ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABM - US0009571003 - Common Stock
45.37 USD
-1 (-2.16%)
45.37 USD
0 (0%)
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. Both the profitability and the financial health of ABM get a neutral evaluation. Nothing too spectacular is happening here. ABM may be a bit undervalued, certainly considering the very reasonable score on growth Finally ABM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ABM was profitable.
- In the past year ABM had a positive cash flow from operations.
- Each year in the past 5 years ABM has been profitable.
- Each year in the past 5 years ABM had a positive operating cash flow.
1.2 Ratios
- ABM has a better Return On Assets (3.08%) than 63.75% of its industry peers.
- 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.
- 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
- 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.
- ABM's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 3.72%, ABM is in line with its industry, outperforming 48.75% of the companies in the same industry.
- In the last couple of years the Operating Margin of ABM has declined.
- With a Gross Margin value of 12.29%, ABM is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
- 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.
- 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
- ABM has an Altman-Z score of 2.86. 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.
- The Altman-Z score of ABM (2.86) is comparable to the rest of the 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.
- ABM has a Debt to FCF ratio (10.10) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.86 indicates that ABM is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.86, ABM is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 10.1 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.7
WACC7.85%
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 in line with 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 of 1.48. This is comparable to the rest of the industry: ABM outperforms 58.75% 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%.
- 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.
- ABM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.62%.
- The Revenue has been growing slightly by 7.87% on average over the past years.
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.
- 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 Y16.83%
EPS Next 2Y13.9%
EPS Next 3Y10%
EPS Next 5YN/A
Revenue Next Year4.96%
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.
- 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
- A Price/Earnings ratio of 13.23 indicates a correct valuation of ABM.
- Based on the Price/Earnings ratio, ABM is valued cheaper than 85.00% of the companies in the same industry.
- ABM is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.32, the valuation of ABM can be described as reasonable.
- ABM's Price/Forward Earnings ratio is rather cheap when compared to the industry. ABM is cheaper than 90.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ABM to the average of the S&P500 Index (24.26), we can say ABM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.23 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
- 66.25% of the companies in the same industry are more expensive than ABM, based on the Enterprise Value to EBITDA ratio.
- ABM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ABM is cheaper than 76.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.91 | ||
| EV/EBITDA | 9.99 |
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)0.79
PEG (5Y)1.85
EPS Next 2Y13.9%
EPS Next 3Y10%
5. Dividend
5.1 Amount
- ABM has a Yearly Dividend Yield of 2.58%.
- Compared to an average industry Dividend Yield of 0.83, ABM pays a better dividend. On top of this ABM pays more dividend than 87.50% of the companies listed 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 | 2.58% |
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
- 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 2Y13.9%
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%.