EMCOR Current Valuation vs. Return On Equity
| EM4 Stock | EUR 441.40 5.30 1.19% |
For EMCOR profitability analysis, we use financial ratios and fundamental drivers that measure the ability of EMCOR to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well EMCOR Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between EMCOR's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of EMCOR Group over time as well as its relative position and ranking within its peers.
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EMCOR Group Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining EMCOR's current stock value. Our valuation model uses many indicators to compare EMCOR value to that of its competitors to determine the firm's financial worth. EMCOR Group is rated below average in current valuation category among its peers. It is one of the top stocks in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for EMCOR Group is about 36,257,241,223 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the EMCOR's earnings, one of the primary drivers of an investment's value.EMCOR Current Valuation vs. Competition
EMCOR Group is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Engineering & Construction industry is currently estimated at about 355.66 Billion. EMCOR claims roughly 6.97 Billion in current valuation contributing just under 2% to equities under Engineering & Construction industry.
EMCOR Return On Equity vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
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| = | 6.97 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.19 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
EMCOR Return On Equity Comparison
EMCOR is currently under evaluation in return on equity category among its peers.
EMCOR Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in EMCOR, profitability is also one of the essential criteria for including it into their portfolios because, without profit, EMCOR will eventually generate negative long term returns. The profitability progress is the general direction of EMCOR's change in net profit over the period of time. It can combine multiple indicators of EMCOR, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
EMCOR Group, Inc. provides electrical and mechanical construction, and facilities services in the United States. In addition, the company provides industrial services for refineries and petrochemical plants, such as on-site repair, maintenance, and service of heat exchangers, towers, vessels, and piping design, manufacture, repair, and hydro blast cleaning of shell and tube heat exchangers, and related equipment refinery turnaround planning and engineering, specialty welding and technical services and critical process unit overhaul and maintenance. EMCOR GRP operates under Engineering Construction classification in Germany and is traded on Frankfurt Stock Exchange. It employs 33000 people.
EMCOR Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on EMCOR. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of EMCOR position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the EMCOR's important profitability drivers and their relationship over time.
Use EMCOR in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if EMCOR position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in EMCOR will appreciate offsetting losses from the drop in the long position's value.EMCOR Pair Trading
EMCOR Group Pair Trading Analysis
The ability to find closely correlated positions to EMCOR could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace EMCOR when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back EMCOR - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling EMCOR Group to buy it.
The correlation of EMCOR is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as EMCOR moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if EMCOR Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for EMCOR can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your EMCOR position
In addition to having EMCOR in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Hedge Favorites Thematic Idea Now
Hedge Favorites
Hedge Funds pool capital from accredited individuals or institutional investors and invest in a variety of assets, often with complex portfolio-construction and risk-management techniques. The Hedge Favorites theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Hedge Favorites Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in EMCOR Stock
When determining whether EMCOR Group is a strong investment it is important to analyze EMCOR's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact EMCOR's future performance. For an informed investment choice regarding EMCOR Stock, refer to the following important reports:Check out Investing Opportunities. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project EMCOR's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of EMCOR Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include EMCOR's income statement, its balance sheet, and the statement of cash flows.