ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
NYSE:ABM - US0009571003 - Common Stock
48.795 USD
-0.09 (-0.19%)
Taking everything into account, ABM scores 4 out of 10 in our fundamental rating. ABM was compared to 84 industry peers in the Commercial Services & Supplies industry. ABM has an average financial health and profitability rating. 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.
Each year in the past 5 years ABM has been profitable.
Each year in the past 5 years ABM had a positive operating cash flow.
1.2 Ratios
ABM has a Return On Assets of 1.48%. This is comparable to the rest of the industry: ABM outperforms 53.57% of its industry peers.
ABM has a Return On Equity (4.32%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.69%, ABM is in line with its industry, outperforming 48.81% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ABM is below the industry average of 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 4.32% | ||
| ROIC | 3.69% |
ROA(3y)3.81%
ROA(5y)2.86%
ROE(3y)10.65%
ROE(5y)7.96%
ROIC(3y)6.02%
ROIC(5y)5.86%
1.3 Margins
With a Profit Margin value of 0.93%, ABM perfoms like the industry average, outperforming 51.19% of the companies in the same industry.
ABM's Profit Margin has declined in the last couple of years.
ABM has a Operating Margin of 2.55%. This is comparable to the rest of the industry: ABM outperforms 41.67% of its industry peers.
ABM's Operating Margin has declined in the last couple of years.
ABM has a Gross Margin of 12.54%. This is amonst the worse of the industry: ABM underperforms 82.14% of its industry peers.
ABM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.55% | ||
| PM (TTM) | 0.93% | ||
| GM | 12.54% |
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.
Compared to 1 year ago, ABM has less shares outstanding
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 2.77. 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.
ABM has a Altman-Z score of 2.77. This is comparable to the rest of the industry: ABM outperforms 52.38% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that ABM is somewhat dependend on debt financing.
ABM has a Debt to Equity ratio (0.83) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.77 |
ROIC/WACC0.45
WACC8.28%
2.3 Liquidity
A Current Ratio of 1.55 indicates that ABM should not have too much problems paying its short term obligations.
The Current ratio of ABM (1.55) is comparable to the rest of the industry.
A Quick Ratio of 1.55 indicates that ABM should not have too much problems paying its short term obligations.
ABM's Quick ratio of 1.55 is fine compared to the rest of the industry. ABM outperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.13% over the past year.
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.
The Revenue has been growing slightly by 3.52% in the past year.
The Revenue has been growing slightly by 5.16% on average over the past years.
EPS 1Y (TTM)1.13%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%-1.15%
Revenue 1Y (TTM)3.52%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%4.63%
3.2 Future
ABM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.18% yearly.
The Revenue is expected to grow by 3.54% on average over the next years.
EPS Next Y5.97%
EPS Next 2Y8.19%
EPS Next 3Y9.18%
EPS Next 5YN/A
Revenue Next Year4.03%
Revenue Next 2Y3.24%
Revenue Next 3Y3.54%
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
With a Price/Earnings ratio of 13.67, ABM is valued correctly.
Based on the Price/Earnings ratio, ABM is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of ABM to the average of the S&P500 Index (27.08), we can say ABM is valued slightly cheaper.
ABM is valuated reasonably with a Price/Forward Earnings ratio of 11.68.
86.90% of the companies in the same industry are more expensive than ABM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ABM to the average of the S&P500 Index (22.67), we can say ABM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 11.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABM is valued a bit cheaper than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.1 |
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)2.29
PEG (5Y)1.15
EPS Next 2Y8.19%
EPS Next 3Y9.18%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 2.21%.
ABM's Dividend Yield is rather good when compared to the industry average which is at 2.36. ABM pays more dividend than 83.33% of the companies in the same industry.
ABM's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
The dividend of ABM has a limited annual growth rate of 4.66%.
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)4.66%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
ABM pays out 77.54% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ABM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP77.54%
EPS Next 2Y8.19%
EPS Next 3Y9.18%
NYSE:ABM (8/27/2025, 10:43:19 AM)
48.795
-0.09 (-0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.58%
Inst Owner Change1.06%
Ins Owners1.24%
Ins Owner Change-3.38%
Market Cap3.04B
Analysts78.18
Price Target59.36 (21.65%)
Short Float %3.22%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend0.9
Dividend Growth(5Y)4.66%
DP77.54%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.64%
Min EPS beat(2)-1.15%
Max EPS beat(2)10.43%
EPS beat(4)3
Avg EPS beat(4)4.87%
Min EPS beat(4)-1.15%
Max EPS beat(4)10.43%
EPS beat(8)6
Avg EPS beat(8)5.49%
EPS beat(12)9
Avg EPS beat(12)4.36%
EPS beat(16)13
Avg EPS beat(16)5.73%
Revenue beat(2)2
Avg Revenue beat(2)0.78%
Min Revenue beat(2)0.09%
Max Revenue beat(2)1.48%
Revenue beat(4)4
Avg Revenue beat(4)1.76%
Min Revenue beat(4)0.09%
Max Revenue beat(4)3.68%
Revenue beat(8)6
Avg Revenue beat(8)1.38%
Revenue beat(12)8
Avg Revenue beat(12)0.82%
Revenue beat(16)11
Avg Revenue beat(16)1.2%
PT rev (1m)0%
PT rev (3m)1.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 11.68 | ||
| P/S | 0.36 | ||
| P/FCF | N/A | ||
| P/OCF | 84.86 | ||
| P/B | 1.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.1 |
EPS(TTM)3.57
EY7.32%
EPS(NY)4.18
Fwd EY8.56%
FCF(TTM)-0.45
FCFYN/A
OCF(TTM)0.58
OCFY1.18%
SpS136.5
BVpS29.3
TBVpS-16.2
PEG (NY)2.29
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 4.32% | ||
| ROCE | 5.4% | ||
| ROIC | 3.69% | ||
| ROICexc | 3.75% | ||
| ROICexgc | 13.23% | ||
| OM | 2.55% | ||
| PM (TTM) | 0.93% | ||
| GM | 12.54% | ||
| FCFM | N/A |
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-Score4
Asset Turnover1.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.73 | ||
| Cap/Depr | 60.87% | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 11.12% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 2.77 |
F-Score4
WACC8.28%
ROIC/WACC0.45
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)1.13%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%-1.15%
EPS Next Y5.97%
EPS Next 2Y8.19%
EPS Next 3Y9.18%
EPS Next 5YN/A
Revenue 1Y (TTM)3.52%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%4.63%
Revenue Next Year4.03%
Revenue Next 2Y3.24%
Revenue Next 3Y3.54%
Revenue Next 5YN/A
EBIT growth 1Y-45.97%
EBIT growth 3Y0.91%
EBIT growth 5Y-0.71%
EBIT Next Year35.34%
EBIT Next 3Y14.71%
EBIT Next 5YN/A
FCF growth 1Y-148.13%
FCF growth 3Y-15.77%
FCF growth 5Y-3.8%
OCF growth 1Y-68.29%
OCF growth 3Y-10.32%
OCF growth 5Y-2.9%