ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABM - US0009571003 - Common Stock
45.61 USD
+0.24 (+0.53%)
45.61 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ABM. ABM was compared to 80 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of ABM get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on ABM. 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.
- Each year in the past 5 years ABM has been profitable.
- In the past 5 years ABM always reported a positive cash flow from operatings.
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.
- Looking at the Return On Equity, with a value of 9.09%, ABM is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
- The Return On Invested Capital of ABM (5.53%) 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 10.58%.
| 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
- With a Profit Margin value of 1.86%, ABM perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
- ABM's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 3.72%, ABM perfoms like the industry average, outperforming 48.75% of the companies in the same industry.
- In the last couple of years the Operating Margin of ABM has declined.
- ABM has a worse Gross Margin (12.29%) than 85.00% 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
- ABM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ABM has less shares outstanding
- ABM has less shares outstanding than it did 5 years ago.
- ABM has a worse debt/assets ratio than last year.
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's Altman-Z score of 2.85 is in line compared to the rest of the industry. ABM outperforms 60.00% 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's Debt to FCF ratio of 10.10 is in line compared to the rest of the industry. ABM outperforms 57.50% of its industry peers.
- 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 | 2.85 |
ROIC/WACC0.7
WACC7.91%
2.3 Liquidity
- A Current Ratio of 1.48 indicates that ABM should not have too much problems paying its short term obligations.
- ABM's Current ratio of 1.48 is in line compared to the rest of the industry. ABM outperforms 51.25% 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 has a Quick ratio (1.48) which is in line with 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%.
- ABM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.14% yearly.
- ABM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.62%.
- 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
- The Earnings Per Share is expected to grow by 10.00% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.73% on average over the next years.
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
- 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
- Based on the Price/Earnings ratio of 13.30, the valuation of ABM can be described as correct.
- ABM's Price/Earnings ratio is rather cheap when compared to the industry. ABM is cheaper than 85.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. ABM is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 11.32 indicates a reasonable valuation of ABM.
- Based on the Price/Forward Earnings ratio, ABM is valued cheaper than 90.00% of the companies in the same industry.
- ABM is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 11.32 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABM indicates a somewhat cheap valuation: ABM is cheaper than 73.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.01 | ||
| EV/EBITDA | 9.88 |
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)0.76
PEG (5Y)1.86
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
- On average, the dividend of ABM grows each year by 7.71%, which is quite nice.
- 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.
- The dividend of ABM is growing, but earnings are growing more, so the dividend growth is 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%.