AECOM (ACM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACM - US00766T1007 - Common Stock
99.44 USD
-0.14 (-0.14%)
99.44 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ACM. ACM was compared to 54 industry peers in the Construction & Engineering industry. ACM has an average financial health and profitability rating. 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.
ACM had positive earnings in each of the past 5 years.
In the past 5 years ACM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.60%, ACM is in line with its industry, outperforming 59.26% of the companies in the same industry.
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 better Return On Invested Capital (13.20%) than 77.78% of its industry peers.
ACM had an Average Return On Invested Capital over the past 3 years of 12.46%. This 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 of 3.48%. This is comparable to the rest of the industry: ACM outperforms 51.85% of its industry peers.
In the last couple of years the Profit Margin of ACM has grown nicely.
ACM has a Operating Margin (6.56%) which is in line with its industry peers.
ACM's Operating Margin has improved in the last couple of years.
ACM has a Gross Margin of 7.54%. This is in the lower half of the industry: ACM underperforms 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.
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 2.36. 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.
With a Altman-Z score value of 2.36, ACM perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
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's Debt to FCF ratio of 3.96 is fine compared to the rest of the industry. ACM outperforms 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.
ACM has a worse Debt to Equity ratio (1.06) than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.96 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.3
WACC10.16%
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.
ACM's Current ratio of 1.14 is on the low side compared to the rest of the industry. ACM is outperformed by 62.96% of its industry peers.
ACM has a Quick 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.
With a Quick ratio value of 1.14, ACM perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.37% 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 19.48% on average per year.
The Revenue has been growing slightly by 0.21% in the past year.
The Revenue has been growing slightly by 4.04% on average over the past years.
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.
The Revenue is expected to decrease by -8.41% on average over the next years.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 18.90, ACM is valued on the expensive side.
87.04% of the companies in the same industry are more expensive than ACM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ACM to the average of the S&P500 Index (27.25), we can say ACM is valued slightly cheaper.
With a Price/Forward Earnings ratio of 18.28, ACM is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ACM is valued cheaply inside the industry as 92.59% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, ACM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.9 | ||
| Fwd PE | 18.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACM indicates a rather cheap valuation: ACM is cheaper than 85.19% of the companies listed 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 | 19.14 | ||
| EV/EBITDA | 11.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ACM does not grow enough to justify the current Price/Earnings ratio.
ACM has a very decent profitability rating, which 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 1.25%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of ACM has falen by -24.02%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ACM's Dividend Yield is rather good when compared to the industry average which is at 0.40. ACM pays more dividend than 94.44% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 1.92, ACM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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%
99.44
-0.14 (-0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners92.93%
Inst Owner Change-0.13%
Ins Owners0.53%
Ins Owner Change4.64%
Market Cap13.11B
Revenue(TTM)16.14B
Net Income(TTM)561.77M
Analysts81.11
Price Target140.64 (41.43%)
Short Float %3.07%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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 | 18.9 | ||
| Fwd PE | 18.28 | ||
| P/S | 0.81 | ||
| P/FCF | 19.14 | ||
| P/OCF | 15.96 | ||
| P/B | 5.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.53 |
EPS(TTM)5.26
EY5.29%
EPS(NY)5.44
Fwd EY5.47%
FCF(TTM)5.2
FCFY5.22%
OCF(TTM)6.23
OCFY6.27%
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 | 2.36 |
F-Score7
WACC10.16%
ROIC/WACC1.3
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 18.9 and the Price/Book (PB) ratio is 5.26.
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%.