ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - NYSE:ABM - US0009571003 - Common Stock
45.43 USD
+0.45 (+1%)
45.04 USD
-0.39 (-0.86%)
Overall ABM gets a fundamental rating of 4 out of 10. We evaluated ABM against 84 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 correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ABM had positive earnings in the past year.
ABM had a positive operating cash flow in the past year.
In the past 5 years ABM has always been profitable.
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 2.20%, ABM is in line with its industry, outperforming 55.95% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.33%, ABM is in line with its industry, outperforming 55.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.54%, ABM is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ABM is below the industry average of 10.17%.
| 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.
The Operating Margin of ABM (3.04%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ABM has declined.
Looking at the Gross Margin, with a value of 12.48%, ABM is doing worse than 84.52% of the companies in the same industry.
ABM's Gross Margin has improved in the last couple of years.
| 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.
The debt/assets ratio for ABM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.79 indicates that ABM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ABM (2.79) 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 46.43% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that ABM is somewhat dependend on debt financing.
The Debt to Equity ratio of ABM (0.82) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 26.37 | ||
| Altman-Z | 2.79 |
ROIC/WACC0.57
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.49 indicates that ABM should not have too much problems paying its short term obligations.
ABM's Current ratio of 1.49 is in line compared to the rest of the industry. ABM outperforms 48.81% of its industry peers.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The earnings per share for ABM have decreased by -6.25% in the last year.
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.
ABM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.16% yearly.
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.
The Revenue is expected to grow by 3.95% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 13.17, the valuation of ABM can be described as correct.
Based on the Price/Earnings ratio, ABM is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.50, ABM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.16, the valuation of ABM can be described as reasonable.
Based on the Price/Forward Earnings ratio, ABM is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ABM to the average of the S&P500 Index (22.99), we can say ABM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
63.10% of the companies in the same industry are more expensive than ABM, based on the Enterprise Value to EBITDA ratio.
ABM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.96 | ||
| EV/EBITDA | 11.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABM does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.25
PEG (5Y)1.11
EPS Next 2Y6.8%
EPS Next 3Y9.16%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 2.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.41, ABM pays a better dividend. On top of this ABM pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, ABM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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
ABM pays out 54.79% 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.
DP54.79%
EPS Next 2Y6.8%
EPS Next 3Y9.16%
45.43
+0.45 (+1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.17%
Inst Owner Change-0.02%
Ins Owners1.27%
Ins Owner Change-3.54%
Market Cap2.78B
Analysts74.55
Price Target59.16 (30.22%)
Short Float %4.17%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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)-0.34%
PT rev (3m)0.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.01%
EPS NY rev (1m)-2.71%
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 | 13.17 | ||
| Fwd PE | 11.16 | ||
| P/S | 0.32 | ||
| P/FCF | 47.96 | ||
| P/OCF | 21.17 | ||
| P/B | 1.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.51 |
EPS(TTM)3.45
EY7.59%
EPS(NY)4.07
Fwd EY8.96%
FCF(TTM)0.95
FCFY2.09%
OCF(TTM)2.15
OCFY4.72%
SpS140.91
BVpS29.9
TBVpS-16.55
PEG (NY)4.25
PEG (5Y)1.11
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%
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-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 | 2.79 |
F-Score5
WACC7.97%
ROIC/WACC0.57
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%