ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABM - US0009571003 - Common Stock
42.53 USD
-0.17 (-0.4%)
We assign a fundamental rating of 4 out of 10 to ABM. 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ABM was profitable.
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 4 of the past 5 years.
1.2 Ratios
ABM has a Return On Assets of 2.20%. This is comparable to the rest of the industry: ABM outperforms 56.79% of its industry peers.
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's Return On Invested Capital of 4.47% is in line compared to the rest of the industry. ABM outperforms 54.32% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABM is below the industry average of 10.33%.
| 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
ABM has a Profit Margin (1.34%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ABM has grown nicely.
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.
ABM has a worse Gross Margin (12.48%) than 83.95% of its industry peers.
ABM's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ABM 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
An Altman-Z score of 2.76 indicates that ABM is not a great score, but indicates only limited risk for bankruptcy at the moment.
ABM has a Altman-Z score (2.76) 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 of 26.37. This is comparable to the rest of the industry: ABM outperforms 50.62% of its industry peers.
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 comparable 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
WACC7.95%
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 of 1.49. This is comparable to the rest of the industry: ABM outperforms 50.62% 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.
The Quick ratio of ABM (1.49) 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 -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.
Looking at the last year, ABM shows a small growth in Revenue. The Revenue has grown by 4.62% in the last year.
ABM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.87% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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 12.40, which indicates a correct valuation of ABM.
Based on the Price/Earnings ratio, ABM is valued cheaply inside the industry as 82.72% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.77, ABM is valued rather cheaply.
The Price/Forward Earnings ratio is 10.61, which indicates a very decent valuation of ABM.
Based on the Price/Forward Earnings ratio, ABM is valued cheaper than 88.89% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.35. ABM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 10.61 |
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.
ABM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.9 | ||
| EV/EBITDA | 11.06 |
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)0.74
PEG (5Y)1.74
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.
Compared to an average industry Dividend Yield of 0.89, ABM pays a better dividend. On top of this ABM pays more dividend than 87.65% of the companies listed 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
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 2Y13.9%
EPS Next 3Y10%
NYSE:ABM (12/31/2025, 12:57:46 PM)
42.53
-0.17 (-0.4%)
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 Cap2.60B
Revenue(TTM)8.75B
Net Income(TTM)115.90M
Analysts74.55
Price Target55.08 (29.51%)
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-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)-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 | 12.4 | ||
| Fwd PE | 10.61 | ||
| P/S | 0.3 | ||
| P/FCF | 44.9 | ||
| P/OCF | 19.82 | ||
| P/B | 1.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.06 |
EPS(TTM)3.43
EY8.06%
EPS(NY)4.01
Fwd EY9.42%
FCF(TTM)0.95
FCFY2.23%
OCF(TTM)2.15
OCFY5.05%
SpS140.91
BVpS29.9
TBVpS-16.55
PEG (NY)0.74
PEG (5Y)1.74
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
WACC7.95%
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.
Can you provide the valuation status for ABM INDUSTRIES INC?
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.
Can you provide the expected EPS growth for ABM stock?
The Earnings per Share (EPS) of ABM INDUSTRIES INC (ABM) is expected to grow by 16.83% in the next year.
How sustainable is the dividend of ABM INDUSTRIES INC (ABM) stock?
The dividend rating of ABM INDUSTRIES INC (ABM) is 6 / 10 and the dividend payout ratio is 54.79%.