ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABM - US0009571003 - Common Stock
45.21 USD
+0.42 (+0.94%)
ABM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Commercial Services & Supplies industry. ABM has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on ABM. Finally ABM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- ABM had positive earnings in the past year.
- ABM had a positive operating cash flow in the past year.
- In the past 5 years ABM has always been profitable.
- Each year in the past 5 years ABM had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 3.08%, ABM is doing good in the industry, outperforming 63.75% of the companies in the same industry.
- The Return On Equity of ABM (9.09%) is better than 68.75% of its industry peers.
- ABM has a Return On Invested Capital (5.53%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ABM is below the industry average of 10.58%.
| 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.
- ABM's Profit Margin has improved in the last couple of years.
- 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 85.00% of its industry peers.
- ABM's Gross Margin has declined in the last couple of years.
| 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
- ABM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- ABM has less shares outstanding than it did 1 year ago.
- ABM has less shares outstanding than it did 5 years ago.
- ABM has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.84 indicates that ABM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.84, ABM is in line with its industry, outperforming 60.00% of the companies in the same industry.
- The Debt to FCF ratio of ABM is 10.10, which is on the high side as it means it would take ABM, 10.10 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 10.10, ABM perfoms like the industry average, outperforming 57.50% of the companies in the same industry.
- ABM has a Debt/Equity ratio of 0.86. This is a neutral value indicating ABM is somewhat dependend on debt financing.
- The Debt to Equity ratio of ABM (0.86) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 10.1 | ||
| Altman-Z | 2.84 |
ROIC/WACC0.7
WACC7.9%
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.
- A Quick Ratio of 1.48 indicates that ABM should not have too much problems paying its short term obligations.
- ABM has a Quick ratio (1.48) which is comparable to the rest of the industry.
| 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.
- ABM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.14% yearly.
- The Revenue has been growing slightly by 4.62% in the past year.
- Measured over the past years, ABM shows a small growth in Revenue. The Revenue has been growing by 7.87% on average per year.
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
- Based on estimates for the next years, ABM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.00% on average per year.
- Based on estimates for the next years, ABM will show a small growth in Revenue. The Revenue will grow by 3.73% on average per year.
EPS Next Y17.45%
EPS Next 2Y13.2%
EPS Next 3Y10%
EPS Next 5YN/A
Revenue Next Year4.95%
Revenue Next 2Y3.46%
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
- With a Price/Earnings ratio of 13.18, ABM is valued correctly.
- Based on the Price/Earnings ratio, ABM is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
- ABM is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- ABM is valuated reasonably with a Price/Forward Earnings ratio of 11.22.
- Based on the Price/Forward Earnings ratio, ABM is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
- ABM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 11.22 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ABM is valued a bit cheaper than 66.25% of the companies in the same industry.
- 73.75% of the companies in the same industry are more expensive than ABM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.85 | ||
| EV/EBITDA | 9.76 |
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)0.76
PEG (5Y)1.85
EPS Next 2Y13.2%
EPS Next 3Y10%
5. Dividend
5.1 Amount
- ABM has a Yearly Dividend Yield of 2.50%. 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 0.82. ABM pays more dividend than 87.50% of the companies in the same industry.
- ABM's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
5.2 History
- The dividend of ABM is nicely growing with an annual growth rate of 7.71%!
- 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)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.
- ABM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.39%
EPS Next 2Y13.2%
EPS Next 3Y10%
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%.