AECOM (ACM)
US00766T1007 - Common Stock
Taking everything into account, ACM scores 5 out of 10 in our fundamental rating. ACM was compared to 41 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
ACM had positive earnings in the past year.
In the past year ACM had a positive cash flow from operations.
In multiple years ACM reported negative net income over the last 5 years.
Each year in the past 5 years ACM had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.54%, ACM perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
The Return On Equity of ACM (2.75%) is comparable to the rest of the industry.
ACM has a Return On Invested Capital of 11.35%. This is amongst the best in the industry. ACM outperforms 85.37% of its industry peers.
ACM had an Average Return On Invested Capital over the past 3 years of 9.25%. This is in line with the industry average of 8.46%.
The last Return On Invested Capital (11.35%) for ACM is above the 3 year average (9.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 2.75% | ||
| ROIC | 11.35% |
ROA(3y)1.59%
ROA(5y)0.31%
ROE(3y)7.14%
ROE(5y)1.74%
ROIC(3y)9.25%
ROIC(5y)7.52%
1.3 Margins
ACM has a Profit Margin (0.42%) which is comparable to the rest of the industry.
ACM's Profit Margin has declined in the last couple of years.
ACM's Operating Margin of 5.51% is in line compared to the rest of the industry. ACM outperforms 58.54% of its industry peers.
ACM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 6.54%, ACM is doing worse than 75.61% of the companies in the same industry.
In the last couple of years the Gross Margin of ACM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.51% | ||
| PM (TTM) | 0.42% | ||
| GM | 6.54% |
OM growth 3Y11.89%
OM growth 5Y17.29%
PM growth 3YN/A
PM growth 5Y-17.15%
GM growth 3Y7.02%
GM growth 5Y13.75%
2. Health
2.1 Basic Checks
ACM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ACM has been reduced compared to 1 year ago.
The number of shares outstanding for ACM has been reduced compared to 5 years ago.
Compared to 1 year ago, ACM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.27 indicates that ACM is not a great score, but indicates only limited risk for bankruptcy at the moment.
ACM has a worse Altman-Z score (2.27) than 60.98% of its industry peers.
The Debt to FCF ratio of ACM is 3.71, which is a good value as it means it would take ACM, 3.71 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.71, ACM is doing good in the industry, outperforming 75.61% of the companies in the same industry.
ACM has a Debt/Equity ratio of 0.94. This is a neutral value indicating ACM is somewhat dependend on debt financing.
The Debt to Equity ratio of ACM (0.94) is worse than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.71 | ||
| Altman-Z | 2.27 |
ROIC/WACC1.19
WACC9.55%
2.3 Liquidity
A Current Ratio of 1.05 indicates that ACM should not have too much problems paying its short term obligations.
ACM's Current ratio of 1.05 is on the low side compared to the rest of the industry. ACM is outperformed by 75.61% of its industry peers.
A Quick Ratio of 1.05 indicates that ACM should not have too much problems paying its short term obligations.
ACM has a worse Quick ratio (1.05) than 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
ACM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.95%, which is quite good.
The Earnings Per Share has been growing slightly by 6.76% on average over the past years.
Looking at the last year, ACM shows a quite strong growth in Revenue. The Revenue has grown by 12.30% in the last year.
ACM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.71% yearly.
EPS 1Y (TTM)13.95%
EPS 3Y19.97%
EPS 5Y6.76%
EPS growth Q2Q22.09%
Revenue 1Y (TTM)12.3%
Revenue growth 3Y2.79%
Revenue growth 5Y0.71%
Revenue growth Q2Q15.3%
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 15.86% on average per year.
ACM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.31% yearly.
EPS Next Y21.53%
EPS Next 2Y17.41%
EPS Next 3Y16.8%
EPS Next 5Y15.86%
Revenue Next Year10.71%
Revenue Next 2Y8.37%
Revenue Next 3Y8.31%
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 23.69, which indicates a rather expensive current valuation of ACM.
Based on the Price/Earnings ratio, ACM is valued a bit cheaper than the industry average as 68.29% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.55. ACM is around the same levels.
Based on the Price/Forward Earnings ratio of 18.06, the valuation of ACM can be described as rather expensive.
63.41% of the companies in the same industry are more expensive than ACM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.92. ACM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 18.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACM is valued a bit cheaper than 60.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACM is valued a bit cheaper than 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.28 | ||
| EV/EBITDA | 13.7 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ACM's earnings are expected to grow with 16.80% in the coming years.
PEG (NY)1.1
PEG (5Y)3.51
EPS Next 2Y17.41%
EPS Next 3Y16.8%
5. Dividend
5.1 Amount
ACM has a yearly dividend return of 0.85%, which is pretty low.
Compared to an average industry Dividend Yield of 0.84, ACM pays a better dividend. On top of this ACM pays more dividend than 90.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ACM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
ACM pays out 161.51% of its income as dividend. This is not a sustainable payout ratio.
DP161.51%
EPS Next 2Y17.41%
EPS Next 3Y16.8%
AECOM
NYSE:ACM (5/2/2024, 10:24:03 AM)
92.88
-0.03 (-0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 18.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.1
PEG (5Y)3.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 2.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.51% | ||
| PM (TTM) | 0.42% | ||
| GM | 6.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.95%
EPS 3Y19.97%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.3%
Revenue growth 3Y2.79%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y