EMCOR Group, Inc. (EME) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: EMCOR Group, Inc.

Updated on October 31, 2026 · accounts published on October 29, 2026

A highly profitable business with record margins and almost no debt

EMCOR trades at a P/E of 19.7 over the last 12 months, 24 % below its sector median, with a 27 % ROIC that triples the sector's.

• Is EMCOR expensive or cheap? Its P/E of 19.7 over the last 12 months sits 24 % below the sector median and 8 % below its own ten-year median.
• How is the business doing? Operating margin of 10.2 % over the last 12 months, nearly double its 5.5 % average for 2014-2025, with EPS up 31 %.
• How strong is the balance sheet? Debt-to-equity of 0.13 and net cash of $5.96 per share in fiscal 2025; the dividend yields only 0.2 %.
• What to expect from the next earnings? Next results on February 25, 2027, with analysts expecting EPS of $8.58; EMCOR has beaten estimates in 8 straight quarters.
• Does EMCOR turn its margin into cash, and at what multiple of the cycle? Free cash flow was 94 % of net income in fiscal 2025, above the 85 % the sector treats as healthy.

Is EMCOR expensive or cheap?

EMCOR trades at a P/E of 19.7 over the last 12 months. That is 24 % below the sector median of 25.9 and 8 % below its own ten-year median of 21.3. Over the last decade it has traded at a lower P/E only 37 % of the time. EV/EBITDA of 12.3 is close to its seven-year average of 11.4, inside the band the sector treats as neutral. The share price is 28 % below its 52-week high and up 5 % over 12 months, so the market has cooled while earnings kept rising. A free cash flow yield of 3.6 % keeps it short of a bargain.

How is the business doing?

Revenue grew 17 % and EPS 31 % over the last 12 months, so profit is growing faster than sales. The operating margin of 10.2 % over the last 12 months nearly doubles the 5.5 % average of fiscal 2014-2025. Fiscal 2025, at 9.8 %, was already the best of those twelve years. Returns are the strongest point. ROIC of 27 % over the last 12 months is 17.9 points above the sector median of 9.1 %. It has stayed above 10 % in 8 of the last 10 fiscal years, with 4.6 % in 2020 as the low. The open question is whether margins can hold at this record level.

How strong is the balance sheet?

EMCOR carries little debt. Debt-to-equity is 0.13 over the last 12 months, and net debt to EBITDA was −0.1× in fiscal 2025, which means cash exceeds debt. That is well under the 3.0× ceiling the sector treats as healthy. Net cash of $5.96 per share is only 0.9 % of the price, so it adds safety but barely moves the valuation. An Altman Z of 6.4 sits well inside the safe zone above 2.99, and the current ratio is 1.17. Shareholders receive little in cash: a 0.2 % dividend yield and a 4 % payout in fiscal 2025. Still, the dividend per share has risen for 6 straight years.

What to expect from the next earnings?

On October 29, 2026, EMCOR reported EPS of $9.60 against $8.37 expected, a 15 % beat. It has topped estimates in each of the last 8 quarters. For the quarter due on February 25, 2027, analysts expect EPS of $8.58, below the latest print. The 2026 EPS consensus barely moved in the last 30 days, from $32.95 to $32.99 across 8 analysts, and revenue estimates were also flat. So far the beat has not lifted forecasts. Of 14 analysts, 9 recommend buying, 5 holding and none selling. A long beat streak raises the bar for the next surprise.

Does EMCOR turn its margin into cash, and at what multiple of the cycle?

Industrials are semi-cyclical, so one good year can flatter the numbers. The sector is judged on operating margin, cash conversion and how much must be reinvested. EMCOR turned 94 % of fiscal 2025 net income into free cash flow, above the 85 % bar. Capex was only 0.7 % of revenue in fiscal 2025, below the 4 % to 8 % range typical of the sector, which leaves more profit as cash. The weak spot is the fiscal 2025 operating margin of 9.8 %. It was a record for EMCOR, yet it falls short of the 12 % the sector calls healthy. Cycle-adjusted EV/EBITDA of 12.3 sits 9 % above its seven-year average of 11.4.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.