EMCOR GroupEME +0.66%91 ROE % is 32.41% as of Mar. 2026, which is 86% above its 10-year median of 17.47. 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 1,743 Construction companies, EMCOR Group ranks better than 94.72% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. EMCOR Group's annualized net income for the quarter that ended in Mar. 2026 was $1,222 Mil. EMCOR Group's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $3,770 Mil. Therefore, EMCOR Group's annualized ROE % for the quarter that ended in Mar. 2026 was 32.41%.
The historical rank and industry rank for EMCOR Group's ROE % or its related term are showing as below:
EME'
s ROE % Range Over the Past 10 Years
Min: 6.47 Med: 17.47 Max: 39.63
Current: 39.63
During the past 13 years, EMCOR Group's highest ROE % was 39.63%. The lowest was 6.47%. And the median was 17.47%.
EME's ROE % is ranked better than 94.72% of 1743
companies
in the Construction industry
Industry Median: 6.71
vs EME: 39.63
EMCOR Group (NYSE:EME) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
EMCOR Group ROE % Related Terms
EMCOR Group ROE % Historical Data
* Premium members only.
The historical data trend for EMCOR Group's ROE % 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.
For the Engineering & Construction subindustry, EMCOR Group's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Construction Industry
For the Construction industry and Industrials sector, EMCOR Group's ROE % distribution charts can be found below:
* The bar in red indicates where EMCOR Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
EMCOR Group (EME) has a ROE % of 32.41% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on EMCOR Group and its competitors. This is 86% above median its historical median of 17.47. Over the past decade, EMCOR Group's ROE % has ranged from 6.47 to 39.63. According to the industry distribution chart, EMCOR Group ranks #92 out of 1743 companies in the Construction industry, placing it in the top 5.3%.
Is EMCOR Group's ROE % too high?
EMCOR Group's current ROE % of 32.41% is 86% above median its 10-year median of 17.47. Over the past 10 years, this metric has ranged from a low of 6.47 to a high of 39.63. The Construction industry median ROE % is 6.71. EMCOR Group's value of 32.41% is 383% above this industry median. Based on the distribution chart, EMCOR Group ranks #92 out of 1743 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 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does EMCOR Group's ROE % compare to MTZ and STRL?
According to the Construction industry distribution chart, EMCOR Group ranks #92 out of 1743 companies for ROE %. This places EMCOR Group in the top 5% of its industry — outperforming the majority of peers. The industry median ROE % is 6.71. EMCOR Group's value of 32.41% is 383% above this benchmark. Historically, EMCOR Group's own ROE % has ranged from 6.47 to 39.63 over the past decade. While the company's 10-year median is 17.47 vs. the industry median of 6.71, 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 ROE % for a Construction company?
The median ROE % among Construction companies is 6.71, based on 1,743 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EMCOR Group's current ROE % of 32.41% is 383% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on EMCOR Group and its competitors. For the Construction industry, the median ROE % is 6.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EMCOR Group's current ROE % is 32.41%, which is 86% above median its own 10-year median of 17.47. 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 ROE % is 32.41%, which is 86% above median its 10-year median of 17.47 and 383% above the Construction industry median of 6.71. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For EMCOR Group (EME), the current ROE % is 32.41% 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:
ROE %: 32.41% (86% above median its 10-year median of 17.47)
GF Value™: $559.38 vs. price of $844.17 (50.9% above fair value)
Industry Position: 383% above the Construction median (#92 of 1743)
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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