ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABM - US0009571003 - Common Stock
42.3 USD
-0.4 (-0.94%)
42.3 USD
0 (0%)
Taking everything into account, ABM scores 4 out of 10 in our fundamental rating. ABM was compared to 81 industry peers in the Commercial Services & Supplies industry. ABM has only an average score on both its financial health and profitability. 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.
In the past year ABM had a positive cash flow from operations.
Each year in the past 5 years ABM has been profitable.
ABM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ABM has a Return On Assets (2.20%) which is comparable to the rest of the industry.
ABM's Return On Equity of 6.33% is in line compared to the rest of the industry. ABM outperforms 59.26% of its industry peers.
ABM has a Return On Invested Capital (4.47%) which 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 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.33% | ||
| ROIC | 4.47% |
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
The Profit Margin of ABM (1.34%) is comparable to the rest of the industry.
ABM's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 3.04%, ABM perfoms like the industry average, outperforming 49.38% of the companies in the same industry.
ABM's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 12.48%, ABM is doing worse than 81.48% of the companies in the same industry.
In the last couple of years the Gross Margin of ABM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.04% | ||
| PM (TTM) | 1.34% | ||
| GM | 12.48% |
OM growth 3Y-5.26%
OM growth 5Y-4.22%
PM growth 3Y-14.31%
PM growth 5Y226.42%
GM growth 3Y-4.76%
GM growth 5Y-3.99%
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.
Compared to 1 year ago, ABM has a worse debt to assets ratio.
2.2 Solvency
ABM has an Altman-Z score of 2.76. 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.
Looking at the Altman-Z score, with a value of 2.76, ABM is in line with its industry, outperforming 59.26% of the companies in the same industry.
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 of 26.37. This is comparable to the rest of the industry: ABM outperforms 50.62% of its industry peers.
ABM has a Debt/Equity ratio of 0.82. This is a neutral value indicating ABM is somewhat dependend on debt financing.
ABM's Debt to Equity ratio of 0.82 is in line compared to the rest of the industry. ABM outperforms 41.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 26.37 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.56
WACC7.98%
2.3 Liquidity
ABM has a Current Ratio of 1.49. This is a normal value and indicates that ABM is financially healthy and should not expect problems in meeting its short term obligations.
ABM's Current ratio of 1.49 is in line compared to the rest of the industry. ABM outperforms 51.85% of its industry peers.
ABM has a Quick Ratio of 1.49. 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 (1.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
ABM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.92%.
ABM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.14% yearly.
Looking at the last year, ABM shows a small growth in Revenue. The Revenue has grown by 4.62% in the last year.
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
The Earnings Per Share is expected to grow by 10.00% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 12.33.
83.95% 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 26.51, ABM is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.56, the valuation of ABM can be described as very reasonable.
ABM's Price/Forward Earnings ratio is rather cheap when compared to the industry. ABM is cheaper than 88.89% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. ABM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABM indicates a somewhat cheap valuation: ABM is cheaper than 64.20% of the companies listed 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 | 44.66 | ||
| EV/EBITDA | 10.99 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.73
PEG (5Y)1.73
EPS Next 2Y13.9%
EPS Next 3Y10%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.75%, 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 0.89. ABM pays more dividend than 87.65% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, ABM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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
54.79% of the earnings are spent on dividend by ABM. This is a bit on the high side, but may be sustainable.
ABM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.79%
EPS Next 2Y13.9%
EPS Next 3Y10%
42.3
-0.4 (-0.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.38%
Inst Owner Change0.24%
Ins Owners1.26%
Ins Owner Change-0.6%
Market Cap2.59B
Revenue(TTM)8.75B
Net Income(TTM)115.90M
Analysts74.55
Price Target55.08 (30.21%)
Short Float %4.21%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
Yearly Dividend0.9
Dividend Growth(5Y)4.66%
DP54.79%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)-6.9%
PT rev (3m)-6.9%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-0.08%
EPS NY rev (1m)-1.59%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)1.51%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 10.56 | ||
| P/S | 0.3 | ||
| P/FCF | 44.66 | ||
| P/OCF | 19.71 | ||
| P/B | 1.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.99 |
EPS(TTM)3.43
EY8.11%
EPS(NY)4.01
Fwd EY9.47%
FCF(TTM)0.95
FCFY2.24%
OCF(TTM)2.15
OCFY5.07%
SpS140.91
BVpS29.9
TBVpS-16.55
PEG (NY)0.73
PEG (5Y)1.73
Graham Number48.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.33% | ||
| ROCE | 6.63% | ||
| ROIC | 4.47% | ||
| ROICexc | 4.55% | ||
| ROICexgc | 16.95% | ||
| OM | 3.04% | ||
| PM (TTM) | 1.34% | ||
| GM | 12.48% | ||
| FCFM | 0.67% |
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-4.76%
GM growth 5Y-3.99%
F-Score6
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 | 2.76 |
F-Score6
WACC7.98%
ROIC/WACC0.56
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
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 1Y-12.27%
EBIT growth 3Y-1.6%
EBIT growth 5Y3.32%
EBIT Next Year40.67%
EBIT Next 3Y13.44%
EBIT Next 5YN/A
FCF growth 1Y-78.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-60.82%
OCF growth 3YN/A
OCF growth 5YN/A
ABM INDUSTRIES INC / ABM FAQ
What is the ChartMill fundamental rating of ABM INDUSTRIES INC (ABM) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ABM.
What is the valuation status of ABM INDUSTRIES INC (ABM) stock?
ChartMill assigns a valuation rating of 6 / 10 to ABM INDUSTRIES INC (ABM). This can be considered as Fairly Valued.
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 6 / 10 and the dividend payout ratio is 54.79%.