AECOM (ACM) Stock Fundamental Analysis
NYSE:ACM - New York Stock Exchange, Inc. - US00766T1007 - Common Stock - Currency: USD
Overall ACM gets a fundamental rating of 5 out of 10. We evaluated ACM against 50 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of ACM get a neutral evaluation. Nothing too spectacular is happening here. ACM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ACM had positive earnings in the past year.
In the past year ACM had a positive cash flow from operations.
ACM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ACM had a positive operating cash flow.
1.2 Ratios
ACM has a Return On Assets (4.02%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 21.55%, ACM is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 12.66%, ACM is doing good in the industry, outperforming 80.00% of the companies in the same industry.
ACM had an Average Return On Invested Capital over the past 3 years of 10.96%. This is in line with the industry average of 12.17%.
The last Return On Invested Capital (12.66%) for ACM is above the 3 year average (10.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 21.55% | ||
| ROIC | 12.66% |
ROA(3y)2.21%
ROA(5y)1.33%
ROE(3y)11.15%
ROE(5y)6.84%
ROIC(3y)10.96%
ROIC(5y)9.3%
1.3 Margins
The Profit Margin of ACM (2.93%) is comparable to the rest of the industry.
ACM's Profit Margin has improved in the last couple of years.
The Operating Margin of ACM (5.82%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ACM has grown nicely.
ACM has a worse Gross Margin (6.84%) than 74.00% of its industry peers.
In the last couple of years the Gross Margin of ACM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.82% | ||
| PM (TTM) | 2.93% | ||
| GM | 6.84% |
OM growth 3Y5.93%
OM growth 5Y11.03%
PM growth 3Y24.42%
PM growth 5YN/A
GM growth 3Y4.02%
GM growth 5Y8.46%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ACM is still creating some value.
ACM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ACM has less shares outstanding
The debt/assets ratio for ACM is higher compared to a year ago.
2.2 Solvency
ACM has an Altman-Z score of 2.41. This is not the best score and indicates that ACM is in the grey zone with still only limited risk for bankruptcy at the moment.
ACM has a Altman-Z score of 2.41. This is comparable to the rest of the industry: ACM outperforms 52.00% of its industry peers.
The Debt to FCF ratio of ACM is 3.45, which is a good value as it means it would take ACM, 3.45 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.45, ACM is doing good in the industry, outperforming 64.00% of the companies in the same industry.
ACM has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.12, ACM is doing worse than 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.4
WACC9.07%
2.3 Liquidity
ACM has a Current Ratio of 1.14. This is a normal value and indicates that ACM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ACM (1.14) is worse than 66.00% of its industry peers.
ACM has a Quick Ratio of 1.14. This is a normal value and indicates that ACM is financially healthy and should not expect problems in meeting its short term obligations.
ACM's Quick ratio of 1.14 is on the low side compared to the rest of the industry. ACM is outperformed by 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
ACM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.94%, which is quite impressive.
Measured over the past years, ACM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.37% on average per year.
The Revenue has grown by 8.89% in the past year. This is quite good.
ACM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.38% yearly.
EPS 1Y (TTM)21.94%
EPS 3Y16.89%
EPS 5Y10.37%
EPS Q2Q%24.76%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%2.93%
3.2 Future
ACM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.43% yearly.
Based on estimates for the next years, ACM will show a small growth in Revenue. The Revenue will grow by 3.81% on average per year.
EPS Next Y14.39%
EPS Next 2Y11.92%
EPS Next 3Y11.72%
EPS Next 5Y14.43%
Revenue Next Year5.39%
Revenue Next 2Y5.37%
Revenue Next 3Y3.81%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ACM is valuated rather expensively with a Price/Earnings ratio of 21.41.
ACM's Price/Earnings ratio is a bit cheaper when compared to the industry. ACM is cheaper than 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.22, ACM is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.08 indicates a rather expensive valuation of ACM.
Based on the Price/Forward Earnings ratio, ACM is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
ACM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.41 | ||
| Fwd PE | 18.08 |
4.2 Price Multiples
ACM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACM is cheaper than 62.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACM indicates a somewhat cheap valuation: ACM is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.55 | ||
| EV/EBITDA | 12.7 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ACM may justify a higher PE ratio.
PEG (NY)1.49
PEG (5Y)2.07
EPS Next 2Y11.92%
EPS Next 3Y11.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.07%, ACM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.00, ACM pays a better dividend. On top of this ACM pays more dividend than 94.00% of the companies listed in the same industry.
