ABM INDUSTRIES INC (ABM)
US0009571003 - Common Stock
ABM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. ABM scores excellent on profitability, but there are some minor concerns on its financial health. ABM has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years ABM always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.20%, ABM is doing good in the industry, outperforming 78.31% of the companies in the same industry.
ABM's Return On Equity of 14.13% is amongst the best of the industry. ABM outperforms 80.72% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.17%, ABM is in the better half of the industry, outperforming 73.49% of the companies in the same industry.
ABM had an Average Return On Invested Capital over the past 3 years of 6.83%. This is below the industry average of 10.11%.
The 3 year average ROIC (6.83%) for ABM is below the current ROIC(8.17%), indicating increased profibility in the last year.
| 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
ABM has a Profit Margin of 3.15%. This is in the better half of the industry: ABM outperforms 63.86% of its industry peers.
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.
With a Gross Margin value of 12.97%, ABM is not doing good in the industry: 78.31% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ABM has grown nicely.
| 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 below the Cost of Capital (WACC), so ABM is destroying value.
Compared to 1 year ago, ABM has less shares outstanding
ABM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ABM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.96 indicates that ABM is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.96, ABM is doing good in the industry, outperforming 69.88% of the companies in the same industry.
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.
The Debt to FCF ratio of ABM (5.33) is better than 66.27% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that 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 45.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 2.96 |
ROIC/WACC0.99
WACC8.27%
2.3 Liquidity
ABM has a Current Ratio of 1.48. 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 (1.48) which is in line with its industry peers.
ABM has a Quick Ratio of 1.48. 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 better Quick ratio (1.48) than 61.45% 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 1.42%.
Measured over the past years, ABM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.17% on average per year.
The Revenue has been growing slightly by 3.98% in the past year.
The Revenue has been growing slightly by 4.68% on average over the past years.
EPS 1Y (TTM)1.42%
EPS 3Y12.83%
EPS 5Y13.17%
EPS growth Q2Q8.86%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y10.58%
Revenue growth 5Y4.68%
Revenue growth Q2Q3.93%
3.2 Future
The Earnings Per Share is expected to grow by 5.26% on average over the next years.
The Revenue is expected to grow by 2.46% on average over the next years.
EPS Next Y-1.53%
EPS Next 2Y2.41%
EPS Next 3Y5.26%
EPS Next 5YN/A
Revenue Next Year1.87%
Revenue Next 2Y1.9%
Revenue Next 3Y2.46%
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.
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
A Price/Earnings ratio of 12.58 indicates a correct valuation of ABM.
Compared to the rest of the industry, the Price/Earnings ratio of ABM indicates a rather cheap valuation: ABM is cheaper than 87.95% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.28, ABM is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.23, ABM is valued correctly.
ABM's Price/Forward Earnings ratio is rather cheap when compared to the industry. ABM is cheaper than 85.54% of the companies in the same industry.
ABM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.58 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABM indicates a rather cheap valuation: ABM is cheaper than 80.72% of the companies listed in the same industry.
78.31% of the companies in the same industry are more expensive than ABM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.36 | ||
| EV/EBITDA | 7.76 |
4.3 Compensation for Growth
ABM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.95
EPS Next 2Y2.41%
EPS Next 3Y5.26%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 2.03%. Purely for dividend investing, there may be better candidates out there.
ABM's Dividend Yield is rather good when compared to the industry average which is at 2.39. ABM pays more dividend than 81.93% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, ABM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
5.2 History
The dividend of ABM has a limited annual growth rate of 5.06%.
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)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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP22.21%
EPS Next 2Y2.41%
EPS Next 3Y5.26%
ABM INDUSTRIES INC
NYSE:ABM (5/3/2024, 6:00:00 PM)
After market: 44.77 0 (0%)44.77
-0.07 (-0.16%)
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 Cap2.83B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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 | 12.58 | ||
| Fwd PE | 12.23 | ||
| 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)N/A
PEG (5Y)0.95
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)
Growth
EPS 1Y (TTM)1.42%
EPS 3Y12.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.98%
Revenue growth 3Y10.58%
Revenue growth 5Y
Revenue growth 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