AECOM (ACM) Stock Fundamental Analysis
NYSE:ACM - New York Stock Exchange, Inc. - US00766T1007 - Common Stock
We assign a fundamental rating of 5 out of 10 to ACM. ACM was compared to 45 industry peers in the Construction & Engineering industry. ACM has an average financial health and profitability rating. ACM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ACM had positive earnings in the past year.
In the past year ACM had a positive cash flow from operations.
ACM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ACM had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.34%, ACM perfoms like the industry average, outperforming 58.14% of the companies in the same industry.
ACM has a better Return On Equity (18.42%) than 79.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.38%, ACM belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACM is in line with the industry average of 11.60%.
The 3 year average ROIC (10.96%) for ACM is below the current ROIC(12.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 18.42% | ||
| ROIC | 12.38% |
ROA(3y)2.21%
ROA(5y)1.33%
ROE(3y)11.15%
ROE(5y)6.84%
ROIC(3y)10.96%
ROIC(5y)9.3%
1.3 Margins
ACM has a Profit Margin (2.50%) which is in line with its industry peers.
ACM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.74%, ACM is in line with its industry, outperforming 53.49% of the companies in the same industry.
In the last couple of years the Operating Margin of ACM has grown nicely.
ACM has a worse Gross Margin (6.73%) than 79.07% of its industry peers.
In the last couple of years the Gross Margin of ACM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.74% | ||
| PM (TTM) | 2.5% | ||
| GM | 6.73% |
OM growth 3Y5.93%
OM growth 5Y11.03%
PM growth 3Y24.42%
PM growth 5YN/A
GM growth 3Y4.02%
GM growth 5Y8.46%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACM is destroying value.
The number of shares outstanding for ACM has been reduced compared to 1 year ago.
Compared to 5 years ago, ACM has less shares outstanding
Compared to 1 year ago, ACM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.39 indicates that ACM is not a great score, but indicates only limited risk for bankruptcy at the moment.
ACM's Altman-Z score of 2.39 is in line compared to the rest of the industry. ACM outperforms 44.19% of its industry peers.
The Debt to FCF ratio of ACM is 3.56, which is a good value as it means it would take ACM, 3.56 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ACM (3.56) is better than 62.79% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that ACM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.12, ACM is doing worse than 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.98
WACC12.61%
2.3 Liquidity
ACM has a Current Ratio of 1.13. This is a normal value and indicates that ACM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ACM (1.13) is worse than 74.42% of its industry peers.
A Quick Ratio of 1.13 indicates that ACM should not have too much problems paying its short term obligations.
The Quick ratio of ACM (1.13) is worse than 72.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.18% over the past year.
Measured over the past years, ACM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.37% on average per year.
Looking at the last year, ACM shows a quite strong growth in Revenue. The Revenue has grown by 12.01% in the last year.
ACM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.38% yearly.
EPS 1Y (TTM)21.18%
EPS 3Y16.89%
EPS 5Y10.37%
EPS Q2Q%25.74%
Revenue 1Y (TTM)12.01%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%6.98%
3.2 Future
The Earnings Per Share is expected to grow by 14.66% on average over the next years. This is quite good.
ACM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
EPS Next Y13.84%
EPS Next 2Y12.54%
EPS Next 3Y11.87%
EPS Next 5Y14.66%
Revenue Next Year5.74%
Revenue Next 2Y5.48%
Revenue Next 3Y3.95%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
ACM is valuated rather expensively with a Price/Earnings ratio of 24.10.
Compared to the rest of the industry, the Price/Earnings ratio of ACM indicates a somewhat cheap valuation: ACM is cheaper than 79.07% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ACM to the average of the S&P500 Index (27.96), we can say ACM is valued inline with the index average.
The Price/Forward Earnings ratio is 21.17, which indicates a rather expensive current valuation of ACM.
Based on the Price/Forward Earnings ratio, ACM is valued a bit cheaper than the industry average as 65.12% of the companies are valued more expensively.
ACM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 21.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACM is valued a bit cheaper than 76.74% of the companies in the same industry.
62.79% of the companies in the same industry are more expensive than ACM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.38 | ||
| EV/EBITDA | 13.8 |
4.3 Compensation for Growth
ACM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ACM may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)2.32
EPS Next 2Y12.54%
EPS Next 3Y11.87%
5. Dividend
5.1 Amount
ACM has a yearly dividend return of 0.85%, which is pretty low.
ACM's Dividend Yield is rather good when compared to the industry average which is at 0.62. ACM pays more dividend than 95.35% of the companies in the same industry.
