Emcor Group Intrinsic Value – Illinois Retirement Fund Increases Stake in EMCOR Group by Over 140%
September 10, 2024
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EMCOR ($NYSE:EME) Group, Inc. is a leading provider of mechanical and electrical construction, industrial and energy infrastructure, and building services. The company operates in the United States, Canada, the United Kingdom, and Puerto Rico and offers a wide range of services including energy solutions, building automation, HVAC systems, and electrical services. EMCOR Group‘s diverse portfolio of services has made it a sought-after partner for a variety of industries, including commercial, healthcare, and government sectors. During the second quarter of this year, the Illinois Municipal Retirement Fund (IMRF) significantly increased its stake in EMCOR Group by over 140%, according to recent reports. This substantial increase in ownership signifies the fund’s confidence in EMCOR Group’s long-term prospects and growth potential. With a long-term investment horizon, the fund seeks out stable and profitable companies to add to its portfolio. The company’s solid performance can be attributed to its diverse business segments, as well as its focus on providing innovative solutions to its clients’ evolving needs.
The increase in ownership by the IMRF also reflects the market’s confidence in EMCOR Group’s ability to navigate challenging economic conditions. In addition to its financial performance, EMCOR Group is also committed to sustainability and social responsibility. The company has set ambitious goals to reduce its carbon footprint and has implemented various initiatives to promote diversity and inclusion within its workforce. In conclusion, the Illinois Municipal Retirement Fund’s significant increase in its ownership of EMCOR Group is a strong vote of confidence in the company’s future prospects. With its strong financial performance, diverse portfolio of services, and commitment to sustainability, EMCOR Group is well-positioned to continue its growth trajectory and deliver value for its shareholders.
Analysis – Emcor Group Intrinsic Value
After conducting a thorough assessment of EMCOR GROUP‘s wellness, I found that the stock is currently overvalued by 96.0%, trading at $352.88 while its intrinsic value is only $180.1. This is calculated using our proprietary Valuation Line, which takes into account various factors such as the company’s financials, industry trends, and market conditions. One key factor contributing to this overvaluation is the recent surge in the stock market, which has caused many stocks to be overpriced. Investors may be willing to pay a premium for EMCOR GROUP due to its strong reputation and track record, but this does not necessarily reflect the true value of the company. Furthermore, despite EMCOR GROUP’s solid financials and stable performance, there are some concerns about its long-term growth potential. It is important for investors to carefully consider the current market conditions and do their own research before making any investment decisions regarding EMCOR GROUP. While the company may have strong fundamentals, its current valuation may not accurately reflect its true worth. As always, it is crucial to invest with caution and diversify one’s portfolio to minimize risk. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Emcor Group. More…
| Total Revenues | Net Income | Net Margin |
| 12.58k | 632.99 | 5.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Emcor Group. More…
| Operations | Investing | Financing |
| 899.65 | -161.29 | -412.05 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Emcor Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.61k | 4.14k | 52.5 |
Key Ratios Snapshot
Some of the financial key ratios for Emcor Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.7% | 21.3% | 7.1% |
| FCF Margin | ROE | ROA |
| 6.5% | 23.4% | 8.4% |
Peers
EMCOR Group Inc. is in the business of providing electrical and mechanical construction and facilities services. The company operates in three segments: Commercial & Industrial, Utilities & Power, and Federal. EMCOR Group Inc. has a market capitalization of $8.3 billion and its competitors include Comfort Systems USA Inc, Sterling Construction Co Inc, and NV5 Global Inc.
– Comfort Systems USA Inc ($NYSE:FIX)
Comfort Systems USA Inc is a leading provider of mechanical and electrical installation, maintenance, and repair services in the United States. The company has a market cap of 3.81 billion and a return on equity of 14.84%. Comfort Systems USA Inc provides a wide range of services to a diversified customer base, including commercial, industrial, and institutional clients. The company’s services include heating, ventilation, and air conditioning (HVAC), plumbing, piping, controls, and metalwork. Comfort Systems USA Inc has a strong commitment to safety, quality, and customer satisfaction. The company has a workforce of over 4,000 employees and operates in over 100 locations across the United States.
– Sterling Construction Co Inc ($NASDAQ:STRL)
Sterling Construction Company, Inc. engages in the construction of infrastructure for the development and maintenance of transportation and water infrastructure in the United States. The company operates through two segments, Transportation Infrastructure Construction, and Commercial and Industrial Construction. The Transportation Infrastructure Construction segment includes the construction of highways, roads, bridges, airfields, ports, light rail, and heavy rail systems. The Commercial and Industrial Construction segment comprises the construction of parking structures, office buildings, healthcare facilities, educational facilities, retail centers, and other commercial/industrial projects. Sterling Construction Company, Inc. was founded in 1956 and is headquartered in The Woodlands, Texas.
As of 2022, Sterling Construction Company’s market cap is 755.09 million dollars and its ROE is 23.39%. Sterling Construction Company is a construction company that operates in the United States, constructing various infrastructure projects such as highways, bridges, and office buildings.
– NV5 Global Inc ($NASDAQ:NVEE)
NV5 Global Inc. is a provider of professional and technical engineering and consulting solutions to public and private sector clients in the infrastructure, energy, construction, real estate, and environmental markets. The company has a market cap of $2.11 billion and a return on equity of 8.78%. NV5’s services include program management, project management, construction management, and general consulting. The company serves a variety of clients, including government agencies, municipalities, utilities, developers, and commercial and industrial businesses.
Summary
Illinois Municipal Retirement Fund has significantly increased its investment in EMCOR Group, Inc. during the 2nd quarter. This indicates confidence in the company’s potential for growth and profitability. EMCOR Group is likely a favorable choice for investors due to its strong financial performance and overall stability in the market.
This increase in stake also suggests that the fund believes the company will continue to outperform and potentially generate positive returns for its shareholders. This investment analysis highlights the attractiveness of EMCOR Group as a potential investment opportunity and could potentially influence other investors to consider adding it to their portfolio.
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