AECOM (ACM) Stock Fundamental Analysis
NYSE:ACM - New York Stock Exchange, Inc. - US00766T1007 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ACM. ACM was compared to 51 industry peers in the Construction & Engineering industry. ACM has only an average score on both its financial health and profitability. 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.
Of the past 5 years ACM 4 years were profitable.
In the past 5 years ACM always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.24%, ACM is doing good in the industry, outperforming 68.63% of the companies in the same industry.
ACM's Return On Equity of 27.01% is fine compared to the rest of the industry. ACM outperforms 78.43% of its industry peers.
ACM has a Return On Invested Capital of 12.92%. This is in the better half of the industry: ACM outperforms 78.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACM is significantly below the industry average of 16.60%.
The last Return On Invested Capital (12.92%) for ACM is above the 3 year average (10.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.24% | ||
| ROE | 27.01% | ||
| ROIC | 12.92% |
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 (3.85%) is better than 66.67% of its industry peers.
In the last couple of years the Profit Margin of ACM has grown nicely.
With a Operating Margin value of 6.10%, ACM perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
ACM's Operating Margin has improved in the last couple of years.
ACM's Gross Margin of 7.09% is on the low side compared to the rest of the industry. ACM is outperformed by 72.55% of its industry peers.
In the last couple of years the Gross Margin of ACM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.1% | ||
| PM (TTM) | 3.85% | ||
| GM | 7.09% |
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.
Compared to 1 year ago, ACM has less shares outstanding
The number of shares outstanding for ACM has been reduced compared to 5 years ago.
ACM has a worse debt/assets ratio than last year.
2.2 Solvency
ACM has an Altman-Z score of 2.53. 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 (2.53) which is comparable to the rest of the industry.
The Debt to FCF ratio of ACM is 3.02, which is a good value as it means it would take ACM, 3.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.02, ACM is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
A Debt/Equity ratio of 1.08 is on the high side and indicates that ACM has dependencies on debt financing.
With a Debt to Equity ratio value of 1.08, ACM is not doing good in the industry: 62.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.28
WACC10.08%
2.3 Liquidity
A Current Ratio of 1.15 indicates that ACM should not have too much problems paying its short term obligations.
ACM has a worse Current ratio (1.15) than 62.75% of its industry peers.
A Quick Ratio of 1.15 indicates that ACM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.15, ACM is in line with its industry, outperforming 43.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
ACM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.51%, which is quite impressive.
The Earnings Per Share has been growing by 10.37% on average over the past years. This is quite good.
Looking at the last year, ACM shows a small growth in Revenue. The Revenue has grown by 4.55% in the last year.
The Revenue has been growing slightly by 3.38% on average over the past years.
EPS 1Y (TTM)23.51%
EPS 3Y16.89%
EPS 5Y10.37%
EPS Q2Q%20.19%
Revenue 1Y (TTM)4.55%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%-4.37%
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 14.43% on average per year.
ACM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.64% yearly.
EPS Next Y15.05%
EPS Next 2Y12.5%
EPS Next 3Y11.58%
EPS Next 5Y14.43%
Revenue Next Year2.07%
Revenue Next 2Y4.01%
Revenue Next 3Y3.64%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.12, the valuation of ACM can be described as rather expensive.
Based on the Price/Earnings ratio, ACM is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.34, ACM is valued at the same level.
A Price/Forward Earnings ratio of 19.30 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 66.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ACM to the average of the S&P500 Index (22.19), we can say ACM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.12 | ||
| Fwd PE | 19.3 |
4.2 Price Multiples
74.51% of the companies in the same industry are more expensive than ACM, based on the Enterprise Value to EBITDA ratio.
ACM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACM is cheaper than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.46 | ||
| EV/EBITDA | 13.67 |
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)1.47
PEG (5Y)2.13
EPS Next 2Y12.5%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
ACM has a yearly dividend return of 0.93%, which is pretty low.
ACM's Dividend Yield is rather good when compared to the industry average which is at 1.81. ACM pays more dividend than 96.08% of the companies in the same industry.
With a Dividend Yield of 0.93, ACM pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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 20.16% of its income as dividend. This is a sustainable payout ratio.
DP20.16%
EPS Next 2Y12.5%
EPS Next 3Y11.58%
110.4
-1.79 (-1.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners92.06%
Inst Owner Change1.34%
Ins Owners0.46%
Ins Owner Change-0.27%
Market Cap14.61B
Analysts83.53
Price Target125 (13.22%)
Short Float %2.05%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend0.86
Dividend Growth(5Y)N/A
DP20.16%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.38%
Min EPS beat(2)3.81%
Max EPS beat(2)16.95%
EPS beat(4)4
Avg EPS beat(4)6.01%
Min EPS beat(4)1.25%
Max EPS beat(4)16.95%
EPS beat(8)6
Avg EPS beat(8)4.16%
EPS beat(12)10
Avg EPS beat(12)4.17%
EPS beat(16)13
Avg EPS beat(16)4.6%
Revenue beat(2)0
Avg Revenue beat(2)-6.51%
Min Revenue beat(2)-10.46%
Max Revenue beat(2)-2.57%
Revenue beat(4)1
Avg Revenue beat(4)-2.83%
Min Revenue beat(4)-10.46%
Max Revenue beat(4)3.32%
Revenue beat(8)5
Avg Revenue beat(8)0.56%
Revenue beat(12)7
Avg Revenue beat(12)-0.39%
Revenue beat(16)8
Avg Revenue beat(16)-0.96%
PT rev (1m)3.03%
PT rev (3m)-0.9%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-1.53%
EPS NY rev (1m)0%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.12 | ||
| Fwd PE | 19.3 | ||
| P/S | 0.91 | ||
| P/FCF | 17.46 | ||
| P/OCF | 15.67 | ||
| P/B | 6.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.67 |
EPS(TTM)4.99
EY4.52%
EPS(NY)5.72
Fwd EY5.18%
FCF(TTM)6.32
FCFY5.73%
OCF(TTM)7.04
OCFY6.38%
SpS121.3
BVpS17.27
TBVpS-8.8
PEG (NY)1.47
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.24% | ||
| ROE | 27.01% | ||
| ROCE | 16.96% | ||
| ROIC | 12.92% | ||
| ROICexc | 17.88% | ||
| ROICexgc | 103.5% | ||
| OM | 6.1% | ||
| PM (TTM) | 3.85% | ||
| GM | 7.09% | ||
| FCFM | 5.21% |
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 Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 3.02 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 54.51% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.8% | ||
| Profit Quality | 135.5% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.53 |
F-Score8
WACC10.08%
ROIC/WACC1.28
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)23.51%
EPS 3Y16.89%
EPS 5Y10.37%
EPS Q2Q%20.19%
EPS Next Y15.05%
EPS Next 2Y12.5%
EPS Next 3Y11.58%
EPS Next 5Y14.43%
Revenue 1Y (TTM)4.55%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%-4.37%
Revenue Next Year2.07%
Revenue Next 2Y4.01%
Revenue Next 3Y3.64%
Revenue Next 5YN/A
EBIT growth 1Y15.99%
EBIT growth 3Y12.8%
EBIT growth 5Y14.78%
EBIT Next Year20.29%
EBIT Next 3Y11.52%
EBIT Next 5Y11.13%
FCF growth 1Y69.1%
FCF growth 3Y7.59%
FCF growth 5Y0.9%
OCF growth 1Y42.94%
OCF growth 3Y5.5%
OCF growth 5Y1.25%