AECOM (ACM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACM - US00766T1007 - Common Stock
101.98 USD
+0.46 (+0.45%)
101.98 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ACM. ACM was compared to 55 industry peers in the Construction & Engineering industry. ACM has an average financial health and profitability rating. ACM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ACM was profitable.
In the past year ACM had a positive cash flow from operations.
ACM had positive earnings in each of the past 5 years.
ACM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACM's Return On Assets of 4.60% is fine compared to the rest of the industry. ACM outperforms 61.82% of its industry peers.
ACM has a better Return On Equity (22.54%) than 78.18% of its industry peers.
With a decent Return On Invested Capital value of 13.20%, ACM is doing good in the industry, outperforming 78.18% of the companies in the same industry.
ACM had an Average Return On Invested Capital over the past 3 years of 12.46%. This is below the industry average of 17.30%.
The last Return On Invested Capital (13.20%) for ACM is above the 3 year average (12.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 22.54% | ||
| ROIC | 13.2% |
ROA(3y)2.81%
ROA(5y)2.54%
ROE(3y)14.48%
ROE(5y)12.48%
ROIC(3y)12.46%
ROIC(5y)11.01%
1.3 Margins
Looking at the Profit Margin, with a value of 3.48%, ACM is in line with its industry, outperforming 56.36% of the companies in the same industry.
In the last couple of years the Profit Margin of ACM has grown nicely.
The Operating Margin of ACM (6.56%) 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 Gross Margin of 7.54%. This is in the lower half of the industry: ACM underperforms 76.36% of its industry peers.
ACM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.56% | ||
| PM (TTM) | 3.48% | ||
| GM | 7.54% |
OM growth 3Y7.16%
OM growth 5Y10.81%
PM growth 3Y13.74%
PM growth 5YN/A
GM growth 3Y5.34%
GM growth 5Y7.05%
2. Health
2.1 Basic Checks
ACM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ACM has been reduced compared to 1 year ago.
The number of shares outstanding for ACM has been reduced compared to 5 years ago.
The debt/assets ratio for ACM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.37 indicates that ACM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ACM (2.37) is comparable to the rest of the industry.
ACM has a debt to FCF ratio of 3.96. This is a good value and a sign of high solvency as ACM would need 3.96 years to pay back of all of its debts.
ACM has a better Debt to FCF ratio (3.96) than 65.45% of its industry peers.
ACM has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.06, ACM is doing worse than 61.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.96 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.37
WACC9.65%
2.3 Liquidity
A Current Ratio of 1.14 indicates that ACM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.14, ACM is doing worse than 61.82% of the companies in the same industry.
A Quick Ratio of 1.14 indicates that ACM should not have too much problems paying its short term obligations.
ACM has a Quick ratio of 1.14. This is comparable to the rest of the industry: ACM outperforms 41.82% 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 16.37%, which is quite good.
The Earnings Per Share has been growing by 19.48% on average over the past years. This is quite good.
ACM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.21%.
Measured over the past years, ACM shows a small growth in Revenue. The Revenue has been growing by 4.04% on average per year.
EPS 1Y (TTM)16.37%
EPS 3Y14.87%
EPS 5Y19.48%
EPS Q2Q%7.09%
Revenue 1Y (TTM)0.21%
Revenue growth 3Y7.07%
Revenue growth 5Y4.04%
Sales Q2Q%1.58%
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 13.69% yearly.
ACM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.41% yearly.
EPS Next Y9.38%
EPS Next 2Y9.83%
EPS Next 3Y10.78%
EPS Next 5Y13.69%
Revenue Next Year5.05%
Revenue Next 2Y5.93%
Revenue Next 3Y-8.41%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
With a Price/Earnings ratio of 19.39, ACM is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ACM indicates a rather cheap valuation: ACM is cheaper than 83.64% of the companies listed in the same industry.
ACM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
ACM is valuated rather expensively with a Price/Forward Earnings ratio of 17.73.
Based on the Price/Forward Earnings ratio, ACM is valued cheaper than 85.45% of the companies in the same industry.
ACM is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 17.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACM is valued cheaper than 85.45% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACM is valued a bit cheaper than 76.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.63 | ||
| EV/EBITDA | 11.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ACM does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ACM may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)1
EPS Next 2Y9.83%
EPS Next 3Y10.78%
5. Dividend
5.1 Amount
ACM has a Yearly Dividend Yield of 1.18%.
ACM's Dividend Yield is rather good when compared to the industry average which is at 1.67. ACM pays more dividend than 94.55% of the companies in the same industry.
With a Dividend Yield of 1.18, ACM pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
ACM has been paying a dividend for over 5 years, so it has already some track record.
The dividend of ACM decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ACM pays out 23.78% of its income as dividend. This is a sustainable payout ratio.
