Latest Ratios: P/E Ratio 27.9x · EV/EBITDA 18.9x · ROE 38.4%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $35.1B | $27.6B | $21.2B | $10.2B | $7.4B | $6.9B | $5.1B | $4.9B | $3.5B | $4.9B | $4.3B |
| Enterprise Value | $34.8B | $27.3B | $20.3B | $9.8B | $7.5B | $6.6B | $4.7B | $5.1B | $3.4B | $4.7B | $4.3B |
| P/E Ratio → | 27.93 | 21.70 | 21.09 | 16.19 | 18.29 | 18.04 | 38.11 | 15.01 | 12.31 | 21.40 | 23.82 |
| P/S Ratio | 2.06 | 1.62 | 1.46 | 0.81 | 0.67 | 0.70 | 0.58 | 0.53 | 0.43 | 0.63 | 0.57 |
| P/B Ratio | 9.65 | 7.50 | 7.23 | 4.15 | 3.76 | 3.07 | 2.47 | 2.37 | 2.00 | 2.91 | 2.82 |
| P/FCF | 29.48 | 23.17 | 15.94 | 12.48 | 16.55 | 24.50 | 6.68 | 15.87 | 15.33 | 14.70 | 19.26 |
| P/OCF | 26.93 | 21.17 | 15.09 | 11.39 | 14.91 | 21.72 | 6.29 | 13.71 | 12.87 | 13.31 | 16.37 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.61 | 1.39 | 0.78 | 0.68 | 0.67 | 0.53 | 0.55 | 0.42 | 0.61 | 0.57 |
| EV / EBITDA | 18.86 | 14.80 | 13.70 | 9.85 | 11.14 | 10.33 | 12.93 | 9.20 | 7.07 | 11.30 | 11.09 |
| EV / EBIT | 20.82 | 15.03 | 14.67 | 11.01 | 13.12 | 12.41 | 17.99 | 10.95 | 8.37 | 14.23 | 13.88 |
| EV / FCF | — | 22.95 | 15.20 | 11.94 | 16.73 | 23.50 | 6.20 | 16.56 | 15.03 | 14.23 | 19.07 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 19.6% | 19.6% | 19.0% | 16.6% | 14.5% | 15.2% | 15.9% | 14.8% | 14.8% | 14.9% | 13.7% |
| Operating Margin | 9.8% | 9.8% | 9.2% | 7.0% | 5.1% | 5.4% | 2.9% | 5.0% | 5.0% | 4.3% | 4.1% |
| Net Profit Margin | 7.5% | 7.5% | 6.9% | 5.0% | 3.7% | 3.9% | 1.5% | 3.5% | 3.5% | 3.0% | 2.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 38.4% | 38.4% | 37.2% | 28.5% | 19.2% | 17.8% | 6.5% | 17.1% | 16.6% | 14.1% | 12.1% |
| ROA | 14.7% | 14.7% | 14.1% | 10.4% | 7.4% | 7.3% | 2.7% | 7.3% | 7.0% | 5.8% | 4.9% |
| ROIC | 46.8% | 46.8% | 50.8% | 32.2% | 21.1% | 21.8% | 9.7% | 17.5% | 19.0% | 16.4% | 16.4% |
| ROCE | 40.3% | 40.3% | 40.4% | 29.9% | 19.3% | 17.8% | 8.9% | 17.6% | 17.3% | 14.0% | 13.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.23 | 0.23 | 0.12 | 0.14 | 0.27 | 0.24 | 0.26 | 0.28 | 0.17 | 0.19 | 0.28 |
| Debt / EBITDA | 0.46 | 0.46 | 0.24 | 0.35 | 0.79 | 0.84 | 1.47 | 1.03 | 0.61 | 0.74 | 1.09 |
| Net Debt / Equity | — | -0.07 | -0.34 | -0.18 | 0.04 | -0.12 | -0.18 | 0.10 | -0.04 | -0.09 | -0.03 |
| Net Debt / EBITDA | -0.15 | -0.15 | -0.67 | -0.45 | 0.12 | -0.44 | -1.01 | 0.38 | -0.14 | -0.38 | -0.11 |
| Debt / FCF | — | -0.23 | -0.74 | -0.54 | 0.18 | -0.99 | -0.48 | 0.69 | -0.30 | -0.47 | -0.18 |
| Interest Coverage | — | — | 365.48 | 51.75 | 43.33 | 88.19 | 29.01 | 33.62 | 30.17 | 25.96 | 24.48 |
Net cash position: cash ($1.1B) exceeds total debt ($844M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.22 | 1.22 | 1.30 | 1.26 | 1.26 | 1.44 | 1.44 | 1.37 | 1.38 | 1.38 | 1.46 |
| Quick Ratio | 1.19 | 1.19 | 1.27 | 1.23 | 1.23 | 1.41 | 1.42 | 1.35 | 1.35 | 1.36 | 1.44 |
| Cash Ratio | 0.23 | 0.23 | 0.32 | 0.22 | 0.17 | 0.35 | 0.42 | 0.19 | 0.21 | 0.28 | 0.31 |
| Asset Turnover | — | 1.77 | 1.89 | 1.90 | 2.00 | 1.82 | 1.74 | 1.90 | 1.99 | 1.94 | 1.94 |
| Inventory Turnover | 108.22 | 108.22 | 123.36 | 94.73 | 110.61 | 155.31 | 138.77 | 193.31 | 163.63 | 153.08 | 174.04 |
| Days Sales Outstanding | — | 91.11 | 96.78 | 100.75 | 93.61 | 89.73 | 86.88 | 87.87 | 86.73 | 82.17 | 78.60 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.1% | 0.2% | 0.2% | 0.3% | 0.4% | 0.4% | 0.3% | 0.4% | 0.5% | 0.4% | 0.4% |
| Payout Ratio | 3.5% | 3.5% | 4.3% | 5.2% | 6.7% | 7.3% | 13.3% | 5.5% | 6.6% | 8.4% | 10.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 4.6% | 4.7% | 6.2% | 5.5% | 5.5% | 2.6% | 6.7% | 8.1% | 4.7% | 4.2% |
| FCF Yield | 3.4% | 4.3% | 6.3% | 8.0% | 6.0% | 4.1% | 15.0% | 6.3% | 6.5% | 6.8% | 5.2% |
| Buyback Yield | 1.7% | 2.1% | 2.3% | 1.2% | 8.9% | 2.8% | 2.2% | 0.0% | 6.2% | 1.9% | 2.2% |
| Total Shareholder Yield | 1.8% | 2.3% | 2.5% | 1.6% | 9.3% | 3.2% | 2.6% | 0.4% | 6.7% | 2.3% | 2.6% |
| Shares Outstanding | — | $45M | $47M | $48M | $50M | $54M | $55M | $57M | $58M | $60M | $61M |
Skilled labor supply constraints
According to current market data, EME trades at a forward P/E of 27.19, which appears to command a significant premium over traditional construction peers, suggesting investors are increasingly pricing the company as a specialized technical services provider rather than a cyclical, project-based engineering and construction firm.
