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EMCOR Group, Inc. (NYSE:EME)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

EMCOR Group, Inc. has an F-score of 6 indicating the company's financial situation is typical for a stable company.

EME' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 6

3
9

During the past 13 years, the highest Piotroski F-Score of EMCOR Group, Inc. was 9. The lowest was 3. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 26.69 + 45.921 + 41.261 + 39.913 = $154 Mil.
Cash Flow from Operations was 120.258 + 82.022 + -24.316 + 63.956 = $242 Mil.
Revenue was 1629.067 + 1662.937 + 1599.385 + 1558.055 = $6,449 Mil.
Gross Profit was 206.31 + 234.075 + 215.211 + 219.635 = $875 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(3105.336 + 3506.759 + 3465.915 + 3407.516 + 3404.895) / 5 = $3,378 Mil.
Total Assets was $3,405 Mil.
Long-Term Debt was $326 Mil.
Total Current Assets was $1,888 Mil.
Total Current Liabilities was $1,185 Mil.
Net Income was 39.581 + 46.41 + 30.167 + 21.014 = $137 Mil.

Revenue was 1606.242 + 1611.881 + 1568.401 + 1556.753 = $6,343 Mil.
Gross Profit was 203.248 + 228.449 + 191.138 + 181.535 = $804 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(2960.729 + 3053.461 + 3107.07 + 3014.716 + 3105.336) / 5 = $3,048 Mil.
Total Assets was $3,105 Mil.
Long-Term Debt was $153 Mil.
Total Current Assets was $2,059 Mil.
Total Current Liabilities was $1,252 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

EMCOR Group, Inc.'s current net income (ttm) was 154. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

EMCOR Group, Inc.'s current cash flow from operations (ttm) was 242. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Average Total Assets from Jun13 to Jun14
=153.785/3378.0842
=0.04552432

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=137.172/3048.2624
=0.04500006

EMCOR Group, Inc.'s return on assets of this year was 0.04552432. EMCOR Group, Inc.'s return on assets of last year was 0.04500006. ==> This year is higher. ==> Score 1.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA =< ROA.

EMCOR Group, Inc.'s current net income (ttm) was 154. EMCOR Group, Inc.'s current cash flow from operations (ttm) was 242. ==> 242 > 154 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun14)=Long-Term Debt/Total Assets
=326.084/3404.895
=0.09576918

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=153.369/3105.336
=0.04938886

EMCOR Group, Inc.'s gearing of this year was 0.09576918. EMCOR Group, Inc.'s gearing of last year was 0.04938886. ==> Last year is lower than this year ==> Score 0.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Jun14)=Total Current Assets/Total Current Liabilities
=1887.833/1184.539
=1.59372802

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=2058.697/1251.625
=1.64481933

EMCOR Group, Inc.'s current ratio of this year was 1.59372802. EMCOR Group, Inc.'s current ratio of last year was 1.64481933. ==> Last year's current ratio is higher ==> Score 0.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

EMCOR Group, Inc.'s number of shares in issue this year was 68. EMCOR Group, Inc.'s number of shares in issue last year was 68.1. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=875.231/6449.444
=0.13570643

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=804.37/6343.277
=0.1268067

EMCOR Group, Inc.'s gross margin of this year was 0.13570643. EMCOR Group, Inc.'s gross margin of last year was 0.1268067. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by average total assets throughout the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Average Total Assets from Jun13 to Jun14
=6449.444/3378.0842
=1.90920167

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=6343.277/3048.2624
=2.08094848

EMCOR Group, Inc.'s asset turnover of this year was 1.90920167. EMCOR Group, Inc.'s asset turnover of last year was 2.08094848. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+0+0+1+1+0
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

EMCOR Group, Inc. has an F-score of 6 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

EMCOR Group, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111110111
Q2 1111111111
Q3 1111100110
Q4 1111111111
Q5 0010101110
Q6 1110111010
Q7 1000001010
Q8 0111110000
Q9 1011100110
F-score 7686855683

EMCOR Group, Inc. Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 1101100001
Q4 1001011111
Q5 1111110000
Q6 0111110000
Q7 1111000011
Q8 0000001011
Q9 1111100000
F-score 7768654356
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