Polen Capital Management, LLC on EMCOR Group, Inc.
Thesis
Polen added to EMCOR after exiting Rollins, seeing a better use of capital in the specialty contracting business. EMCOR is demonstrating stronger operating momentum and meaningfully faster growth than Rollins despite trading at a similar valuation. The position fits the portfolio effort to gain exposure to companies with stronger current demand and visible long-term drivers. The manager therefore favored increasing EMCOR rather than retaining the slower-growing alternative.
“EMCOR continues to show strong business momentum, is growing meaningfully faster than Rollins, and trades at a similar valuation.”
Key risks
- Demand and momentum may normalize across cyclical industrial work
- Valuation could become less compelling relative to alternative investments