AECOM (ACM) Stock Fundamental Analysis
NYSE:ACM - New York Stock Exchange, Inc. - US00766T1007 - Common Stock - Currency: USD
ACM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 industry peers in the Construction & Engineering industry. ACM has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
ACM had a positive operating cash flow in the past year.
ACM had positive earnings in 4 of the past 5 years.
In the past 5 years ACM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ACM (4.02%) is better than 63.04% of its industry peers.
The Return On Equity of ACM (21.55%) is better than 82.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.66%, ACM is in the better half of the industry, outperforming 78.26% 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 11.92%.
The 3 year average ROIC (10.96%) for ACM is below the current ROIC(12.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 21.55% | ||
| ROIC | 12.66% |
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 (2.93%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ACM has grown nicely.
ACM's Operating Margin of 5.82% is in line compared to the rest of the industry. ACM outperforms 54.35% of its industry peers.
In the last couple of years the Operating Margin of ACM has grown nicely.
The Gross Margin of ACM (6.84%) is worse than 76.09% of its industry peers.
ACM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.82% | ||
| PM (TTM) | 2.93% | ||
| GM | 6.84% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ACM is still creating some value.
The number of shares outstanding for ACM has been reduced compared to 1 year ago.
The number of shares outstanding for ACM has been reduced compared to 5 years ago.
Compared to 1 year ago, ACM has a worse debt to assets ratio.
2.2 Solvency
ACM has an Altman-Z score of 2.41. This is not the best score and indicates that ACM is in the grey zone with still only limited risk for bankruptcy at the moment.
ACM has a Altman-Z score (2.41) which is in line with its industry peers.
ACM has a debt to FCF ratio of 3.45. This is a good value and a sign of high solvency as ACM would need 3.45 years to pay back of all of its debts.
ACM has a Debt to FCF ratio of 3.45. This is in the better half of the industry: ACM outperforms 63.04% of its industry peers.
ACM has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.12, ACM is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.26
WACC10.08%
2.3 Liquidity
A Current Ratio of 1.14 indicates that ACM should not have too much problems paying its short term obligations.
ACM has a worse Current ratio (1.14) than 73.91% of its industry peers.
A Quick Ratio of 1.14 indicates that ACM should not have too much problems paying its short term obligations.
ACM has a worse Quick ratio (1.14) than 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
ACM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.94%, which is quite impressive.
ACM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.37% yearly.
Looking at the last year, ACM shows a quite strong growth in Revenue. The Revenue has grown by 8.89% 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)21.94%
EPS 3Y16.89%
EPS 5Y10.37%
EPS Q2Q%24.76%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%2.93%
3.2 Future
Based on estimates for the next years, ACM will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.66% on average per year.
The Revenue is expected to grow by 3.95% on average over the next years.
EPS Next Y14.37%
EPS Next 2Y12.04%
EPS Next 3Y11.72%
EPS Next 5Y14.66%
Revenue Next Year5.36%
Revenue Next 2Y5.38%
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
With a Price/Earnings ratio of 20.40, ACM is valued on the expensive side.
Based on the Price/Earnings ratio, ACM is valued cheaper than 80.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of ACM to the average of the S&P500 Index (29.63), we can say ACM is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.19 indicates a rather expensive valuation of ACM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACM indicates a somewhat cheap valuation: ACM is cheaper than 76.09% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, ACM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.4 | ||
| Fwd PE | 17.19 |
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 71.74% of the companies listed in the same industry.
69.57% 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 | 17.68 | ||
| EV/EBITDA | 12.63 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ACM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.42
PEG (5Y)1.97
EPS Next 2Y12.04%
EPS Next 3Y11.72%
5. Dividend
5.1 Amount
ACM has a yearly dividend return of 0.90%, which is pretty low.
Compared to an average industry Dividend Yield of 1.77, ACM pays a better dividend. On top of this ACM pays more dividend than 93.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, ACM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
ACM has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
25.25% of the earnings are spent on dividend by ACM. This is a low number and sustainable payout ratio.
DP25.25%
EPS Next 2Y12.04%
EPS Next 3Y11.72%
97.52
-2.18 (-2.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners90.54%
Inst Owner Change-0.73%
Ins Owners0.42%
Ins Owner Change0.51%
Market Cap12.94B
Analysts83.53
Price Target127.09 (30.32%)
Short Float %1.84%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.86
Dividend Growth(5Y)N/A
DP25.25%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.1%
Min EPS beat(2)1.25%
Max EPS beat(2)16.95%
EPS beat(4)3
Avg EPS beat(4)4.64%
Min EPS beat(4)-1.66%
Max EPS beat(4)16.95%
EPS beat(8)6
Avg EPS beat(8)3.9%
EPS beat(12)10
Avg EPS beat(12)4.31%
EPS beat(16)13
Avg EPS beat(16)4.6%
Revenue beat(2)0
Avg Revenue beat(2)-2.09%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-1.62%
Revenue beat(4)2
Avg Revenue beat(4)0.56%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)3.32%
Revenue beat(8)6
Avg Revenue beat(8)2.09%
Revenue beat(12)7
Avg Revenue beat(12)-0.13%
Revenue beat(16)8
Avg Revenue beat(16)-0.32%
PT rev (1m)-0.08%
PT rev (3m)12.48%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)-0.56%
EPS NY rev (1m)0.46%
EPS NY rev (3m)2.63%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.35%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.4 | ||
| Fwd PE | 17.19 | ||
| P/S | 0.8 | ||
| P/FCF | 17.68 | ||
| P/OCF | 15.49 | ||
| P/B | 5.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.63 |
EPS(TTM)4.78
EY4.9%
EPS(NY)5.67
Fwd EY5.82%
FCF(TTM)5.52
FCFY5.66%
OCF(TTM)6.3
OCFY6.46%
SpS122.24
BVpS16.61
TBVpS-9.27
PEG (NY)1.42
PEG (5Y)1.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 21.55% | ||
| ROCE | 16.62% | ||
| ROIC | 12.66% | ||
| ROICexc | 17.54% | ||
| ROICexgc | 107.69% | ||
| OM | 5.82% | ||
| PM (TTM) | 2.93% | ||
| GM | 6.84% | ||
| FCFM | 4.51% |
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 Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 58.25% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.49% | ||
| Profit Quality | 154.14% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.41 |
F-Score8
WACC10.08%
ROIC/WACC1.26
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)21.94%
EPS 3Y16.89%
EPS 5Y10.37%
EPS Q2Q%24.76%
EPS Next Y14.37%
EPS Next 2Y12.04%
EPS Next 3Y11.72%
EPS Next 5Y14.66%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%2.93%
Revenue Next Year5.36%
Revenue Next 2Y5.38%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
EBIT growth 1Y15.01%
EBIT growth 3Y12.8%
EBIT growth 5Y14.78%
EBIT Next Year20.79%
EBIT Next 3Y11.84%
EBIT Next 5Y11.34%
FCF growth 1Y46.98%
FCF growth 3Y7.59%
FCF growth 5Y0.9%
OCF growth 1Y30.82%
OCF growth 3Y5.5%
OCF growth 5Y1.25%