group, Inc. (EME) Stock Rating — Hold (April 2026)
As of April 2026, EMCOR Group, Inc. receives a Hold rating with a composite score of 52.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.EME ranks #400 out of 4,446 stocks in our coverage universe. Within the Industrials sector, EMCOR Group, Inc. ranks #69 of 752 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
EME Stock Price and 52-Week Range
EMCOR Group, Inc. (EME) currently trades at $799.21. The stock lost $1.19 (0.1%) in the most recent trading session. The 52-week high for EME is $835.00, which means the stock is currently trading -4.3% from its annual peak. The 52-week low is $320.88, putting the stock 149.1% above its annual trough. Recent trading volume was 9K shares, suggesting relatively thin trading activity.
Is EME Overvalued or Undervalued? — Valuation Analysis
EMCOR Group, Inc. (EME) carries a value factor score of 60/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 30.15x, compared to the Industrials sector average of 28.33x — a premium of 6%. The price-to-book ratio stands at 9.09x, versus the sector average of 2.23x. The price-to-sales ratio is 2.07x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, EME trades at 22.23x EV/EBITDA, versus 5.70x for the sector.
Overall, EME's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
EMCOR Group, Inc. Profitability — ROE, Margins, and Quality Score
EMCOR Group, Inc. (EME) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 30.2%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 11.9% versus the sector average of 3.3%.
On a margin basis, EMCOR Group, Inc. reports gross margins of 19.3%, compared to 35.8% for the sector. The operating margin is 9.3% (sector: 6.2%). Net profit margin stands at 6.9%, versus 3.9% for the average Industrials stock. Revenue growth is running at 17.3% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
EME Debt, Balance Sheet, and Financial Health
EMCOR Group, Inc. has a debt-to-equity ratio of 153.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.22x, suggesting adequate working capital coverage. Total debt on the balance sheet is $96M. Cash and equivalents stand at $655M.
EME has a beta of 1.29, meaning it is more volatile than the broader market — a $10,000 investment in EME would be expected to move 29.3% more than the S&P 500 on any given day. The stability factor score for EMCOR Group, Inc. is 58/100, reflecting average volatility within the normal range for its sector.
EMCOR Group, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, EMCOR Group, Inc. reported revenue of $16.17B and earnings per share (EPS) of $28.30. Net income for the quarter was $1.11B. Gross margin was 19.3%. Operating income came in at $1.50B.
In FY 2025, EMCOR Group, Inc. reported revenue of $16.99B and earnings per share (EPS) of $28.30. Net income for the quarter was $1.27B. Gross margin was 19.3%. Revenue grew 16.6% year-over-year compared to FY 2024. Operating income came in at $1.71B.
In Q3 2025, EMCOR Group, Inc. reported revenue of $4.30B and earnings per share (EPS) of $6.59. Net income for the quarter was $295M. Gross margin was 19.4%. Revenue grew 16.4% year-over-year compared to Q3 2024. Operating income came in at $406M.
In Q2 2025, EMCOR Group, Inc. reported revenue of $4.30B and earnings per share (EPS) of $6.74. Net income for the quarter was $302M. Gross margin was 19.4%. Revenue grew 17.4% year-over-year compared to Q2 2024. Operating income came in at $415M.
Over the past 8 quarters, EMCOR Group, Inc. has demonstrated a growth trajectory, with revenue expanding from $3.67B to $16.17B. Investors analyzing EME stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
EME Dividend Yield and Income Analysis
EMCOR Group, Inc. (EME) currently pays a dividend yield of 0.1%. At this yield, a $10,000 investment in EME stock would generate approximately $$15.00 in annual dividend income. The net margin of 6.9% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
EME Momentum and Technical Analysis Profile
EMCOR Group, Inc. (EME) has a momentum factor score of 66/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 27/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 30/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
EME vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing EME against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full EME vs S&P 500 (SPY) comparison to assess how EMCOR Group, Inc. stacks up against the broader market across all factor dimensions.
EME Next Earnings Date
No upcoming earnings date has been announced for EMCOR Group, Inc. (EME) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy EME? — Investment Thesis Summary
EMCOR Group, Inc. presents a balanced picture with arguments on both sides. The value score of 60/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 66/100, suggesting the trend favors buyers.
In summary, EMCOR Group, Inc. (EME) earns a Hold rating with a composite score of 52.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on EME stock.
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Institutional Research Dossier
EMCOR Group, Inc. (EME) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
EMCOR Group, Inc. (EME) receives a Hold rating, driven by a balanced assessment of its strong operational performance and a valuation that appears to reflect much of its potential upside. While EMCOR exhibits robust profitability, revenue growth, and a solid position within the construction and facilities services industry, its free cash flow generation is concerning, and its valuation metrics suggest limited room for significant multiple expansion. The company's ability to sustain its impressive growth trajectory and improve cash flow will be critical in justifying a more bullish outlook.