With a Dividend Yield of 1.07, ACM pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
ACM has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ACM pays out 25.25% of its income as dividend. This is a sustainable payout ratio.
DP25.25%
EPS Next 2Y11.92%
EPS Next 3Y11.72%
102.35
+2.1 (+2.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners91.12%
Inst Owner Change-0.21%
Ins Owners0.45%
Ins Owner Change0.88%
Market Cap13.58B
Analysts83.53
Price Target121.43 (18.64%)
Short Float %2.36%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend0.86
Dividend Growth(5Y)N/A
DP25.25%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.1%
Min EPS beat(2)1.25%
Max EPS beat(2)16.95%
EPS beat(4)3
Avg EPS beat(4)4.64%
Min EPS beat(4)-1.66%
Max EPS beat(4)16.95%
EPS beat(8)6
Avg EPS beat(8)3.9%
EPS beat(12)10
Avg EPS beat(12)4.31%
EPS beat(16)13
Avg EPS beat(16)4.6%
Revenue beat(2)0
Avg Revenue beat(2)-2.09%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-1.62%
Revenue beat(4)2
Avg Revenue beat(4)0.56%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)3.32%
Revenue beat(8)6
Avg Revenue beat(8)2.09%
Revenue beat(12)7
Avg Revenue beat(12)-0.13%
Revenue beat(16)8
Avg Revenue beat(16)-0.32%
PT rev (1m)-3.73%
PT rev (3m)-4.53%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-2.24%
EPS NY rev (1m)0%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.41 | ||
| Fwd PE | 18.08 | ||
| P/S | 0.84 | ||
| P/FCF | 18.55 | ||
| P/OCF | 16.25 | ||
| P/B | 6.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.7 |
EPS(TTM)4.78
EY4.67%
EPS(NY)5.66
Fwd EY5.53%
FCF(TTM)5.52
FCFY5.39%
OCF(TTM)6.3
OCFY6.15%
SpS122.24
BVpS16.61
TBVpS-9.27
PEG (NY)1.49
PEG (5Y)2.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 21.55% | ||
| ROCE | 16.62% | ||
| ROIC | 12.66% | ||
| ROICexc | 17.54% | ||
| ROICexgc | 107.69% | ||
| OM | 5.82% | ||
| PM (TTM) | 2.93% | ||
| GM | 6.84% | ||
| FCFM | 4.51% |
ROA(3y)2.21%
ROA(5y)1.33%
ROE(3y)11.15%
ROE(5y)6.84%
ROIC(3y)10.96%
ROIC(5y)9.3%
ROICexc(3y)14.48%
ROICexc(5y)12.18%
ROICexgc(3y)82.34%
ROICexgc(5y)61.1%
ROCE(3y)14.39%
ROCE(5y)12.21%
ROICexcg growth 3Y48.82%
ROICexcg growth 5Y63.69%
ROICexc growth 3Y20.31%
ROICexc growth 5Y28.58%
OM growth 3Y5.93%
OM growth 5Y11.03%
PM growth 3Y24.42%
PM growth 5YN/A
GM growth 3Y4.02%
GM growth 5Y8.46%
F-Score8
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 58.25% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.49% | ||
| Profit Quality | 154.14% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.41 |
F-Score8
WACC9.07%
ROIC/WACC1.4
Cap/Depr(3y)69.05%
Cap/Depr(5y)66.54%
Cap/Sales(3y)0.84%
Cap/Sales(5y)0.88%
Profit Quality(3y)478.28%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.94%
EPS 3Y16.89%
EPS 5Y10.37%
EPS Q2Q%24.76%
EPS Next Y14.39%
EPS Next 2Y11.92%
EPS Next 3Y11.72%
EPS Next 5Y14.43%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%2.93%
Revenue Next Year5.39%
Revenue Next 2Y5.37%
Revenue Next 3Y3.81%
Revenue Next 5YN/A
EBIT growth 1Y15.01%
EBIT growth 3Y12.8%
EBIT growth 5Y14.78%
EBIT Next Year20.79%
EBIT Next 3Y11.63%
EBIT Next 5Y11.16%
FCF growth 1Y46.98%
FCF growth 3Y7.59%
FCF growth 5Y0.9%
OCF growth 1Y30.82%
OCF growth 3Y5.5%
OCF growth 5Y1.25%