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ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis

NYSE:ABM - New York Stock Exchange, Inc. - US0009571003 - Common Stock

53.09  -0.28 (-0.52%)

After market: 53.09 0 (0%)

Fundamental Rating

4

Taking everything into account, ABM scores 4 out of 10 in our fundamental rating. ABM was compared to 83 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.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

In the past year ABM was profitable.
ABM had a positive operating cash flow in the past year.
Each year in the past 5 years ABM has been profitable.
Each year in the past 5 years ABM had a positive operating cash flow.
ABM Yearly Net Income VS EBIT VS OCF VS FCFABM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M

1.2 Ratios

With a Return On Assets value of 1.60%, ABM perfoms like the industry average, outperforming 52.44% of the companies in the same industry.
ABM has a Return On Equity (4.57%) which is in line with its industry peers.
ABM has a Return On Invested Capital of 3.87%. This is comparable to the rest of the industry: ABM outperforms 43.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABM is below the industry average of 10.10%.
Industry RankSector Rank
ROA 1.6%
ROE 4.57%
ROIC 3.87%
ROA(3y)3.81%
ROA(5y)2.86%
ROE(3y)10.65%
ROE(5y)7.96%
ROIC(3y)6.02%
ROIC(5y)5.86%
ABM Yearly ROA, ROE, ROICABM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

ABM's Profit Margin of 0.97% is in line compared to the rest of the industry. ABM outperforms 46.34% of its industry peers.
ABM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.54%, ABM is doing worse than 63.41% of the companies in the same industry.
ABM's Operating Margin has declined in the last couple of years.
ABM has a Gross Margin of 12.36%. This is amonst the worse of the industry: ABM underperforms 82.93% of its industry peers.
In the last couple of years the Gross Margin of ABM has grown nicely.
Industry RankSector Rank
OM 2.54%
PM (TTM) 0.97%
GM 12.36%
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%
ABM Yearly Profit, Operating, Gross MarginsABM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
Compared to 1 year ago, ABM has an improved debt to assets ratio.
ABM Yearly Shares OutstandingABM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
ABM Yearly Total Debt VS Total AssetsABM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

ABM has an Altman-Z score of 2.83. 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's Altman-Z score of 2.83 is in line compared to the rest of the industry. ABM outperforms 59.76% of its industry peers.
The Debt to FCF ratio of ABM is 7.97, which is on the high side as it means it would take ABM, 7.97 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.97, ABM perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that ABM is somewhat dependend on debt financing.
ABM has a Debt to Equity ratio of 0.73. This is comparable to the rest of the industry: ABM outperforms 41.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF 7.97
Altman-Z 2.83
ROIC/WACC0.46
WACC8.5%
ABM Yearly LT Debt VS Equity VS FCFABM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

ABM has a Current Ratio of 1.33. This is a normal value and indicates that ABM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ABM (1.33) is worse than 60.98% of its industry peers.
A Quick Ratio of 1.33 indicates that ABM should not have too much problems paying its short term obligations.
ABM's Quick ratio of 1.33 is in line compared to the rest of the industry. ABM outperforms 51.22% of its industry peers.
Industry RankSector Rank
Current Ratio 1.33
Quick Ratio 1.33
ABM Yearly Current Assets VS Current LiabilitesABM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 2.29% over the past 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.
Looking at the last year, ABM shows a small growth in Revenue. The Revenue has grown by 3.25% in the last year.
Measured over the past years, ABM shows a small growth in Revenue. The Revenue has been growing by 5.16% on average per year.
EPS 1Y (TTM)2.29%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%-10.89%
Revenue 1Y (TTM)3.25%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%4.03%

3.2 Future

ABM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.07% yearly.
Based on estimates for the next years, ABM will show a small growth in Revenue. The Revenue will grow by 2.69% on average per year.
EPS Next Y3.65%
EPS Next 2Y7.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.72%
Revenue Next 2Y2.73%
Revenue Next 3Y2.69%
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.
ABM Yearly Revenue VS EstimatesABM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B
ABM Yearly EPS VS EstimatesABM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.87, which indicates a correct valuation of ABM.
Based on the Price/Earnings ratio, ABM is valued cheaper than 82.93% of the companies in the same industry.
When comparing the Price/Earnings ratio of ABM to the average of the S&P500 Index (27.96), we can say ABM is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.35, ABM is valued correctly.
Based on the Price/Forward Earnings ratio, ABM is valued cheaper than 80.49% of the companies in the same industry.
ABM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.11, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.87
Fwd PE 14.35
ABM Price Earnings VS Forward Price EarningsABM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

