ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
NYSE:ABM - New York Stock Exchange, Inc. - US0009571003 - Common Stock - Currency: USD
Overall ABM gets a fundamental rating of 4 out of 10. We evaluated ABM against 83 industry peers in the Commercial Services & Supplies industry. ABM has an average financial health and profitability rating. ABM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ABM was profitable.
ABM had a positive operating cash flow in the past year.
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 1.54% is in line compared to the rest of the industry. ABM outperforms 54.22% of its industry peers.
With a Return On Equity value of 4.52%, ABM perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
The Return On Invested Capital of ABM (3.73%) 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 10.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 4.52% | ||
| ROIC | 3.73% |
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 (0.96%) which is in line with its industry peers.
ABM's Profit Margin has declined in the last couple of years.
ABM's Operating Margin of 2.56% is in line compared to the rest of the industry. ABM outperforms 40.96% of its industry peers.
ABM's Operating Margin has declined in the last couple of years.
ABM has a worse Gross Margin (12.49%) than 83.13% of its industry peers.
ABM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.56% | ||
| PM (TTM) | 0.96% | ||
| GM | 12.49% |
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.
ABM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ABM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.81 indicates that ABM is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.81, ABM is in line with its industry, outperforming 59.04% of the companies in the same industry.
The Debt to FCF ratio of ABM is 26.57, which is on the high side as it means it would take ABM, 26.57 years of fcf income to pay off all of its debts.
ABM has a Debt to FCF ratio (26.57) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.85 indicates that ABM is somewhat dependend on debt financing.
ABM has a Debt to Equity ratio of 0.85. This is in the lower half of the industry: ABM underperforms 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 26.57 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.47
WACC8%
2.3 Liquidity
ABM has a Current Ratio of 1.52. 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 1.52, ABM perfoms like the industry average, outperforming 45.78% of the companies in the same industry.
A Quick Ratio of 1.52 indicates that ABM should not have too much problems paying its short term obligations.
ABM's Quick ratio of 1.52 is fine compared to the rest of the industry. ABM outperforms 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.56% over the past year.
The Earnings Per Share has been growing by 11.84% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.81% in the past year.
Measured over the past years, ABM shows a small growth in Revenue. The Revenue has been growing by 5.16% on average per year.
EPS 1Y (TTM)0.56%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%1.16%
Revenue 1Y (TTM)2.81%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%2.19%
3.2 Future
Based on estimates for the next years, ABM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.62% on average per year.
Based on estimates for the next years, ABM will show a small growth in Revenue. The Revenue will grow by 3.38% on average per year.
EPS Next Y6.55%
EPS Next 2Y7.86%
EPS Next 3Y8.62%
EPS Next 5YN/A
Revenue Next Year3.25%
Revenue Next 2Y2.91%
Revenue Next 3Y3.38%
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
ABM is valuated correctly with a Price/Earnings ratio of 14.26.
ABM's Price/Earnings ratio is a bit cheaper when compared to the industry. ABM is cheaper than 77.11% of the companies in the same industry.
ABM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
Based on the Price/Forward Earnings ratio of 12.29, the valuation of ABM can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABM indicates a somewhat cheap valuation: ABM is cheaper than 77.11% 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 (21.76), we can say ABM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 12.29 |
4.2 Price Multiples
ABM's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.77 | ||
| EV/EBITDA | 14.57 |
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)2.18
PEG (5Y)1.2
EPS Next 2Y7.86%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 2.03%. 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 2.47. ABM pays more dividend than 81.93% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ABM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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
73.13% of the earnings are spent on dividend by ABM. This is not a sustainable payout ratio.
The dividend of ABM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP73.13%
EPS Next 2Y7.86%
EPS Next 3Y8.62%
51.05
-0.3 (-0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.34%
Inst Owner Change1.47%
Ins Owners1.44%
Ins Owner Change3.85%
Market Cap3.18B
Analysts71.67
Price Target58.65 (14.89%)
Short Float %2.57%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
Yearly Dividend0.9
Dividend Growth(5Y)4.66%
DP73.13%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.28%
Min EPS beat(2)2.13%
Max EPS beat(2)10.43%
EPS beat(4)4
Avg EPS beat(4)7.29%
Min EPS beat(4)2.13%
Max EPS beat(4)10.43%
EPS beat(8)7
Avg EPS beat(8)6.07%
EPS beat(12)10
Avg EPS beat(12)4.83%
EPS beat(16)14
Avg EPS beat(16)6.66%
Revenue beat(2)2
Avg Revenue beat(2)1.89%
Min Revenue beat(2)0.09%
Max Revenue beat(2)3.68%
Revenue beat(4)3
Avg Revenue beat(4)1.38%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)3.68%
Revenue beat(8)5
Avg Revenue beat(8)0.96%
Revenue beat(12)7
Avg Revenue beat(12)0.69%
Revenue beat(16)11
Avg Revenue beat(16)1.14%
PT rev (1m)0%
PT rev (3m)-2.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.39%
EPS NY rev (1m)0%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 12.29 | ||
| P/S | 0.38 | ||
| P/FCF | 54.77 | ||
| P/OCF | 26.36 | ||
| P/B | 1.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.57 |
EPS(TTM)3.58
EY7.01%
EPS(NY)4.15
Fwd EY8.14%
FCF(TTM)0.93
FCFY1.83%
OCF(TTM)1.94
OCFY3.79%
SpS135.06
BVpS28.59
TBVpS-17.01
PEG (NY)2.18
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 4.52% | ||
| ROCE | 5.45% | ||
| ROIC | 3.73% | ||
| ROICexc | 3.78% | ||
| ROICexgc | 13.92% | ||
| OM | 2.56% | ||
| PM (TTM) | 0.96% | ||
| GM | 12.49% | ||
| FCFM | 0.69% |
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 Turnover1.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 26.57 | ||
| Debt/EBITDA | 4.7 | ||
| Cap/Depr | 59.19% | ||
| Cap/Sales | 0.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.53% | ||
| Profit Quality | 72.14% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 2.81 |
F-Score5
WACC8%
ROIC/WACC0.47
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)0.56%
EPS 3Y-0.09%
EPS 5Y11.84%
EPS Q2Q%1.16%
EPS Next Y6.55%
EPS Next 2Y7.86%
EPS Next 3Y8.62%
EPS Next 5YN/A
Revenue 1Y (TTM)2.81%
Revenue growth 3Y10.3%
Revenue growth 5Y5.16%
Sales Q2Q%2.19%
Revenue Next Year3.25%
Revenue Next 2Y2.91%
Revenue Next 3Y3.38%
Revenue Next 5YN/A
EBIT growth 1Y-47.71%
EBIT growth 3Y0.91%
EBIT growth 5Y-0.71%
EBIT Next Year34.86%
EBIT Next 3Y14.71%
EBIT Next 5YN/A
FCF growth 1Y617.86%
FCF growth 3Y-15.77%
FCF growth 5Y-3.8%
OCF growth 1Y180.89%
OCF growth 3Y-10.32%
OCF growth 5Y-2.9%