ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - NYSE:ABM - US0009571003 - Common Stock
45.79 USD
-1.03 (-2.2%)
45.79 USD
0 (0%)
ABM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
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
ABM has a Return On Assets (2.20%) which is comparable to the rest of the industry.
With a Return On Equity value of 6.33%, ABM perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
The Return On Invested Capital of ABM (4.54%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ABM is below the industry average of 10.60%.
| 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
Looking at the Profit Margin, with a value of 1.34%, ABM is in line with its industry, outperforming 51.19% of the companies in the same industry.
ABM's Profit Margin has declined in the last couple of years.
ABM's Operating Margin of 3.04% is in line compared to the rest of the industry. ABM outperforms 42.86% of its industry peers.
In the last couple of years the Operating Margin of ABM has declined.
ABM has a Gross Margin of 12.48%. This is amonst the worse of the industry: ABM underperforms 84.52% of its industry peers.
In the last couple of years the Gross Margin of ABM has grown nicely.
| 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.
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
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.
ABM has a Altman-Z score (2.79) which is in line with its industry peers.
The Debt to FCF ratio of ABM is 26.37, which is on the high side as it means it would take ABM, 26.37 years of fcf income to pay off all of its debts.
ABM has a Debt to FCF ratio (26.37) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.82 indicates that ABM is somewhat dependend on debt financing.
ABM has a Debt to Equity ratio of 0.82. This is in the lower half of the industry: ABM underperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 26.37 | ||
| Altman-Z | 2.79 |
ROIC/WACC0.54
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.49 indicates that ABM should not have too much problems paying its short term obligations.
ABM has a Current ratio (1.49) which is comparable to the rest of the industry.
A Quick Ratio of 1.49 indicates that ABM should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.49, ABM perfoms like the industry average, outperforming 58.33% of the companies in the same 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.
ABM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.27%.
The Revenue has been growing slightly by 5.16% on average over the past years.
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
Based on estimates for the next years, ABM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.18% on average per year.
ABM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
EPS Next Y5.97%
EPS Next 2Y8.19%
EPS Next 3Y9.18%
EPS Next 5YN/A
Revenue Next Year5.62%
Revenue Next 2Y4.38%
Revenue Next 3Y3.95%
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
The Price/Earnings ratio is 13.27, which indicates a correct valuation of ABM.
Based on the Price/Earnings ratio, ABM is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ABM to the average of the S&P500 Index (27.30), we can say ABM is valued rather cheaply.
The Price/Forward Earnings ratio is 10.96, 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 89.29% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. ABM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.27 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABM is valued a bit cheaper than 63.10% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ABM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.34 | ||
| EV/EBITDA | 11.57 |
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)2.22
PEG (5Y)1.12
EPS Next 2Y8.19%
EPS Next 3Y9.18%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 2.26%. 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 2.26. ABM pays more dividend than 84.52% of the companies in the same industry.
ABM's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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
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 2Y8.19%
EPS Next 3Y9.18%
45.79
-1.03 (-2.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.58%
Inst Owner Change1.06%
Ins Owners1.24%
Ins Owner Change-3.38%
Market Cap2.80B
Analysts78.18
Price Target59.16 (29.2%)
Short Float %3.62%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)0.87%
EPS NQ rev (1m)2.01%
EPS NQ rev (3m)2.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)2.59%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.27 | ||
| Fwd PE | 10.96 | ||
| P/S | 0.32 | ||
| P/FCF | 48.34 | ||
| P/OCF | 21.34 | ||
| P/B | 1.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.57 |
EPS(TTM)3.45
EY7.53%
EPS(NY)4.18
Fwd EY9.13%
FCF(TTM)0.95
FCFY2.07%
OCF(TTM)2.15
OCFY4.69%
SpS140.91
BVpS29.9
TBVpS-16.55
PEG (NY)2.22
PEG (5Y)1.12
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
WACC8.37%
ROIC/WACC0.54
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 Y5.97%
EPS Next 2Y8.19%
EPS Next 3Y9.18%
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 Year35.34%
EBIT Next 3Y14.71%
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%