ABM INDUSTRIES INC (ABM) Stock Fundamental Analysis
USA - NYSE:ABM - US0009571003 - Common Stock
41.97 USD
-1.72 (-3.94%)
41.97 USD
0 (0%)
Overall ABM gets a fundamental rating of 4 out of 10. We evaluated ABM against 82 industry peers in the Commercial Services & Supplies industry. ABM has only an average score on both its financial health and profitability. ABM is valued correctly, but it does not seem to be growing.
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.
In the past 5 years ABM has always been profitable.
Each year in the past 5 years ABM had a positive operating cash flow.
1.2 Ratios
ABM has a Return On Assets (2.20%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.33%, ABM is in line with its industry, outperforming 54.88% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.54%, ABM is in line with its industry, outperforming 50.00% of the companies in the same industry.
ABM had an Average Return On Invested Capital over the past 3 years of 6.02%. This is below the industry average of 10.49%.
| 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 has a Profit Margin (1.34%) which is comparable to the rest of the industry.
ABM's Profit Margin has declined in the last couple of years.
The Operating Margin of ABM (3.04%) is comparable to the rest of the industry.
ABM's Operating Margin has declined in the last couple of years.
ABM has a worse Gross Margin (12.48%) than 84.15% 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.
The number of shares outstanding for ABM has been reduced compared to 1 year ago.
The number of shares outstanding for ABM has been reduced compared to 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 2.77 indicates that ABM is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.77, ABM perfoms like the industry average, outperforming 59.76% of the companies in the same 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 has a Debt to FCF ratio (26.37) which is in line with its industry peers.
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 is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 26.37 | ||
| Altman-Z | 2.77 |
ROIC/WACC0.58
WACC7.87%
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 48.78% of its industry peers.
ABM has a Quick 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.
Looking at the Quick ratio, with a value of 1.49, ABM is in line with its industry, outperforming 59.76% 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%.
Measured over the past years, ABM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.84% on average per year.
Looking at the last year, ABM shows a small growth in Revenue. The Revenue has grown by 4.27% in the last year.
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 9.16% yearly.
ABM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
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
ABM is valuated correctly with a Price/Earnings ratio of 12.17.
Based on the Price/Earnings ratio, ABM is valued cheaply inside the industry as 81.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.67, ABM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.31, the valuation of ABM can be described as reasonable.
Based on the Price/Forward Earnings ratio, ABM is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
ABM is valuated cheaply when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 10.31 |
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 60.98% of the companies listed in the same industry.
ABM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.31 | ||
| EV/EBITDA | 11.22 |
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)3.92
PEG (5Y)1.03
EPS Next 2Y6.8%
EPS Next 3Y9.16%
5. Dividend
5.1 Amount
ABM has a Yearly Dividend Yield of 2.47%. 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 2.60. ABM pays more dividend than 85.37% of the companies in the same industry.
ABM's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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.
The dividend of ABM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP54.79%
EPS Next 2Y6.8%
EPS Next 3Y9.16%
41.97
-1.72 (-3.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.17%
Inst Owner Change2.25%
Ins Owners1.27%
Ins Owner Change-3.54%
Market Cap2.57B
Revenue(TTM)8.63B
Net Income(TTM)115.90M
Analysts74.55
Price Target59.16 (40.96%)
Short Float %5.03%
Short Ratio5.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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)-0.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 10.31 | ||
| P/S | 0.3 | ||
| P/FCF | 44.31 | ||
| P/OCF | 19.56 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.22 |
EPS(TTM)3.45
EY8.22%
EPS(NY)4.07
Fwd EY9.7%
FCF(TTM)0.95
FCFY2.26%
OCF(TTM)2.15
OCFY5.11%
SpS140.91
BVpS29.9
TBVpS-16.55
PEG (NY)3.92
PEG (5Y)1.03
Graham Number48.18
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%
ROICexgc growth 3Y-18.57%
ROICexgc 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 | 2.77 |
F-Score5
WACC7.87%
ROIC/WACC0.58
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%
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 5 / 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 3.1% 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%.