AECOM (ACM)
US00766T1007 - Common Stock
Taking everything into account, ACM scores 4 out of 10 in our fundamental rating. ACM was compared to 44 industry peers in the Construction & Engineering industry. ACM has an average financial health and profitability rating. ACM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ACM had positive earnings in the past year.
ACM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ACM reported negative net income in multiple years.
ACM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ACM has a Return On Assets (2.12%) which is comparable to the rest of the industry.
ACM has a Return On Equity of 11.10%. This is in the better half of the industry: ACM outperforms 61.90% of its industry peers.
With an excellent Return On Invested Capital value of 11.45%, ACM belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACM is in line with the industry average of 9.25%.
The last Return On Invested Capital (11.45%) for ACM is above the 3 year average (9.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.12% | ||
| ROE | 11.1% | ||
| ROIC | 11.45% |
ROA(3y)1.59%
ROA(5y)0.31%
ROE(3y)7.14%
ROE(5y)1.74%
ROIC(3y)9.25%
ROIC(5y)7.52%
1.3 Margins
Looking at the Profit Margin, with a value of 1.61%, ACM is in line with its industry, outperforming 45.24% of the companies in the same industry.
In the last couple of years the Profit Margin of ACM has declined.
ACM has a Operating Margin (5.59%) which is comparable to the rest of the industry.
ACM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 6.58%, ACM is doing worse than 78.57% of the companies in the same industry.
ACM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.59% | ||
| PM (TTM) | 1.61% | ||
| GM | 6.58% |
OM growth 3Y11.89%
OM growth 5Y17.29%
PM growth 3YN/A
PM growth 5Y-17.15%
GM growth 3Y7.02%
GM growth 5Y13.75%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ACM is creating some value.
There is no outstanding debt for ACM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.44 indicates that ACM is not a great score, but indicates only limited risk for bankruptcy at the moment.
ACM has a Altman-Z score (2.44) which is in line with its industry peers.
ACM has a debt to FCF ratio of 3.62. This is a good value and a sign of high solvency as ACM would need 3.62 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.62, ACM is doing good in the industry, outperforming 69.05% of the companies in the same industry.
A Debt/Equity ratio of 1.07 is on the high side and indicates that ACM has dependencies on debt financing.
The Debt to Equity ratio of ACM (1.07) is worse than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.62 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.03
WACC11.09%
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.
With a Current ratio value of 1.13, ACM is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
A Quick Ratio of 1.13 indicates that ACM should not have too much problems paying its short term obligations.
ACM's Quick ratio of 1.13 is on the low side compared to the rest of the industry. ACM is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
ACM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.18%, which is quite impressive.
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.
EPS 1Y (TTM)21.18%
EPS 3Y16.89%
EPS 5Y10.37%
EPS Q2Q%25.74%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.98%
3.2 Future
ACM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.52% yearly.
The Revenue is expected to grow by 5.69% on average over the next years.
EPS Next Y11.44%
EPS Next 2Y10.95%
EPS Next 3Y18.25%
EPS Next 5Y16.52%
Revenue Next Year5.87%
Revenue Next 2Y5.69%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.73, the valuation of ACM can be described as expensive.
ACM's Price/Earnings ratio is a bit cheaper when compared to the industry. ACM is cheaper than 73.81% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.20, ACM is valued at the same level.
The Price/Forward Earnings ratio is 23.09, which indicates a rather expensive current valuation of ACM.
ACM's Price/Forward Earnings is on the same level as the industry average.
ACM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.73 | ||
| Fwd PE | 23.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACM indicates a somewhat cheap valuation: ACM is cheaper than 69.05% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ACM is valued a bit cheaper than the industry average as 69.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.39 | ||
| EV/EBITDA | 15.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ACM does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as ACM's earnings are expected to grow with 18.25% in the coming years.
PEG (NY)2.25
PEG (5Y)2.48
EPS Next 2Y10.95%
EPS Next 3Y18.25%
5. Dividend
5.1 Amount
ACM has a yearly dividend return of 0.84%, which is pretty low.
Compared to an average industry Dividend Yield of 0.84, ACM pays a better dividend. On top of this ACM pays more dividend than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, ACM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
ACM pays out 43.25% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP43.25%
EPS Next 2Y10.95%
EPS Next 3Y18.25%
AECOM
NYSE:ACM (11/22/2024, 8:21:33 PM)
After market: 116.31 0 (0%)116.31
+3.75 (+3.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.73 | ||
| Fwd PE | 23.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.25
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.12% | ||
| ROE | 11.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.59% | ||
| PM (TTM) | 1.61% | ||
| GM | 6.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)21.18%
EPS 3Y16.89%
EPS 5Y
EPS Q2Q%
EPS Next Y11.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y