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. While ACM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ACM has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years ACM had a positive operating cash flow.
1.2 Ratios
ACM has a Return On Assets of 5.24%. This is in the better half of the industry: ACM outperforms 70.59% of its industry peers.
ACM has a Return On Equity of 27.01%. This is amongst the best in the industry. ACM outperforms 80.39% of its industry peers.
ACM's Return On Invested Capital of 12.92% is fine compared to the rest 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 16.97%.
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 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 has a Gross Margin of 7.09%. This is in the lower half of the industry: ACM underperforms 72.55% 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
ACM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 2.49. 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.
The Altman-Z score of ACM (2.49) is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.02, ACM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
ACM has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
ACM has a Debt to Equity ratio of 1.08. This is in the lower half of the industry: ACM underperforms 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.24
WACC10.42%
2.3 Liquidity
ACM has a Current 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.
Looking at the Current ratio, with a value of 1.15, ACM is doing worse than 64.71% 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.
ACM has a Quick ratio of 1.15. This is comparable to the rest of the industry: ACM outperforms 41.18% of its industry peers.
| 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 23.51% over the past year.
ACM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.37% yearly.
ACM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.55%.
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
ACM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.43% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 21.56, which indicates a rather expensive current valuation of ACM.
ACM's Price/Earnings ratio is a bit cheaper when compared to the industry. ACM is cheaper than 72.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of ACM to the average of the S&P500 Index (25.91), we can say ACM is valued inline with the index average.
A Price/Forward Earnings ratio of 18.81 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.
ACM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 18.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACM is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACM indicates a somewhat cheap valuation: ACM is cheaper than 68.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.02 | ||
| EV/EBITDA | 13.14 |
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)1.43
PEG (5Y)2.08
EPS Next 2Y12.5%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, ACM is not a good candidate for dividend investing.
ACM's Dividend Yield is rather good when compared to the industry average which is at 1.77. ACM pays more dividend than 94.12% of the companies in the same industry.
With a Dividend Yield of 0.97, ACM pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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 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%
107.6
+0.23 (+0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners91.12%
Inst Owner Change1.35%
Ins Owners0.45%
Ins Owner Change2.18%
Market Cap14.24B
Analysts83.53
Price Target121.33 (12.76%)
Short Float %2.07%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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)-3.61%
PT rev (3m)-5.07%
EPS NQ rev (1m)-1.44%
EPS NQ rev (3m)-1.44%
EPS NY rev (1m)0.57%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)-1.31%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)-3.16%
Revenue NY rev (3m)-3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 18.81 | ||
| P/S | 0.89 | ||
| P/FCF | 17.02 | ||
| P/OCF | 15.28 | ||
| P/B | 6.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.14 |
EPS(TTM)4.99
EY4.64%
EPS(NY)5.72
Fwd EY5.32%
FCF(TTM)6.32
FCFY5.88%
OCF(TTM)7.04
OCFY6.55%
SpS121.3
BVpS17.27
TBVpS-8.8
PEG (NY)1.43
PEG (5Y)2.08
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 | 2.49 |
F-Score8
WACC10.42%
ROIC/WACC1.24
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 5Y11.16%
FCF growth 1Y69.1%
FCF growth 3Y7.59%
FCF growth 5Y0.9%
OCF growth 1Y42.94%
OCF growth 3Y5.5%
OCF growth 5Y1.25%