ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABM - US0009571003 - Common Stock
41.75 USD
-0.46 (-1.09%)
41.75 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ABM. ABM was compared to 80 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
In the past year ABM was profitable.
In the past year ABM had a positive cash flow from operations.
Each year in the past 5 years ABM has been profitable.
ABM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.20%, ABM is in line with its industry, outperforming 57.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.33%, ABM is in line with its industry, outperforming 58.75% of the companies in the same industry.
ABM has a Return On Invested Capital of 4.47%. This is comparable to the rest of the industry: ABM outperforms 55.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABM is below the industry average of 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.33% | ||
| ROIC | 4.47% |
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
Looking at the Profit Margin, with a value of 1.34%, ABM is in line with its industry, outperforming 53.75% of the companies in the same industry.
ABM's Profit Margin has improved in the last couple of years.
ABM has a Operating Margin (3.04%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ABM has declined.
ABM's Gross Margin of 12.48% is on the low side compared to the rest of the industry. ABM is outperformed by 83.75% of its industry peers.
In the last couple of years the Gross Margin of ABM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.04% | ||
| PM (TTM) | 1.34% | ||
| GM | 12.48% |
OM growth 3Y-5.26%
OM growth 5Y-4.22%
PM growth 3Y-14.31%
PM growth 5Y226.42%
GM growth 3Y-4.76%
GM growth 5Y-3.99%
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.
ABM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ABM has less shares outstanding
ABM has a worse debt/assets ratio than last year.
2.2 Solvency
ABM has an Altman-Z score of 2.76. 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 (2.76) which is in line with 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.
The Debt to FCF ratio of ABM (26.37) 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 Debt to Equity ratio (0.82) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 26.37 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.56
WACC8.05%
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.
ABM's Current ratio of 1.49 is in line compared to the rest of the industry. ABM outperforms 50.00% of its industry peers.
A Quick Ratio of 1.49 indicates that ABM should not have too much problems paying its short term obligations.
ABM's Quick ratio of 1.49 is in line compared to the rest of the industry. ABM outperforms 57.50% 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 -3.92% in the last year.
Measured over the past 5 years, ABM shows a small growth in Earnings Per Share. The EPS has been growing by 7.14% on average per year.
ABM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.62%.
The Revenue has been growing slightly by 7.87% on average over the past years.
EPS 1Y (TTM)-3.92%
EPS 3Y-2.14%
EPS 5Y7.14%
EPS Q2Q%-2.22%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y3.86%
Revenue growth 5Y7.87%
Sales Q2Q%5.42%
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.
The Revenue is expected to grow by 3.73% on average over the next years.
EPS Next Y16.83%
EPS Next 2Y13.9%
EPS Next 3Y10%
EPS Next 5YN/A
Revenue Next Year4.76%
Revenue Next 2Y4.22%
Revenue Next 3Y3.73%
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.17, the valuation of ABM can be described as correct.
82.50% of the companies in the same industry are more expensive than ABM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.50, ABM is valued rather cheaply.
ABM is valuated reasonably with a Price/Forward Earnings ratio of 10.42.
ABM's Price/Forward Earnings ratio is rather cheap when compared to the industry. ABM is cheaper than 88.75% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.93. ABM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
65.00% of the companies in the same industry are more expensive than ABM, based on the Enterprise Value to EBITDA ratio.
ABM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.08 | ||
| EV/EBITDA | 10.98 |
4.3 Compensation for Growth
ABM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.72
PEG (5Y)1.71
EPS Next 2Y13.9%
EPS Next 3Y10%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.75%, ABM has a reasonable but not impressive dividend return.
ABM's Dividend Yield is rather good when compared to the industry average which is at 0.89. ABM pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, ABM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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
54.79% of the earnings are spent on dividend by ABM. This is a bit on the high side, but may be sustainable.
The dividend of ABM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP54.79%
EPS Next 2Y13.9%
EPS Next 3Y10%
41.75
-0.46 (-1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.38%
Inst Owner Change0.24%
Ins Owners1.26%
Ins Owner Change-0.6%
Market Cap2.56B
Revenue(TTM)8.75B
Net Income(TTM)115.90M
Analysts74.55
Price Target55.08 (31.93%)
Short Float %4.81%
Short Ratio5.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 10.42 | ||
| P/S | 0.3 | ||
| P/FCF | 44.08 | ||
| P/OCF | 19.45 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.98 |
EPS(TTM)3.43
EY8.22%
EPS(NY)4.01
Fwd EY9.6%
FCF(TTM)0.95
FCFY2.27%
OCF(TTM)2.15
OCFY5.14%
SpS140.91
BVpS29.9
TBVpS-16.55
PEG (NY)0.72
PEG (5Y)1.71
Graham Number48.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.33% | ||
| ROCE | 6.63% | ||
| ROIC | 4.47% | ||
| ROICexc | 4.55% | ||
| ROICexgc | 16.95% | ||
| OM | 3.04% | ||
| PM (TTM) | 1.34% | ||
| GM | 12.48% | ||
| FCFM | 0.67% |
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-4.76%
GM growth 5Y-3.99%
F-Score6
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 | 2.76 |
F-Score6
WACC8.05%
ROIC/WACC0.56
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.92%
EPS 3Y-2.14%
EPS 5Y7.14%
EPS Q2Q%-2.22%
EPS Next Y16.83%
EPS Next 2Y13.9%
EPS Next 3Y10%
EPS Next 5YN/A
Revenue 1Y (TTM)4.62%
Revenue growth 3Y3.86%
Revenue growth 5Y7.87%
Sales Q2Q%5.42%
Revenue Next Year4.76%
Revenue Next 2Y4.22%
Revenue Next 3Y3.73%
Revenue Next 5YN/A
EBIT growth 1Y-12.27%
EBIT growth 3Y-1.6%
EBIT growth 5Y3.32%
EBIT Next Year35.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-78.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-60.82%
OCF growth 3YN/A
OCF growth 5YN/A
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 6 / 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 16.83% 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%.