AECOM (ACM) Stock Fundamental Analysis
USA - NYSE:ACM - US00766T1007 - Common Stock
132.99 USD
+6.1 (+4.81%)
135.22 USD
+2.23 (+1.68%)
We assign a fundamental rating of 5 out of 10 to ACM. ACM was compared to 52 industry peers in the Construction & Engineering industry. ACM has only an average score on both its financial health and profitability. 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.
ACM had a positive operating cash flow in the past year.
ACM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ACM had a positive operating cash flow.
1.2 Ratios
ACM has a Return On Assets of 5.01%. This is in the better half of the industry: ACM outperforms 61.54% of its industry peers.
ACM has a better Return On Equity (24.63%) than 76.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.87%, ACM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACM is significantly below the industry average of 17.22%.
The last Return On Invested Capital (12.87%) for ACM is above the 3 year average (10.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 24.63% | ||
| ROIC | 12.87% |
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
With a Profit Margin value of 3.82%, ACM perfoms like the industry average, outperforming 59.62% of the companies in the same industry.
ACM's Profit Margin has improved in the last couple of years.
ACM's Operating Margin of 6.33% is in line compared to the rest of the industry. ACM outperforms 55.77% of its industry peers.
In the last couple of years the Operating Margin of ACM has grown nicely.
Looking at the Gross Margin, with a value of 7.34%, ACM is doing worse than 73.08% of the companies in the same industry.
ACM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.33% | ||
| PM (TTM) | 3.82% | ||
| GM | 7.34% |
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.
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 2.60 indicates that ACM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ACM (2.60) is comparable to the rest of the industry.
The Debt to FCF ratio of ACM is 3.06, which is a good value as it means it would take ACM, 3.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ACM (3.06) is better than 65.38% of its industry peers.
A Debt/Equity ratio of 0.99 indicates that ACM is somewhat dependend on debt financing.
The Debt to Equity ratio of ACM (0.99) is worse than 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.29
WACC10%
2.3 Liquidity
ACM has a Current Ratio of 1.17. 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 1.17 is in line compared to the rest of the industry. ACM outperforms 42.31% of its industry peers.
A Quick Ratio of 1.17 indicates that ACM should not have too much problems paying its short term obligations.
ACM has a Quick ratio (1.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.36% over the past year.
The Earnings Per Share has been growing by 10.37% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.50% in the past year.
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)1.5%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%0.65%
3.2 Future
The Earnings Per Share is expected to grow by 14.61% 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 3.84% yearly.
EPS Next Y17.28%
EPS Next 2Y13.34%
EPS Next 3Y11.92%
EPS Next 5Y14.61%
Revenue Next Year0.91%
Revenue Next 2Y3.31%
Revenue Next 3Y3.84%
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.
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
Based on the Price/Earnings ratio of 25.72, the valuation of ACM can be described as expensive.
Based on the Price/Earnings ratio, ACM is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ACM to the average of the S&P500 Index (27.41), we can say ACM is valued inline with the index average.
ACM is valuated rather expensively with a Price/Forward Earnings ratio of 22.91.
Based on the Price/Forward Earnings ratio, ACM is valued a bit cheaper than 73.08% of the companies in the same industry.
ACM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.72 | ||
| Fwd PE | 22.91 |
4.2 Price Multiples
ACM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACM is cheaper than 73.08% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACM is valued a bit cheaper than the industry average as 71.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.34 | ||
| EV/EBITDA | 14.72 |
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)1.49
PEG (5Y)2.48
EPS Next 2Y13.34%
EPS Next 3Y11.92%
5. Dividend
5.1 Amount
With a yearly dividend of 0.81%, 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 1.57. ACM pays more dividend than 94.23% of the companies in the same industry.
With a Dividend Yield of 0.81, ACM pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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 21.01% of its income as dividend. This is a sustainable payout ratio.
DP21.01%
EPS Next 2Y13.34%
EPS Next 3Y11.92%
132.99
+6.1 (+4.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners93%
Inst Owner Change4.56%
Ins Owners0.46%
Ins Owner Change-0.94%
Market Cap17.61B
Analysts82.22
Price Target134.41 (1.07%)
Short Float %2.66%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend0.86
Dividend Growth(5Y)N/A
DP21.01%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.47%
Min EPS beat(2)3.81%
Max EPS beat(2)5.13%
EPS beat(4)4
Avg EPS beat(4)6.79%
Min EPS beat(4)1.25%
Max EPS beat(4)16.95%
EPS beat(8)7
Avg EPS beat(8)4.96%
EPS beat(12)10
Avg EPS beat(12)4.3%
EPS beat(16)14
Avg EPS beat(16)4.93%
Revenue beat(2)0
Avg Revenue beat(2)-7.46%
Min Revenue beat(2)-10.46%
Max Revenue beat(2)-4.47%
Revenue beat(4)0
Avg Revenue beat(4)-4.78%
Min Revenue beat(4)-10.46%
Max Revenue beat(4)-1.62%
Revenue beat(8)4
Avg Revenue beat(8)-0.51%
Revenue beat(12)7
Avg Revenue beat(12)-0.14%
Revenue beat(16)7
Avg Revenue beat(16)-1.52%
PT rev (1m)5.04%
PT rev (3m)7.53%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)2.22%
EPS NY rev (1m)1.96%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)-1.16%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.72 | ||
| Fwd PE | 22.91 | ||
| P/S | 1.1 | ||
| P/FCF | 21.34 | ||
| P/OCF | 19.06 | ||
| P/B | 7.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.72 |
EPS(TTM)5.17
EY3.89%
EPS(NY)5.81
Fwd EY4.37%
FCF(TTM)6.23
FCFY4.69%
OCF(TTM)6.98
OCFY5.25%
SpS121.36
BVpS18.82
TBVpS-7.55
PEG (NY)1.49
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 24.63% | ||
| ROCE | 16.9% | ||
| ROIC | 12.87% | ||
| ROICexc | 18.32% | ||
| ROICexgc | 104.45% | ||
| OM | 6.33% | ||
| PM (TTM) | 3.82% | ||
| GM | 7.34% | ||
| FCFM | 5.13% |
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 Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 3.06 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 57.1% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.58% | ||
| Profit Quality | 134.42% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.6 |
F-Score8
WACC10%
ROIC/WACC1.29
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 Y17.28%
EPS Next 2Y13.34%
EPS Next 3Y11.92%
EPS Next 5Y14.61%
Revenue 1Y (TTM)1.5%
Revenue growth 3Y6.48%
Revenue growth 5Y3.38%
Sales Q2Q%0.65%
Revenue Next Year0.91%
Revenue Next 2Y3.31%
Revenue Next 3Y3.84%
Revenue Next 5YN/A
EBIT growth 1Y15.04%
EBIT growth 3Y12.8%
EBIT growth 5Y14.78%
EBIT Next Year20.79%
EBIT Next 3Y11.63%
EBIT Next 5Y11.54%
FCF growth 1Y43.16%
FCF growth 3Y7.59%
FCF growth 5Y0.9%
OCF growth 1Y27.25%
OCF growth 3Y5.5%
OCF growth 5Y1.25%