The company's impressive ROE and operating margins relative to the sector are counterbalanced by a negative free cash flow and a relatively high debt-to-equity ratio. While EMCOR's momentum score is strong, the investment score is weak, indicating potential concerns about capital allocation and future growth prospects. Therefore, a Hold rating is warranted until there is more clarity on the company's ability to generate consistent free cash flow and efficiently deploy capital for future growth.
Business Strategy & Overview
EMCOR Group operates in two primary segments: Electrical and Mechanical Construction and Facilities Services. The Electrical and Mechanical Construction segment focuses on the design, installation, and maintenance of electrical and mechanical systems for a diverse range of clients, including commercial, industrial, and institutional customers. This segment is highly cyclical, influenced by economic conditions and construction spending. The Facilities Services segment provides a broad array of services, including building operations and maintenance, facility management, and energy solutions. This segment tends to be more stable than the construction segment, providing recurring revenue streams and mitigating some of the cyclicality inherent in the construction business.
EMCOR's strategic positioning revolves around providing comprehensive solutions to its clients, acting as a one-stop shop for their electrical, mechanical, and facilities service needs. This approach allows the company to build long-term relationships with its clients and capture a larger share of their spending. The company also focuses on expanding its service offerings and geographic reach through strategic acquisitions, which have been a key driver of its growth in recent years. EMCOR's ability to integrate these acquisitions effectively is crucial to its long-term success.
The company's industry context is characterized by intense competition from both large national players and smaller regional firms. EMCOR differentiates itself through its scale, geographic footprint, and comprehensive service offerings. The company also benefits from the increasing complexity of building systems and the growing demand for energy-efficient solutions, which require specialized expertise. However, the industry is also subject to fluctuations in commodity prices, labor costs, and regulatory changes, which can impact EMCOR's profitability.
EMCOR's business model relies on securing contracts through competitive bidding processes. The company's ability to accurately estimate project costs and manage its workforce effectively is critical to its profitability. The company also faces risks related to project delays, cost overruns, and customer disputes. EMCOR mitigates these risks through careful project management, risk assessment, and insurance coverage. The company's backlog of projects provides some visibility into its future revenue streams, but the timing and profitability of these projects can be uncertain.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
17.3%
Sector: 6.4%
+172% VS SCTR
Economic Moat Analysis
EMCOR's economic moat can be classified as Narrow, primarily derived from switching costs and, to a lesser extent, intangible assets. The switching costs arise from the integrated nature of EMCOR's services and the long-term relationships it builds with its clients. Once a client has entrusted EMCOR with its electrical, mechanical, and facilities service needs, switching to a new provider can be disruptive and costly, particularly for large and complex projects. This creates a degree of customer stickiness and provides EMCOR with some pricing power.
The company's intangible assets, such as its reputation for quality and reliability, also contribute to its moat. EMCOR has a long track record of successfully completing complex projects and providing high-quality service, which has earned it a strong reputation in the industry. This reputation helps the company win new contracts and retain existing clients. However, the construction and facilities services industry is highly competitive, and EMCOR's reputation can be damaged by project failures or customer complaints.
EMCOR does not possess a wide moat because its services are not highly differentiated, and there are many competitors in the market. The company's scale and geographic footprint provide it with some advantages, but these are not insurmountable barriers to entry. Smaller regional firms can often compete effectively on price and service quality, particularly for smaller projects. The company's cost advantages are also limited, as labor costs and material costs are relatively similar across the industry.
The moat's strength is also influenced by the cyclical nature of the construction industry. During economic downturns, clients may be more willing to switch providers in search of lower prices, which can erode EMCOR's pricing power. The company's ability to maintain its moat during these periods depends on its ability to provide superior value and build strong relationships with its clients. The increasing complexity of building systems and the growing demand for energy-efficient solutions may also strengthen EMCOR's moat over time, as these trends require specialized expertise that smaller competitors may lack.
Financial Health & Profitability
EMCOR's financial health presents a mixed picture. The company has demonstrated strong revenue growth, with a 17.3% increase compared to the sector average of 6.6%. This growth has been driven by both organic expansion and strategic acquisitions. The company's gross margin of 19.3% is significantly lower than the sector average of 35.8%, indicating a potential weakness in pricing power or cost management. However, EMCOR's operating margin of 9.3% and net margin of 6.9% are significantly higher than the sector averages of 6.2% and 3.7%, respectively, suggesting efficient operations and effective cost control.
The company's ROE of 30.2% is exceptionally high compared to the sector average of 9.2%, indicating strong profitability and efficient use of equity. However, the company's free cash flow is negative at -$655.02 million, which is a significant concern. This negative free cash flow may be due to working capital investments related to its growth or other factors that need to be investigated further. The company's current ratio of 1.22 indicates adequate liquidity to meet its short-term obligations.
