ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ABM • US0009571003
46.04 USD
+0.27 (+0.59%)
At close: Jan 30, 2026
46.04 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Taking everything into account, ABM scores 5 out of 10 in our fundamental rating. ABM was compared to 80 industry peers in the Commercial Services & Supplies industry. ABM has only an average score on both its financial health and profitability. ABM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. ABM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- ABM had positive earnings in the past year.
- ABM had a positive operating cash flow in the past year.
- ABM had positive earnings in each of the past 5 years.
- ABM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ABM has a Return On Assets of 3.08%. This is in the better half of the industry: ABM outperforms 63.75% of its industry peers.
- With a decent Return On Equity value of 9.09%, ABM is doing good in the industry, outperforming 68.75% of the companies in the same industry.
- ABM's Return On Invested Capital of 5.53% is in line compared to the rest of the industry. ABM outperforms 57.50% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ABM is below the industry average of 10.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 9.09% | ||
| ROIC | 5.53% |
ROA(3y)3.26%
ROA(5y)3.47%
ROE(3y)9.21%
ROE(5y)9.78%
ROIC(3y)5.59%
ROIC(5y)5.54%
1.3 Margins
- Looking at the Profit Margin, with a value of 1.86%, ABM is in line with its industry, outperforming 55.00% of the companies in the same industry.
- ABM's Profit Margin has improved in the last couple of years.
- The Operating Margin of ABM (3.72%) is comparable to the rest of the industry.
- ABM's Operating Margin has declined in the last couple of years.
- ABM's Gross Margin of 12.29% is on the low side compared to the rest of the industry. ABM is outperformed by 86.25% of its industry peers.
- ABM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.72% | ||
| PM (TTM) | 1.86% | ||
| GM | 12.29% |
OM growth 3Y-5.26%
OM growth 5Y-4.22%
PM growth 3Y-14.31%
PM growth 5Y226.42%
GM growth 3Y-2.09%
GM growth 5Y-2.38%
2. Health
2.1 Basic Checks
- ABM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ABM has less shares outstanding
- The number of shares outstanding for ABM has been reduced compared to 5 years ago.
- The debt/assets ratio for ABM is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.86 indicates that ABM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.86, ABM is in the better half of the industry, outperforming 61.25% of the companies in the same industry.
- The Debt to FCF ratio of ABM is 10.10, which is on the high side as it means it would take ABM, 10.10 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 10.10, ABM is in line with its industry, outperforming 57.50% of the companies in the same industry.
- A Debt/Equity ratio of 0.86 indicates that ABM is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.86, ABM is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 10.1 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.7
WACC7.91%
2.3 Liquidity
- A Current Ratio of 1.48 indicates that ABM should not have too much problems paying its short term obligations.
- The Current ratio of ABM (1.48) is comparable to the rest of the industry.
- A Quick Ratio of 1.48 indicates that ABM should not have too much problems paying its short term obligations.
- ABM's Quick ratio of 1.48 is in line compared to the rest of the industry. ABM outperforms 58.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
- ABM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.92%.
- Measured over the past 5 years, ABM shows a small growth in Earnings Per Share. The EPS has been growing by 7.14% on average per year.
- The Revenue has been growing slightly by 4.62% in the past year.
- The Revenue has been growing slightly by 7.87% on average over the past years.
EPS 1Y (TTM)-3.92%
EPS 3Y-2.14%
EPS 5Y7.14%
EPS Q2Q%-2.22%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y3.86%
Revenue growth 5Y7.87%
Sales Q2Q%5.42%
3.2 Future
- Based on estimates for the next years, ABM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.00% on average per year.
- The Revenue is expected to grow by 3.73% on average over the next years.
EPS Next Y17.45%
EPS Next 2Y13.2%
EPS Next 3Y10%
EPS Next 5YN/A
Revenue Next Year4.95%
Revenue Next 2Y3.46%
Revenue Next 3Y3.73%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.42, ABM is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of ABM indicates a rather cheap valuation: ABM is cheaper than 85.00% of the companies listed in the same industry.
- ABM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
- Based on the Price/Forward Earnings ratio of 11.43, the valuation of ABM can be described as reasonable.
- Based on the Price/Forward Earnings ratio, ABM is valued cheaply inside the industry as 88.75% of the companies are valued more expensively.
- ABM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 11.43 |
4.2 Price Multiples
- 66.25% of the companies in the same industry are more expensive than ABM, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ABM is valued a bit cheaper than 73.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.18 | ||
| EV/EBITDA | 9.94 |
4.3 Compensation for Growth
- ABM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.77
PEG (5Y)1.88
EPS Next 2Y13.2%
EPS Next 3Y10%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.53%, ABM has a reasonable but not impressive dividend return.
- ABM's Dividend Yield is rather good when compared to the industry average which is at 0.83. ABM pays more dividend than 87.50% of the companies in the same industry.
- ABM's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
- On average, the dividend of ABM grows each year by 7.71%, which is quite nice.
- ABM has been paying a dividend for at least 10 years, so it has a reliable track record.
- ABM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.71%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- ABM pays out 40.39% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of ABM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.39%
EPS Next 2Y13.2%
EPS Next 3Y10%
ABM INDUSTRIES INC / ABM FAQ
What is the ChartMill fundamental rating of ABM INDUSTRIES INC (ABM) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ABM.
What is the valuation status of ABM INDUSTRIES INC (ABM) stock?
ChartMill assigns a valuation rating of 7 / 10 to ABM INDUSTRIES INC (ABM). This can be considered as Undervalued.
How profitable is ABM INDUSTRIES INC (ABM) stock?
ABM INDUSTRIES INC (ABM) has a profitability rating of 4 / 10.
How financially healthy is ABM INDUSTRIES INC?
The financial health rating of ABM INDUSTRIES INC (ABM) is 4 / 10.
Is the dividend of ABM INDUSTRIES INC sustainable?
The dividend rating of ABM INDUSTRIES INC (ABM) is 7 / 10 and the dividend payout ratio is 40.39%.