Investment Detail Report | Release date 12-16-2024 | Rating as of — | Currency: USD | Industry: Engineering & Construction Page 1 of 5

EMCOR Group Inc EME Q

ESG Risk Rating Assessment1
Q
;;;;;
4-Dec-2024
EMCOR Group Inc is a specialty contractor in the United Fair ValueQ UncertaintyQ Economic MoatQ Sector Style Market Cap (Mil) Sales (Mil) Last Close
States and a provider of electrical and mechanical $338.63 High Narrow Industrials Mid Growth 22,290 14,235 484.55
construction and facilities services, building services, and
industrial services. Its services are provided to a broad range High 48.00 52.37 73.44 84.11 85.08 93.54 93.65 135.98 156.67 227.50 532.38 10 Yr Range(High/Low)
Low 38.68 39.83 40.98 59.76 57.29 58.05 41.85 87.36 95.64 141.89 209.31 532.38-38.68
of commercial, technology, manufacturing, industrial,
1,200.0 52 Wk Range(High/Low)
healthcare, utility, and institutional customers through 532.38-209.31
367.0
approximately 100 operating subsidiaries. The company's Price Volatility
112.0
operating subsidiaries are organized into reportable Monthly High/Low
segments: United States electrical construction and facilities 34.0 Rel Strength to S&P 500
services, United States mechanical construction and facilities 10.0 Split
services, United States building services, United States 2.0
industrial services, and United Kingdom building services. 1,400.0 Trading Volume (Thousand)
Geographically the majority of revenue is generated from the
0
United States.
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD Stock Performance
5.6 8.7 48.0 16.0 -26.6 45.1 6.3 39.9 16.7 45.9 125.4 Total Return %
Growth Rates (Compound Annual) -8.1 7.3 36.0 -5.8 -22.2 13.6 -12.0 11.1 34.8 19.6 96.3 +/- Market
Grade: B 1 Yr 3 Yr 5 Yr 10 Yr 15.6 23.2 13.7 10.3 -4.8 8.4 -20.7 -11.1 29.2 12.4 79.9 +/- Industry
Revenue % 13.6 12.7 9.1 7.1 0.7 0.7 0.5 0.4 0.5 0.4 0.4 0.4 0.4 0.3 0.2 Dividend Yield %
Operating Income % 55.5 21.3 16.7 13.8 2802 2934 4291 4808 3342 4852 5008 6790 7058 10135 22290 Market Cap $Mil
Earnings/Share % 64.3 77.0 22.2 19.9
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Financials (USD)
Dividends % 27.8 29.2 16.6 11.1
6425 6719 7552 7687 8131 9175 8797 9904 11076 12583 14235 Revenue $Mil
Book Value/Share % 26.8 11.9 11.1 9.1
14.1 14.1 13.7 14.9 14.8 14.8 15.9 15.2 14.5 16.6 18.5 Gross Margin %
Stock Total Return 124.1 57.9 40.9 28.0
281 288 311 388 406 462 492 531 565 878 1245 Oper Income $Mil
+/- Industry 76.4 37.4 14.1 11.6
+/- Market 93.6 47.0 25.3 14.0 4.4 4.3 4.1 5.1 5.0 5.0 5.6 5.4 5.1 7.0 8.8 Operating Margin %
169 172 182 227 284 325 133 384 406 633 927 Net Income $Mil
Profitability Analysis 2.59 2.72 3.02 3.83 4.89 5.75 2.40 7.06 8.10 13.31 19.67 Earnings Per Share $
