ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - NYSE:ABM - US0009571003 - Common Stock
43.69 USD
+0.66 (+1.53%)
43.69 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ABM. ABM was compared to 82 industry peers in the Commercial Services & Supplies industry. ABM has an average financial health and profitability rating. ABM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ABM was profitable.
ABM had a positive operating cash flow in the past year.
Each year in the past 5 years ABM has been profitable.
In the past 5 years ABM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.20%, ABM is in line with its industry, outperforming 53.66% of the companies in the same industry.
ABM's Return On Equity of 6.33% is in line compared to the rest of the industry. ABM outperforms 54.88% of its industry peers.
ABM has a Return On Invested Capital (4.54%) which is comparable to the rest of the industry.
ABM had an Average Return On Invested Capital over the past 3 years of 6.02%. This is below the industry average of 10.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.33% | ||
| ROIC | 4.54% |
ROA(3y)3.81%
ROA(5y)2.86%
ROE(3y)10.65%
ROE(5y)7.96%
ROIC(3y)6.02%
ROIC(5y)5.86%
1.3 Margins
The Profit Margin of ABM (1.34%) is comparable to the rest of the industry.
ABM's Profit Margin has declined in the last couple of years.
ABM has a Operating Margin of 3.04%. This is comparable to the rest of the industry: ABM outperforms 45.12% of its industry peers.
ABM's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 12.48%, ABM is not doing good in the industry: 84.15% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ABM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.04% | ||
| PM (TTM) | 1.34% | ||
| GM | 12.48% |
OM growth 3Y-8.51%
OM growth 5Y-5.59%
PM growth 3Y-21.69%
PM growth 5Y-13.07%
GM growth 3Y-6.63%
GM growth 5Y3.55%
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.
The number of shares outstanding for ABM has been reduced compared to 1 year ago.
ABM has less shares outstanding than it did 5 years ago.
ABM has a better debt/assets ratio than last year.
2.2 Solvency
ABM has an Altman-Z score of 2.76. This is not the best score and indicates that ABM is in the grey zone with still only limited risk for bankruptcy at the moment.
ABM has a Altman-Z score (2.76) which is comparable to the rest of the industry.
ABM has a debt to FCF ratio of 26.37. This is a negative value and a sign of low solvency as ABM would need 26.37 years to pay back of all of its debts.
ABM's Debt to FCF ratio of 26.37 is in line compared to the rest of the industry. ABM outperforms 45.12% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that ABM is somewhat dependend on debt financing.
ABM's Debt to Equity ratio of 0.82 is on the low side compared to the rest of the industry. ABM is outperformed by 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 26.37 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.58
WACC7.82%
2.3 Liquidity
A Current Ratio of 1.49 indicates that ABM should not have too much problems paying its short term obligations.
ABM has a Current ratio (1.49) which is comparable to the rest of the industry.
A Quick Ratio of 1.49 indicates that ABM should not have too much problems paying its short term obligations.
ABM has a Quick ratio (1.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
ABM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.25%.
Measured over the past years, ABM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.84% on average per year.
The Revenue has been growing slightly by 4.27% in the past year.
The Revenue has been growing slightly by 5.16% on average over the past years.
EPS 1Y (TTM)-6.25%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%-12.77%
Revenue 1Y (TTM)4.27%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%6.2%
3.2 Future
ABM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.16% yearly.
ABM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
EPS Next Y3.1%
EPS Next 2Y6.8%
EPS Next 3Y9.16%
EPS Next 5YN/A
Revenue Next Year5.62%
Revenue Next 2Y4.38%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.66, the valuation of ABM can be described as correct.
81.71% of the companies in the same industry are more expensive than ABM, based on the Price/Earnings ratio.
ABM is valuated cheaply when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
ABM is valuated reasonably with a Price/Forward Earnings ratio of 10.73.
Based on the Price/Forward Earnings ratio, ABM is valued cheaper than 85.37% of the companies in the same industry.
ABM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
60.98% of the companies in the same industry are more expensive than ABM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.12 | ||
| EV/EBITDA | 11.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.08
PEG (5Y)1.07
EPS Next 2Y6.8%
EPS Next 3Y9.16%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 2.47%. Purely for dividend investing, there may be better candidates out there.
ABM's Dividend Yield is rather good when compared to the industry average which is at 2.61. ABM pays more dividend than 85.37% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ABM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
The dividend of ABM has a limited annual growth rate of 4.66%.
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)4.66%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
54.79% of the earnings are spent on dividend by ABM. This is a bit on the high side, but may be sustainable.
