ABM Industries Incorporated
ABM Industries Incorporated Fundamental Analysis
ABM Industries Incorporated (ABM) shows weak financial fundamentals with a PE ratio of 16.79, profit margin of 1.86%, and ROE of 9.00%. The company generates $8.3B in annual revenue with moderate year-over-year growth of 3.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ABM's fundamental strength across five key dimensions:
Efficiency Score
WeakABM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentABM trades at attractive valuation levels.
Growth Score
WeakABM faces weak or negative growth trends.
Financial Health Score
ExcellentABM maintains a strong and stable balance sheet.
Profitability Score
WeakABM struggles to sustain strong margins.
Key Financial Metrics
Is ABM Expensive or Cheap?
P/E Ratio
ABM trades at 16.79 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ABM's PEG of 0.41 indicates potential undervaluation.
Price to Book
The market values ABM Industries Incorporated at 1.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.40 times EBITDA. This is generally considered low.
How Well Does ABM Make Money?
Net Profit Margin
For every $100 in sales, ABM Industries Incorporated keeps $1.86 as profit after all expenses.
Operating Margin
Core operations generate 3.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.00 in profit for every $100 of shareholder equity.
ROA
ABM Industries Incorporated generates $2.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ABM Industries Incorporated generates limited operating cash flow of $223.34M, signaling weaker underlying cash strength.
Free Cash Flow
ABM Industries Incorporated generates weak or negative free cash flow of $147.78M, restricting financial flexibility.
FCF Per Share
Each share generates $2.52 in free cash annually.
FCF Yield
ABM converts 5.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How ABM Stacks Against Its Sector Peers
| Metric | ABM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.79 | 26.49 | Better (Cheaper) |
| ROE | 9.00% | 1307.00% | Weak |
| Net Margin | 1.86% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.95 | 0.81 | Neutral |
| Current Ratio | 1.48 | 10.48 | Neutral |
| ROA | 2.97% | -1549793.00% (disorted) | Weak |
ABM outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ABM Industries Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.55%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-32.67%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-9.06%
Industry Style: Cyclical, Value, Infrastructure
Declining