Grade: B Current 5 Yr Avg Ind Mkt 0.32 0.32 0.32 0.32 0.32 0.32 0.32 0.52 0.54 0.69 0.86 Dividends $
Return on Equity % 36.8 17.8 12.2 33.5 67 63 61 60 58 57 55 54 50 48 47 Shares Mil
Return on Assets % 13.7 7.0 4.3 15.6 24.00 24.73 26.40 27.50 31.76 35.13 36.66 40.18 38.64 48.44 59.96 Book Value Per Share $
Revenue/Employee $K 371.7 290.6 — 0.0
247 267 262 366 271 356 806 319 498 900 1362 Oper Cash Flow $Mil
Fixed Asset Turns 28.3 26.9 8.4 —
-38 -35 -40 -35 -43 -48 -48 -36 -49 -78 -79 Cap Spending $Mil
Inventory Turns 110.6 149.1* 38.7 —
209 231 223 331 228 307 758 283 449 821 1283 Free Cash Flow $Mil
Gross Margin % 18.5 15.4 16.0 —
Operating Margin % 8.8 5.6 6.3 — 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Profitability
Net Margin % 6.5 3.5 3.4 21.0 4.9 5.0 4.9 5.8 7.0 7.3 2.7 7.3 7.4 10.4 13.7 Return on Assets %
Free Cash Flow/Rev % 9.0 5.1 6.3 — 11.7 11.9 12.1 14.2 16.6 17.1 6.5 17.8 19.2 28.5 36.8 Return on Equity %
R&D/Rev % — — — — 1.87 1.94 2.04 1.97 2.02 2.06 1.78 1.89 2.02 2.07 2.10 Asset Turnover
2.6 2.6 2.4 3.0 3.5 3.5 1.5 3.9 3.7 5.0 6.5 Net Margin %
Financial Position (USD) 2.4 2.4 2.5 2.4 2.3 2.3 2.5 2.4 2.8 2.7 2.7 Financial Leverage
Grade: B 12-23 $Mil 09-24 $Mil 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 09-24 Financial Health (USD)
Cash 790 1036 316 298 408 295 280 289 254 241 232 3 3 Long-Term Debt $Mil
Inventories 111 94 1416 1477 1537 1673 1741 2057 2053 2252 1974 2470 2758 Total Equity $Mil
Receivables 3473 3806
0.22 0.20 0.27 0.18 0.16 0.24 0.23 0.21 0.23 0.11 0.10 Debt/Equity
Current Assets 4447 5006
603 654 657 634 652 721 958 1029 708 929 1081 Working Capital $Mil
Fixed Assets 490 527
Intangibles 1543 1650 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Valuation
Total Assets 6610 7322 19.0 18.7 22.6 22.6 13.5 15.4 36.8 19.3 20.0 18.8 24.6 Price/Earnings
Payables 936 897 0.0 0.0 — — 0.0 0.0 0.0 0.0 — — 0.9 P/E vs. Market
Short-Term Debt 2 2 0.5 0.5 0.6 0.7 0.4 0.5 0.6 0.7 0.7 0.8 1.6 Price/Sales
Current Liabilities 3518 3925 1.9 1.9 2.7 3.0 1.9 2.5 2.5 3.2 3.8 4.4 8.1 Price/Book
Long-Term Debt 3 3 15.8 13.2 14.6 13.4 18.1 12.8 7.0 18.7 17.2 14.0 16.8 Price/Cash Flow
Total Liabilities 4139 4563
Total Equity 2470 2758 Quarterly Results (USD) Close Competitors
Revenue $ Dec Mar Jun Sep Mkt Cap $Mil Rev $Mil P/E ROE%
Valuation Analysis Most Recent 3439.0 3432.0 3666.0 3696.0 Johnson Controls 55637 22952 40.4 10.5
Previous 2949.0 2890.0 3045.0 3207.0 Quanta Services Inc 50557 22903 63.3 12.4
Current 5 Yr Avg Ind Mkt
Price/Earnings 24.6 21.1 42.2 27.9 Rev Growth % Dec Mar Jun Sep Major Fund Holders
Forward P/E — — — — Most Recent 16.6 18.8 20.4 15.3 % of shares

