ABM INDUSTRIES INC (ABM) Fundamental Analysis & Valuation
NYSE:ABM • US0009571003
Current stock price
40.8 USD
+1.02 (+2.56%)
At close:
40.8007 USD
0 (0%)
After Hours:
This ABM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ABM Profitability Analysis
1.1 Basic Checks
- ABM had positive earnings in the past year.
- In the past year ABM had a positive cash flow from operations.
- ABM had positive earnings in each of the past 5 years.
- Each year in the past 5 years ABM had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.98%, ABM is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
- The Return On Equity of ABM (9.14%) is better than 71.25% of its industry peers.
- ABM has a better Return On Invested Capital (5.51%) than 63.75% of 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 9.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 9.14% | ||
| ROIC | 5.51% |
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
- ABM's Profit Margin of 1.78% is fine compared to the rest of the industry. ABM outperforms 62.50% of its industry peers.
- ABM's Profit Margin has improved in the last couple of years.
- ABM has a Operating Margin of 3.67%. This is comparable to the rest of the industry: ABM outperforms 51.25% 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 12.12%, ABM is doing worse than 88.75% of the companies in the same industry.
- ABM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.67% | ||
| PM (TTM) | 1.78% | ||
| GM | 12.12% |
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. ABM Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ABM is destroying value.
- ABM has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ABM has less shares outstanding
- The debt/assets ratio for ABM is higher compared to a year ago.
2.2 Solvency
- ABM has an Altman-Z score of 2.79. 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.
- The Altman-Z score of ABM (2.79) is better than 66.25% of its industry peers.
- The Debt to FCF ratio of ABM is 4.99, which is a neutral value as it means it would take ABM, 4.99 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 4.99, ABM is doing good in the industry, outperforming 77.50% of the companies in the same industry.
- ABM has a Debt/Equity ratio of 0.93. This is a neutral value indicating ABM is somewhat dependend on debt financing.
- ABM has a worse Debt to Equity ratio (0.93) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 4.99 | ||
| Altman-Z | 2.79 |
ROIC/WACC0.65
WACC8.46%
2.3 Liquidity
- ABM has a Current Ratio of 1.50. This is a normal value and indicates that ABM is financially healthy and should not expect problems in meeting its short term obligations.
- ABM has a Current ratio (1.50) which is comparable to the rest of the industry.
- ABM has a Quick Ratio of 1.50. This is a normal value and indicates that ABM is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.50, ABM is in line with its industry, outperforming 58.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. ABM Growth Analysis
3.1 Past
- ABM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.31%.
- 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.
- ABM shows a small growth in Revenue. In the last year, the Revenue has grown by 5.59%.
- The Revenue has been growing slightly by 7.87% on average over the past years.
EPS 1Y (TTM)-5.31%
EPS 3Y-2.14%
EPS 5Y7.14%
EPS Q2Q%-4.6%
Revenue 1Y (TTM)5.59%
Revenue growth 3Y3.86%
Revenue growth 5Y7.87%
Sales Q2Q%6.08%
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 10.72% on average per year.
- ABM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y16.61%
EPS Next 2Y12.95%
EPS Next 3Y10.72%
EPS Next 5YN/A
Revenue Next Year5.21%
Revenue Next 2Y4.33%
Revenue Next 3Y3.96%
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. ABM Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 12.04, ABM is valued correctly.
- 87.50% of the companies in the same industry are more expensive than ABM, based on the Price/Earnings ratio.
- ABM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.77.
- Based on the Price/Forward Earnings ratio of 9.32, the valuation of ABM can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ABM indicates a rather cheap valuation: ABM is cheaper than 90.00% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of ABM to the average of the S&P500 Index (21.75), we can say ABM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 9.32 |
4.2 Price Multiples
- 75.00% 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 cheaper than 92.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.3 | ||
| EV/EBITDA | 8.95 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.72
PEG (5Y)1.69
EPS Next 2Y12.95%
EPS Next 3Y10.72%
5. ABM Dividend Analysis
5.1 Amount
- ABM has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.87, ABM pays a better dividend. On top of this ABM pays more dividend than 88.75% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ABM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
- The dividend of ABM is nicely growing with an annual growth rate of 7.71%!
- ABM has paid a dividend for at least 10 years, which is a reliable track record.
- ABM has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.71%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- ABM pays out 42.20% 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.
