Latest Ratios: P/E Ratio 26.7x · EV/EBITDA 18.0x · 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 | $33.4B | $27.6B | $21.2B | $10.2B | $7.4B | $6.9B | $5.1B | $4.9B | $3.5B | $4.9B | $4.3B |
| Enterprise Value | $33.1B | $27.3B | $20.3B | $9.8B | $7.5B | $6.6B | $4.7B | $5.1B | $3.4B | $4.7B | $4.3B |
| P/E Ratio → | 26.67 | 21.70 | 21.09 | 16.19 | 18.29 | 18.04 | 38.11 | 15.01 | 12.31 | 21.40 | 23.82 |
| P/S Ratio | 1.97 | 1.62 | 1.46 | 0.81 | 0.67 | 0.70 | 0.58 | 0.53 | 0.43 | 0.63 | 0.57 |
| P/B Ratio | 9.22 | 7.50 | 7.23 | 4.15 | 3.76 | 3.07 | 2.47 | 2.37 | 2.00 | 2.91 | 2.82 |
| P/FCF | 28.09 | 23.17 | 15.94 | 12.48 | 16.55 | 24.50 | 6.68 | 15.87 | 15.33 | 14.70 | 19.26 |
| P/OCF | 25.66 | 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 | 17.97 | 14.80 | 13.70 | 9.85 | 11.14 | 10.33 | 12.93 | 9.20 | 7.07 | 11.30 | 11.09 |
| EV / EBIT | 19.83 | 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 | 3.7% | 4.6% | 4.7% | 6.2% | 5.5% | 5.5% | 2.6% | 6.7% | 8.1% | 4.7% | 4.2% |
| FCF Yield | 3.6% | 4.3% | 6.3% | 8.0% | 6.0% | 4.1% | 15.0% | 6.3% | 6.5% | 6.8% | 5.2% |
| Buyback Yield | 1.8% | 2.1% | 2.3% | 1.2% | 8.9% | 2.8% | 2.2% | 0.0% | 6.2% | 1.9% | 2.2% |
| Total Shareholder Yield | 1.9% | 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 |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying EME stock.
EMCOR Group, Inc.'s current P/E ratio is 26.7x. The historical average is 17.9x. This places it at the 90th percentile of its historical range.
EMCOR Group, Inc.'s current EV/EBITDA is 18.0x. 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 26.7x. This is at the 90th 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.
Key Metrics
Top Statement Risk
Working capital volatility obscuring cash generation
Metrics are mathematically derived from official filings.
Premium Valuation Reflects Services Transition
EMCOR trades at a forward P/E of 22.5x and EV/EBITDA of 14.6x, a significant premium to peers like Primoris (9.4x) and Dycom (11.6x), suggesting the market is pricing its shift toward higher-margin, recurring services revenue.
The current valuation multiples, particularly the PEG ratio of 0.41, imply the market expects sustained high growth to justify the premium, which appears consistent with the reported 20% revenue growth and margin expansion. However, the P/B ratio of 9.09 is exceptionally high for the sector, indicating that a significant portion of the valuation is tied to future earnings power and the quality of its intangible assets from acquisitions, rather than tangible book value. This premium warrants monitoring for any signs of growth deceleration that could compress multiples.
Margin Expansion Driven by Favorable Mix
Operating margin expanded to 10.6% in Q2 2026, a 300 basis point improvement from Q1 2024, reflecting a structural shift toward higher-complexity projects and enhanced execution discipline across segments.
The gross margin of 19.8% is structurally higher than general construction peers, confirming the specialized nature of EMCOR's work. The key driver of profitability improvement appears to be operating leverage, as SG&A growth has lagged revenue growth, allowing more of each incremental dollar to flow to the bottom line. This margin trajectory suggests the company is successfully moving up the value chain, though investors should monitor if wage inflation in skilled trades begins to erode these gains.
ROIC Expansion Signals Compounding Power
Return on Invested Capital (ROIC) has trended upward from 9.4% in Q1 2024 to 11.5% in Q2 2026, indicating the company is generating increasingly efficient returns on the capital deployed into its growth initiatives.
The ROIC expansion is primarily driven by the improvement in operating margins rather than a significant increase in asset turnover, which has remained stable around 0.50x. This suggests the returns are being generated from higher-quality earnings and better project selection, not just financial engineering. The ROIC consistently exceeding the company's estimated cost of capital implies that management's disciplined capital allocation strategy is creating shareholder value.
Working Capital Absorbs Growth Cash
The cash conversion cycle (CCC) has remained elevated at 69 days in Q2 2026, driven by a days sales outstanding (DSO) of 92 days, which indicates that the rapid revenue growth is consuming working capital and temporarily suppressing free cash flow conversion.
The stable DSO of ~90 days is typical for the project-based E&C industry, but the growth in receivables is outpacing collections in the short term. The minimal inventory (DIO of 3 days) is a positive, reflecting the service-oriented model. However, the volatility in free cash flow margin, from -0.6% to 13.8% over ten quarters, is directly tied to these working capital swings, which are a normal but significant feature of the business model during periods of accelerated growth.
Fortress Balance Sheet Provides Strategic Optionality
With a debt-to-equity ratio of just 0.13 and interest coverage exceeding 126x, EMCOR maintains a fortress balance sheet that provides significant strategic flexibility and insulates it from refinancing risk in a higher-rate environment.
The minimal leverage is a deliberate strategic choice, as evidenced by the consistent maintenance of a large cash balance (over $900M). This conservative posture contrasts sharply with more levered peers like Dycom (D/E of 1.61) and MasTec (D/E of 0.84), providing EMCOR with a lower-risk profile and the dry powder for opportunistic acquisitions. The primary risk is not financial distress, but rather the potential for capital inefficiency if the substantial cash pile is not deployed into high-return projects or returned to shareholders.
The Misapplied Metric: Price-to-Book
The P/B ratio of 9.09 is the most commonly misapplied metric for EMCOR, as it obscures the true value driver—the company's high-return, asset-light services model and skilled labor force—by overemphasizing a tangible book value that is inflated by acquisition goodwill.
For a company whose competitive advantage is rooted in specialized human capital and project execution rather than heavy physical assets, P/B is a poor proxy for value. The high ratio is a mathematical artifact of the company's high ROIC and acquisition strategy, which builds intangible value not fully captured on the balance sheet. A more appropriate metric for assessing relative value would be EV/EBITDA or P/E, which better reflect the earnings power generated from the company's operational model and growth trajectory.