Price/Cash Flow 16.8 14.3 16.4 19.3 Previous 11.7 11.5 12.5 13.5 Vanguard Total Stock Mkt Idx Inv 3.19
Price/Free Cash Flow 17.8 16.4 22.4 — Earnings Per Share $ Dec Mar Jun Sep KODEX US AI Electric Power Core Infra 0.01
Dividend Yield % 0.2 0.4 0.3 1.4 Most Recent 4.46 4.17 5.25 5.80 Fidelity Global Value Growth Eq MF 0.00
Price/Book 8.1 2.9 5.1 4.9 Previous 2.63 2.32 2.95 3.57 Contact
Price/Sales 1.6 0.6 1.4 — EMCOR Group Inc Phone: +1 203 849-7800
PEG Ratio — — — — 301 Merritt Seven Website:
*3Yr Avg data is displayed in place of 5 Yr Avg Norwalk, CT 06851-1092 https://www.emcorgroup.com
1
The ESG Risk Rating Assessment is a representation of Sustainalytics’ ESG Risk Rating.

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Release date 11-30-2024 Page 2 of 5

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Release date 11-30-2024 Page 3 of 5

the effects of taxation were included, they would reduce the performance The Uncertainty Rating represents the analysts’ ability to bound the estimated
quoted. value of the shares in a company around the Fair Value Estimate, based on the
characteristics of the business underlying the stock, including operating and
Investment adviser representatives typically include an annual advisory fee, but financial leverage, sales sensitivity to the overall economy, product
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calculated monthly, assuming sale of shares payment at the month end. demanded before we’d recommend buying or selling the stock—widens as our
Inception month assumes full month advisory fees. uncertainty of the estimated value of the equity increases.

The Market and Industry benchmarks does not reflect expenses, advisory fees or Financials
sales charges. The category average does not reflect advisory fees or sales Earnings per share $ (EPS), diluted EPS, is calculated by dividing net income net
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securities in the index. The index is chosen by Morningstar. common share would have been issued for the trailing 12 months (TTM).

Analyst-Driven and Quantitatively-Driven Content Dividend per share $ is the dollar amount of dividends paid out by the company
This report may contain a Fair Value, Economic Moat, Uncertainty Rating, or in a particular period to its common shareholders, as reported by the company.
Morningstar Rating that were derived quantitatively, generated by a series of
statistical models intended to replicate Morningstar’s analyst output (“Analyst- Growth Rates
Driven Content”). Given the nature of the quantitatively-driven content, there is All the figures in the Growth section represent the compounded or annualized
no one analyst in which a given report is fully attributable to; however, Jeffrey growth rate. These figures are collected for revenue, net income, EPS, equity per
Ptak, Chief Ratings Officer for Morningstar Research Services LLC oversees the share, and dividends.
methodology that supports Quantitative Fair Value Estimates and Quantitative
Star Ratings. Mr. Ptak is guided by the Morningstar Research Services' Code of Last Close $
Ethics and the Morningstar, Inc. Code of Ethics in carrying out his The stock price shown represents the market price of the stock as of the close of
responsibilities. Morningstar’s Research, Investment, and Analytics Group trading on the release date noted at the top of the investment detail page.
includes research employees of various Morningstar, Inc. subsidiaries who
prepare analysis on investment products and quantitative research employees of Market
Morningstar, Inc. or its subsidiaries who aim to help investors by providing S&P 500 TR USD
innovative research, models, and software. In the United States, research
employees are employed by Morningstar Research Services LLC, which is A market capitalization-weighted index composed of the 500 most widely held
registered with the U.S. Securities and Exchange Commission. stocks whose assets and/or revenues are based in the US; it's often used as a
proxy for the U.S. stock market. TR (Total Return) indexes include daily
Fair Value, Economic Moat, and Ratings are not statements of fact. Morningstar reinvestment of dividends. The constituents displayed for this index are from the
does not guarantee the completeness or accuracy of the assumptions or models following proxy: SPDR® S&P 500 ETF Trust.
used in determining the content in this report. A change in the fundamental
factors underlying the report’s content can mean that the information shown Benchmarks or indexes are shown for illustrative purposes only. Such
herein is subsequently no longer accurate. For more information about benchmarks and indexes are not available for direct investment and the
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Economic Moat compare the performance of a particular investment and/or investment strategy.
Economic Moat measures the strength and sustainability of a firm's competitive No representation is made by Morningstar that any benchmark or index selected
advantage. Many factors are considered when assigning this rating, including by you or your financial professional and/or displayed in this report is an
the firm's historical and forecast performance, the source of the company's appropriate measure for comparison.
excess economic profits, ability to produce products at lower costs than
competitors, governmental protection via patents/copyrights, high customer Market Capitalization $ mil
switching costs, network effects, efficient scale, and other various The value of a company as determined by the market price of its outstanding
considerations as determined by our analyst staff. The rating value assigned will common stock. It is calculated by multiplying the market price as of the close of
be either none, narrow, or wide. trading as of the last day of the most recent month-end by the number of shares
outstanding as of the most recently completed fiscal quarter. It may be used as
Fair Value an indicator of how investors value a company's future prospects.
Each stock's fair value is estimated by utilizing a proprietary discounted cash
flow model (DCF). This model assumes that the stock's value is equal to the Morningstar Rating
total of the free cash flows of the company is expected to generate in the The Morningstar Rating for Stocks is a forward-looking, analyst-driven measure
future, discounted back to the present at the rate commensurate with the of a stock's current price relative to the analyst's estimate of what the shares
riskiness of the cash flows. As with any DCF model, the ending value is highly are worth. Stock star ratings indicate whether a stock, in the equity analyst's
sensitive to Morningstar's projections of future growth. educated opinion, is cheap, expensive, or fairly priced. To rate a stock, analysts
estimate what they think it is worth (its "fair value"), using a detailed, long-term
Fair Value Uncertainty cash flow forecast for the company. A stock's star rating depends on whether its
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Release date 11-30-2024 Page 4 of 5