DP42.2%
EPS Next 2Y12.95%
EPS Next 3Y10.72%
ABM Fundamentals: All Metrics, Ratios and Statistics
40.8
+1.02 (+2.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Industry Strength21.74
Industry Growth11.8
Earnings (Last)03-10 2026-03-10/bmo
Earnings (Next)06-04 2026-06-04
Inst Owners99.39%
Inst Owner Change0.58%
Ins Owners1.66%
Ins Owner Change5.5%
Market Cap2.39B
Revenue(TTM)8.87B
Net Income(TTM)157.60M
Analysts73.33
Price Target52.46 (28.58%)
Short Float %2.82%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend1.07
Dividend Growth(5Y)7.71%
DP42.2%
Div Incr Years5
Div Non Decr Years5
Ex-Date04-02 2026-04-02 (0.29)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.8%
Min EPS beat(2)-19.79%
Max EPS beat(2)-5.81%
EPS beat(4)0
Avg EPS beat(4)-10.29%
Min EPS beat(4)-19.79%
Max EPS beat(4)-1.15%
EPS beat(8)4
Avg EPS beat(8)-1.5%
EPS beat(12)7
Avg EPS beat(12)0.62%
EPS beat(16)10
Avg EPS beat(16)1.05%
Revenue beat(2)2
Avg Revenue beat(2)0.69%
Min Revenue beat(2)0.06%
Max Revenue beat(2)1.33%
Revenue beat(4)4
Avg Revenue beat(4)1.33%
Min Revenue beat(4)0.06%
Max Revenue beat(4)2.44%
Revenue beat(8)7
Avg Revenue beat(8)1.36%
Revenue beat(12)9
Avg Revenue beat(12)1.08%
Revenue beat(16)11
Avg Revenue beat(16)0.85%
PT rev (1m)-1.1%
PT rev (3m)-4.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.84%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 9.32 | ||
| P/S | 0.27 | ||
| P/FCF | 7.3 | ||
| P/OCF | 5.93 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.95 |
EPS(TTM)3.39
EY8.31%
EPS(NY)4.38
Fwd EY10.73%
FCF(TTM)5.59
FCFY13.69%
OCF(TTM)6.88
OCFY16.87%
SpS151.62
BVpS29.46
TBVpS-18.84
PEG (NY)0.72
PEG (5Y)1.69
Graham Number47.4033 (16.18%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 9.14% | ||
| ROCE | 8.18% | ||
| ROIC | 5.51% | ||
| ROICexc | 5.65% | ||
| ROICexgc | 20.8% | ||
| OM | 3.67% | ||
| PM (TTM) | 1.78% | ||
| GM | 12.12% | ||
| FCFM | 3.68% |
ROA(3y)3.26%
ROA(5y)3.47%
ROE(3y)9.21%
ROE(5y)9.78%
ROIC(3y)5.59%
ROIC(5y)5.54%
ROICexc(3y)5.71%
ROICexc(5y)5.66%
ROICexgc(3y)23.68%
ROICexgc(5y)28.56%
ROCE(3y)8.29%
ROCE(5y)8.23%
ROICexgc growth 3Y-18.69%
ROICexgc growth 5Y-11.06%
ROICexc growth 3Y-5.28%
ROICexc growth 5Y-6.08%
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%
F-Score6
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 4.99 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 71.92% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.39% | ||
| Profit Quality | 207.49% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 2.79 |
F-Score6
WACC8.46%
ROIC/WACC0.65
Cap/Depr(3y)61.56%
Cap/Depr(5y)53.98%
Cap/Sales(3y)0.81%
Cap/Sales(5y)0.73%
Profit Quality(3y)124%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.31%
EPS 3Y-2.14%
EPS 5Y7.14%
EPS Q2Q%-4.6%
EPS Next Y16.61%
EPS Next 2Y12.95%
EPS Next 3Y10.72%
EPS Next 5YN/A
Revenue 1Y (TTM)5.59%
Revenue growth 3Y3.86%
Revenue growth 5Y7.87%
Sales Q2Q%6.08%
Revenue Next Year5.21%
Revenue Next 2Y4.33%
Revenue Next 3Y3.96%
Revenue Next 5YN/A
EBIT growth 1Y51.23%
EBIT growth 3Y-1.6%
EBIT growth 5Y3.32%
EBIT Next Year38.06%
EBIT Next 3Y14.12%
EBIT Next 5YN/A
FCF growth 1Y31.11%
FCF growth 3YN/A
FCF growth 5Y-18.04%
OCF growth 1Y28.2%
OCF growth 3Y125.65%
OCF growth 5Y-12.52%
ABM INDUSTRIES INC / ABM Fundamental Analysis 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.
Can you provide the profitability details for ABM INDUSTRIES INC?
ABM INDUSTRIES INC (ABM) has a profitability rating of 5 / 10.
What is the financial health of ABM INDUSTRIES INC (ABM) stock?
The financial health rating of ABM INDUSTRIES INC (ABM) is 5 / 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 16.61% in the next year.