ABM INDUSTRIES INC (ABM)
US0009571003 - Common Stock
ABM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. While ABM has a great profitability rating, there are some minor concerns on its financial health. ABM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ABM was profitable.
In the past year ABM had a positive cash flow from operations.
ABM had positive earnings in each of the past 5 years.
Each year in the past 5 years ABM had a positive operating cash flow.
1.2 Ratios
ABM has a better Return On Assets (5.20%) than 76.19% of its industry peers.
ABM's Return On Equity of 14.13% is fine compared to the rest of the industry. ABM outperforms 79.76% of its industry peers.
With a decent Return On Invested Capital value of 8.17%, ABM is doing good in the industry, outperforming 76.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABM is below the industry average of 9.33%.
The last Return On Invested Capital (8.17%) for ABM is above the 3 year average (6.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.2% | ||
| ROE | 14.13% | ||
| ROIC | 8.17% |
ROA(3y)4.22%
ROA(5y)3.23%
ROE(3y)11.74%
ROE(5y)8.7%
ROIC(3y)6.83%
ROIC(5y)6.77%
1.3 Margins
Looking at the Profit Margin, with a value of 3.15%, ABM is in the better half of the industry, outperforming 65.48% of the companies in the same industry.
In the last couple of years the Profit Margin of ABM has grown nicely.
ABM has a Operating Margin (5.04%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ABM has grown nicely.
ABM has a worse Gross Margin (12.97%) than 80.95% of its industry peers.
ABM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.04% | ||
| PM (TTM) | 3.15% | ||
| GM | 12.97% |
OM growth 3Y3.13%
OM growth 5Y11.3%
PM growth 3Y752.47%
PM growth 5Y15.38%
GM growth 3Y-2.46%
GM growth 5Y5.32%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABM is still creating some value.
ABM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ABM has less shares outstanding
The debt/assets ratio for ABM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.02 indicates that ABM is not in any danger for bankruptcy at the moment.
ABM has a better Altman-Z score (3.02) than 70.24% of its industry peers.
The Debt to FCF ratio of ABM is 5.33, which is a neutral value as it means it would take ABM, 5.33 years of fcf income to pay off all of its debts.
ABM has a better Debt to FCF ratio (5.33) than 69.05% of its industry peers.
ABM has a Debt/Equity ratio of 0.71. This is a neutral value indicating ABM is somewhat dependend on debt financing.
ABM's Debt to Equity ratio of 0.71 is in line compared to the rest of the industry. ABM outperforms 46.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 3.02 |
ROIC/WACC1.01
WACC8.08%
2.3 Liquidity
A Current Ratio of 1.48 indicates that ABM should not have too much problems paying its short term obligations.
ABM's Current ratio of 1.48 is in line compared to the rest of the industry. ABM outperforms 47.62% of its industry peers.
A Quick Ratio of 1.48 indicates that ABM should not have too much problems paying its short term obligations.
The Quick ratio of ABM (1.48) is better than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
ABM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.28%.
ABM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.17% yearly.
The Revenue has been growing slightly by 3.71% in the past year.
ABM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.68% yearly.
EPS 1Y (TTM)0.28%
EPS 3Y12.83%
EPS 5Y13.17%
EPS Q2Q%-3.33%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y10.58%
Revenue growth 5Y4.68%
Sales Q2Q%1.72%
3.2 Future
The Earnings Per Share is expected to grow by 6.24% on average over the next years.
The Revenue is expected to grow by 2.40% on average over the next years.
EPS Next Y0.49%
EPS Next 2Y3.37%
EPS Next 3Y6.24%
EPS Next 5YN/A
Revenue Next Year2.12%
Revenue Next 2Y2%
Revenue Next 3Y2.4%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.93, ABM is valued correctly.
Based on the Price/Earnings ratio, ABM is valued cheaper than 80.95% of the companies in the same industry.
ABM is valuated cheaply when we compare the Price/Earnings ratio to 28.42, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.18 indicates a correct valuation of ABM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABM indicates a somewhat cheap valuation: ABM is cheaper than 76.19% of the companies listed in the same industry.
ABM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.02, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 13.18 |
4.2 Price Multiples
ABM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ABM is cheaper than 75.00% of the companies in the same industry.
ABM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ABM is cheaper than 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.48 | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ABM may justify a higher PE ratio.
PEG (NY)28.22
PEG (5Y)1.06
EPS Next 2Y3.37%
EPS Next 3Y6.24%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 1.78%.
Compared to an average industry Dividend Yield of 2.40, ABM pays a better dividend. On top of this ABM pays more dividend than 82.14% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.39, ABM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
The dividend of ABM has a limited annual growth rate of 5.06%.
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)5.06%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
22.21% of the earnings are spent on dividend by ABM. This is a low number and sustainable payout ratio.
ABM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.21%
EPS Next 2Y3.37%
EPS Next 3Y6.24%
ABM INDUSTRIES INC
NYSE:ABM (6/14/2024, 7:04:00 PM)
After market: 49.3013 +0.13 (+0.27%)49.17
-1.32 (-2.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 13.93 | ||
| Fwd PE | 13.18 | ||
| 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)28.22
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.2% | ||
| ROE | 14.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.04% | ||
| PM (TTM) | 3.15% | ||
| GM | 12.97% | ||
| 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 Turnover1.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 | ||
| 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)0.28%
EPS 3Y12.83%
EPS 5Y
EPS Q2Q%
EPS Next Y0.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.71%
Revenue growth 3Y10.58%
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