ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABM - US0009571003 - Common Stock
42.17 USD
-1.3 (-2.99%)
42.15 USD
-0.02 (-0.05%)
We assign a fundamental rating of 4 out of 10 to ABM. ABM was compared to 80 industry peers in the Commercial Services & Supplies industry. ABM has only an average score on both its financial health and profitability. ABM has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years ABM 4 years had a positive operating cash flow.
1.2 Ratios
ABM has a Return On Assets (2.20%) which is comparable to the rest of the industry.
ABM's Return On Equity of 6.33% is in line compared to the rest of the industry. ABM outperforms 58.75% of its industry peers.
ABM has a Return On Invested Capital (4.47%) which 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 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.33% | ||
| ROIC | 4.47% |
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 1.34%, ABM perfoms like the industry average, outperforming 53.75% 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 3.04%. This is comparable to the rest of the industry: ABM outperforms 50.00% of its industry peers.
ABM's Operating Margin has declined in the last couple of years.
The Gross Margin of ABM (12.48%) is worse than 83.75% of its industry peers.
ABM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.04% | ||
| PM (TTM) | 1.34% | ||
| GM | 12.48% |
OM growth 3Y-5.26%
OM growth 5Y-4.22%
PM growth 3Y-14.31%
PM growth 5Y226.42%
GM growth 3Y-4.76%
GM growth 5Y-3.99%
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.
ABM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ABM has a worse debt to assets ratio.
2.2 Solvency
ABM has an Altman-Z score of 2.76. 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 has a Altman-Z score (2.76) which is in line with its industry peers.
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.
ABM has a Debt to FCF ratio (26.37) which is in line with its industry peers.
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 42.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 26.37 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.56
WACC8.05%
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 (1.49) which is comparable to the rest of the industry.
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 in line compared to the rest of the industry. ABM outperforms 57.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
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.
The Revenue has been growing slightly by 4.62% in the past year.
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
Based on estimates for the next years, ABM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.00% on average per year.
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 Year4.76%
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
With a Price/Earnings ratio of 12.29, ABM is valued correctly.
Based on the Price/Earnings ratio, ABM is valued cheaply inside the industry as 83.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.39, ABM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.52, 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 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, ABM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 10.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABM is valued a bit cheaper than 65.00% of the companies 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 | 44.52 | ||
| EV/EBITDA | 10.97 |
4.3 Compensation for Growth
ABM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.73
PEG (5Y)1.72
EPS Next 2Y13.9%
EPS Next 3Y10%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 2.75%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.89, 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 1.87, ABM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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 2Y13.9%
EPS Next 3Y10%
42.17
-1.3 (-2.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.38%
Inst Owner Change0.24%
Ins Owners1.26%
Ins Owner Change-0.6%
Market Cap2.58B
Revenue(TTM)8.75B
Net Income(TTM)115.90M
Analysts74.55
Price Target55.08 (30.61%)
Short Float %4.81%
Short Ratio5.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 10.52 | ||
| P/S | 0.3 | ||
| P/FCF | 44.52 | ||
| P/OCF | 19.65 | ||
| P/B | 1.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.97 |
EPS(TTM)3.43
EY8.13%
EPS(NY)4.01
Fwd EY9.5%
FCF(TTM)0.95
FCFY2.25%
OCF(TTM)2.15
OCFY5.09%
SpS140.91
BVpS29.9
TBVpS-16.55
PEG (NY)0.73
PEG (5Y)1.72
Graham Number48.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.33% | ||
| ROCE | 6.63% | ||
| ROIC | 4.47% | ||
| ROICexc | 4.55% | ||
| ROICexgc | 16.95% | ||
| OM | 3.04% | ||
| PM (TTM) | 1.34% | ||
| GM | 12.48% | ||
| FCFM | 0.67% |
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-4.76%
GM growth 5Y-3.99%
F-Score6
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 | 2.76 |
F-Score6
WACC8.05%
ROIC/WACC0.56
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
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 1Y-12.27%
EBIT growth 3Y-1.6%
EBIT growth 5Y3.32%
EBIT Next Year35.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-78.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-60.82%
OCF growth 3YN/A
OCF growth 5YN/A
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 6 / 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 16.83% 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%.