ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
NYSE:ABM - New York Stock Exchange, Inc. - US0009571003 - Common Stock - Currency: USD
Taking everything into account, ABM scores 4 out of 10 in our fundamental rating. ABM was compared to 84 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ABM had positive earnings in the past year.
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
The Return On Assets of ABM (1.60%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 4.57%, ABM is in line with its industry, outperforming 54.88% of the companies in the same industry.
ABM's Return On Invested Capital of 3.87% is in line compared to the rest of the industry. ABM outperforms 43.90% of its industry peers.
ABM had an Average Return On Invested Capital over the past 3 years of 6.02%. This is below the industry average of 10.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 4.57% | ||
| ROIC | 3.87% |
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 of 0.97%. This is comparable to the rest of the industry: ABM outperforms 47.56% of its industry peers.
In the last couple of years the Profit Margin of ABM has declined.
ABM's Operating Margin of 2.54% is on the low side compared to the rest of the industry. ABM is outperformed by 63.41% of its industry peers.
ABM's Operating Margin has declined in the last couple of years.
ABM has a Gross Margin of 12.36%. This is amonst the worse of the industry: ABM underperforms 82.93% of its industry peers.
In the last couple of years the Gross Margin of ABM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.54% | ||
| PM (TTM) | 0.97% | ||
| GM | 12.36% |
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.
ABM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ABM has less shares outstanding
Compared to 1 year ago, ABM has an improved debt to assets ratio.
2.2 Solvency
ABM has an Altman-Z score of 2.83. 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.
Looking at the Altman-Z score, with a value of 2.83, ABM is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
ABM has a debt to FCF ratio of 7.97. This is a slightly negative value and a sign of low solvency as ABM would need 7.97 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.97, ABM perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
ABM has a Debt/Equity ratio of 0.73. This is a neutral value indicating ABM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, ABM is in line with its industry, outperforming 41.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.97 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.49
WACC7.95%
2.3 Liquidity
A Current Ratio of 1.33 indicates that ABM should not have too much problems paying its short term obligations.
ABM has a Current ratio of 1.33. This is in the lower half of the industry: ABM underperforms 62.20% of its industry peers.
ABM has a Quick Ratio of 1.33. 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 Quick ratio (1.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.29% over the past year.
The Earnings Per Share has been growing by 11.84% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.25% in the past year.
ABM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.16% yearly.
EPS 1Y (TTM)2.29%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%-10.89%
Revenue 1Y (TTM)3.25%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%4.03%
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 8.30% on average per year.
Based on estimates for the next years, ABM will show a small growth in Revenue. The Revenue will grow by 2.69% on average per year.
EPS Next Y5.6%
EPS Next 2Y7.7%
EPS Next 3Y8.3%
EPS Next 5YN/A
Revenue Next Year2.72%
Revenue Next 2Y2.73%
Revenue Next 3Y2.69%
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 14.75, the valuation of ABM can be described as correct.
78.05% of the companies in the same industry are more expensive than ABM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ABM to the average of the S&P500 Index (29.63), we can say ABM is valued rather cheaply.
A Price/Forward Earnings ratio of 13.96 indicates a correct valuation of ABM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABM indicates a somewhat cheap valuation: ABM is cheaper than 79.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, ABM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 13.96 |
4.2 Price Multiples
ABM's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ABM is valued a bit cheaper than 67.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.57 | ||
| EV/EBITDA | 14.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.63
PEG (5Y)1.25
EPS Next 2Y7.7%
EPS Next 3Y8.3%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 1.99%.
ABM's Dividend Yield is rather good when compared to the industry average which is at 2.12. ABM pays more dividend than 84.15% of the companies in the same industry.
ABM's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of ABM has a limited annual growth rate of 4.66%.
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)4.66%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
ABM pays out 69.33% of its income as dividend. This is not a sustainable payout ratio.
ABM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP69.33%
EPS Next 2Y7.7%
EPS Next 3Y8.3%
52.64
-0.4 (-0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.88%
Inst Owner Change3.01%
Ins Owners1.33%
Ins Owner Change6.43%
Market Cap3.27B
Analysts71.67
Price Target60.01 (14%)
Short Float %2.66%
Short Ratio4.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend0.9
Dividend Growth(5Y)4.66%
DP69.33%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.1%
Min EPS beat(2)2.13%
Max EPS beat(2)8.06%
EPS beat(4)4
Avg EPS beat(4)9.5%
Min EPS beat(4)2.13%
Max EPS beat(4)19.3%
EPS beat(8)7
Avg EPS beat(8)5.04%
EPS beat(12)10
Avg EPS beat(12)5.62%
EPS beat(16)14
Avg EPS beat(16)10.3%
Revenue beat(2)2
Avg Revenue beat(2)2.74%
Min Revenue beat(2)1.81%
Max Revenue beat(2)3.68%
Revenue beat(4)3
Avg Revenue beat(4)1.81%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)3.68%
Revenue beat(8)4
Avg Revenue beat(8)0.65%
Revenue beat(12)7
Avg Revenue beat(12)1.09%
Revenue beat(16)10
Avg Revenue beat(16)1.11%
PT rev (1m)0.28%
PT rev (3m)2.32%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-3.63%
EPS NY rev (1m)1.88%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)1.15%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 13.96 | ||
| P/S | 0.39 | ||
| P/FCF | 19.57 | ||
| P/OCF | 14.44 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.34 |
EPS(TTM)3.57
EY6.78%
EPS(NY)3.77
Fwd EY7.16%
FCF(TTM)2.69
FCFY5.11%
OCF(TTM)3.64
OCFY6.92%
SpS134.4
BVpS28.65
TBVpS-17.31
PEG (NY)2.63
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 4.57% | ||
| ROCE | 5.66% | ||
| ROIC | 3.87% | ||
| ROICexc | 3.94% | ||
| ROICexgc | 17.56% | ||
| OM | 2.54% | ||
| PM (TTM) | 0.97% | ||
| GM | 12.36% | ||
| FCFM | 2% |
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%
ROICexcg growth 3Y-18.57%
ROICexcg 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 | 0.73 | ||
| Debt/FCF | 7.97 | ||
| Debt/EBITDA | 4.09 | ||
| Cap/Depr | 55.72% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 2.15 | ||
| Cash Conversion | 71.16% | ||
| Profit Quality | 205.28% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 2.83 |
F-Score5
WACC7.95%
ROIC/WACC0.49
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)2.29%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%-10.89%
EPS Next Y5.6%
EPS Next 2Y7.7%
EPS Next 3Y8.3%
EPS Next 5YN/A
Revenue 1Y (TTM)3.25%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%4.03%
Revenue Next Year2.72%
Revenue Next 2Y2.73%
Revenue Next 3Y2.69%
Revenue Next 5YN/A
EBIT growth 1Y-48.22%
EBIT growth 3Y0.91%
EBIT growth 5Y-0.71%
EBIT Next Year33.48%
EBIT Next 3Y13.14%
EBIT Next 5YN/A
FCF growth 1Y-6.17%
FCF growth 3Y-15.77%
FCF growth 5Y-3.8%
OCF growth 1Y-6.82%
OCF growth 3Y-10.32%
OCF growth 5Y-2.9%