current market price is above or below the fair value estimate. Those stocks Quantitative Economic Moat
trading at large discounts to their fair values receive the highest ratings (4 or 5 The Quantitative Economic Moat measures the strength and stability of a firm's
stars). Stocks trading at large premiums to their fair values receive lower ratings competitive advantage. It is derived from a gradient boosting algorithm which
(1 or 2 stars). A 3-star rating means the current stock price is close to the probabilistically determine whether a company has a wide, narrow, or no
analyst's fair value estimate. economic moat.

Momentum Flag Quantitative Fair Value

In instances where a stock price has experienced extreme negative returns The Quantitative Fair Value is the estimated value of a stock based on a
relative to other stocks, it might appear cheap from a valuation perspective. gradient boosting algorithim trained on our analyst-covered coverage universe.
However, it might be a “value trap.” To screen for such stocks, Morningstar This model attempts to mimic our analysts' views to divine a fair-price for
ranks companies based on their 12-1 month momentum, which is calculated securities not covered by analysts.
using the cumulative returns of the stock over the past 12 months, ignoring the
most recent month. Any stock below the 30th percentile of values is restricted Quantitative Star Rating
to a 3-star maximum rating. The Quantitative Star Rating is a synthesis of the quantitative fair value and
quantitative uncertainty rating. Higher star ratings indicate attractive prices,
Profitability while few stars indicate unattractive prices. In addition, the breakpoints at
Return on Assets (ROA) is the percentage a company earns on its assets in a which a stock becomes attractive widen as we become more uncertain.
given year (year 1, 2, etc.). The calculation is net income divided by end-of-year
total assets, then multiplied by 100. Quantitative Uncertainty Rating
The Quantitative Uncertainty Rating is estimated based on the volatility
Return on Equity (ROE) is the percentage a company earns on its total equity in a exhibited during the fair value estimation process—the more volatile the
given year (Year 1, 2, etc.). The calculation is net income divided by end-of-year assignment of fair values, the higher our uncertainty rating.
net worth, multiplied by 100.
Stock Grades
Net Margin is a measure of profitability. It is equal to annual net income divided The grading system is a letter-based system from A through F, with A being the
by revenues from the same period for the past five fiscal years, multiplied by highest. The Growth Grade shows how well the company's growth compares
100. with the Morningstar universe. Growth is measured by revenue per share. The
Profitability Grade shows how well a company's profitability, as measured by
Asset Turnover represents how many dollars in revenue a company has return on equity, compares with the Morningstar universe. The Financial Health
generated per each dollar of assets. It is calculated by dividing total revenues Grade compares a company's enterprise value with the book value of its
for the period by total assets for the same period. liabilities, rewarding those firms that have a low probability of enterprise value
falling below the value of liabilities.
Financial leverage is calculated by dividing total assets by total shareholders'
equity. Stock Performance
Total Return represents shareholders' gains from a stock over a given period of
Profitability Analysis time. Total return includes both capital gains and losses and dividend payments.
The below referenced items are reported as both a current value and a 5-year It is calculated by taking the change in the stock's price as of the close of
average figure. trading of the respective period, assuming dividends are not reinvested, then
dividing by the initial stock price, and expressing the result as a percentage.
Return on Equity % is the percentage a company earns on its total equity in a Returns for periods longer than one year are annualized. Returns do not include
given year. The calculation is net income divided by end-of-year net worth. brokerage commission or the effects of taxation. Stock returns include advisory
Return on Assets % is the percentage a company earns on its assets in a given fees. Unlike stock, Market benchmark or Industry benchmark are not impacted
year. The calculation is net income divided by end-of-year total assets. by advisory fees.

