AECOM (ACM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACM - US00766T1007 - Common Stock
99.58 USD
+0.68 (+0.69%)
99.58 USD
0 (0%)
Overall ACM gets a fundamental rating of 5 out of 10. We evaluated ACM against 54 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
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 of 4.60%. This is comparable to the rest of the industry: ACM outperforms 59.26% of its industry peers.
ACM's Return On Equity of 22.54% is fine compared to the rest of the industry. ACM outperforms 75.93% of its industry peers.
ACM has a Return On Invested Capital of 13.20%. This is in the better half of the industry: ACM outperforms 77.78% of its industry peers.
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 in line with its industry peers.
In the last couple of years the Profit Margin of ACM has grown nicely.
ACM has a Operating Margin of 6.56%. This is comparable 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.
ACM's Gross Margin has improved in the last couple of years.
| 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
The debt/assets ratio for ACM is higher compared to a year ago.
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.
ACM has a Altman-Z score (2.35) which is in line with its industry peers.
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.
The Current ratio of ACM (1.14) is worse than 62.96% of its industry peers.
A Quick Ratio of 1.14 indicates that ACM should not have too much problems paying 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.
ACM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.48% yearly.
Looking at the last year, ACM shows a small growth in Revenue. The Revenue has grown by 0.21% in the last year.
ACM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.04% yearly.
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
ACM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.69% yearly.
ACM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.41% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 18.93, the valuation of ACM can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ACM indicates a rather cheap valuation: ACM is cheaper than 85.19% of the companies listed in the same industry.
ACM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 18.30, which indicates a rather expensive current valuation of ACM.
ACM's Price/Forward Earnings ratio is rather cheap when compared to the industry. ACM is cheaper than 92.59% of the companies in the same industry.
ACM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.93 | ||
| Fwd PE | 18.3 |
4.2 Price Multiples
ACM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACM is cheaper than 85.19% of the companies in the same industry.
79.63% of the companies in the same industry are more expensive than ACM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.17 | ||
| 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.
The decent profitability rating of ACM may justify a higher PE ratio.
PEG (NY)5.5
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%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of ACM has falen by -22.69%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 0.41, ACM pays a better dividend. On top of this ACM pays more dividend than 94.44% of the companies listed 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
ACM pays out 23.78% of its income as dividend. This is a sustainable payout ratio.
DP23.78%
EPS Next 2Y8.76%
EPS Next 3Y10.48%
99.58
+0.68 (+0.69%)
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 Cap13.13B
Revenue(TTM)16.14B
Net Income(TTM)561.77M
Analysts81.11
Price Target140.64 (41.23%)
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 | 18.93 | ||
| Fwd PE | 18.3 | ||
| P/S | 0.81 | ||
| P/FCF | 19.17 | ||
| P/OCF | 15.98 | ||
| P/B | 5.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.47 |
EPS(TTM)5.26
EY5.28%
EPS(NY)5.44
Fwd EY5.46%
FCF(TTM)5.2
FCFY5.22%
OCF(TTM)6.23
OCFY6.26%
SpS122.43
BVpS18.91
TBVpS-10.55
PEG (NY)5.5
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 18.93 and the Price/Book (PB) ratio is 5.27.
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%.