ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
NYSE:ABM - New York Stock Exchange, Inc. - US0009571003 - Common Stock - Currency: USD
Overall ABM gets a fundamental rating of 4 out of 10. We evaluated ABM against 83 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of ABM get a neutral evaluation. Nothing too spectacular is happening here. ABM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ABM had positive earnings in the past year.
ABM had a positive operating cash flow in the past year.
ABM had positive earnings in each of the past 5 years.
ABM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ABM has a Return On Assets of 1.54%. This is comparable to the rest of the industry: ABM outperforms 55.42% of its industry peers.
Looking at the Return On Equity, with a value of 4.52%, ABM is in line with its industry, outperforming 57.83% of the companies in the same industry.
ABM has a Return On Invested Capital (3.73%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABM is below the industry average of 10.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 4.52% | ||
| ROIC | 3.73% |
ROA(3y)3.81%
ROA(5y)2.86%
ROE(3y)10.65%
ROE(5y)7.96%
ROIC(3y)6.02%
ROIC(5y)5.86%
1.3 Margins
ABM has a Profit Margin of 0.96%. This is comparable to the rest of the industry: ABM outperforms 49.40% of its industry peers.
In the last couple of years the Profit Margin of ABM has declined.
Looking at the Operating Margin, with a value of 2.56%, ABM is in line with its industry, outperforming 42.17% of the companies in the same industry.
ABM's Operating Margin has declined in the last couple of years.
The Gross Margin of ABM (12.49%) is worse than 83.13% of its industry peers.
In the last couple of years the Gross Margin of ABM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.56% | ||
| PM (TTM) | 0.96% | ||
| GM | 12.49% |
OM growth 3Y-8.51%
OM growth 5Y-5.59%
PM growth 3Y-21.69%
PM growth 5Y-13.07%
GM growth 3Y-6.63%
GM growth 5Y3.55%
2. Health
2.1 Basic Checks
ABM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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 has been reduced compared to a year ago.
2.2 Solvency
ABM has an Altman-Z score of 2.78. This is not the best score and indicates that ABM is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ABM (2.78) is comparable to the rest of the industry.
The Debt to FCF ratio of ABM is 26.57, which is on the high side as it means it would take ABM, 26.57 years of fcf income to pay off all of its debts.
ABM has a Debt to FCF ratio (26.57) which is in line with its industry peers.
A Debt/Equity ratio of 0.85 indicates that ABM is somewhat dependend on debt financing.
The Debt to Equity ratio of ABM (0.85) is worse than 61.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 26.57 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.48
WACC7.72%
2.3 Liquidity
ABM has a Current Ratio of 1.52. This is a normal value and indicates that ABM is financially healthy and should not expect problems in meeting its short term obligations.
ABM has a Current ratio (1.52) which is in line with its industry peers.
ABM has a Quick Ratio of 1.52. This is a normal value and indicates that ABM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ABM (1.52) is better than 61.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
ABM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.56%.
Measured over the past years, ABM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.84% on average per year.
Looking at the last year, ABM shows a small growth in Revenue. The Revenue has grown by 2.81% in the last year.
The Revenue has been growing slightly by 5.16% on average over the past years.
EPS 1Y (TTM)0.56%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%1.16%
Revenue 1Y (TTM)2.81%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%2.19%
3.2 Future
Based on estimates for the next years, ABM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.62% on average per year.
Based on estimates for the next years, ABM will show a small growth in Revenue. The Revenue will grow by 3.38% on average per year.
EPS Next Y6.55%
EPS Next 2Y7.86%
EPS Next 3Y8.62%
EPS Next 5YN/A
Revenue Next Year3.25%
Revenue Next 2Y2.91%
Revenue Next 3Y3.38%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.88, ABM is valued correctly.
Based on the Price/Earnings ratio, ABM is valued a bit cheaper than the industry average as 79.52% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.22. ABM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.96, the valuation of ABM can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ABM is valued cheaper than 84.34% of the companies in the same industry.
ABM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 11.96 |
4.2 Price Multiples
ABM's Enterprise Value to EBITDA ratio is in line with the industry average.
ABM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.31 | ||
| EV/EBITDA | 14.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABM does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.12
PEG (5Y)1.17
EPS Next 2Y7.86%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 2.19%.
ABM's Dividend Yield is rather good when compared to the industry average which is at 2.54. ABM pays more dividend than 84.34% of the companies in the same industry.
