ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABM - US0009571003 - Common Stock
44.02 USD
+0.61 (+1.41%)
44.02 USD
0 (0%)
Overall ABM gets a fundamental rating of 4 out of 10. We evaluated ABM 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 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.
ABM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ABM has a Return On Assets (2.20%) which is in line with its industry peers.
With a Return On Equity value of 6.33%, ABM perfoms like the industry average, outperforming 58.75% of the companies in the same industry.
ABM has a Return On Invested Capital (4.47%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ABM is significantly below the industry average of 10.60%.
| 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
The Profit Margin of ABM (1.34%) is comparable to the rest of the industry.
ABM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.04%, ABM is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ABM has declined.
ABM's Gross Margin of 12.48% is on the low side compared to the rest of the industry. ABM is outperformed by 82.50% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ABM is destroying value.
The number of shares outstanding for ABM has been reduced compared to 1 year ago.
The number of shares outstanding for ABM has been reduced compared to 5 years ago.
The debt/assets ratio for ABM is higher compared to a year ago.
2.2 Solvency
ABM has an Altman-Z score of 2.78. 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 2.78, ABM is in line with its industry, outperforming 60.00% of the companies in the same 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.
ABM has a Debt to FCF ratio (26.37) which 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.
Looking at the Debt to Equity ratio, with a value of 0.82, ABM is in line with its industry, outperforming 41.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 26.37 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.56
WACC7.98%
2.3 Liquidity
ABM has a Current Ratio of 1.49. This is a normal value and indicates that ABM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.49, ABM is in line with its industry, outperforming 51.25% of the companies in the same industry.
A Quick Ratio of 1.49 indicates that ABM should not have too much problems paying its short term obligations.
ABM has a Quick ratio (1.49) which is in line with 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%.
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.
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.
The Revenue is expected to grow by 3.73% on average over the next years.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.83 indicates a correct valuation of ABM.
Compared to the rest of the industry, the Price/Earnings ratio of ABM indicates a rather cheap valuation: ABM is cheaper than 83.75% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ABM to the average of the S&P500 Index (27.00), we can say ABM is valued rather cheaply.
The Price/Forward Earnings ratio is 10.99, which indicates a very decent valuation of ABM.
ABM's Price/Forward Earnings ratio is rather cheap when compared to the industry. ABM is cheaper than 88.75% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.70. ABM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABM is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
ABM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.47 | ||
| EV/EBITDA | 11.28 |
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)1.8
EPS Next 2Y13.9%
EPS Next 3Y10%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 2.74%. 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 0.90. 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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 54.79% 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.
DP54.79%
EPS Next 2Y13.9%
EPS Next 3Y10%
44.02
+0.61 (+1.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.29%
Inst Owner Change0%
Ins Owners1.28%
Ins Owner Change-0.84%
Market Cap2.70B
Revenue(TTM)8.75B
Net Income(TTM)115.90M
Analysts74.55
Price Target55.08 (25.12%)
Short Float %4.21%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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)-6.9%
PT rev (3m)-6.9%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-0.08%
EPS NY rev (1m)-1.59%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)1.51%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 10.99 | ||
| P/S | 0.31 | ||
| P/FCF | 46.47 | ||
| P/OCF | 20.51 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.28 |
EPS(TTM)3.43
EY7.79%
EPS(NY)4.01
Fwd EY9.1%
FCF(TTM)0.95
FCFY2.15%
OCF(TTM)2.15
OCFY4.88%
SpS140.91
BVpS29.9
TBVpS-16.55
PEG (NY)0.76
PEG (5Y)1.8
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 | 2.78 |
F-Score6
WACC7.98%
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 Year40.67%
EBIT Next 3Y13.44%
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.
What is the valuation status of ABM INDUSTRIES INC (ABM) stock?
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.
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 6 / 10 and the dividend payout ratio is 54.79%.