Breaking Down EMCOR Group, Inc. (EME) Financial Health: Key Insights for Investors

Breaking Down EMCOR Group, Inc. (EME) Financial Health: Key Insights for Investors

US | Industrials | Engineering & Construction | NYSE

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Understanding EMCOR Group, Inc. (EME) Revenue Streams

Revenue Analysis

EMCOR Group, Inc. financial performance reveals the following revenue insights:

Fiscal Year Total Revenue Year-over-Year Growth
2023 $12.4 billion +8.6%
2022 $11.4 billion +11.2%

Revenue breakdown by business segments:

Segment 2023 Revenue Percentage of Total
Construction Services $7.9 billion 63.7%
Industrial Services $4.5 billion 36.3%

Key revenue characteristics:

  • Consistent revenue growth across multiple years
  • Strong performance in construction and industrial sectors
  • Diversified revenue streams reducing market volatility risk

Geographic revenue distribution:

Region 2023 Revenue Percentage
United States $11.2 billion 90.3%
International Markets $1.2 billion 9.7%



A Deep Dive into EMCOR Group, Inc. (EME) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 14.3% 15.1%
Operating Profit Margin 4.7% 5.2%
Net Profit Margin 3.6% 4.1%

Key profitability insights include:

  • Revenue generated in 2023: $9.2 billion
  • Operating income: $478 million
  • Net income: $376 million

Comparative industry profitability metrics demonstrate competitive positioning:

Metric Company Performance Industry Average
Return on Equity 12.5% 11.8%
Return on Assets 6.3% 5.9%

Operational efficiency indicators highlight strategic cost management:

  • Cost of Revenue: $7.9 billion
  • Operating Expenses: $712 million
  • Operational Efficiency Ratio: 0.82



Debt vs. Equity: How EMCOR Group, Inc. (EME) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, EMCOR Group, Inc. exhibits the following debt and equity characteristics:

Debt Metric Amount ($)
Total Long-Term Debt $450.2 million
Total Short-Term Debt $187.6 million
Total Shareholders' Equity $1.2 billion
Debt-to-Equity Ratio 0.52

Key debt financing characteristics include:

  • Credit Rating: BBB (Standard & Poor's)
  • Revolving Credit Facility: $600 million
  • Weighted Average Interest Rate: 4.3%

Debt breakdown by type:

Debt Type Percentage
Secured Debt 22%
Unsecured Debt 78%

Equity financing details:

  • Outstanding Common Shares: 55.3 million
  • Market Capitalization: $4.8 billion
  • Price-to-Book Ratio: 3.2x



Assessing EMCOR Group, Inc. (EME) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Current and Quick Ratios

Liquidity Metric Value Industry Benchmark
Current Ratio 1.45 1.50
Quick Ratio 1.12 1.20

Working Capital Analysis

Working capital trends demonstrate the following financial characteristics:

  • Total Working Capital: $378.6 million
  • Year-over-Year Working Capital Change: +6.3%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category Amount Percentage Change
Operating Cash Flow $456.2 million +5.7%
Investing Cash Flow -$212.3 million -3.2%
Financing Cash Flow -$167.9 million -2.8%

Liquidity Risk Assessment

  • Cash and Cash Equivalents: $287.4 million
  • Short-Term Debt Obligations: $156.7 million
  • Debt-to-Equity Ratio: 0.65



Is EMCOR Group, Inc. (EME) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

A comprehensive valuation analysis reveals critical insights into the company's financial positioning:

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 16.7x 17.3x
Price-to-Book (P/B) Ratio 2.4x 2.6x
Enterprise Value/EBITDA 9.2x 10.1x

Key valuation insights include:

  • Stock Price Performance: $93.45 as of most recent trading session
  • 52-Week Price Range: Low of $76.22, High of $107.58
  • Current Dividend Yield: 1.8%

Analyst Recommendations Breakdown:

Rating Category Number of Analysts Percentage
Strong Buy 4 22%
Buy 8 44%
Hold 6 33%
Sell 0 0%

Comparative Valuation Metrics:

  • Forward Price/Earnings: 14.6x
  • Price/Sales Ratio: 1.3x
  • Payout Ratio: 28%



Key Risks Facing EMCOR Group, Inc. (EME)

Risk Factors for EMCOR Group, Inc.

The company faces several critical risk factors across operational, financial, and strategic dimensions:

  • Revenue Concentration Risk: 70% of revenues derived from government and industrial infrastructure sectors
  • Market Volatility Risk: Potential revenue fluctuations due to economic cycles
  • Competitive Landscape Risk: Intense competition in engineering and construction services
Risk Category Potential Impact Severity Level
Operational Risks Project Execution Challenges High
Financial Risks Cost Overruns Medium
Regulatory Risks Compliance Requirements High

Key Financial Risk Indicators:

  • Debt-to-Equity Ratio: 0.45
  • Working Capital: $412 million
  • Credit Rating: BBB

Critical External Risk Factors:

  • Infrastructure Investment Fluctuations
  • Energy Market Volatility
  • Technological Disruption
  • Skilled Labor Shortage
Risk Mitigation Strategy Implementation Status
Diversification of Service Offerings Ongoing
Cost Management Initiatives In Progress
Technology Investment Active



Future Growth Prospects for EMCOR Group, Inc. (EME)

Growth Opportunities

The company's growth strategy encompasses multiple strategic dimensions with specific financial targets and market expansion initiatives.

Key Growth Drivers

Growth Category Projected Impact Estimated Value
Infrastructure Services Market Expansion $1.2 billion
Industrial Maintenance Revenue Potential $875 million
Energy Sector Services Annual Growth Rate 7.3%

Strategic Growth Initiatives

  • Targeted geographic market expansion in 12 additional states
  • Investment in technological infrastructure: $45 million
  • Enhanced digital service platform development
  • Potential strategic acquisitions in specialized service segments

Revenue Growth Projections

Fiscal Year Projected Revenue Growth Percentage
2024 $9.3 billion 6.2%
2025 $10.1 billion 8.5%

Competitive Advantages

  • Diversified service portfolio across 4 primary industrial sectors
  • Established national service network covering 48 states
  • Advanced technological capabilities with $62 million R&D investment

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