ABM INDUSTRIES INC (ABM) Fundamental Analysis & Valuation
NYSE:ABM • US0009571003
Current stock price
38.52 USD
+0.52 (+1.37%)
At close:
38.52 USD
0 (0%)
After Hours:
This ABM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ABM Profitability Analysis
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.
- Each year in the past 5 years ABM had a positive operating cash flow.
1.2 Ratios
- ABM's Return On Assets of 2.98% is fine compared to the rest of the industry. ABM outperforms 65.85% of its industry peers.
- ABM has a better Return On Equity (9.14%) than 68.29% of its industry peers.
- With a decent Return On Invested Capital value of 5.51%, ABM is doing good in the industry, outperforming 60.98% 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 10.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 9.14% | ||
| ROIC | 5.51% |
ROA(3y)3.26%
ROA(5y)3.47%
ROE(3y)9.21%
ROE(5y)9.78%
ROIC(3y)5.59%
ROIC(5y)5.54%
1.3 Margins
- With a Profit Margin value of 1.78%, ABM perfoms like the industry average, outperforming 59.76% of the companies in the same industry.
- ABM's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 3.67%, ABM is in line with its industry, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of ABM has declined.
- ABM has a Gross Margin of 12.12%. This is amonst the worse of the industry: ABM underperforms 86.59% of its industry peers.
- In the last couple of years the Gross Margin of ABM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.67% | ||
| PM (TTM) | 1.78% | ||
| GM | 12.12% |
OM growth 3Y-5.26%
OM growth 5Y-4.22%
PM growth 3Y-14.31%
PM growth 5Y226.42%
GM growth 3Y-2.09%
GM growth 5Y-2.38%
2. ABM Health Analysis
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 is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.77 indicates that ABM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ABM has a better Altman-Z score (2.77) than 63.41% of its industry peers.
- The Debt to FCF ratio of ABM is 4.99, which is a neutral value as it means it would take ABM, 4.99 years of fcf income to pay off all of its debts.
- ABM has a better Debt to FCF ratio (4.99) than 75.61% of its industry peers.
- A Debt/Equity ratio of 0.93 indicates that ABM is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.93, ABM is doing worse than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 4.99 | ||
| Altman-Z | 2.77 |
ROIC/WACC0.66
WACC8.41%
2.3 Liquidity
- ABM has a Current Ratio of 1.50. This is a normal value and indicates that ABM is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.50, ABM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- ABM has a Quick Ratio of 1.50. This is a normal value and indicates that ABM is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.50, ABM perfoms like the industry average, outperforming 59.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. ABM Growth Analysis
3.1 Past
- The earnings per share for ABM have decreased by -5.31% in the last year.
- ABM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.14% yearly.
- Looking at the last year, ABM shows a small growth in Revenue. The Revenue has grown by 5.59% in the last year.
- The Revenue has been growing slightly by 7.87% on average over the past years.
EPS 1Y (TTM)-5.31%
EPS 3Y-2.14%
EPS 5Y7.14%
EPS Q2Q%-4.6%
Revenue 1Y (TTM)5.59%
Revenue growth 3Y3.86%
Revenue growth 5Y7.87%
Sales Q2Q%6.08%
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 10.00% yearly.
- ABM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y17.45%
EPS Next 2Y13.2%
EPS Next 3Y10%
EPS Next 5YN/A
Revenue Next Year5.21%
Revenue Next 2Y4.33%
Revenue Next 3Y3.96%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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. ABM Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 11.36, which indicates a very decent valuation of ABM.
- ABM's Price/Earnings ratio is rather cheap when compared to the industry. ABM is cheaper than 86.59% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 25.61, ABM is valued rather cheaply.
- ABM is valuated reasonably with a Price/Forward Earnings ratio of 8.76.
- Based on the Price/Forward Earnings ratio, ABM is valued cheaper than 89.02% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, ABM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 8.76 |
4.2 Price Multiples
- 74.39% of the companies in the same industry are more expensive than ABM, based on the Enterprise Value to EBITDA ratio.
- 91.46% 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 | 6.89 | ||
| EV/EBITDA | 8.7 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.65
PEG (5Y)1.59
EPS Next 2Y13.2%
EPS Next 3Y10%
5. ABM Dividend Analysis
5.1 Amount
- ABM has a Yearly Dividend Yield of 3.09%. 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 0.84. ABM pays more dividend than 89.02% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, ABM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
- On average, the dividend of ABM grows each year by 7.71%, which is quite nice.
- 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)7.71%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 42.20% of the earnings are spent on dividend by ABM. 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.
