Our analysis is based on comparing EMCOR Group, Inc. with the following peers – Quanta Services, Inc., Comfort Systems USA, Inc., Dycom Industries, Inc., IES Holdings, Inc., Tutor Perini Corporation, Fluor Corporation and United Technologies Corporation (PWR-US, FIX-US, DY-US, IESC-US, TPC-US, FLR-US and UTX-US).
Dividend Quality Overview
- Over the last twelve months (prior to December 31, 2016), EME-US paid a medium quality dividend, which represents a yield of 0.50% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were high quality, 1 was medium quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 23.99x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to December 31, 2016), EME-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 13.60x), investing cash flow (coverage of -13.91x), issuance cash flow (coverage of 0.52x) and twelve-month prior cash (coverage of 25.24x), for a total dividend coverage of 24.99x.
EME-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -4.56x). Thus, the total coverage including share buybacks is 29.55x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||1.47||0.43||0.76||0.68||0.46||0.5|
|Dividend Payout (%)||9.26||9.89||12.7||11.76||10.77||10.77|
A complete list of metrics and analysis is available on the company page.
EMCOR Group, Inc. is engaged in providing electrical and mechanical construction and facilities services. It also provides services to commercial, industrial, utility and institutional customers. The company operates through the following segments: United States Electrical Construction & Facilities Services, United States Mechanical Construction & Facilities Services, United States Building Services, United States industrial services and United Kingdom Building Services. The United States Electrical Construction & Facilities Services segment is involved in electrical power transmission and distribution, premises electrical and lighting systems, and low-voltage systems. The United States Mechanical Construction & Facilities Services segment provides systems for heating, ventilation, air conditioning, refrigeration and clean-room process ventilation, fire protection, plumbing, process and high-purity piping, controls and filtration, water and wastewater treatment and central plant heating and cooling, cranes and rigging, mill righting, steel fabrication, erection, and welding. The United States Building Services and United Kingdom Building Services segments principally consist of those operations which provide a portfolio of services needed to support the operation and maintenance of customers facilities, including commercial and government site-based operations and maintenance; facility maintenance and services, including reception, security and catering services; outage services to utilities and industrial plants; military base operations support services; mobile maintenance and services; floor care and janitorial services; landscaping, lot sweeping and snow removal; facilities management; vendor management; call center services; installation and support for building systems; program development, management and maintenance for energy systems; technical consulting and diagnostic services; infrastructure and building projects for federal, state and local governmental agencies and bodies; and small modification and retrofit projects, which services are not generally related to customers construction programs. The United States Industrial Services segment consists of those operations which provide industrial maintenance and services, including those for refineries and petrochemical plants, including on-site repairs, maintenance and service of heat exchangers, towers, vessels and piping; design, manufacturing, repair and hydro blast cleaning of shell and tube heat exchangers and related equipment; refinery turnaround planning and engineering services; specialty welding services; overhaul and maintenance of critical process units in refineries and petrochemical plants; and specialty technical services for refineries and petrochemical plants. The company was founded in 1987 and is headquartered in Norwalk, CT.
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