EMCOR's debt-to-equity ratio of 153.00 is relatively high compared to the sector average of 70.00, indicating a higher level of financial leverage. However, the company's total debt of $95.84 million is relatively low compared to its market capitalization of $32.28 billion, suggesting that the debt is manageable. The quarterly financial history shows consistent revenue growth and improving profitability over the past few years. The company's operating margin has increased from 5.4% in Q1 2023 to 9.4% in Q3 2025, indicating improved operational efficiency.
The trend of improving operating margins is a positive sign, but the negative free cash flow remains a concern. The company needs to address this issue by improving its working capital management or reducing its capital expenditures. The high debt-to-equity ratio also warrants monitoring, as it could increase the company's financial risk in the event of an economic downturn. Overall, EMCOR's financial health is solid, but the negative free cash flow and high debt-to-equity ratio need to be addressed to ensure long-term sustainability.
Valuation Assessment
EMCOR's valuation presents a mixed picture. The company's P/E ratio of 25.6x is slightly lower than the sector average of 27.7x, suggesting that the stock is fairly valued relative to its earnings. However, the company's EV/EBITDA ratio of 4.7x is significantly lower than the sector average of 5.7x, indicating that the stock may be undervalued relative to its operating cash flow. Given the negative free cash flow, a traditional FCF yield analysis is not meaningful.
The company's strong revenue growth and high ROE suggest that it deserves a premium valuation. However, the negative free cash flow and high debt-to-equity ratio may warrant a discount. The company's valuation is also influenced by the cyclical nature of the construction industry. During economic downturns, investors may be less willing to pay a premium for construction stocks, which can put downward pressure on EMCOR's valuation.
Considering the company's strong operational performance and solid financial health, a fair valuation would likely be in line with the sector average. However, the negative free cash flow and high debt-to-equity ratio need to be addressed to justify a higher valuation. The company's ability to sustain its growth trajectory and improve its cash flow generation will be critical in driving future valuation appreciation.
The BCR proprietary quant model assigns a Value score of 61/100, which suggests that the stock is fairly valued. The Momentum score of 68/100 indicates that the stock has been performing well recently, but this momentum may not be sustainable if the company's financial performance deteriorates. The Investment score of 27/100 is a concern, as it suggests that the company may not be allocating capital efficiently or investing in future growth opportunities. Overall, EMCOR's valuation appears to be fair, but there are some concerns that need to be addressed to justify a more bullish outlook.
Risk & Uncertainty
EMCOR faces several specific risks and uncertainties that could impact its business and financial performance. One of the primary risks is the cyclical nature of the construction industry. Economic downturns can lead to a decline in construction spending, which can negatively impact EMCOR's revenue and profitability. The company mitigates this risk by diversifying its service offerings and geographic reach, but it is still vulnerable to macroeconomic conditions.
Another risk is the intense competition in the construction and facilities services industry. EMCOR competes with both large national players and smaller regional firms, which can put pressure on its pricing and margins. The company differentiates itself through its scale, geographic footprint, and comprehensive service offerings, but it needs to continuously innovate and improve its service quality to maintain its competitive advantage.
EMCOR also faces risks related to project delays, cost overruns, and customer disputes. These risks can arise from a variety of factors, including unforeseen site conditions, labor shortages, and material price fluctuations. The company mitigates these risks through careful project management, risk assessment, and insurance coverage, but it cannot eliminate them entirely.
A significant risk stems from the company's negative free cash flow. If EMCOR cannot improve its cash flow generation, it may need to reduce its capital expenditures or increase its debt, which could negatively impact its growth prospects and financial flexibility. The company's high debt-to-equity ratio also increases its financial risk in the event of an economic downturn or project failures.
Bulls Say / Bears Say
The Bull Case
BULL VIEWEMCOR's strong revenue growth and high ROE demonstrate its ability to capitalize on favorable industry trends and deliver superior returns to shareholders.
BULL VIEWThe company's diversified service offerings and geographic reach provide it with a competitive advantage and mitigate the risks associated with the cyclical nature of the construction industry.
BULL VIEWEMCOR's strategic acquisitions have been a key driver of its growth, and the company has a proven track record of successfully integrating these acquisitions and generating synergies.
The Bear Case
BEAR VIEWEMCOR's negative free cash flow is a major concern, as it indicates that the company is not generating enough cash to fund its growth and may need to rely on debt or equity financing.
BEAR VIEWThe company's high debt-to-equity ratio increases its financial risk and makes it more vulnerable to economic downturns and project failures.
BEAR VIEWEMCOR's gross margin is significantly lower than the sector average, suggesting that the company lacks pricing power and may be struggling to control its costs.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score EME and 4,400+ other equities.
EMCOR Group, Inc. exhibits a 230% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
11.9%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
19.3%
Sector: 35.8%
Operating Margin
Core business profitability
9.3%
Sector: 6.2%
Net Margin
Bottom-line profitability
6.9%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $15 annually in dividends at the current trailing rate.
