EMCOR GroupEME +0.66%91 Operating Margin % is 8.73% as of Mar. 2026, which is 67% above its 10-year median of 5.23. GuruFocus rates EME with a GF Score™ of 91/100 and a GF Value™ of $559.38 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,767 Construction companies, EMCOR Group ranks better than 68.31% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. EMCOR Group's Operating Income for the
three
months ended in Mar. 2026 was $404 Mil. EMCOR Group's Revenue for the
three
months ended in Mar. 2026 was $4,628 Mil. Therefore, EMCOR Group's Operating Margin % for the quarter that ended in Mar. 2026 was 8.73%.
Good Sign:
EMCOR Group Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for EMCOR Group's Operating Margin % or its related term are showing as below:
EME'
s Operating Margin % Range Over the Past 10 Years
Min: 4.12 Med: 5.23 Max: 9.32
Current: 9.32
EME's Operating Margin % is ranked better than 68.31% of 1767
companies
in the Construction industry
Industry Median: 5.89
vs EME: 9.32
EMCOR Group's 5-Year Average Operating Margin % Growth Rate was 13.60% per year.
EMCOR Group's Operating Income for the
three
months ended in Mar. 2026 was $404 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $1,654 Mil.
EMCOR Group (NYSE:EME) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
EMCOR Group Operating Margin % Related Terms
EMCOR Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for EMCOR Group's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
EME vs MTZ, STRL, APG: Operating Margin % Comparison
For the Engineering & Construction subindustry, EMCOR Group's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
EMCOR Group Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, EMCOR Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where EMCOR Group's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
EMCOR Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
EMCOR Group (EME) has a Operating Margin % of 8.73% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on EMCOR Group and its competitors. This is 67% above median its historical median of 5.23. Over the past decade, EMCOR Group's Operating Margin % has ranged from 4.12 to 9.32. According to the industry distribution chart, EMCOR Group ranks #560 out of 1767 companies in the Construction industry, placing it in the top 31.7%.
Is EMCOR Group's Operating Margin % too high?
EMCOR Group's current Operating Margin % of 8.73% is 67% above median its 10-year median of 5.23. Over the past 10 years, this metric has ranged from a low of 4.12 to a high of 9.32. The Construction industry median Operating Margin % is 5.89. EMCOR Group's value of 8.73% is 48.2% above this industry median. Based on the distribution chart, EMCOR Group ranks #560 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, EMCOR Group has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does EMCOR Group's Operating Margin % compare to MTZ and STRL?
According to the Construction industry distribution chart, EMCOR Group ranks #560 out of 1767 companies for Operating Margin %. This puts EMCOR Group in the upper half of its industry. The industry median Operating Margin % is 5.89. EMCOR Group's value of 8.73% is 48.2% above this benchmark. Historically, EMCOR Group's own Operating Margin % has ranged from 4.12 to 9.32 over the past decade. While the company's 10-year median is 5.23 vs. the industry median of 5.89, EMCOR Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EMCOR Group's current Operating Margin % of 8.73% is 48.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on EMCOR Group and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EMCOR Group's current Operating Margin % is 8.73%, which is 67% above median its own 10-year median of 5.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EMCOR Group stock overvalued right now?
Based on GuruFocus' analysis, EMCOR Group (EME) is currently considered Significantly Overvalued. The stock's GF Value™ is $559.38, compared to a current price of $844.17 — trading 50.9% above its estimated fair value. The current Operating Margin % is 8.73%, which is 67% above median its 10-year median of 5.23 and 48.2% above the Construction industry median of 5.89. EMCOR Group's overall GF Score™ is 91/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For EMCOR Group (EME), the current Operating Margin % is 8.73% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is EMCOR Group (EME) Overvalued in 2026?
Based on GuruFocus' analysis, EMCOR Group stock appears to be overvalued.
The current stock price of $844.17 is trading 50.9% above its estimated GF Value™ of $559.38.
GuruFocus considers EMCOR Group to be Significantly Overvalued.
Key valuation signals for EME:
Operating Margin %: 8.73% (67% above median its 10-year median of 5.23)
GF Value™: $559.38 vs. price of $844.17 (50.9% above fair value)
Industry Position: 48.2% above the Construction median (#560 of 1767)
No single metric tells the full story. See the EME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EMCOR Group Inc is a specialty contractor in the United States and a provider of electrical and mechanical construction and facilities services, building services, and industrial services. Its services are provided to a broad range of commercial, technology, manufacturing, industrial, healthcare, utility, and institutional customers through approximately 100 operating subsidiaries. The company's operating subsidiaries are organized into reportable segments: United States mechanical construction and facilities services, which derives key revenue; United States electrical construction and facilities services; United States building services; United States industrial services; and United Kingdom building services. Geographically, its key revenue is derived from the United States.
91GF Score
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