The current valuation multiple implies that the market is discounting the cyclical risks typically associated with the E&C sector in favor of the company's recurring revenue potential from facility maintenance. While the PEG ratio of 0.44 suggests the stock may be undervalued relative to its growth trajectory, investors should monitor whether this premium is sustainable if the mix of high-margin industrial retrofits begins to decelerate.
As reported in financial statements, EMCOR has maintained a consistent ROIC trend, peaking at 14.5% in 2024Q4, which indicates that management is successfully compounding capital by focusing on high-complexity mechanical and electrical projects that require specialized labor and technical certifications rather than commoditized, low-margin infrastructure work.
The company's ability to sustain double-digit ROIC figures suggests a strong competitive moat derived from its integrated service model and regional scale. This performance warrants further investigation into whether the recent dip in ROIC to 8.8% in 2026Q1 is a temporary byproduct of project timing or a sign of diminishing returns on new capital deployments.
Based on the provided quarterly data, EMCOR's cash conversion cycle has fluctuated between 62 and 69 days, reflecting the inherent volatility in billing cycles for large-scale mechanical and electrical projects that often require significant upfront investment before milestone-based revenue recognition can be fully realized by the firm.
The stability of the DSO around 90 days suggests that while the company maintains a disciplined collection process, it remains vulnerable to client-side payment delays common in the construction industry. Investors should monitor the DPO and DIO trends, as any significant extension in the CCC could signal a tightening of supplier leverage or potential inefficiencies in project execution.
As indicated by comparative financial data, EME maintains a superior net margin profile compared to peers like Quanta Services and MasTec, which appears to be a structural advantage stemming from its focus on high-complexity facility services rather than the more volatile, utility-heavy infrastructure projects favored by competitors.
EMCOR's fortress balance sheet, characterized by a D/E ratio of 0.13, provides a distinct advantage over more levered peers in the current high-interest-rate environment. This structural gap suggests that EME is better positioned to pursue opportunistic M&A without the financing constraints that may limit the growth of its more debt-dependent industry counterparts.
The most commonly misapplied metric for EMCOR is the Price-to-Book ratio, which, at 9.78, appears artificially inflated due to the company's asset-light service model and consistent share repurchases that reduce the equity base, thereby obscuring the true underlying earning power of its specialized technical service operations.
Investors should instead prioritize EV/EBITDA or P/FCF to better capture the cash-generative nature of the business, as P/B fails to account for the intangible value of the company's skilled labor force and long-term maintenance contracts. Relying on book value in this context may lead to an incorrect assessment of the company's valuation relative to its actual cash-generating capacity.
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Quick answers to the most common questions about buying EME stock.
EMCOR Group, Inc.'s current P/E ratio is 27.9x. The historical average is 17.9x. This places it at the 93th percentile of its historical range.
EMCOR Group, Inc.'s current EV/EBITDA is 18.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.6x.
EMCOR Group, Inc.'s return on equity (ROE) is 38.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 14.6%.
Based on historical data, EMCOR Group, Inc. is trading at a P/E of 27.9x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
EMCOR Group, Inc.'s current dividend yield is 0.13% with a payout ratio of 3.5%.
EMCOR Group, Inc. has 19.6% gross margin and 9.8% operating margin.
EMCOR Group, Inc.'s Debt/EBITDA ratio is 0.5x, indicating low leverage. A ratio below 2x is generally considered financially healthy.