ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABM - US0009571003 - Common Stock
45.26 USD
+0.22 (+0.49%)
44.8501 USD
-0.41 (-0.91%)
Overall ABM gets a fundamental rating of 5 out of 10. We evaluated ABM against 80 industry peers in the Commercial Services & Supplies industry. ABM has only an average score on both its financial health and profitability. ABM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally ABM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ABM was profitable.
- In the past year ABM had a positive cash flow from operations.
- 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
- ABM has a better Return On Assets (3.08%) than 63.75% of its industry peers.
- ABM's Return On Equity of 9.09% is fine compared to the rest of the industry. ABM outperforms 68.75% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.53%, ABM is in line with its industry, outperforming 57.50% of the companies in the same industry.
- ABM had an Average Return On Invested Capital over the past 3 years of 5.59%. This 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 in line with its industry peers.
- In the last couple of years the Profit Margin of ABM has grown nicely.
- ABM has a Operating Margin (3.72%) which is comparable to the rest of the industry.
- ABM's Operating Margin has declined in the last couple of years.
- ABM has a worse Gross Margin (12.29%) 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
- 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
- Compared to 5 years ago, ABM has less shares outstanding
- Compared to 1 year ago, ABM has a worse debt to assets ratio.
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.
- ABM has a debt to FCF ratio of 10.10. This is a negative value and a sign of low solvency as ABM would need 10.10 years to pay back of all of its debts.
- The Debt to FCF ratio of ABM (10.10) is comparable to the rest of the industry.
- ABM has a Debt/Equity ratio of 0.86. This is a neutral value indicating ABM is somewhat dependend on debt financing.
- ABM has a Debt to Equity ratio (0.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 10.1 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.71
WACC7.82%
2.3 Liquidity
- ABM has a Current Ratio of 1.48. This is a normal value and indicates that ABM is financially healthy and should not expect problems in meeting its short term obligations.
- ABM has a Current ratio (1.48) which is comparable to the rest of the industry.
- ABM has a Quick Ratio of 1.48. This is a normal value and indicates that ABM is financially healthy and should not expect problems in meeting its short term obligations.
- ABM has a Quick ratio of 1.48. This is comparable to the rest of the industry: ABM outperforms 57.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
- The earnings per share for ABM have decreased by -3.92% in the last year.
- Measured over the past 5 years, ABM shows a small growth in Earnings Per Share. The EPS has been growing by 7.14% on average per year.
- ABM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.62%.
- The Revenue has been growing slightly by 7.87% on average over the past years.
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
- ABM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.00% yearly.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ABM is valuated correctly with a Price/Earnings ratio of 13.20.
- 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 27.47, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.29, the valuation of ABM can be described as reasonable.
- 90.00% of the companies in the same industry are more expensive than ABM, based on the Price/Forward Earnings ratio.
- ABM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ABM is valued a bit cheaper than 67.50% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ABM is valued a bit cheaper than 76.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.87 | ||
| EV/EBITDA | 9.8 |
4.3 Compensation for Growth
- ABM's 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)1.85
EPS Next 2Y13.9%
EPS Next 3Y10%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.58%, ABM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.84, ABM pays a better dividend. On top of this ABM pays more dividend than 87.50% of the companies listed in the same industry.
- ABM's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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.
- The dividend of ABM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.39%
EPS Next 2Y13.9%
EPS Next 3Y10%
45.26
+0.22 (+0.49%)
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 Cap2.77B
Revenue(TTM)8.75B
Net Income(TTM)162.40M
Analysts73.33
Price Target55.08 (21.7%)
Short Float %4.21%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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 | 13.2 | ||
| Fwd PE | 11.29 | ||
| P/S | 0.32 | ||
| P/FCF | 17.87 | ||
| P/OCF | 11.82 | ||
| P/B | 1.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.8 |
EPS(TTM)3.43
EY7.58%
EPS(NY)4.01
Fwd EY8.85%
FCF(TTM)2.53
FCFY5.6%
OCF(TTM)3.83
OCFY8.46%
SpS142.84
BVpS29.16
TBVpS-17.13
PEG (NY)0.78
PEG (5Y)1.85
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
WACC7.82%
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%.