ABM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.79%
EPS Next 2Y6.8%
EPS Next 3Y9.16%
43.69
+0.66 (+1.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.17%
Inst Owner Change2.25%
Ins Owners1.27%
Ins Owner Change-3.54%
Market Cap2.68B
Revenue(TTM)8.63B
Net Income(TTM)115.90M
Analysts74.55
Price Target59.16 (35.41%)
Short Float %5.03%
Short Ratio5.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend0.9
Dividend Growth(5Y)4.66%
DP54.79%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.78%
Min EPS beat(2)-14.41%
Max EPS beat(2)-1.15%
EPS beat(4)2
Avg EPS beat(4)-0.75%
Min EPS beat(4)-14.41%
Max EPS beat(4)10.43%
EPS beat(8)6
Avg EPS beat(8)5.16%
EPS beat(12)8
Avg EPS beat(12)2.91%
EPS beat(16)12
Avg EPS beat(16)4.22%
Revenue beat(2)2
Avg Revenue beat(2)1.96%
Min Revenue beat(2)1.48%
Max Revenue beat(2)2.44%
Revenue beat(4)4
Avg Revenue beat(4)1.92%
Min Revenue beat(4)0.09%
Max Revenue beat(4)3.68%
Revenue beat(8)7
Avg Revenue beat(8)1.69%
Revenue beat(12)8
Avg Revenue beat(12)0.9%
Revenue beat(16)11
Avg Revenue beat(16)1.23%
PT rev (1m)0%
PT rev (3m)-0.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 10.73 | ||
| P/S | 0.31 | ||
| P/FCF | 46.12 | ||
| P/OCF | 20.36 | ||
| P/B | 1.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.11 |
EPS(TTM)3.45
EY7.9%
EPS(NY)4.07
Fwd EY9.32%
FCF(TTM)0.95
FCFY2.17%
OCF(TTM)2.15
OCFY4.91%
SpS140.91
BVpS29.9
TBVpS-16.55
PEG (NY)4.08
PEG (5Y)1.07
Graham Number48.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.33% | ||
| ROCE | 6.63% | ||
| ROIC | 4.54% | ||
| ROICexc | 4.62% | ||
| ROICexgc | 17.21% | ||
| OM | 3.04% | ||
| PM (TTM) | 1.34% | ||
| GM | 12.48% | ||
| FCFM | 0.67% |
ROA(3y)3.81%
ROA(5y)2.86%
ROE(3y)10.65%
ROE(5y)7.96%
ROIC(3y)6.02%
ROIC(5y)5.86%
ROICexc(3y)6.13%
ROICexc(5y)6.17%
ROICexgc(3y)30.27%
ROICexgc(5y)32.46%
ROCE(3y)8.79%
ROCE(5y)8.57%
ROICexgc growth 3Y-18.57%
ROICexgc growth 5Y-6.89%
ROICexc growth 3Y-4.86%
ROICexc growth 5Y-6.48%
OM growth 3Y-8.51%
OM growth 5Y-5.59%
PM growth 3Y-21.69%
PM growth 5Y-13.07%
GM growth 3Y-6.63%
GM growth 5Y3.55%
F-Score5
Asset Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 26.37 | ||
| Debt/EBITDA | 4.07 | ||
| Cap/Depr | 69.25% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 35.66% | ||
| Profit Quality | 50.04% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 2.76 |
F-Score5
WACC7.82%
ROIC/WACC0.58
Cap/Depr(3y)52.21%
Cap/Depr(5y)46.84%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.25%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%-12.77%
EPS Next Y3.1%
EPS Next 2Y6.8%
EPS Next 3Y9.16%
EPS Next 5YN/A
Revenue 1Y (TTM)4.27%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%6.2%
Revenue Next Year5.62%
Revenue Next 2Y4.38%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
EBIT growth 1Y-12.27%
EBIT growth 3Y0.91%
EBIT growth 5Y-0.71%
EBIT Next Year35.49%
EBIT Next 3Y15.45%
EBIT Next 5YN/A
FCF growth 1Y-64.22%
FCF growth 3Y-15.77%
FCF growth 5Y-3.8%
OCF growth 1Y-40.62%
OCF growth 3Y-10.32%
OCF growth 5Y-2.9%
ABM INDUSTRIES INC / ABM FAQ
What is the ChartMill fundamental rating of ABM INDUSTRIES INC (ABM) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ABM.
Can you provide the valuation status for ABM INDUSTRIES INC?
ChartMill assigns a valuation rating of 5 / 10 to ABM INDUSTRIES INC (ABM). This can be considered as Fairly Valued.
How profitable is ABM INDUSTRIES INC (ABM) stock?
ABM INDUSTRIES INC (ABM) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for ABM stock?
The Earnings per Share (EPS) of ABM INDUSTRIES INC (ABM) is expected to grow by 3.1% in the next year.
How sustainable is the dividend of ABM INDUSTRIES INC (ABM) stock?
The dividend rating of ABM INDUSTRIES INC (ABM) is 6 / 10 and the dividend payout ratio is 54.79%.