AECOM (ACM) Stock Fundamental Analysis
NYSE:ACM - US00766T1007 - Common Stock
125.64 USD
+0.08 (+0.06%)
125.64 USD
0 (0%)
ACM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 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
ACM had positive earnings in the past year.
ACM had a positive operating cash flow in the past year.
ACM had positive earnings in 4 of the past 5 years.
In the past 5 years ACM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ACM (5.01%) is better than 63.27% of its industry peers.
The Return On Equity of ACM (24.63%) is better than 77.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.87%, ACM is in the better half of the industry, outperforming 77.55% 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 below the industry average of 14.54%.
The last Return On Invested Capital (12.87%) for ACM is above the 3 year average (10.96%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 3.82%, ACM is in the better half of the industry, outperforming 61.22% of the companies in the same industry.
In the last couple of years the Profit Margin of ACM has grown nicely.
ACM's Operating Margin of 6.33% is in line compared to the rest of the industry. ACM outperforms 57.14% of 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: 73.47% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ACM has grown nicely.
| 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.
Compared to 1 year ago, ACM has less shares outstanding
ACM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ACM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.59 indicates that ACM is not a great score, but indicates only limited risk for bankruptcy at the moment.
ACM has a Altman-Z score of 2.59. This is comparable to the rest of the industry: ACM outperforms 51.02% of its industry peers.
The Debt to FCF ratio of ACM is 3.06, which is a good value as it means it would take ACM, 3.06 years of fcf income to pay off all of its debts.
ACM's Debt to FCF ratio of 3.06 is fine compared to the rest of the industry. ACM outperforms 67.35% of its industry peers.
A Debt/Equity ratio of 0.99 indicates that ACM is somewhat dependend on debt financing.
ACM has a Debt to Equity ratio of 0.99. This is in the lower half of the industry: ACM underperforms 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.16
WACC11.08%
2.3 Liquidity
A Current Ratio of 1.17 indicates that ACM should not have too much problems paying its short term obligations.
ACM's Current ratio of 1.17 is on the low side compared to the rest of the industry. ACM is outperformed by 61.22% of its industry peers.
A Quick Ratio of 1.17 indicates that ACM should not have too much problems paying its short term obligations.
ACM has a Quick ratio (1.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.36% over the past year.
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%.
Measured over the past years, ACM shows a small growth in Revenue. The Revenue has been growing by 3.38% on average per year.
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
The Earnings Per Share is expected to grow by 14.61% on average over the next years. This is quite good.
Based on estimates for the next years, ACM will show a small growth in Revenue. The Revenue will grow by 3.84% on average per year.
EPS Next Y17.28%
EPS Next 2Y13.34%
EPS Next 3Y11.92%
EPS Next 5Y14.61%
Revenue Next Year0.91%
Revenue Next 2Y3.31%
Revenue Next 3Y3.84%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.30, the valuation of ACM can be described as rather expensive.
69.39% of the companies in the same industry are more expensive than ACM, based on the Price/Earnings ratio.
ACM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.64, which indicates a rather expensive current valuation of ACM.
69.39% of the companies in the same industry are more expensive than ACM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, ACM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.3 | ||
| Fwd PE | 21.64 |
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 69.39% of the companies listed 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 69.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.16 | ||
| EV/EBITDA | 14.57 |
4.3 Compensation for Growth
The 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)1.41
PEG (5Y)2.34
EPS Next 2Y13.34%
EPS Next 3Y11.92%
5. Dividend
5.1 Amount
ACM has a yearly dividend return of 0.86%, which is pretty low.
ACM's Dividend Yield is rather good when compared to the industry average which is at 1.55. ACM pays more dividend than 95.92% of the companies in the same industry.
With a Dividend Yield of 0.86, ACM pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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 21.01% of its income as dividend. This is a sustainable payout ratio.
DP21.01%
EPS Next 2Y13.34%
EPS Next 3Y11.92%
125.64
+0.08 (+0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners93%
Inst Owner Change4.55%
Ins Owners0.46%
Ins Owner Change0.4%
Market Cap16.64B
Analysts83.33
Price Target133.67 (6.39%)
Short Float %2.59%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)6.54%
PT rev (3m)10.17%
EPS NQ rev (1m)2.21%
EPS NQ rev (3m)1.77%
EPS NY rev (1m)1.96%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-2.61%
Revenue NY rev (1m)-1.16%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.3 | ||
| Fwd PE | 21.64 | ||
| P/S | 1.04 | ||
| P/FCF | 20.16 | ||
| P/OCF | 18 | ||
| P/B | 6.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.57 |
EPS(TTM)5.17
EY4.11%
EPS(NY)5.81
Fwd EY4.62%
FCF(TTM)6.23
FCFY4.96%
OCF(TTM)6.98
OCFY5.55%
SpS121.36
BVpS18.82
TBVpS-7.55
PEG (NY)1.41
PEG (5Y)2.34
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%
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 Turnover1.31
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 | 2.59 |
F-Score8
WACC11.08%
ROIC/WACC1.16
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 Y17.28%
EPS Next 2Y13.34%
EPS Next 3Y11.92%
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 2Y3.31%
Revenue Next 3Y3.84%
Revenue Next 5YN/A
EBIT growth 1Y15.04%
EBIT growth 3Y12.8%
EBIT growth 5Y14.78%
EBIT Next Year20.79%
EBIT Next 3Y11.63%
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%