March 05, 2026 a 11:31 am
EME: Dividend Analysis - EMCOR Group, Inc.
EMCOR Group, Inc. showcases a resilient dividend profile with a history spanning 16 years, indicative of stable distributions. The dividend yield remains modest, but coupled with a consistent growth rate, suggests potential for reliable long-term income. A notable low payout ratio further enhances its sound financial footing, while the absence of recent suspensions underlines its dependable dividend strategy.
Overview 📊
EMCOR Group, Inc. operates within a stable sector, known for its predictable cash flow, aiding in its continuous dividend payments for over 16 years. The company's dividend yield, although understated at 0.17%, is buttressed by a disciplined payout approach, ensuring sustainable shareholder returns in the long run.
| Metric | Value |
|---|---|
| Sector | Construction & Engineering |
| Dividend yield | 0.17 % |
| Current dividend per share | 0.999 USD |
| Dividend history | 16 years |
| Last cut or suspension | None |
Dividend History 🗣️
The dividend history illustrates a solid track of annual payments, reflecting EMCOR Group's commitment to shareholder value. Regular dividends can be a reliable income source, reducing risk associated with market volatility.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 0.40 |
| 2025 | 1.00 |
| 2024 | 0.93 |
| 2023 | 0.69 |
| 2022 | 0.54 |
Dividend Growth 📈
Dividend growth is indicative of a company’s profit expansion and management’s confidence in future earnings. EMCOR Group’s dividend growth rates show promise for investors seeking compounding value.
| Time | Growth |
|---|---|
| 3 years | 22.80 % |
| 5 years | 25.59 % |
The average dividend growth is 25.59 % over 5 years. This shows moderate but steady dividend growth.
Payout Ratio 📉
Payout ratios reflect how much of a company’s earnings or free cash flow are paid as dividends, offering insight into dividend sustainability. EMCOR's disciplined payout results in a low ratio, allowing for reinvestment and growth.
| Key figure | Ratio |
|---|---|
| EPS-based | 3.55 % |
| Free cash flow-based | 3.76 % |
The extremely low EPS (3.55 %) and FCF (3.76 %) payout ratios suggest that EMCOR Group has ample room for dividend increases or other investments.
Cashflow & Capital Efficiency ✅
Cash flow metrics highlight the company's ability to generate cash from operations and use it efficiently, directly influencing its ability to pay dividends and fund growth.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 4.31 % | 6.30 % | 8.05 % |
| Earnings Yield | 4.61 % | 4.76 % | 6.20 % |
| CAPEX to Operating Cash Flow | 8.66 % | 5.32 % | 8.71 % |
| Stock-based Compensation to Revenue | -0.03 % | 0.14 % | 0.11 % |
| Free Cash Flow / Operating Cash Flow Ratio | 91.34 % | 94.68 % | 91.29 % |
EMCOR Group's cash flow figures demonstrate a solid ability to cover operational costs, with a promising free cash flow yield, reassuring for continued dividend payments.
Balance Sheet & Leverage Analysis ⚠️
The company's balance sheet metrics provide a transparent view of its financial obligations and strength, critical for assessing long-term financial health and risk mitigation.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 22.96 % | 11.88 % | 13.98 % |
| Debt-to-Assets | 8.79 % | 4.52 % | 5.22 % |
| Debt-to-Capital | 18.67 % | 10.62 % | 12.27 % |
| Net Debt to EBITDA | -0.13 | -0.65 | -0.44 |
| Current Ratio | 1.22 | 1.30 | 1.26 |
| Quick Ratio | 1.19 | 1.27 | 1.23 |
| Financial Leverage | 2.61 | 2.63 | 2.68 |
EMCOR Group maintains low leverage ratios, indicating strong financial health and a manageable debt load conducive to secure dividend payments.
Fundamental Strength & Profitability 📉
Understanding fundamental strength through profitability metrics assesses a company’s effectiveness in generating profit relative to expenses and management of assets.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 34.57 % | 34.28 % | 25.63 % |
| Return on Assets | 13.23 % | 13.05 % | 9.58 % |
| Net Margin | 7.47 % | 6.91 % | 5.03 % |
| EBIT Margin | 10.69 % | 9.48 % | 7.07 % |
| EBITDA Margin | 11.71 % | 10.40 % | 8.02 % |
| Gross Margin | 19.58 % | 18.98 % | 16.60 % |
| R&D to Revenue | 0 % | 0 % | 0 % |
EMCOR displays robust profitability margins and a high return on equity, reflecting efficient management and a strong market position.
Price Development 📈
Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 4 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 5 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 4 |
Total Score: 33 out of 40 points
Rating 🔍
EMCOR Group, Inc. stands out as a solid choice for dividend-focused investors, with commendable stability in dividends backed by robust financial health. While the current yield is moderate, its stability, growth potential, and low payout ratios support a favorable investment outlook for those seeking consistent income with low risk.
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