If You Invested $1000 in Emcor Group a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Emcor Group (EME) ten years ago? It may not have been easy to hold on to EME for all that time, but if you did, how much would your investment be worth today?
Emcor Group's Business In-Depth
With that in mind, let's take a look at Emcor Group's main business drivers.
EMCOR Group is one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses. The company serves commercial, industrial, utility and institutional clients. The company currently operates under the following reportable segments:
United States Electrical Construction and Facilities Services (contributing 22.1% to total revenues for 2023) – This comprises systems for premises electrical and lighting systems; electrical power transmission and distribution; roadway and transit lighting; fiber optic lines; voice and data communication; as well as low-voltage systems, such as fire alarm, security and process control.
United States Mechanical Construction and Facilities Services (40.3%) – This involves systems for fire protection; heating, ventilation, air conditioning, refrigeration and clean-room process ventilation; water and wastewater treatment and central plant heating and cooling; plumbing, process and high-purity piping; millwrighting; steel fabrication, erection and welding; as well as controls and filtration.
United States Building Services (24.8%) – This segment provides various types of support services related to operation and maintenance of clients’ facilities in the U.S. These include commercial and government site-based operations and maintenance; military base operations support services; infrastructure and building projects for federal, state and local governmental agencies.
United States Industrial Services (9.3%) – This segment comprises industrial maintenance and services that are needed for refineries and petrochemical plants such as designing, manufacturing, repairing and hydro blast cleaning of shell and tube heat exchangers and related equipment; overhaul and maintenance of critical process units in refineries and petrochemical plants.
United Kingdom Building Services (3.5%) – This segment provides support services related to operation and maintenance of commercial and government client facilities in the U.K.
On Feb 28, 2024, the company’s board of directors approved a 38.9% quarterly dividend hike of 25 cents per share ($1 per share annually). The cash dividend is expected to be declared starting in the second quarter of 2024.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Emcor Group, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in March 2014 would be worth $7,078.81, or a 607.88% gain, as of March 21, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 179.09% and the price of gold went up 57.38% over the same time frame.
Analysts are anticipating more upside for EME.
EMCOR’s fourth-quarter 2023 earnings and revenues topped the Zacks Consensus Estimate by 27.4% and 5.6%, respectively. The metrics grew year over year as well on the back of success in key sectors such as high-tech manufacturing, network and communications, manufacturing, and industrial and healthcare. As of Dec 31, 2023, the company reported record RPOs of $8.85 billion, up 18.6% from prior year period. Moreover, accretive acquisitions and focus on shareholder value are encouraging. Given the remarkable improvement, EMCOR unveiled its 2024 earnings and revenue guidance, portraying year-over-year growth. Shares of the company have outperformed its industry in the past three months. Although, high costs and expenses along with volatile fuel prices are concerning, earnings estimates for 2024 have moved north in the past seven days.
Over the past four weeks, shares have rallied 32.52%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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EMCOR Group, Inc. (EME) : Free Stock Analysis Report