DP23.78%
EPS Next 2Y9.83%
EPS Next 3Y10.78%
101.98
+0.46 (+0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners92.47%
Inst Owner Change-4.31%
Ins Owners0.44%
Ins Owner Change-0.95%
Market Cap13.44B
Revenue(TTM)16.14B
Net Income(TTM)561.77M
Analysts82.11
Price Target145.99 (43.16%)
Short Float %2.67%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend1.01
Dividend Growth(5Y)N/A
DP23.78%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.9%
Min EPS beat(2)0.67%
Max EPS beat(2)5.13%
EPS beat(4)4
Avg EPS beat(4)6.64%
Min EPS beat(4)0.67%
Max EPS beat(4)16.95%
EPS beat(8)7
Avg EPS beat(8)4.68%
EPS beat(12)10
Avg EPS beat(12)3.77%
EPS beat(16)14
Avg EPS beat(16)4.73%
Revenue beat(2)0
Avg Revenue beat(2)-4.33%
Min Revenue beat(2)-4.47%
Max Revenue beat(2)-4.19%
Revenue beat(4)0
Avg Revenue beat(4)-5.42%
Min Revenue beat(4)-10.46%
Max Revenue beat(4)-2.57%
Revenue beat(8)3
Avg Revenue beat(8)-1.41%
Revenue beat(12)7
Avg Revenue beat(12)-0.19%
Revenue beat(16)7
Avg Revenue beat(16)-1.68%
PT rev (1m)8.61%
PT rev (3m)9.22%
EPS NQ rev (1m)-3.55%
EPS NQ rev (3m)-5.31%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.91%
Revenue NQ rev (1m)-14.19%
Revenue NQ rev (3m)-14.52%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 17.73 | ||
| P/S | 0.83 | ||
| P/FCF | 19.63 | ||
| P/OCF | 16.36 | ||
| P/B | 5.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.75 |
EPS(TTM)5.26
EY5.16%
EPS(NY)5.75
Fwd EY5.64%
FCF(TTM)5.2
FCFY5.09%
OCF(TTM)6.23
OCFY6.11%
SpS122.43
BVpS18.91
TBVpS-10.55
PEG (NY)2.07
PEG (5Y)1
Graham Number47.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 22.54% | ||
| ROCE | 16.88% | ||
| ROIC | 13.2% | ||
| ROICexc | 17.66% | ||
| ROICexgc | 102.77% | ||
| OM | 6.56% | ||
| PM (TTM) | 3.48% | ||
| GM | 7.54% | ||
| FCFM | 4.24% |
ROA(3y)2.81%
ROA(5y)2.54%
ROE(3y)14.48%
ROE(5y)12.48%
ROIC(3y)12.46%
ROIC(5y)11.01%
ROICexc(3y)16.75%
ROICexc(5y)14.47%
ROICexgc(3y)102.88%
ROICexgc(5y)78.3%
ROCE(3y)15.94%
ROCE(5y)14.08%
ROICexgc growth 3Y29.21%
ROICexgc growth 5Y32.89%
ROICexc growth 3Y13.74%
ROICexc growth 5Y17.69%
OM growth 3Y7.16%
OM growth 5Y10.81%
PM growth 3Y13.74%
PM growth 5YN/A
GM growth 3Y5.34%
GM growth 5Y7.05%
F-Score7
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.96 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 77.69% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 6.35 | ||
| Cash Conversion | 66.54% | ||
| Profit Quality | 121.92% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.37 |
F-Score7
WACC9.65%
ROIC/WACC1.37
Cap/Depr(3y)68.23%
Cap/Depr(5y)72.42%
Cap/Sales(3y)0.77%
Cap/Sales(5y)0.88%
Profit Quality(3y)457.12%
Profit Quality(5y)377.06%
High Growth Momentum
Growth
EPS 1Y (TTM)16.37%
EPS 3Y14.87%
EPS 5Y19.48%
EPS Q2Q%7.09%
EPS Next Y9.38%
EPS Next 2Y9.83%
EPS Next 3Y10.78%
EPS Next 5Y13.69%
Revenue 1Y (TTM)0.21%
Revenue growth 3Y7.07%
Revenue growth 5Y4.04%
Sales Q2Q%1.58%
Revenue Next Year5.05%
Revenue Next 2Y5.93%
Revenue Next 3Y-8.41%
Revenue Next 5YN/A
EBIT growth 1Y14.57%
EBIT growth 3Y14.74%
EBIT growth 5Y15.28%
EBIT Next Year18.17%
EBIT Next 3Y11.01%
EBIT Next 5Y12.17%
FCF growth 1Y-3.24%
FCF growth 3Y5.91%
FCF growth 5Y26.08%
OCF growth 1Y-0.71%
OCF growth 3Y4.81%
OCF growth 5Y20.04%
AECOM / ACM FAQ
What is the ChartMill fundamental rating of AECOM (ACM) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ACM.
Can you provide the valuation status for AECOM?
ChartMill assigns a valuation rating of 5 / 10 to AECOM (ACM). This can be considered as Fairly Valued.
What is the profitability of ACM stock?
AECOM (ACM) has a profitability rating of 6 / 10.
What is the valuation of AECOM based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AECOM (ACM) is 19.39 and the Price/Book (PB) ratio is 5.39.
Can you provide the financial health for ACM stock?
The financial health rating of AECOM (ACM) is 4 / 10.