ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABM - US0009571003 - Common Stock
45.04 USD
+1.06 (+2.41%)
45.04 USD
0 (0%)
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 an average financial health and profitability rating. ABM may be a bit undervalued, certainly considering the very reasonable score on growth 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.
- ABM had positive earnings in each of the past 5 years.
- Each year in the past 5 years ABM had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.08%, ABM is in the better half of the industry, outperforming 63.75% of the companies in the same industry.
- 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.
- With a Return On Invested Capital value of 5.53%, ABM perfoms like the industry average, outperforming 57.50% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ABM 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
- Looking at the Profit Margin, with a value of 1.86%, ABM is in line with its industry, outperforming 55.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of ABM has grown nicely.
- ABM has a Operating Margin of 3.72%. This is comparable to the rest of the industry: ABM outperforms 48.75% of its industry peers.
- In the last couple of years the Operating Margin of ABM has declined.
- ABM has a Gross Margin of 12.29%. This is amonst the worse of the industry: ABM underperforms 83.75% 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
- 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
- The debt/assets ratio for ABM is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.83 indicates that ABM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of ABM (2.83) is better than 61.25% of its industry peers.
- 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.
- ABM has a Debt to FCF ratio (10.10) which is in line with its industry peers.
- A Debt/Equity ratio of 0.86 indicates that ABM is somewhat dependend on debt financing.
- ABM has a Debt to Equity ratio of 0.86. This is comparable to the rest of the industry: ABM outperforms 41.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 10.1 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.71
WACC7.75%
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 of 1.48. This is comparable to the rest of the industry: ABM outperforms 50.00% of its industry peers.
- A Quick Ratio of 1.48 indicates that ABM should not have too much problems paying its short term obligations.
- ABM's Quick ratio of 1.48 is in line compared 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
- ABM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.92%.
- The Earnings Per Share has been growing slightly by 7.14% on average over the past years.
- 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
- 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
- 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
- With a Price/Earnings ratio of 13.13, ABM is valued correctly.
- Based on the Price/Earnings ratio, ABM is valued cheaper than 85.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of ABM to the average of the S&P500 Index (27.33), we can say ABM is valued rather cheaply.
- With a Price/Forward Earnings ratio of 11.24, the valuation of ABM can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, ABM is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. ABM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 11.24 |
4.2 Price Multiples
- 67.50% of the companies in the same industry are more expensive than ABM, based on the Enterprise Value to EBITDA ratio.
- 76.25% 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 | 17.78 | ||
| EV/EBITDA | 9.65 |
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)0.78
PEG (5Y)1.84
EPS Next 2Y13.9%
EPS Next 3Y10%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.64%, ABM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.88, ABM pays a better dividend. On top of this ABM pays more dividend than 87.50% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, ABM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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
- 40.39% 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.
DP40.39%
EPS Next 2Y13.9%
EPS Next 3Y10%
45.04
+1.06 (+2.41%)
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 Cap2.76B
Revenue(TTM)8.75B
Net Income(TTM)162.40M
Analysts73.33
Price Target55.08 (22.29%)
Short Float %4.21%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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 | 13.13 | ||
| Fwd PE | 11.24 | ||
| P/S | 0.32 | ||
| P/FCF | 17.78 | ||
| P/OCF | 11.77 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.65 |
EPS(TTM)3.43
EY7.62%
EPS(NY)4.01
Fwd EY8.9%
FCF(TTM)2.53
FCFY5.62%
OCF(TTM)3.83
OCFY8.5%
SpS142.84
BVpS29.16
TBVpS-17.13
PEG (NY)0.78
PEG (5Y)1.84
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 | 2.83 |
F-Score7
WACC7.75%
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%.