Emcor Continues Incinerating Shares with an Additional $500 Million Repurchase – Buyback Wednesdays

Companies that embark on a roll-up strategy by acquiring several companies often end up with a highly leveraged balance sheet. But there are remarkable exceptions. I recently discovered a company that has maintained a robust balance sheet while managing over 100 subsidiaries. Effective integration of acquisitions is pivotal to their growth strategy. This innovative company recently unveiled a $500 million share repurchase program, representing about 3% of its market cap at the time of the announcement. The company has already retired more than 14% of its shares outstanding over the last three years.

Let’s take a closer look at this company.

EMCOR Group, Inc. (EME): $356.86

Market Cap: $16.77B

EV: $16.28B

Key Insights

• Stock is up 94% over the last year and 300+% in the last 5 years, outperforming the S&P 500’s return of 23% and 86% respectively.
• EMCOR has shown consistent revenue growth and strong operational performance with Q1 revenues up 18.7% YoY.
• The company has increased its guidance for full-year 2024 revenue and diluted EPS.

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