EMCOR GroupEME -3.69%94 Return-on-Tangible-Equity is 97.93% as of Mar. 2026, which is 2% above its 10-year median of 96.37. GuruFocus rates EME with a GF Score™ of 94/100 and a GF Value™ of $561.17 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,704 Construction companies, EMCOR Group ranks better than 93.13% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. EMCOR Group's annualized net income for the quarter that ended in Mar. 2026 was $1,222 Mil. EMCOR Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,248 Mil. Therefore, EMCOR Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 97.93%.
The historical rank and industry rank for EMCOR Group's Return-on-Tangible-Equity or its related term are showing as below:
EME'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 26.59 Med: 96.37 Max: 160.34
Current: 147.03
During the past 13 years, EMCOR Group's highest Return-on-Tangible-Equity was 160.34%. The lowest was 26.59%. And the median was 96.37%.
EME's Return-on-Tangible-Equity is ranked better than 93.13% of 1704
companies
in the Construction industry
Industry Median: 8.22
vs EME: 147.03
EMCOR Group (NYSE:EME) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
EMCOR Group Return-on-Tangible-Equity Related Terms
EMCOR Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for EMCOR Group's Return-on-Tangible-Equity 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-Equity Comparison
For the Engineering & Construction subindustry, EMCOR Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Construction Industry
For the Construction industry and Industrials sector, EMCOR Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where EMCOR Group's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 97.93% mean?
EMCOR Group (EME) has a Return-on-Tangible-Equity of 97.93% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on EMCOR Group and its competitors. This is near median its historical median of 96.37. Over the past decade, EMCOR Group's Return-on-Tangible-Equity has ranged from 26.59 to 160.34. According to the industry distribution chart, EMCOR Group ranks #117 out of 1704 companies in the Construction industry, placing it in the top 6.9%.
Is EMCOR Group's Return-on-Tangible-Equity too high?
EMCOR Group's current Return-on-Tangible-Equity of 97.93% is near median its 10-year median of 96.37. Over the past 10 years, this metric has ranged from a low of 26.59 to a high of 160.34. The Construction industry median Return-on-Tangible-Equity is 8.22. EMCOR Group's value of 97.93% is 1091.4% above this industry median. Based on the distribution chart, EMCOR Group ranks #117 out of 1704 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-Equity compare to MTZ and STRL?
According to the Construction industry distribution chart, EMCOR Group ranks #117 out of 1704 companies for Return-on-Tangible-Equity. This places EMCOR Group in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.22. EMCOR Group's value of 97.93% is 1091.4% above this benchmark. Historically, EMCOR Group's own Return-on-Tangible-Equity has ranged from 26.59 to 160.34 over the past decade. While the company's 10-year median is 96.37 vs. the industry median of 8.22, 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-Equity for a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.22, based on 1,704 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EMCOR Group's current Return-on-Tangible-Equity of 97.93% is 1091.4% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on EMCOR Group and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EMCOR Group's current Return-on-Tangible-Equity is 97.93%, which is near median its own 10-year median of 96.37. 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 $561.17, compared to a current price of $774.66 — trading 38% above its estimated fair value. The current Return-on-Tangible-Equity is 97.93%, which is near median its 10-year median of 96.37 and 1091.4% above the Construction industry median of 8.22. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For EMCOR Group (EME), the current Return-on-Tangible-Equity is 97.93% 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 $774.66 is trading 38% above its estimated GF Value™ of $561.17.
GuruFocus considers EMCOR Group to be Significantly Overvalued.
Key valuation signals for EME:
Return-on-Tangible-Equity: 97.93% (near median its 10-year median of 96.37)
GF Value™: $561.17 vs. price of $774.66 (38% above fair value)
Industry Position: 1091.4% above the Construction median (#117 of 1704)
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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