AECOM (ACM) Stock Fundamental Analysis
NYSE:ACM - New York Stock Exchange, Inc. - US00766T1007 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ACM. ACM was compared to 51 industry peers in the Construction & Engineering industry. While ACM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ACM has a correct valuation and a medium 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.
Of the past 5 years ACM 4 years were profitable.
In the past 5 years ACM always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.02%, ACM is doing good in the industry, outperforming 60.78% of the companies in the same industry.
ACM's Return On Equity of 21.55% is fine compared to the rest of the industry. ACM outperforms 76.47% of its industry peers.
ACM has a better Return On Invested Capital (12.66%) than 80.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACM is in line with the industry average of 12.16%.
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
The Profit Margin of ACM (2.93%) is comparable to the rest of the industry.
ACM's Profit Margin has improved in the last couple of years.
ACM has a Operating Margin (5.82%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ACM has grown nicely.
Looking at the Gross Margin, with a value of 6.84%, ACM is doing worse than 70.59% of the companies in the same industry.
ACM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.82% | ||
| 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.
Compared to 5 years ago, ACM has less shares outstanding
The debt/assets ratio for ACM is higher compared to a year ago.
2.2 Solvency
ACM has an Altman-Z score of 2.37. 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.
With a Altman-Z score value of 2.37, ACM perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
The Debt to FCF ratio of ACM is 3.45, which is a good value as it means it would take ACM, 3.45 years of fcf income to pay off all of its debts.
ACM's Debt to FCF ratio of 3.45 is fine compared to the rest of the industry. ACM outperforms 64.71% 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.
The Debt to Equity ratio of ACM (1.12) is worse than 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.38
WACC9.18%
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 66.67% of its industry peers.
ACM has a Quick Ratio of 1.14. This is a normal value and indicates that ACM is financially healthy and should not expect problems in meeting its short term obligations.
ACM has a worse Quick ratio (1.14) than 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.94% 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 8.89% in the last year.
Measured over the past years, ACM shows a small growth in Revenue. The Revenue has been growing by 3.38% on average per year.
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 14.43% on average per year.
The Revenue is expected to grow by 3.81% on average over the next years.
EPS Next Y14.39%
EPS Next 2Y11.92%
EPS Next 3Y11.72%
EPS Next 5Y14.43%
Revenue Next Year5.47%
Revenue Next 2Y5.43%
Revenue Next 3Y3.81%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.92, the valuation of ACM can be described as rather expensive.
ACM's Price/Earnings ratio is a bit cheaper when compared to the industry. ACM is cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.64. ACM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.81, ACM is valued correctly.
Based on the Price/Forward Earnings ratio, ACM is valued a bit cheaper than 68.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, ACM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.92 | ||
| Fwd PE | 16.81 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ACM.
Based on the Price/Free Cash Flow ratio, ACM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.26 | ||
| EV/EBITDA | 12.1 |
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)1.38
PEG (5Y)1.92
EPS Next 2Y11.92%
EPS Next 3Y11.72%
5. Dividend
5.1 Amount
ACM has a Yearly Dividend Yield of 1.02%.
ACM's Dividend Yield is rather good when compared to the industry average which is at 2.05. ACM pays more dividend than 92.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, ACM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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
ACM pays out 25.25% of its income as dividend. This is a sustainable payout ratio.
DP25.25%
EPS Next 2Y11.92%
EPS Next 3Y11.72%
95.2
+1.2 (+1.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners91.12%
Inst Owner Change0.14%
Ins Owners0.45%
Ins Owner Change0.88%
Market Cap12.63B
Analysts83.53
Price Target125.87 (32.22%)
Short Float %1.8%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)-0.22%
PT rev (3m)-1.04%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-2.24%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.92 | ||
| Fwd PE | 16.81 | ||
| P/S | 0.78 | ||
| P/FCF | 17.26 | ||
| P/OCF | 15.12 | ||
| P/B | 5.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.1 |
EPS(TTM)4.78
EY5.02%
EPS(NY)5.66
Fwd EY5.95%
FCF(TTM)5.52
FCFY5.79%
OCF(TTM)6.3
OCFY6.61%
SpS122.24
BVpS16.61
TBVpS-9.27
PEG (NY)1.38
PEG (5Y)1.92
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 | 2.37 |
F-Score8
WACC9.18%
ROIC/WACC1.38
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 Y14.39%
EPS Next 2Y11.92%
EPS Next 3Y11.72%
EPS Next 5Y14.43%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%2.93%
Revenue Next Year5.47%
Revenue Next 2Y5.43%
Revenue Next 3Y3.81%
Revenue Next 5YN/A
EBIT growth 1Y15.01%
EBIT growth 3Y12.8%
EBIT growth 5Y14.78%
EBIT Next Year20.79%
EBIT Next 3Y11.63%
EBIT Next 5Y11.16%
FCF growth 1Y46.98%
FCF growth 3Y7.59%
FCF growth 5Y0.9%
OCF growth 1Y30.82%
OCF growth 3Y5.5%
OCF growth 5Y1.25%