With a Dividend Yield of 0.85, ACM pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
ACM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
28.65% of the earnings are spent on dividend by ACM. This is a low number and sustainable payout ratio.
DP28.65%
EPS Next 2Y12.54%
EPS Next 3Y11.87%
AECOM
NYSE:ACM (1/17/2025, 8:04:00 PM)
After market: 108.93 0 (0%)108.93
+1.08 (+1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners90.54%
Inst Owner Change-0.12%
Ins Owners0.42%
Ins Owner Change1.08%
Market Cap14.43B
Analysts83.53
Price Target127.19 (16.76%)
Short Float %1.15%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend0.86
Dividend Growth(5Y)N/A
DP28.65%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.63%
Min EPS beat(2)1.25%
Max EPS beat(2)2.01%
EPS beat(4)3
Avg EPS beat(4)2.71%
Min EPS beat(4)-1.66%
Max EPS beat(4)9.24%
EPS beat(8)6
Avg EPS beat(8)2.33%
EPS beat(12)10
Avg EPS beat(12)4.09%
EPS beat(16)13
Avg EPS beat(16)3.97%
Revenue beat(2)1
Avg Revenue beat(2)0.85%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)3.32%
Revenue beat(4)3
Avg Revenue beat(4)2.6%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)5.57%
Revenue beat(8)7
Avg Revenue beat(8)2.42%
Revenue beat(12)7
Avg Revenue beat(12)-0.43%
Revenue beat(16)9
Avg Revenue beat(16)-0.03%
PT rev (1m)0.24%
PT rev (3m)15.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.5%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)2.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 21.17 | ||
| P/S | 0.9 | ||
| P/FCF | 20.38 | ||
| P/OCF | 17.44 | ||
| P/B | 6.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.8 |
EPS(TTM)4.52
EY4.15%
EPS(NY)5.15
Fwd EY4.72%
FCF(TTM)5.34
FCFY4.91%
OCF(TTM)6.25
OCFY5.73%
SpS121.59
BVpS16.49
TBVpS-9.84
PEG (NY)1.74
PEG (5Y)2.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 18.42% | ||
| ROCE | 16.25% | ||
| ROIC | 12.38% | ||
| ROICexc | 17.14% | ||
| ROICexgc | 113.11% | ||
| OM | 5.74% | ||
| PM (TTM) | 2.5% | ||
| GM | 6.73% | ||
| FCFM | 4.4% |
ROA(3y)2.21%
ROA(5y)1.33%
ROE(3y)11.15%
ROE(5y)6.84%
ROIC(3y)10.96%
ROIC(5y)9.3%
ROICexc(3y)14.48%
ROICexc(5y)12.18%
ROICexgc(3y)82.34%
ROICexgc(5y)61.1%
ROCE(3y)14.39%
ROCE(5y)12.21%
ROICexcg growth 3Y48.82%
ROICexcg growth 5Y63.69%
ROICexc growth 3Y20.31%
ROICexc growth 5Y28.58%
OM growth 3Y5.93%
OM growth 5Y11.03%
PM growth 3Y24.42%
PM growth 5YN/A
GM growth 3Y4.02%
GM growth 5Y8.46%
F-Score8
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 3.56 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 66.88% | ||
| Cap/Sales | 0.74% | ||
| Interest Coverage | 5.21 | ||
| Cash Conversion | 75.02% | ||
| Profit Quality | 175.98% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.39 |
F-Score8
WACC12.61%
ROIC/WACC0.98
Cap/Depr(3y)69.05%
Cap/Depr(5y)66.54%
Cap/Sales(3y)0.84%
Cap/Sales(5y)0.88%
Profit Quality(3y)478.28%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.18%
EPS 3Y16.89%
EPS 5Y10.37%
EPS Q2Q%25.74%
EPS Next Y13.84%
EPS Next 2Y12.54%
EPS Next 3Y11.87%
EPS Next 5Y14.66%
Revenue 1Y (TTM)12.01%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%6.98%
Revenue Next Year5.74%
Revenue Next 2Y5.48%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
EBIT growth 1Y16.71%
EBIT growth 3Y12.8%
EBIT growth 5Y14.78%
EBIT Next Year20.39%
EBIT Next 3Y11.98%
EBIT Next 5Y11.34%
FCF growth 1Y19.9%
FCF growth 3Y7.59%
FCF growth 5Y0.9%
OCF growth 1Y18.89%
OCF growth 3Y5.5%
OCF growth 5Y1.25%