AECOM (ACM) Stock Fundamental Analysis
USA - NYSE:ACM - US00766T1007 - Common Stock
130.81 USD
-0.95 (-0.72%)
127.321 USD
-3.49 (-2.67%)
Overall ACM gets a fundamental rating of 5 out of 10. We evaluated ACM against 55 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 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.
ACM had positive earnings in 4 of the past 5 years.
ACM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACM has a Return On Assets (5.01%) which is in line with its industry peers.
ACM's Return On Equity of 24.63% is fine compared to the rest of the industry. ACM outperforms 78.18% of its industry peers.
ACM has a Return On Invested Capital of 12.87%. This is in the better half of the industry: ACM outperforms 76.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACM is significantly below the industry average of 17.19%.
The 3 year average ROIC (10.96%) for ACM is below the current ROIC(12.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 24.63% | ||
| ROIC | 12.87% |
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
ACM has a Profit Margin of 3.82%. This is in the better half of the industry: ACM outperforms 61.82% of its industry peers.
In the last couple of years the Profit Margin of ACM has grown nicely.
ACM has a Operating Margin (6.33%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ACM has grown nicely.
With a Gross Margin value of 7.34%, ACM is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
ACM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.33% | ||
| PM (TTM) | 3.82% | ||
| GM | 7.34% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ACM is creating some value.
ACM has less shares outstanding than it did 1 year ago.
ACM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ACM has a worse debt to assets ratio.
2.2 Solvency
ACM has an Altman-Z score of 2.64. 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.
Looking at the Altman-Z score, with a value of 2.64, ACM is in line with its industry, outperforming 49.09% of the companies in the same industry.
ACM has a debt to FCF ratio of 3.06. This is a good value and a sign of high solvency as ACM would need 3.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.06, ACM is in the better half of the industry, outperforming 70.91% of the companies in the same industry.
A Debt/Equity ratio of 0.99 indicates that ACM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.99, ACM is not doing good in the industry: 61.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 2.64 |
ROIC/WACC1.23
WACC10.46%
2.3 Liquidity
A Current Ratio of 1.17 indicates that ACM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, ACM is in line with its industry, outperforming 43.64% of the companies in the same industry.
ACM has a Quick Ratio of 1.17. This is a normal value and indicates that ACM is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.17, ACM perfoms like the industry average, outperforming 43.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
ACM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.36%, 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.
ACM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.50%.
The Revenue has been growing slightly by 3.38% on average over the past years.
EPS 1Y (TTM)21.36%
EPS 3Y16.89%
EPS 5Y10.37%
EPS Q2Q%15.52%
Revenue 1Y (TTM)1.5%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%0.65%
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 14.61% on average per year.
Based on estimates for the next years, ACM will show a small growth in Revenue. The Revenue will grow by 4.24% on average per year.
EPS Next Y17.11%
EPS Next 2Y12.92%
EPS Next 3Y11.52%
EPS Next 5Y14.61%
Revenue Next Year0.91%
Revenue Next 2Y3.11%
Revenue Next 3Y4.24%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.30, which means the current valuation is very expensive for ACM.
ACM's Price/Earnings ratio is a bit cheaper when compared to the industry. ACM is cheaper than 78.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of ACM to the average of the S&P500 Index (26.03), we can say ACM is valued inline with the index average.
A Price/Forward Earnings ratio of 22.70 indicates a rather expensive valuation of ACM.
Based on the Price/Forward Earnings ratio, ACM is valued a bit cheaper than 74.55% of the companies in the same industry.
ACM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.3 | ||
| Fwd PE | 22.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACM indicates a somewhat cheap valuation: ACM is cheaper than 76.36% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ACM is valued a bit cheaper than the industry average as 76.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.99 | ||
| EV/EBITDA | 15.26 |
4.3 Compensation for Growth
ACM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ACM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.48
PEG (5Y)2.44
EPS Next 2Y12.92%
EPS Next 3Y11.52%
5. Dividend
5.1 Amount
ACM has a yearly dividend return of 0.78%, which is pretty low.
