ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - NYSE:ABM - US0009571003 - Common Stock
45.03 USD
-0.59 (-1.29%)
45.031 USD
0 (0%)
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 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
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.
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 54.76% of its industry peers.
With a Return On Equity value of 6.33%, ABM perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
With a Return On Invested Capital value of 4.54%, ABM perfoms like the industry average, outperforming 48.81% 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 10.60%.
| 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's Profit Margin of 1.34% is in line compared to the rest of the industry. ABM outperforms 51.19% of its industry peers.
ABM's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.04%, ABM perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Operating Margin of ABM has declined.
With a Gross Margin value of 12.48%, ABM is not doing good in the industry: 84.52% 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.
ABM has less shares outstanding than it did 5 years ago.
ABM has a better debt/assets ratio than last year.
2.2 Solvency
ABM has an Altman-Z score of 2.79. 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 (2.79) which 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.
ABM's Debt to FCF ratio of 26.37 is in line compared to the rest of the industry. ABM outperforms 44.05% of its industry peers.
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 of 0.82. This is in the lower half of the industry: ABM underperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 26.37 | ||
| Altman-Z | 2.79 |
ROIC/WACC0.55
WACC8.25%
2.3 Liquidity
A Current Ratio of 1.49 indicates that ABM should not have too much problems paying its short term obligations.
ABM has a Current ratio of 1.49. This is comparable to the rest of the industry: ABM outperforms 47.62% 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 has a Quick ratio (1.49) which is comparable to the rest of the industry.
| 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.
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%.
The Revenue has been growing slightly by 5.16% on average over the past years.
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 9.18% yearly.
The Revenue is expected to grow by 3.95% on average over the next years.
EPS Next Y5.97%
EPS Next 2Y8.19%
EPS Next 3Y9.18%
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.
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
A Price/Earnings ratio of 13.05 indicates a correct valuation of ABM.
Compared to the rest of the industry, the Price/Earnings ratio of ABM indicates a rather cheap valuation: ABM is cheaper than 84.52% of the companies listed in the same industry.
ABM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
The Price/Forward Earnings ratio is 10.78, which indicates a very decent valuation of ABM.
Based on the Price/Forward Earnings ratio, ABM is valued cheaper than 89.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ABM to the average of the S&P500 Index (22.86), we can say ABM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 10.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABM is valued a bit cheaper than 63.10% of the companies 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 | 47.54 | ||
| EV/EBITDA | 11.54 |
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)2.19
PEG (5Y)1.1
EPS Next 2Y8.19%
EPS Next 3Y9.18%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 2.32%.
Compared to an average industry Dividend Yield of 2.27, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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.
ABM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.79%
EPS Next 2Y8.19%
EPS Next 3Y9.18%
45.03
-0.59 (-1.29%)
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 Cap2.76B
Analysts78.18
Price Target59.16 (31.38%)
Short Float %3.95%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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)0.87%
EPS NQ rev (1m)2.01%
EPS NQ rev (3m)2.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)2.59%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 10.78 | ||
| P/S | 0.32 | ||
| P/FCF | 47.54 | ||
| P/OCF | 20.98 | ||
| P/B | 1.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.54 |
EPS(TTM)3.45
EY7.66%
EPS(NY)4.18
Fwd EY9.28%
FCF(TTM)0.95
FCFY2.1%
OCF(TTM)2.15
OCFY4.77%
SpS140.91
BVpS29.9
TBVpS-16.55
PEG (NY)2.19
PEG (5Y)1.1
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
WACC8.25%
ROIC/WACC0.55
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 Y5.97%
EPS Next 2Y8.19%
EPS Next 3Y9.18%
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 Year35.34%
EBIT Next 3Y14.71%
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%