ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABM - US0009571003 - Common Stock
45.04 USD
+1.06 (+2.41%)
45.04 USD
0 (0%)
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. Both the profitability and the financial health of ABM get a neutral evaluation. Nothing too spectacular is happening here. ABM is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
- 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
- Looking at the Return On Assets, with a value of 3.08%, ABM is in the better half of the industry, outperforming 63.75% of the companies in the same industry.
- The Return On Equity of ABM (9.09%) is better than 68.75% of its industry peers.
- 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.
- The Average Return On Invested Capital over the past 3 years for ABM is below the industry average of 10.54%.
| 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
- ABM has a Profit Margin (1.86%) which is comparable to the rest of the industry.
- ABM's Profit Margin has improved in the last couple of years.
- ABM has a Operating Margin (3.72%) which is in line with its industry peers.
- ABM's Operating Margin has declined in the last couple of years.
- The Gross Margin of ABM (12.29%) is worse than 83.75% of its industry peers.
- In the last couple of years the Gross Margin of ABM has declined.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ABM 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
- 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 in the better half of the industry: ABM outperforms 61.25% of its industry peers.
- 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.
- 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 in line with its industry, outperforming 41.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 10.1 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.71
WACC7.75%
2.3 Liquidity
- A Current Ratio of 1.48 indicates that ABM should not have too much problems paying its short term obligations.
- ABM has a Current ratio of 1.48. This is comparable to the rest of the industry: ABM outperforms 50.00% of its industry peers.
- A Quick Ratio of 1.48 indicates that ABM should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.48, ABM is in line with its industry, outperforming 57.50% of the companies in the same industry.
| 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%.
- ABM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.14% yearly.
- Looking at the last year, ABM shows a small growth in Revenue. The Revenue has grown by 4.62% in the last 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
- 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.
- ABM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.73% yearly.
EPS Next Y16.83%
EPS Next 2Y13.9%
EPS Next 3Y10%
EPS Next 5YN/A
Revenue Next Year4.76%
Revenue Next 2Y4.22%
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 13.13, 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 83.75% of the companies listed in the same industry.
- ABM is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 11.24, which indicates a very decent valuation of ABM.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. ABM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 11.24 |
4.2 Price Multiples
- 67.50% of the companies in the same industry are more expensive than ABM, based on the Enterprise Value to EBITDA ratio.
- 76.25% of the companies in the same industry are more expensive than ABM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.78 | ||
| EV/EBITDA | 9.8 |
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)0.78
PEG (5Y)1.84
EPS Next 2Y13.9%
EPS Next 3Y10%
5. Dividend
5.1 Amount
- ABM has a Yearly Dividend Yield of 2.64%. 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 0.88. 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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 2Y13.9%
EPS Next 3Y10%
45.04
+1.06 (+2.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)12-17 2025-12-17/bmo
Earnings (Next)03-10 2026-03-10
Inst Owners102.29%
Inst Owner Change-1.06%
Ins Owners1.28%
Ins Owner Change1.58%
Market Cap2.76B
Revenue(TTM)8.75B
Net Income(TTM)162.40M
Analysts73.33
Price Target55.08 (22.29%)
Short Float %4.21%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend1.07
Dividend Growth(5Y)7.71%
DP40.39%
Div Incr Years4
Div Non Decr Years4
Ex-Date01-14 2026-01-14 (0.29)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-17.1%
Min EPS beat(2)-19.79%
Max EPS beat(2)-14.41%
EPS beat(4)1
Avg EPS beat(4)-6.23%
Min EPS beat(4)-19.79%
Max EPS beat(4)10.43%
EPS beat(8)5
Avg EPS beat(8)1.64%
EPS beat(12)8
Avg EPS beat(12)1.28%
EPS beat(16)11
Avg EPS beat(16)2.65%
Revenue beat(2)2
Avg Revenue beat(2)1.25%
Min Revenue beat(2)0.06%
Max Revenue beat(2)2.44%
Revenue beat(4)4
Avg Revenue beat(4)1.02%
Min Revenue beat(4)0.06%
Max Revenue beat(4)2.44%
Revenue beat(8)7
Avg Revenue beat(8)1.41%
Revenue beat(12)8
Avg Revenue beat(12)0.77%
Revenue beat(16)11
Avg Revenue beat(16)1.07%
PT rev (1m)-6.9%
PT rev (3m)-6.9%
EPS NQ rev (1m)-2.09%
EPS NQ rev (3m)-2.09%
EPS NY rev (1m)-1.59%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)1.51%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 11.24 | ||
| P/S | 0.32 | ||
| P/FCF | 17.78 | ||
| P/OCF | 11.77 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.8 |
EPS(TTM)3.43
EY7.62%
EPS(NY)4.01
Fwd EY8.9%
FCF(TTM)2.53
FCFY5.62%
OCF(TTM)3.83
OCFY8.5%
SpS142.84
BVpS29.16
TBVpS-17.13
PEG (NY)0.78
PEG (5Y)1.84
Graham Number47.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 9.09% | ||
| ROCE | 8.2% | ||
| ROIC | 5.53% | ||
| ROICexc | 5.67% | ||
| ROICexgc | 21.36% | ||
| OM | 3.72% | ||
| PM (TTM) | 1.86% | ||
| GM | 12.29% | ||
| FCFM | 1.77% |
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-Score7
Asset Turnover1.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 10.1 | ||
| Debt/EBITDA | 3.57 | ||
| Cap/Depr | 75.09% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 3.26 | ||
| Cash Conversion | 54.42% | ||
| Profit Quality | 95.5% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 2.85 |
F-Score7
WACC7.75%
ROIC/WACC0.71
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)-3.92%
EPS 3Y-2.14%
EPS 5Y7.14%
EPS Q2Q%-2.22%
EPS Next Y16.83%
EPS Next 2Y13.9%
EPS Next 3Y10%
EPS Next 5YN/A
Revenue 1Y (TTM)4.62%
Revenue growth 3Y3.86%
Revenue growth 5Y7.87%
Sales Q2Q%5.42%
Revenue Next Year4.76%
Revenue Next 2Y4.22%
Revenue Next 3Y3.73%
Revenue Next 5YN/A
EBIT growth 1Y53.35%
EBIT growth 3Y-1.6%
EBIT growth 5Y3.32%
EBIT Next Year40.67%
EBIT Next 3Y13.44%
EBIT Next 5YN/A
FCF growth 1Y-7.29%
FCF growth 3YN/A
FCF growth 5Y-18.04%
OCF growth 1Y3.4%
OCF growth 3Y125.65%
OCF growth 5Y-12.52%
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%.