ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - NYSE:ABM - US0009571003 - Common Stock
42.07 USD
-0.45 (-1.06%)
42.07 USD
0 (0%)
ABM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the Commercial Services & Supplies industry. ABM has an average financial health and profitability rating. ABM has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years ABM always reported a positive cash flow from operatings.
1.2 Ratios
ABM has a Return On Assets of 2.20%. This is comparable to the rest of the industry: ABM outperforms 51.22% of its industry peers.
The Return On Equity of ABM (6.33%) is comparable to the rest of the industry.
The Return On Invested Capital of ABM (4.54%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABM is below the industry average of 10.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.33% | ||
| ROIC | 4.54% |
ROA(3y)3.81%
ROA(5y)2.86%
ROE(3y)10.65%
ROE(5y)7.96%
ROIC(3y)6.02%
ROIC(5y)5.86%
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 declined.
ABM has a Operating Margin of 3.04%. This is comparable to the rest of the industry: ABM outperforms 45.12% of its industry peers.
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 85.37% of the companies in the same industry.
ABM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.04% | ||
| PM (TTM) | 1.34% | ||
| GM | 12.48% |
OM growth 3Y-8.51%
OM growth 5Y-5.59%
PM growth 3Y-21.69%
PM growth 5Y-13.07%
GM growth 3Y-6.63%
GM growth 5Y3.55%
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.
The debt/assets ratio for ABM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.75 indicates that ABM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ABM (2.75) is comparable to the rest of the 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.
The Debt to FCF ratio of ABM (26.37) is comparable to the rest of the industry.
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 40.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 26.37 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.57
WACC7.92%
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 51.22% of its industry peers.
A Quick Ratio of 1.49 indicates that ABM should not have too much problems paying its short term obligations.
ABM's Quick ratio of 1.49 is fine compared to the rest of the industry. ABM outperforms 62.20% of its industry peers.
| 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 -6.25% in the last year.
Measured over the past years, ABM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.84% on average per year.
ABM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.27%.
ABM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.16% yearly.
EPS 1Y (TTM)-6.25%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%-12.77%
Revenue 1Y (TTM)4.27%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%6.2%
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 9.16% yearly.
ABM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
EPS Next Y3.1%
EPS Next 2Y6.8%
EPS Next 3Y9.16%
EPS Next 5YN/A
Revenue Next Year5.62%
Revenue Next 2Y4.38%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 12.19, 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 82.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. ABM is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.33, the valuation of ABM can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABM indicates a rather cheap valuation: ABM is cheaper than 85.37% of the companies listed in the same industry.
ABM is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.19 | ||
| Fwd PE | 10.33 |
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 64.63% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.41 | ||
| EV/EBITDA | 10.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABM does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.93
PEG (5Y)1.03
EPS Next 2Y6.8%
EPS Next 3Y9.16%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 2.49%.
Compared to an average industry Dividend Yield of 2.55, ABM pays a better dividend. On top of this ABM pays more dividend than 85.37% of the companies listed in the same industry.
ABM's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
5.2 History
The dividend of ABM has a limited annual growth rate of 4.66%.
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)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.
The dividend of ABM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP54.79%
EPS Next 2Y6.8%
EPS Next 3Y9.16%
42.07
-0.45 (-1.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.17%
Inst Owner Change0.24%
Ins Owners1.27%
Ins Owner Change-1.77%
Market Cap2.58B
Revenue(TTM)8.63B
Net Income(TTM)115.90M
Analysts74.55
Price Target59.16 (40.62%)
Short Float %5.03%
Short Ratio5.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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)0%
PT rev (3m)-0.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.19 | ||
| Fwd PE | 10.33 | ||
| P/S | 0.3 | ||
| P/FCF | 44.41 | ||
| P/OCF | 19.6 | ||
| P/B | 1.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.95 |
EPS(TTM)3.45
EY8.2%
EPS(NY)4.07
Fwd EY9.68%
FCF(TTM)0.95
FCFY2.25%
OCF(TTM)2.15
OCFY5.1%
SpS140.91
BVpS29.9
TBVpS-16.55
PEG (NY)3.93
PEG (5Y)1.03
Graham Number48.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.33% | ||
| ROCE | 6.63% | ||
| ROIC | 4.54% | ||
| ROICexc | 4.62% | ||
| ROICexgc | 17.21% | ||
| OM | 3.04% | ||
| PM (TTM) | 1.34% | ||
| GM | 12.48% | ||
| FCFM | 0.67% |
ROA(3y)3.81%
ROA(5y)2.86%
ROE(3y)10.65%
ROE(5y)7.96%
ROIC(3y)6.02%
ROIC(5y)5.86%
ROICexc(3y)6.13%
ROICexc(5y)6.17%
ROICexgc(3y)30.27%
ROICexgc(5y)32.46%
ROCE(3y)8.79%
ROCE(5y)8.57%
ROICexgc growth 3Y-18.57%
ROICexgc growth 5Y-6.89%
ROICexc growth 3Y-4.86%
ROICexc growth 5Y-6.48%
OM growth 3Y-8.51%
OM growth 5Y-5.59%
PM growth 3Y-21.69%
PM growth 5Y-13.07%
GM growth 3Y-6.63%
GM growth 5Y3.55%
F-Score5
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 | 2.75 |
F-Score5
WACC7.92%
ROIC/WACC0.57
Cap/Depr(3y)52.21%
Cap/Depr(5y)46.84%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.25%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%-12.77%
EPS Next Y3.1%
EPS Next 2Y6.8%
EPS Next 3Y9.16%
EPS Next 5YN/A
Revenue 1Y (TTM)4.27%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%6.2%
Revenue Next Year5.62%
Revenue Next 2Y4.38%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
EBIT growth 1Y-12.27%
EBIT growth 3Y0.91%
EBIT growth 5Y-0.71%
EBIT Next Year35.49%
EBIT Next 3Y15.45%
EBIT Next 5YN/A
FCF growth 1Y-64.22%
FCF growth 3Y-15.77%
FCF growth 5Y-3.8%
OCF growth 1Y-40.62%
OCF growth 3Y-10.32%
OCF growth 5Y-2.9%
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 5 / 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 3.1% 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%.