AECOM (ACM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACM - US00766T1007 - Common Stock
98.9 USD
+0.37 (+0.38%)
99.8008 USD
+0.9 (+0.91%)
We assign a fundamental rating of 5 out of 10 to ACM. ACM was compared to 54 industry peers in the Construction & Engineering industry. ACM has only an average score on both its financial health and profitability. ACM is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years ACM has been profitable.
ACM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACM has a Return On Assets (4.60%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 22.54%, ACM is in the better half of the industry, outperforming 75.93% of the companies in the same industry.
With a decent Return On Invested Capital value of 13.20%, ACM is doing good in the industry, outperforming 77.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACM is below the industry average of 15.99%.
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
ACM has a Profit Margin (3.48%) which is comparable to the rest of the industry.
ACM's Profit Margin has improved in the last couple of years.
ACM's Operating Margin of 6.56% is in line compared to the rest of the industry. ACM outperforms 55.56% of its industry peers.
In the last couple of years the Operating Margin of ACM has grown nicely.
ACM has a worse Gross Margin (7.54%) than 75.93% of its industry peers.
In the last couple of years the Gross Margin of ACM has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ACM is still creating some value.
The number of shares outstanding for ACM has been reduced compared to 1 year ago.
Compared to 5 years ago, ACM has less shares outstanding
ACM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.35 indicates that ACM 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 2.35, ACM is in line with its industry, outperforming 40.74% of the companies in the same 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 66.67% 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 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.96 | ||
| Altman-Z | 2.35 |
ROIC/WACC1.27
WACC10.41%
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.
Looking at the Current ratio, with a value of 1.14, ACM is doing worse than 62.96% of the companies in the same industry.
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 has a Quick ratio (1.14) which is comparable to the rest of the industry.
| 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.
Measured over the past years, ACM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.48% on average per year.
ACM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.21%.
The Revenue has been growing slightly by 4.04% on average over the past years.
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
Based on estimates for the next years, ACM will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.69% on average per year.
Based on estimates for the next years, ACM will show a decrease in Revenue. The Revenue will decrease by -8.41% on average per year.
EPS Next Y3.44%
EPS Next 2Y8.76%
EPS Next 3Y10.48%
EPS Next 5Y13.69%
Revenue Next Year-6.48%
Revenue Next 2Y-1.79%
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.
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
ACM is valuated rather expensively with a Price/Earnings ratio of 18.80.
Based on the Price/Earnings ratio, ACM is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.00, ACM is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.18, which indicates a rather expensive current valuation of ACM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACM indicates a rather cheap valuation: ACM is cheaper than 92.59% of the companies listed in the same industry.
ACM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 18.18 |
4.2 Price Multiples
85.19% of the companies in the same industry are more expensive than ACM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACM indicates a somewhat cheap valuation: ACM is cheaper than 79.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.04 | ||
| EV/EBITDA | 11.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ACM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.47
PEG (5Y)0.97
EPS Next 2Y8.76%
EPS Next 3Y10.48%
5. Dividend
5.1 Amount
ACM has a Yearly Dividend Yield of 1.30%.
The stock price of ACM dropped by -23.21% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ACM's Dividend Yield is rather good when compared to the industry average which is at 0.42. ACM pays more dividend than 94.44% of the companies in the same industry.
ACM's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
ACM has been paying a dividend for over 5 years, so it has already some track record.
ACM has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
23.78% of the earnings are spent on dividend by ACM. This is a low number and sustainable payout ratio.
DP23.78%
EPS Next 2Y8.76%
EPS Next 3Y10.48%
98.9
+0.37 (+0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners92.93%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change4.64%
Market Cap13.04B
Revenue(TTM)16.14B
Net Income(TTM)561.77M
Analysts81.11
Price Target140.64 (42.2%)
Short Float %3.07%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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)-3.67%
PT rev (3m)4.63%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-5.57%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)-5.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 18.18 | ||
| P/S | 0.81 | ||
| P/FCF | 19.04 | ||
| P/OCF | 15.87 | ||
| P/B | 5.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.47 |
EPS(TTM)5.26
EY5.32%
EPS(NY)5.44
Fwd EY5.5%
FCF(TTM)5.2
FCFY5.25%
OCF(TTM)6.23
OCFY6.3%
SpS122.43
BVpS18.91
TBVpS-10.55
PEG (NY)5.47
PEG (5Y)0.97
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 | 2.35 |
F-Score7
WACC10.41%
ROIC/WACC1.27
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 Y3.44%
EPS Next 2Y8.76%
EPS Next 3Y10.48%
EPS Next 5Y13.69%
Revenue 1Y (TTM)0.21%
Revenue growth 3Y7.07%
Revenue growth 5Y4.04%
Sales Q2Q%1.58%
Revenue Next Year-6.48%
Revenue Next 2Y-1.79%
Revenue Next 3Y-8.41%
Revenue Next 5YN/A
EBIT growth 1Y14.57%
EBIT growth 3Y14.74%
EBIT growth 5Y15.28%
EBIT Next Year11.76%
EBIT Next 3Y10.9%
EBIT Next 5Y12.19%
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 fundamental rating for ACM stock?
ChartMill assigns a fundamental rating of 5 / 10 to ACM.
What is the valuation status for ACM stock?
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.
Can you provide the PE and PB ratios for ACM stock?
The Price/Earnings (PE) ratio for AECOM (ACM) is 18.8 and the Price/Book (PB) ratio is 5.23.
How sustainable is the dividend of AECOM (ACM) stock?
The dividend rating of AECOM (ACM) is 4 / 10 and the dividend payout ratio is 23.78%.