Engineering & Construction Industry Report
Market Cap: $893.4B
Stocks: 88
Median P/E: 14.4x
Median ROIC: 11.7%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
Part of the Industrials sector.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | -0.0% | -0.3% |
| 1 Week | -2.0% | -1.2% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | +0.8% | +0.5% |
| 1 Year | +46.8% | +14.9% |
| 3 Years | +163.7% | +62.9% |
| 5 Years | +195.4% | +51.0% |
Today's Breadth: 28 advancing · 36 declining · 2 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 14.4x | 8.9x | 24.8x | +16% |
| P/B | 1.7x | 0.9x | 4.4x | -5% |
| P/S | 0.7x | 0.3x | 1.3x | — |
| P/FCF | 13.6x | 5.8x | 20.8x | — |
| EV/EBITDA | 11.9x | 7.3x | 18.1x | — |
| EV/EBIT | 14.8x | 8.5x | 23.5x | — |
Earnings Yield
6.1%
FCF Yield
5.1%
Below Fair Value
32% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 20.7% | 20.9% | 12.6% | 31.8% |
| Operating Margin | 6.9% | — | 2.4% | 11.1% |
| Net Margin | 4.3% | 4.5% | 1.9% | 8.0% |
| FCF Margin | 5.5% | — | 2.2% | 9.8% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | 13.7% | — | 6.5% | 18.3% |
| ROA | 4.9% | — | 2.0% | 7.7% |
| ROIC | 11.7% | 11.6% | 6.3% | 20.7% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | +2.4% | +4.3% | +6.6% |
| EPS | -0.2% | +2.0% | +12.4% |
| Free Cash Flow | +6.9% | +11.6% | +3.6% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
0.5x
Net Debt / EBITDA
0.8x
Interest Coverage
5.9x
Current Ratio
1.3x
Altman Z-Score
Safe (>3): 36 (44%)
Gray (1.8–3): 20 (25%)
Distress (<1.8): 25 (31%)
Piotroski F-Score
Strong (7–9): 18 (21%)
Moderate (4–6): 47 (54%)
Weak (0–3): 22 (25%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| HTHIY | 1 | $140.5B | — | — | 9.2% | 2.6% | +14.2% | — | -1.4% | 1/9 |
| HTHIF | 2 | $132.8B | — | — | 9.2% | 2.6% | +14.2% | — | +0.1% | 1/9 |
| DG-PA | 3 | $75.9B | 14.3x | 6.8x | 13.2% | 6.5% | +9.0% | 3.8% | — | 3/9 |
| FER | 4 | $51.3B | — | — | 23.1% | 11.9% | +10.3% | — | +0.5% | 3/9 |
| DHI | 5 | $44.7B | 14.4x | 10.7x | 15.5% | 10.5% | -6.9% | 1.0% | +2.2% | 7/9 |
| SGO-PA | 6 | $37.6B | 15.4x | 7.1x | 11.1% | 6.2% | +4.6% | 2.5% | — | 5/9 |
| PAYX | 7 | $32.3B | 33.4x | 23.6x | 44.4% | 29.7% | +5.6% | 2.6% | +0.8% | 6/9 |
| MTZ | 8 | $28.8B | 44.3x | 17.7x | 10.5% | 2.8% | +16.2% | — | +5.1% | 2/9 |
| VEI-OL | 9 | $26.7B | 14.4x | 11.6x | 34.6% | 3.0% | -5.3% | 5.9% | — | 4/9 |
| DOFG-OL | 10 | $26.4B | 88.6x | 29.3x | 13.2% | 12.8% | +22.7% | 0.0% | — | 4/9 |
| PHM | 11 | $24.3B | 10.7x | 7.0x | 21.1% | 12.8% | -3.5% | 0.8% | +1.3% | 6/9 |
| LEN | 12 | $23.4B | 16.4x | 10.9x | 10.0% | 6.1% | -3.5% | 1.5% | +4.8% | 4/9 |
| NVR | 13 | $20.8B | 16.9x | 11.9x | 49.9% | 13.0% | -1.9% | — | +2.5% | 7/9 |
| J | 14 | $15.2B | 61.8x | 18.7x | 13.9% | 2.4% | +4.6% | 0.2% | +0.7% | 3/9 |
| STRL | 15 | $14.2B | 33.8x | 19.3x | 39.6% | 11.7% | +17.7% | — | +6.9% | 5/9 |
| TOL | 16 | $14.1B | 10.3x | 7.7x | 16.0% | 12.3% | +1.1% | 0.7% | +3.5% | 6/9 |
| DY | 17 | $11.7B | — | — | 11.0% | 5.1% | +17.9% | — | +1.4% | 4/9 |
| ACM | 18 | $11.4B | 30.5x | 13.9x | 23.9% | 3.5% | +0.2% | 0.8% | -1.0% | 5/9 |
| BLD | 19 | $11.3B | 23.6x | 15.5x | 13.9% | 9.7% | +1.5% | — | -2.5% | 4/9 |
| PRIM | 20 | $9.0B | 25.7x | 13.0x | 15.6% | 3.6% | +19.0% | 0.3% | +5.2% | 4/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Heavy Construction Other Than Bldg Const - Contractors | 14 | $381.5B | 42.7% | |
| Engineering & Construction | 14 | $154.9B | 17.3% | |
| Operative Builders | 20 | $142.1B | 15.9% | |
| Water, Sewer, Pipeline, Comm & Power Line Construction | 6 | $56.2B | 6.3% | |
| Construction | 8 | $40.1B | 4.5% | |
| General Bldg Contractors - Residential Bldgs | 5 | $33.8B | 3.8% | |
| Services-Engineering, Accounting, Research, Management | 2 | $32.4B | 3.6% | |
| Construction - Special Trade Contractors | 12 | $26.2B | 2.9% | |
| Services-Engineering Services | 7 | $26.1B | 2.9% |
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
2%
Median Piotroski F
5/9
Profitable Years
6 of 10
Dividends & Shareholder Returns
Paying Dividends
52%
Median Div Yield
1.5%
Median Buyback Yield
2.0%
Shareholder Yield
3.1%
Payout Ratio
21.9%
Div Growth (3Y)
11.1%
Div Growth (5Y)
10.6%
Strengths & Weaknesses
Strengths
No notable strengths identified.
Weaknesses
- −[Financial Health]30.9% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Profitability]Thin margins with a median gross margin of 20.7%, typical of commodity-like or price-competitive industries.
- −[Quality]Only 2.3% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.