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EMCOR GroupEME -0.78%94 Return-on-Tangible-Asset is 17.77% as of Mar. 2026, which is 67% above its 10-year median of 10.64. GuruFocus rates EME with a GF Score™ of 94/100 and a GF Value™ of $563.10 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,784 Construction companies, EMCOR Group ranks better than 97.2% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. EMCOR Group's annualizedNet Income for the quarter that ended in Mar. 2026 was $1,222 Mil. EMCOR Group's average total tangible assets for the quarter that ended in Mar. 2026 was $6,877 Mil. Therefore, EMCOR Group's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 17.77%.
The historical rank and industry rank for EMCOR Group's Return-on-Tangible-Asset or its related term are showing as below:
EME'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 3.92 Med: 10.64 Max: 21.17
Current: 21.17
During the past 13 years, EMCOR Group's highest Return-on-Tangible-Asset was 21.17%. The lowest was 3.92%. And the median was 10.64%.
EME's Return-on-Tangible-Asset is ranked better than 97.2% of 1784
companies
in the Construction industry
Industry Median: 3.055
vs EME: 21.17
EMCOR Group (NYSE:EME) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
EMCOR Group Return-on-Tangible-Asset Related Terms
EMCOR Group Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for EMCOR Group's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Engineering & Construction subindustry, EMCOR Group's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Construction Industry
For the Construction industry and Industrials sector, EMCOR Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where EMCOR Group's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 17.77% mean?
EMCOR Group (EME) has a Return-on-Tangible-Asset of 17.77% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on EMCOR Group and its competitors. This is 67% above median its historical median of 10.64. Over the past decade, EMCOR Group's Return-on-Tangible-Asset has ranged from 3.92 to 21.17. According to the industry distribution chart, EMCOR Group ranks #50 out of 1784 companies in the Construction industry, placing it in the top 2.8%.
Is EMCOR Group's Return-on-Tangible-Asset too high?
EMCOR Group's current Return-on-Tangible-Asset of 17.77% is 67% above median its 10-year median of 10.64. Over the past 10 years, this metric has ranged from a low of 3.92 to a high of 21.17. The Construction industry median Return-on-Tangible-Asset is 3.06. EMCOR Group's value of 17.77% is 481.7% above this industry median. Based on the distribution chart, EMCOR Group ranks #50 out of 1784 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, EMCOR Group has a GF Score™ of 94/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does EMCOR Group's Return-on-Tangible-Asset compare to MTZ and STRL?
According to the Construction industry distribution chart, EMCOR Group ranks #50 out of 1784 companies for Return-on-Tangible-Asset. This places EMCOR Group in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.06. EMCOR Group's value of 17.77% is 481.7% above this benchmark. Historically, EMCOR Group's own Return-on-Tangible-Asset has ranged from 3.92 to 21.17 over the past decade. While the company's 10-year median is 10.64 vs. the industry median of 3.06, 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 Return-on-Tangible-Asset for a Construction company?
The median Return-on-Tangible-Asset among Construction companies is 3.06, based on 1,784 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EMCOR Group's current Return-on-Tangible-Asset of 17.77% is 481.7% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on EMCOR Group and its competitors. For the Construction industry, the median Return-on-Tangible-Asset is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EMCOR Group's current Return-on-Tangible-Asset is 17.77%, which is 67% above median its own 10-year median of 10.64. 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 $563.10, compared to a current price of $744.16 — trading 32.2% above its estimated fair value. The current Return-on-Tangible-Asset is 17.77%, which is 67% above median its 10-year median of 10.64 and 481.7% above the Construction industry median of 3.06. EMCOR Group's overall GF Score™ is 94/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For EMCOR Group (EME), the current Return-on-Tangible-Asset is 17.77% 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 $744.16 is trading 32.2% above its estimated GF Value™ of $563.10.
GuruFocus considers EMCOR Group to be Significantly Overvalued.
Key valuation signals for EME:
Return-on-Tangible-Asset: 17.77% (67% above median its 10-year median of 10.64)
GF Value™: $563.10 vs. price of $744.16 (32.2% above fair value)
Industry Position: 481.7% above the Construction median (#50 of 1784)
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.
94GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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