Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

EMCOR Group, Inc. (EME)

Company Dividend Discount ModelIndustry: Engineering & ConstructionSector: Industrials

Valuation Snapshot

Stable Growth$543.97 - $1,334.99$811.59
Multi-Stage$371.77 - $406.61$388.87
Blended Fair Value$600.23
Current Price$649.54
Upside-7.59%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS19.30%7.38%0.950.720.600.620.390.390.410.420.430.44
YoY Growth--32.74%20.22%-3.47%59.35%-1.54%-3.70%-1.74%-2.48%-3.19%-5.63%
Dividend Yield--0.26%0.20%0.37%0.55%0.35%0.64%0.55%0.53%0.68%0.91%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,130.37
(-) Cash Dividends Paid (M)45.33
(=) Cash Retained (M)1,085.04
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)226.07141.3084.78
Cash Retained (M)1,085.041,085.041,085.04
(-) Cash Required (M)-226.07-141.30-84.78
(=) Excess Retained (M)858.96943.741,000.26
(/) Shares Outstanding (M)45.5945.5945.59
(=) Excess Retained per Share18.8420.7021.94
LTM Dividend per Share0.990.990.99
(+) Excess Retained per Share18.8420.7021.94
(=) Adjusted Dividend19.8321.6922.93
WACC / Discount Rate9.35%9.35%9.35%
Growth Rate5.50%6.50%7.50%
Fair Value$543.97$811.59$1,334.99
Upside / Downside-16.25%24.95%105.53%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,130.371,203.851,282.101,365.431,454.181,548.711,595.17
Payout Ratio4.01%21.21%38.41%55.60%72.80%90.00%92.50%
Projected Dividends (M)45.33255.31492.40759.241,058.681,393.841,475.53

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.35%9.35%9.35%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)231.30233.49235.68
Year 2 PV (M)404.13411.82419.59
Year 3 PV (M)564.51580.71597.22
Year 4 PV (M)713.10740.53768.74
Year 5 PV (M)850.55891.63934.28
PV of Terminal Value (M)14,187.0014,872.2315,583.70
Equity Value (M)16,950.5817,730.4218,539.22
Shares Outstanding (M)45.5945.5945.59
Fair Value$371.77$388.87$406.61
Upside / Downside-42.76%-40.13%-37.40%

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