ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - NYSE:ABM - US0009571003 - Common Stock
41.95 USD
-0.02 (-0.05%)
41.95 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ABM. ABM was compared to 82 industry peers in the Commercial Services & Supplies industry. ABM has only an average score on both its financial health and profitability. 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.
ABM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ABM's Return On Assets of 2.20% is in line compared to the rest of the industry. ABM outperforms 53.01% of its industry peers.
The Return On Equity of ABM (6.33%) is comparable to the rest of the industry.
ABM has a Return On Invested Capital (4.54%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABM is below the industry average of 10.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.33% | ||
| ROIC | 4.54% |
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 (1.34%) which is in line with its industry peers.
ABM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.04%, ABM is in line with its industry, outperforming 44.58% of the companies in the same industry.
ABM's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 12.48%, ABM is not doing good in the industry: 85.54% of the companies in the same industry are doing better.
ABM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.04% | ||
| PM (TTM) | 1.34% | ||
| GM | 12.48% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ABM is destroying value.
The number of shares outstanding for ABM has been reduced compared to 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 2.75. 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's Altman-Z score of 2.75 is fine compared to the rest of the industry. ABM outperforms 60.24% of its industry peers.
The Debt to FCF ratio of ABM is 26.37, which is on the high side as it means it would take ABM, 26.37 years of fcf income to pay off all of its debts.
ABM has a Debt to FCF ratio (26.37) which is comparable to the rest of the industry.
ABM has a Debt/Equity ratio of 0.82. This is a neutral value indicating ABM is somewhat dependend on debt financing.
ABM has a worse Debt to Equity ratio (0.82) than 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 26.37 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.58
WACC7.82%
2.3 Liquidity
A Current Ratio of 1.49 indicates that ABM should not have too much problems paying its short term obligations.
The Current ratio of ABM (1.49) is comparable to the rest of the industry.
A Quick Ratio of 1.49 indicates that ABM should not have too much problems paying its short term obligations.
The Quick ratio of ABM (1.49) is better than 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The earnings per share for ABM have decreased by -6.25% in the last 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 4.27% in the past year.
ABM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.16% yearly.
EPS 1Y (TTM)-6.25%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%-12.77%
Revenue 1Y (TTM)4.27%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%6.2%
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 9.16% yearly.
The Revenue is expected to grow by 3.95% on average over the next years.
EPS Next Y3.1%
EPS Next 2Y6.8%
EPS Next 3Y9.16%
EPS Next 5YN/A
Revenue Next Year5.62%
Revenue Next 2Y4.38%
Revenue Next 3Y3.95%
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.
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
Based on the Price/Earnings ratio of 12.16, the valuation of ABM can be described as correct.
83.13% of the companies in the same industry are more expensive than ABM, based on the Price/Earnings ratio.
ABM is valuated cheaply when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.30, the valuation of ABM can be described as very reasonable.
85.54% of the companies in the same industry are more expensive than ABM, based on the Price/Forward Earnings ratio.
ABM is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
61.45% of the companies in the same industry are more expensive than ABM, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as ABM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.29 | ||
| EV/EBITDA | 10.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.92
PEG (5Y)1.03
EPS Next 2Y6.8%
EPS Next 3Y9.16%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 2.53%. 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 2.54. ABM pays more dividend than 85.54% of the companies in the same industry.
ABM's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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
ABM pays out 54.79% of its income as dividend. This is a bit on the high side, but may be sustainable.
ABM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.79%
EPS Next 2Y6.8%
EPS Next 3Y9.16%
41.95
-0.02 (-0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.17%
Inst Owner Change0.41%
Ins Owners1.27%
Ins Owner Change-2.86%
Market Cap2.57B
Revenue(TTM)8.63B
Net Income(TTM)115.90M
Analysts74.55
Price Target59.16 (41.03%)
Short Float %5.03%
Short Ratio5.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend0.9
Dividend Growth(5Y)4.66%
DP54.79%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.78%
Min EPS beat(2)-14.41%
Max EPS beat(2)-1.15%
EPS beat(4)2
Avg EPS beat(4)-0.75%
Min EPS beat(4)-14.41%
Max EPS beat(4)10.43%
EPS beat(8)6
Avg EPS beat(8)5.16%
EPS beat(12)8
Avg EPS beat(12)2.91%
EPS beat(16)12
Avg EPS beat(16)4.22%
Revenue beat(2)2
Avg Revenue beat(2)1.96%
Min Revenue beat(2)1.48%
Max Revenue beat(2)2.44%
Revenue beat(4)4
Avg Revenue beat(4)1.92%
Min Revenue beat(4)0.09%
Max Revenue beat(4)3.68%
Revenue beat(8)7
Avg Revenue beat(8)1.69%
Revenue beat(12)8
Avg Revenue beat(12)0.9%
Revenue beat(16)11
Avg Revenue beat(16)1.23%
PT rev (1m)0%
PT rev (3m)-0.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 10.3 | ||
| P/S | 0.3 | ||
| P/FCF | 44.29 | ||
| P/OCF | 19.55 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.93 |
EPS(TTM)3.45
EY8.22%
EPS(NY)4.07
Fwd EY9.71%
FCF(TTM)0.95
FCFY2.26%
OCF(TTM)2.15
OCFY5.12%
SpS140.91
BVpS29.9
TBVpS-16.55
PEG (NY)3.92
PEG (5Y)1.03
Graham Number48.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.33% | ||
| ROCE | 6.63% | ||
| ROIC | 4.54% | ||
| ROICexc | 4.62% | ||
| ROICexgc | 17.21% | ||
| OM | 3.04% | ||
| PM (TTM) | 1.34% | ||
| GM | 12.48% | ||
| FCFM | 0.67% |
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%
ROICexgc growth 3Y-18.57%
ROICexgc 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 Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 26.37 | ||
| Debt/EBITDA | 4.07 | ||
| Cap/Depr | 69.25% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 35.66% | ||
| Profit Quality | 50.04% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 2.75 |
F-Score5
WACC7.82%
ROIC/WACC0.58
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)-6.25%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%-12.77%
EPS Next Y3.1%
EPS Next 2Y6.8%
EPS Next 3Y9.16%
EPS Next 5YN/A
Revenue 1Y (TTM)4.27%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%6.2%
Revenue Next Year5.62%
Revenue Next 2Y4.38%
Revenue Next 3Y3.95%
Revenue Next 5YN/A
EBIT growth 1Y-12.27%
EBIT growth 3Y0.91%
EBIT growth 5Y-0.71%
EBIT Next Year35.49%
EBIT Next 3Y15.45%
EBIT Next 5YN/A
FCF growth 1Y-64.22%
FCF growth 3Y-15.77%
FCF growth 5Y-3.8%
OCF growth 1Y-40.62%
OCF growth 3Y-10.32%
OCF growth 5Y-2.9%
ABM INDUSTRIES INC / ABM FAQ
What is the ChartMill fundamental rating of ABM INDUSTRIES INC (ABM) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ABM.
Can you provide the valuation status for ABM INDUSTRIES INC?
ChartMill assigns a valuation rating of 5 / 10 to ABM INDUSTRIES INC (ABM). This can be considered as Fairly Valued.
How profitable is ABM INDUSTRIES INC (ABM) stock?
ABM INDUSTRIES INC (ABM) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for ABM stock?
The Earnings per Share (EPS) of ABM INDUSTRIES INC (ABM) is expected to grow by 3.1% in the next year.
How sustainable is the dividend of ABM INDUSTRIES INC (ABM) stock?
The dividend rating of ABM INDUSTRIES INC (ABM) is 6 / 10 and the dividend payout ratio is 54.79%.