ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABM - US0009571003 - Common Stock
45.37 USD
-1 (-2.16%)
45.37 USD
0 (0%)
ABM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Commercial Services & Supplies industry. ABM has an average financial health and profitability rating. ABM is valued quite cheap, while showing a decent growth score. This is a good combination! Finally ABM also has an excellent dividend rating.
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.
- Each year in the past 5 years ABM had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 3.08%, ABM is doing good in the industry, outperforming 63.75% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 9.09%, ABM is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
- ABM has a Return On Invested Capital (5.53%) which is in line with its industry peers.
- ABM had an Average Return On Invested Capital over the past 3 years of 5.59%. This is below the industry average of 10.58%.
| 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
- With a Profit Margin value of 1.86%, ABM perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of ABM has grown nicely.
- ABM has a Operating Margin of 3.72%. This is comparable to the rest of the industry: ABM outperforms 48.75% of its industry peers.
- ABM's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 12.29%, ABM is doing worse than 85.00% of the companies in the same industry.
- 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.
- ABM has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ABM has less shares outstanding
- ABM has a worse debt/assets ratio than last year.
2.2 Solvency
- ABM has an Altman-Z score of 2.85. 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 of 2.85. This is comparable to the rest of the industry: ABM outperforms 60.00% of its industry peers.
- ABM has a debt to FCF ratio of 10.10. This is a negative value and a sign of low solvency as ABM would need 10.10 years to pay back of all of its debts.
- ABM has a Debt to FCF ratio of 10.10. This is comparable to the rest of the industry: ABM outperforms 57.50% of its industry peers.
- ABM has a Debt/Equity ratio of 0.86. This is a neutral value indicating 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 | 2.85 |
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.
- Looking at the Current ratio, with a value of 1.48, ABM is in line with its industry, outperforming 51.25% of the companies in the same industry.
- A Quick Ratio of 1.48 indicates that ABM should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.48, ABM perfoms like the industry average, outperforming 58.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
- The earnings per share for ABM have decreased by -3.92% in the last year.
- 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.
- Measured over the past years, ABM shows a small growth in Revenue. The Revenue has been growing by 7.87% on average per year.
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
- ABM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.00% yearly.
- Based on estimates for the next years, ABM will show a small growth in Revenue. The Revenue will grow by 3.73% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- A Price/Earnings ratio of 13.23 indicates a correct valuation of ABM.
- Based on the Price/Earnings ratio, ABM is valued cheaper than 85.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. ABM is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 11.26, the valuation of ABM can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, ABM is valued cheaper than 90.00% of the companies in the same industry.
- ABM is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.23 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABM indicates a somewhat cheap valuation: ABM is cheaper than 67.50% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABM indicates a somewhat cheap valuation: ABM is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.91 | ||
| EV/EBITDA | 9.85 |
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)0.76
PEG (5Y)1.85
EPS Next 2Y13.2%
EPS Next 3Y10%
5. Dividend
5.1 Amount
- ABM has a Yearly Dividend Yield of 2.50%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.82, ABM pays a better dividend. On top of this ABM pays more dividend than 87.50% of the companies listed in the same industry.
- ABM's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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.
- ABM's earnings are growing more than its dividend. This makes the dividend growth 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%.