ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
NYSE:ABM - New York Stock Exchange, Inc. - US0009571003 - Common Stock - Currency: USD
Overall ABM gets a fundamental rating of 4 out of 10. We evaluated ABM against 83 industry peers in the Commercial Services & Supplies industry. ABM has an average financial health and profitability rating. ABM has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years ABM had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.48%, ABM perfoms like the industry average, outperforming 53.01% of the companies in the same industry.
ABM's Return On Equity of 4.32% is in line compared to the rest of the industry. ABM outperforms 56.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.69%, ABM is in line with its industry, outperforming 46.99% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABM is significantly below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 4.32% | ||
| ROIC | 3.69% |
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
ABM has a Profit Margin (0.93%) which 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 2.55%. This is in the lower half of the industry: ABM underperforms 60.24% of its industry peers.
In the last couple of years the Operating Margin of ABM has declined.
With a Gross Margin value of 12.54%, ABM is not doing good in the industry: 84.34% 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 | 2.55% | ||
| PM (TTM) | 0.93% | ||
| GM | 12.54% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
ABM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.76 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 2.76, ABM is in line with its industry, outperforming 55.42% of the companies in the same industry.
ABM has a Debt/Equity ratio of 0.83. This is a neutral value indicating ABM is somewhat dependend on debt financing.
The Debt to Equity ratio of ABM (0.83) is worse than 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.76 |
ROIC/WACC0.38
WACC9.76%
2.3 Liquidity
A Current Ratio of 1.55 indicates that ABM should not have too much problems paying its short term obligations.
ABM has a Current ratio (1.55) which is in line with its industry peers.
ABM has a Quick Ratio of 1.55. 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 1.55, ABM is in the better half of the industry, outperforming 62.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
ABM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.13%.
The Earnings Per Share has been growing by 11.84% on average over the past years. This is quite good.
ABM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.52%.
The Revenue has been growing slightly by 5.16% on average over the past years.
EPS 1Y (TTM)1.13%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%-1.15%
Revenue 1Y (TTM)3.52%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%4.63%
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 9.18% yearly.
ABM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.54% yearly.
EPS Next Y5.97%
EPS Next 2Y8.19%
EPS Next 3Y9.18%
EPS Next 5YN/A
Revenue Next Year4.03%
Revenue Next 2Y3.24%
Revenue Next 3Y3.54%
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.
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 13.43, ABM is valued correctly.
79.52% of the companies in the same industry are more expensive than ABM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.45, ABM is valued rather cheaply.
ABM is valuated reasonably with a Price/Forward Earnings ratio of 11.47.
Based on the Price/Forward Earnings ratio, ABM is valued cheaper than 84.34% of the companies in the same industry.
ABM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.43 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ABM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.97 |
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)2.25
PEG (5Y)1.13
EPS Next 2Y8.19%
EPS Next 3Y9.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.32%, 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 2.44. ABM pays more dividend than 84.34% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, ABM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
The dividend of ABM has a limited annual growth rate of 4.66%.
ABM has paid a dividend for at least 10 years, which is 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
77.54% of the earnings are spent on dividend by ABM. This is not a sustainable payout ratio.
The dividend of ABM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP77.54%
EPS Next 2Y8.19%
EPS Next 3Y9.18%
47.93
-0.35 (-0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.29%
Inst Owner Change1.5%
Ins Owners1.33%
Ins Owner Change3.7%
Market Cap2.98B
Analysts71.67
Price Target58.75 (22.57%)
Short Float %3.22%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend0.9
Dividend Growth(5Y)4.66%
DP77.54%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.64%
Min EPS beat(2)-1.15%
Max EPS beat(2)10.43%
EPS beat(4)3
Avg EPS beat(4)4.87%
Min EPS beat(4)-1.15%
Max EPS beat(4)10.43%
EPS beat(8)6
Avg EPS beat(8)5.49%
EPS beat(12)9
Avg EPS beat(12)4.36%
EPS beat(16)13
Avg EPS beat(16)5.73%
Revenue beat(2)2
Avg Revenue beat(2)0.78%
Min Revenue beat(2)0.09%
Max Revenue beat(2)1.48%
Revenue beat(4)4
Avg Revenue beat(4)1.76%
Min Revenue beat(4)0.09%
Max Revenue beat(4)3.68%
Revenue beat(8)6
Avg Revenue beat(8)1.38%
Revenue beat(12)8
Avg Revenue beat(12)0.82%
Revenue beat(16)11
Avg Revenue beat(16)1.2%
PT rev (1m)0.17%
PT rev (3m)0.17%
EPS NQ rev (1m)-3.82%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.43 | ||
| Fwd PE | 11.47 | ||
| P/S | 0.35 | ||
| P/FCF | N/A | ||
| P/OCF | 83.32 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.97 |
EPS(TTM)3.57
EY7.45%
EPS(NY)4.18
Fwd EY8.72%
FCF(TTM)-0.45
FCFYN/A
OCF(TTM)0.58
OCFY1.2%
SpS136.56
BVpS29.32
TBVpS-16.2
PEG (NY)2.25
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 4.32% | ||
| ROCE | 5.4% | ||
| ROIC | 3.69% | ||
| ROICexc | 3.75% | ||
| ROICexgc | 13.23% | ||
| OM | 2.55% | ||
| PM (TTM) | 0.93% | ||
| GM | 12.54% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y-18.57%
ROICexcg 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-Score4
Asset Turnover1.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.73 | ||
| Cap/Depr | 60.87% | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 11.12% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 2.76 |
F-Score4
WACC9.76%
ROIC/WACC0.38
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)1.13%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%-1.15%
EPS Next Y5.97%
EPS Next 2Y8.19%
EPS Next 3Y9.18%
EPS Next 5YN/A
Revenue 1Y (TTM)3.52%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%4.63%
Revenue Next Year4.03%
Revenue Next 2Y3.24%
Revenue Next 3Y3.54%
Revenue Next 5YN/A
EBIT growth 1Y-45.97%
EBIT growth 3Y0.91%
EBIT growth 5Y-0.71%
EBIT Next Year34.86%
EBIT Next 3Y14.71%
EBIT Next 5YN/A
FCF growth 1Y-148.13%
FCF growth 3Y-15.77%
FCF growth 5Y-3.8%
OCF growth 1Y-68.29%
OCF growth 3Y-10.32%
OCF growth 5Y-2.9%