ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - NYSE:ABM - US0009571003 - Common Stock
44.45 USD
-0.53 (-1.18%)
44.32 USD
-0.13 (-0.29%)
ABM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 84 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ABM had positive earnings in the past year.
In the past year ABM had a positive cash flow from operations.
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
The Return On Assets of ABM (2.20%) is comparable to the rest of the industry.
With a Return On Equity value of 6.33%, ABM perfoms like the industry average, outperforming 55.95% of the companies in the same industry.
The Return On Invested Capital of ABM (4.54%) 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 10.21%.
| 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
The Profit Margin of ABM (1.34%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ABM has declined.
Looking at the Operating Margin, with a value of 3.04%, ABM is in line with its industry, outperforming 44.05% 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 12.48%. This is amonst the worse of the industry: ABM underperforms 84.52% of its industry peers.
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.
ABM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ABM has less shares outstanding
Compared to 1 year ago, ABM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.79 indicates that ABM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ABM (2.79) is comparable to the rest of the industry.
ABM has a debt to FCF ratio of 26.37. This is a negative value and a sign of low solvency as ABM would need 26.37 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 26.37, ABM is in line with its industry, outperforming 46.43% of the companies in the same industry.
A Debt/Equity ratio of 0.82 indicates that ABM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.82, ABM perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 26.37 | ||
| Altman-Z | 2.79 |
ROIC/WACC0.57
WACC7.99%
2.3 Liquidity
ABM has a Current Ratio of 1.49. This is a normal value and indicates that ABM is financially healthy and should not expect problems in meeting 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.
Looking at the Quick ratio, with a value of 1.49, ABM is in line with its industry, outperforming 59.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
ABM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.25%.
The Earnings Per Share has been growing by 11.84% on average over the past years. This is quite good.
ABM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.27%.
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
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 12.88 indicates a correct valuation of ABM.
Based on the Price/Earnings ratio, ABM is valued cheaper than 82.14% of the companies in the same industry.
ABM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.02.
Based on the Price/Forward Earnings ratio of 10.92, the valuation of ABM can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABM indicates a rather cheap valuation: ABM is cheaper than 84.52% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ABM to the average of the S&P500 Index (22.57), we can say ABM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 10.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABM indicates a somewhat cheap valuation: ABM is cheaper than 63.10% of the companies listed in the same industry.
ABM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.93 | ||
| EV/EBITDA | 11.44 |
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)4.15
PEG (5Y)1.09
EPS Next 2Y6.8%
EPS Next 3Y9.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.36%, ABM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.34, ABM pays a better dividend. On top of this ABM pays more dividend than 84.52% of the companies listed 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 | 2.36% |
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 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%
44.45
-0.53 (-1.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.17%
Inst Owner Change0%
Ins Owners1.27%
Ins Owner Change-3.54%
Market Cap2.72B
Analysts74.55
Price Target59.16 (33.09%)
Short Float %4.17%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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)-0.34%
PT rev (3m)0.69%
EPS NQ rev (1m)2.01%
EPS NQ rev (3m)2.01%
EPS NY rev (1m)-2.71%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)2.59%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 10.92 | ||
| P/S | 0.32 | ||
| P/FCF | 46.93 | ||
| P/OCF | 20.71 | ||
| P/B | 1.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.44 |
EPS(TTM)3.45
EY7.76%
EPS(NY)4.07
Fwd EY9.16%
FCF(TTM)0.95
FCFY2.13%
OCF(TTM)2.15
OCFY4.83%
SpS140.91
BVpS29.9
TBVpS-16.55
PEG (NY)4.15
PEG (5Y)1.09
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%
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 Turnover1.64
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 | 2.79 |
F-Score5
WACC7.99%
ROIC/WACC0.57
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%