Compared to an average industry Dividend Yield of 1.73, ACM pays a better dividend. On top of this ACM pays more dividend than 94.55% of the companies listed in the same industry.
With a Dividend Yield of 0.78, ACM pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
ACM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
21.01% of the earnings are spent on dividend by ACM. This is a low number and sustainable payout ratio.
DP21.01%
EPS Next 2Y12.92%
EPS Next 3Y11.52%
130.81
-0.95 (-0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners92.47%
Inst Owner Change-0.14%
Ins Owners0.44%
Ins Owner Change-0.95%
Market Cap17.33B
Revenue(TTM)16.07B
Net Income(TTM)613.95M
Analysts82.22
Price Target143.44 (9.66%)
Short Float %2.27%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
Yearly Dividend0.86
Dividend Growth(5Y)N/A
DP21.01%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.47%
Min EPS beat(2)3.81%
Max EPS beat(2)5.13%
EPS beat(4)4
Avg EPS beat(4)6.79%
Min EPS beat(4)1.25%
Max EPS beat(4)16.95%
EPS beat(8)7
Avg EPS beat(8)4.96%
EPS beat(12)10
Avg EPS beat(12)4.3%
EPS beat(16)14
Avg EPS beat(16)4.93%
Revenue beat(2)0
Avg Revenue beat(2)-7.46%
Min Revenue beat(2)-10.46%
Max Revenue beat(2)-4.47%
Revenue beat(4)0
Avg Revenue beat(4)-4.78%
Min Revenue beat(4)-10.46%
Max Revenue beat(4)-1.62%
Revenue beat(8)4
Avg Revenue beat(8)-0.51%
Revenue beat(12)7
Avg Revenue beat(12)-0.14%
Revenue beat(16)7
Avg Revenue beat(16)-1.52%
PT rev (1m)6.72%
PT rev (3m)14.33%
EPS NQ rev (1m)-0.71%
EPS NQ rev (3m)1.23%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)1.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.3 | ||
| Fwd PE | 22.7 | ||
| P/S | 1.08 | ||
| P/FCF | 20.99 | ||
| P/OCF | 18.75 | ||
| P/B | 6.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.26 |
EPS(TTM)5.17
EY3.95%
EPS(NY)5.76
Fwd EY4.41%
FCF(TTM)6.23
FCFY4.76%
OCF(TTM)6.98
OCFY5.33%
SpS121.36
BVpS18.82
TBVpS-7.55
PEG (NY)1.48
PEG (5Y)2.44
Graham Number46.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 24.63% | ||
| ROCE | 16.9% | ||
| ROIC | 12.87% | ||
| ROICexc | 18.32% | ||
| ROICexgc | 104.45% | ||
| OM | 6.33% | ||
| PM (TTM) | 3.82% | ||
| GM | 7.34% | ||
| FCFM | 5.13% |
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%
ROICexgc growth 3Y48.82%
ROICexgc 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 Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 3.06 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 57.1% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.58% | ||
| Profit Quality | 134.42% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.64 |
F-Score8
WACC10.46%
ROIC/WACC1.23
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)21.36%
EPS 3Y16.89%
EPS 5Y10.37%
EPS Q2Q%15.52%
EPS Next Y17.11%
EPS Next 2Y12.92%
EPS Next 3Y11.52%
EPS Next 5Y14.61%
Revenue 1Y (TTM)1.5%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%0.65%
Revenue Next Year0.91%
Revenue Next 2Y3.11%
Revenue Next 3Y4.24%
Revenue Next 5YN/A
EBIT growth 1Y15.04%
EBIT growth 3Y12.8%
EBIT growth 5Y14.78%
EBIT Next Year21.09%
EBIT Next 3Y11.76%
EBIT Next 5Y11.54%
FCF growth 1Y43.16%
FCF growth 3Y7.59%
FCF growth 5Y0.9%
OCF growth 1Y27.25%
OCF growth 3Y5.5%
OCF growth 5Y1.25%
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 4 / 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 25.3 and the Price/Book (PB) ratio is 6.95.
Can you provide the financial health for ACM stock?
The financial health rating of AECOM (ACM) is 5 / 10.