Revenue/Employee $K looks at a company's sales in relation to the number of Style

employees it has. This ratio is most useful when compared against other The Morningstar Style consists of nine categories that provide an overview of
companies in the same industry. Ideally, a company wants the highest revenue the investment strategy. The style is comprised of a combination of market
per employee possible, as it denotes higher productivity. capitalization of the security and the investment style (value, blend, or growth).

Operating Margin % is used to measure pricing strategy and operating Valuation

efficiency. It is calculated by dividing operating income by net sales. Also known Price/Earnings (PE) is the current price divided by the company's trailing 12-
as operating profit margin or net profit margin. month earnings per share.

Net Margin % is equal to annual net income divided by revenues. Price/Book (PB) is the most recent stock price divided by the most recent book
value per share.
Free Cash Flow/Rev % is free cash flow divided by sales for the same time
period. Free cash flow is calculated by subtracting capital spending from cash Price/Sales (PS) is the current price divided by the company's sales per share
flow from operations for the same time period. It is the money left over after over the trailing 12 months.
investment, and it can be used to pay dividends, buy back stock, or pay down
debt. Price/Cash Flow (PC) is the most recent price divided by the cash flow per share
of the latest fiscal year.

©2024 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and ®
opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial professional which cannot be verified by
Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security,
and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this
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information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc.
including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded
or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report.
Release date 11-30-2024 Page 5 of 5

Valuation Analysis the impact it may have on the market price.

The below referenced items are reported as both a current value and a 5-year
average figure.

Price/Earnings is the stock's price divided by the company's earnings per share.

Forward P/E ratio is the most-recent stock price divided by the mean EPS
estimate for the current fiscal year. This number gives some indication of how
cheap or expensive a stock is compared with consensus earnings estimates. The
lower the forward P/E, the cheaper the stock. Reuters Estimates data is used in
the denominator of this calculation.

Price/Cash Flow is the stock's price divided by the cash-flow per share of the
latest fiscal year.

Price/Free Cash Flow is the free cash flow divided by its "enterprise value", or
market capitalization plus net debt. This number tells you what cash return you
would get if you bought the entire company, including its debt.

Dividend Yield % is a percentage calculated by dividing total dividends by the

current market price and multiplying by 100.

Price/Book is the stock price divided by the book value per share.

Price/Sales is the stock's price divided by the company's sales per share.

PEG Ratio is Forward P/E ratio divided by the company's EPS Growth % Five
Year Mean Estimate. The Forward P/E ratio used in the numerator of this ratio is
calculated by taking the current share price and dividing by the mean EPS
estimate for the current fiscal year. The denominator is the average estimate of
long-term EPS growth, derived from all polled analysts' estimates from Reuters
Estimates.

Investment Risks
International/Emerging Market Equities: Investing in international securities
involves special additional risks. These risks include, but are not limited to,
currency risk, political risk, and risk associated with varying accounting
standards. Investing in emerging markets may accentuate these risks.

Non-Diversified Strategies: Portfolios that invest a significant percentage of

assets in a single issuer involve additional risks, including share price
fluctuations, because of the increased concentration of investments.

Small Cap Equities: Portfolios that invest in stocks of small companies involve
additional risks. Smaller companies typically have a higher risk of failure, and
are not as well established as larger blue-chip companies. Historically, smaller-
company stocks have experienced a greater degree of market volatility than the
overall market average.

Mid Cap Equities: Portfolios that invest in companies with market capitalization
below $10 billion involve additional risks. The securities of these companies
may be more volatile and less liquid than the securities of larger companies.

Short Positions: When a short position moves in an unfavorable way, the losses
are theoretically unlimited. The broker may demand more collateral and a
manager might have to close out a short position at an inopportune time to limit
further losses.

Market Risk: The market prices of investments can fluctuate as a result of

several factors, such as security-specific factors or general investor sentiment.
Therefore, investors should be aware of the prospect of market fluctuations and
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