AECOM (ACM) Stock Fundamental Analysis
NYSE:ACM - New York Stock Exchange, Inc. - US00766T1007 - Common Stock - Currency: USD
Overall ACM gets a fundamental rating of 5 out of 10. We evaluated ACM against 49 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 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.
Of the past 5 years ACM 4 years were profitable.
ACM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACM's Return On Assets of 5.24% is fine compared to the rest of the industry. ACM outperforms 67.35% of its industry peers.
Looking at the Return On Equity, with a value of 27.01%, ACM is in the better half of the industry, outperforming 77.55% of the companies in the same industry.
ACM has a better Return On Invested Capital (12.92%) than 77.55% of its industry peers.
ACM had an Average Return On Invested Capital over the past 3 years of 10.96%. This is significantly below the industry average of 16.70%.
The 3 year average ROIC (10.96%) for ACM is below the current ROIC(12.92%), indicating increased profibility in the last year.
| 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
ACM has a better Profit Margin (3.85%) than 65.31% of its industry peers.
ACM's Profit Margin has improved in the last couple of years.
ACM's Operating Margin of 6.10% 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.
ACM's Gross Margin of 7.09% is on the low side compared to the rest of the industry. ACM is outperformed by 75.51% of its industry peers.
ACM's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for ACM has been reduced compared to 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 2.53. 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's Altman-Z score of 2.53 is in line compared to the rest of the industry. ACM outperforms 53.06% of its industry peers.
ACM has a debt to FCF ratio of 3.02. This is a good value and a sign of high solvency as ACM would need 3.02 years to pay back of all of its debts.
ACM's Debt to FCF ratio of 3.02 is fine compared to the rest of the industry. ACM outperforms 67.35% of its industry peers.
ACM has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.08, ACM is not doing good in the industry: 61.22% 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/WACC1.22
WACC10.61%
2.3 Liquidity
A Current Ratio of 1.15 indicates that ACM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.15, ACM is doing worse than 63.27% of the companies in the same industry.
ACM has a Quick Ratio of 1.15. 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 1.15, ACM perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
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.
The Revenue has grown by 12.01% in the past year. This is quite good.
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)12.01%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%-53.33%
3.2 Future
The Earnings Per Share is expected to grow by 14.43% on average over the next years. This is quite good.
ACM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.66% yearly.
EPS Next Y15.02%
EPS Next 2Y12.49%
EPS Next 3Y11.58%
EPS Next 5Y14.43%
Revenue Next Year2.09%
Revenue Next 2Y4.02%
Revenue Next 3Y3.66%
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
The Price/Earnings ratio is 21.65, which indicates a rather expensive current valuation of ACM.
77.55% of the companies in the same industry are more expensive than ACM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.24, ACM is valued a bit cheaper.
ACM is valuated rather expensively with a Price/Forward Earnings ratio of 19.57.
Based on the Price/Forward Earnings ratio, ACM is valued a bit cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.42. ACM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACM is valued a bit cheaper than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACM is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.71 | ||
| EV/EBITDA | 13.64 |
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)1.44
PEG (5Y)2.09
EPS Next 2Y12.49%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, ACM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.62, ACM pays a better dividend. On top of this ACM pays more dividend than 95.92% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ACM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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 2Y12.49%
EPS Next 3Y11.58%
111.94
+0.86 (+0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners92.06%
Inst Owner Change0.28%
Ins Owners0.46%
Ins Owner Change0.37%
Market Cap14.81B
Analysts83.33
Price Target125.47 (12.09%)
Short Float %1.9%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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)0.37%
PT rev (3m)3.32%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-1.8%
EPS NY rev (1m)0%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-3.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 19.57 | ||
| P/S | 0.92 | ||
| P/FCF | 17.71 | ||
| P/OCF | 15.89 | ||
| P/B | 6.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.64 |
EPS(TTM)5.17
EY4.62%
EPS(NY)5.72
Fwd EY5.11%
FCF(TTM)6.32
FCFY5.65%
OCF(TTM)7.04
OCFY6.29%
SpS121.3
BVpS17.27
TBVpS-8.8
PEG (NY)1.44
PEG (5Y)2.09
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
WACC10.61%
ROIC/WACC1.22
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 Y15.02%
EPS Next 2Y12.49%
EPS Next 3Y11.58%
EPS Next 5Y14.43%
Revenue 1Y (TTM)12.01%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%-53.33%
Revenue Next Year2.09%
Revenue Next 2Y4.02%
Revenue Next 3Y3.66%
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%