ABM's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
The dividend of ABM has a limited annual growth rate of 4.66%.
ABM has paid a dividend for at least 10 years, which is a reliable track record.
ABM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.66%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
73.13% of the earnings are spent on dividend by ABM. This is not a sustainable payout ratio.
ABM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP73.13%
EPS Next 2Y7.86%
EPS Next 3Y8.62%
49.69
+0.7 (+1.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.34%
Inst Owner Change0%
Ins Owners1.44%
Ins Owner Change6.43%
Market Cap3.09B
Analysts71.67
Price Target58.65 (18.03%)
Short Float %1.69%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend0.9
Dividend Growth(5Y)4.66%
DP73.13%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.28%
Min EPS beat(2)2.13%
Max EPS beat(2)10.43%
EPS beat(4)4
Avg EPS beat(4)7.29%
Min EPS beat(4)2.13%
Max EPS beat(4)10.43%
EPS beat(8)7
Avg EPS beat(8)6.07%
EPS beat(12)10
Avg EPS beat(12)4.83%
EPS beat(16)14
Avg EPS beat(16)6.66%
Revenue beat(2)2
Avg Revenue beat(2)1.89%
Min Revenue beat(2)0.09%
Max Revenue beat(2)3.68%
Revenue beat(4)3
Avg Revenue beat(4)1.38%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)3.68%
Revenue beat(8)5
Avg Revenue beat(8)0.96%
Revenue beat(12)7
Avg Revenue beat(12)0.69%
Revenue beat(16)11
Avg Revenue beat(16)1.14%
PT rev (1m)0%
PT rev (3m)-1.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.47%
EPS NY rev (1m)0%
EPS NY rev (3m)2.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 11.96 | ||
| P/S | 0.37 | ||
| P/FCF | 53.31 | ||
| P/OCF | 25.66 | ||
| P/B | 1.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.11 |
EPS(TTM)3.58
EY7.2%
EPS(NY)4.15
Fwd EY8.36%
FCF(TTM)0.93
FCFY1.88%
OCF(TTM)1.94
OCFY3.9%
SpS135.06
BVpS28.59
TBVpS-17.01
PEG (NY)2.12
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 4.52% | ||
| ROCE | 5.45% | ||
| ROIC | 3.73% | ||
| ROICexc | 3.78% | ||
| ROICexgc | 13.92% | ||
| OM | 2.56% | ||
| PM (TTM) | 0.96% | ||
| GM | 12.49% | ||
| FCFM | 0.69% |
ROA(3y)3.81%
ROA(5y)2.86%
ROE(3y)10.65%
ROE(5y)7.96%
ROIC(3y)6.02%
ROIC(5y)5.86%
ROICexc(3y)6.13%
ROICexc(5y)6.17%
ROICexgc(3y)30.27%
ROICexgc(5y)32.46%
ROCE(3y)8.79%
ROCE(5y)8.57%
ROICexcg growth 3Y-18.57%
ROICexcg growth 5Y-6.89%
ROICexc growth 3Y-4.86%
ROICexc growth 5Y-6.48%
OM growth 3Y-8.51%
OM growth 5Y-5.59%
PM growth 3Y-21.69%
PM growth 5Y-13.07%
GM growth 3Y-6.63%
GM growth 5Y3.55%
F-Score5
Asset Turnover1.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 26.57 | ||
| Debt/EBITDA | 4.7 | ||
| Cap/Depr | 59.19% | ||
| Cap/Sales | 0.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.53% | ||
| Profit Quality | 72.14% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 2.78 |
F-Score5
WACC7.72%
ROIC/WACC0.48
Cap/Depr(3y)52.21%
Cap/Depr(5y)46.84%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.56%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%1.16%
EPS Next Y6.55%
EPS Next 2Y7.86%
EPS Next 3Y8.62%
EPS Next 5YN/A
Revenue 1Y (TTM)2.81%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%2.19%
Revenue Next Year3.25%
Revenue Next 2Y2.91%
Revenue Next 3Y3.38%
Revenue Next 5YN/A
EBIT growth 1Y-47.71%
EBIT growth 3Y0.91%
EBIT growth 5Y-0.71%
EBIT Next Year34.86%
EBIT Next 3Y14.71%
EBIT Next 5YN/A
FCF growth 1Y617.86%
FCF growth 3Y-15.77%
FCF growth 5Y-3.8%
OCF growth 1Y180.89%
OCF growth 3Y-10.32%
OCF growth 5Y-2.9%