ABM's Enterprise Value to EBITDA ratio is in line with the industry average.
69.51% of the companies in the same industry are more expensive than ABM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 19.74
EV/EBITDA 14.4
ABM Per share dataABM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

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)4.07
PEG (5Y)1.26
EPS Next 2Y7.07%
EPS Next 3YN/A

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.99%, ABM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.15, ABM pays a better dividend. On top of this ABM pays more dividend than 84.15% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, ABM has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.99%

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
ABM Yearly Dividends per shareABM Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

69.33% of the earnings are spent on dividend by ABM. This is not a sustainable payout ratio.
ABM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP69.33%
EPS Next 2Y7.07%
EPS Next 3YN/A
ABM Yearly Income VS Free CF VS DividendABM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M
ABM Dividend Payout.ABM Dividend Payout, showing the Payout Ratio.ABM Dividend Payout.PayoutRetained Earnings

ABM INDUSTRIES INC

NYSE:ABM (1/17/2025, 8:04:00 PM)

After market: 53.09 0 (0%)

53.09

-0.28 (-0.52%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)12-18 2024-12-18/bmo
Earnings (Next)N/A N/A
Inst Owners97.88%
Inst Owner Change-0.01%
Ins Owners1.33%
Ins Owner Change4.27%
Market Cap3.30B
Analysts71.67
Price Target59.84 (12.71%)
Short Float %2.51%
Short Ratio4.25
Dividend
Industry RankSector Rank
Dividend Yield 1.99%
Yearly Dividend0.9
Dividend Growth(5Y)4.66%
DP69.33%
Div Incr Years4
Div Non Decr Years4
Ex-Date01-02 2025-01-02 (0.265)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.1%
Min EPS beat(2)2.13%
Max EPS beat(2)8.06%
EPS beat(4)4
Avg EPS beat(4)9.5%
Min EPS beat(4)2.13%
Max EPS beat(4)19.3%
EPS beat(8)7
Avg EPS beat(8)5.04%
EPS beat(12)10
Avg EPS beat(12)5.62%
EPS beat(16)14
Avg EPS beat(16)10.3%
Revenue beat(2)2
Avg Revenue beat(2)2.84%
Min Revenue beat(2)1.81%
Max Revenue beat(2)3.88%
Revenue beat(4)3
Avg Revenue beat(4)1.86%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)3.88%
Revenue beat(8)4
Avg Revenue beat(8)0.68%
Revenue beat(12)7
Avg Revenue beat(12)1.11%
Revenue beat(16)10
Avg Revenue beat(16)1.12%
PT rev (1m)2.03%
PT rev (3m)2.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)1.54%
Valuation
Industry RankSector Rank
PE 14.87
Fwd PE 14.35
P/S 0.4
P/FCF 19.74
P/OCF 14.57
P/B 1.85
P/tB N/A
EV/EBITDA 14.4
EPS(TTM)3.57
EY6.72%
EPS(NY)3.7
Fwd EY6.97%
FCF(TTM)2.69
FCFY5.07%
OCF(TTM)3.64
OCFY6.87%
SpS134.4
BVpS28.65
TBVpS-17.31
PEG (NY)4.07
PEG (5Y)1.26
Profitability
Industry RankSector Rank
ROA 1.6%
ROE 4.57%
ROCE 5.66%
ROIC 3.87%
ROICexc 3.94%
ROICexgc 17.56%
OM 2.54%
PM (TTM) 0.97%
GM 12.36%
FCFM 2%
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 RankSector Rank
Debt/Equity 0.73
Debt/FCF 7.97
Debt/EBITDA 4.09
Cap/Depr 55.72%
Cap/Sales 0.71%
Interest Coverage 2.15
Cash Conversion 71.16%
Profit Quality 205.28%
Current Ratio 1.33
Quick Ratio 1.33
Altman-Z 2.83
F-Score5
WACC8.5%
ROIC/WACC0.46
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)2.29%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%-10.89%
EPS Next Y3.65%
EPS Next 2Y7.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.25%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%4.03%
Revenue Next Year2.72%
Revenue Next 2Y2.73%
Revenue Next 3Y2.69%
Revenue Next 5YN/A
EBIT growth 1Y-48.22%
EBIT growth 3Y0.91%
EBIT growth 5Y-0.71%
EBIT Next Year33.48%
EBIT Next 3Y13.14%
EBIT Next 5YN/A
FCF growth 1Y-6.17%
FCF growth 3Y-15.77%
FCF growth 5Y-3.8%
OCF growth 1Y-6.82%
OCF growth 3Y-10.32%
OCF growth 5Y-2.9%