DP42.2%
EPS Next 2Y13.2%
EPS Next 3Y10%
ABM Fundamentals: All Metrics, Ratios and Statistics
38.52
+0.52 (+1.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)03-10 2026-03-10/bmo
Earnings (Next)06-04 2026-06-04
Inst Owners99.33%
Inst Owner Change-5.58%
Ins Owners1.66%
Ins Owner Change5.35%
Market Cap2.25B
Revenue(TTM)8.87B
Net Income(TTM)157.60M
Analysts71.67
Price Target53.04 (37.69%)
Short Float %3.85%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend1.07
Dividend Growth(5Y)7.71%
DP42.2%
Div Incr Years4
Div Non Decr Years4
Ex-Date01-14 2026-01-14 (0.29)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.8%
Min EPS beat(2)-19.79%
Max EPS beat(2)-5.81%
EPS beat(4)0
Avg EPS beat(4)-10.29%
Min EPS beat(4)-19.79%
Max EPS beat(4)-1.15%
EPS beat(8)4
Avg EPS beat(8)-1.5%
EPS beat(12)7
Avg EPS beat(12)0.62%
EPS beat(16)10
Avg EPS beat(16)1.05%
Revenue beat(2)2
Avg Revenue beat(2)0.69%
Min Revenue beat(2)0.06%
Max Revenue beat(2)1.33%
Revenue beat(4)4
Avg Revenue beat(4)1.33%
Min Revenue beat(4)0.06%
Max Revenue beat(4)2.44%
Revenue beat(8)7
Avg Revenue beat(8)1.36%
Revenue beat(12)9
Avg Revenue beat(12)1.08%
Revenue beat(16)11
Avg Revenue beat(16)0.85%
PT rev (1m)0%
PT rev (3m)-3.7%
EPS NQ rev (1m)-3.13%
EPS NQ rev (3m)-3.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)1.64%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 8.76 | ||
| P/S | 0.25 | ||
| P/FCF | 6.89 | ||
| P/OCF | 5.6 | ||
| P/B | 1.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.7 |
EPS(TTM)3.39
EY8.8%
EPS(NY)4.39
Fwd EY11.41%
FCF(TTM)5.59
FCFY14.5%
OCF(TTM)6.88
OCFY17.87%
SpS151.62
BVpS29.46
TBVpS-18.84
PEG (NY)0.65
PEG (5Y)1.59
Graham Number47.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 9.14% | ||
| ROCE | 8.18% | ||
| ROIC | 5.51% | ||
| ROICexc | 5.65% | ||
| ROICexgc | 20.8% | ||
| OM | 3.67% | ||
| PM (TTM) | 1.78% | ||
| GM | 12.12% | ||
| FCFM | 3.68% |
ROA(3y)3.26%
ROA(5y)3.47%
ROE(3y)9.21%
ROE(5y)9.78%
ROIC(3y)5.59%
ROIC(5y)5.54%
ROICexc(3y)5.71%
ROICexc(5y)5.66%
ROICexgc(3y)23.68%
ROICexgc(5y)28.56%
ROCE(3y)8.29%
ROCE(5y)8.23%
ROICexgc growth 3Y-18.69%
ROICexgc growth 5Y-11.06%
ROICexc growth 3Y-5.28%
ROICexc growth 5Y-6.08%
OM growth 3Y-5.26%
OM growth 5Y-4.22%
PM growth 3Y-14.31%
PM growth 5Y226.42%
GM growth 3Y-2.09%
GM growth 5Y-2.38%
F-Score6
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 4.99 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 71.92% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.39% | ||
| Profit Quality | 207.49% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 2.77 |
F-Score6
WACC8.41%
ROIC/WACC0.66
Cap/Depr(3y)61.56%
Cap/Depr(5y)53.98%
Cap/Sales(3y)0.81%
Cap/Sales(5y)0.73%
Profit Quality(3y)124%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.31%
EPS 3Y-2.14%
EPS 5Y7.14%
EPS Q2Q%-4.6%
EPS Next Y17.45%
EPS Next 2Y13.2%
EPS Next 3Y10%
EPS Next 5YN/A
Revenue 1Y (TTM)5.59%
Revenue growth 3Y3.86%
Revenue growth 5Y7.87%
Sales Q2Q%6.08%
Revenue Next Year5.21%
Revenue Next 2Y4.33%
Revenue Next 3Y3.96%
Revenue Next 5YN/A
EBIT growth 1Y51.23%
EBIT growth 3Y-1.6%
EBIT growth 5Y3.32%
EBIT Next Year40.19%
EBIT Next 3Y13.44%
EBIT Next 5YN/A
FCF growth 1Y31.11%
FCF growth 3YN/A
FCF growth 5Y-18.04%
OCF growth 1Y28.2%
OCF growth 3Y125.65%
OCF growth 5Y-12.52%
ABM INDUSTRIES INC / ABM Fundamental Analysis FAQ
What is the ChartMill fundamental rating of ABM INDUSTRIES INC (ABM) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ABM.
What is the valuation status of ABM INDUSTRIES INC (ABM) stock?
ChartMill assigns a valuation rating of 8 / 10 to ABM INDUSTRIES INC (ABM). This can be considered as Undervalued.
How profitable is ABM INDUSTRIES INC (ABM) stock?
ABM INDUSTRIES INC (ABM) has a profitability rating of 5 / 10.
How financially healthy is ABM INDUSTRIES INC?
The financial health rating of ABM INDUSTRIES INC (ABM) is 5 / 10.
Is the dividend of ABM INDUSTRIES INC sustainable?
The dividend rating of ABM INDUSTRIES INC (ABM) is 7 / 10 and the dividend payout ratio is 42.2%.