Aecom
Aecom Fundamental Analysis
Aecom (ACM) shows weak financial fundamentals with a PE ratio of 25.39, profit margin of 2.94%, and ROE of 19.75%. The company generates $15.8B in annual revenue with weak year-over-year growth of 0.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ACM's fundamental strength across five key dimensions:
Efficiency Score
WeakACM struggles to generate sufficient returns from assets.
Valuation Score
ModerateACM shows balanced valuation metrics.
Growth Score
ModerateACM shows steady but slowing expansion.
Financial Health Score
ModerateACM shows balanced financial health with some risks.
Profitability Score
ModerateACM maintains healthy but balanced margins.
Key Financial Metrics
Is ACM Expensive or Cheap?
P/E Ratio
ACM trades at 25.39 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ACM's PEG of -1.68 indicates potential undervaluation.
Price to Book
The market values Aecom at 5.34 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.25 times EBITDA. This is generally considered low.
How Well Does ACM Make Money?
Net Profit Margin
For every $100 in sales, Aecom keeps $2.94 as profit after all expenses.
Operating Margin
Core operations generate 6.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.75 in profit for every $100 of shareholder equity.
ROA
Aecom generates $3.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aecom generates limited operating cash flow of $731.68M, signaling weaker underlying cash strength.
Free Cash Flow
Aecom produces free cash flow of $608.43M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.71 in free cash annually.
FCF Yield
ACM converts 5.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How ACM Stacks Against Its Sector Peers
| Metric | ACM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.39 | 25.83 | Neutral |
| ROE | 19.75% | 1278.00% | Weak |
| Net Margin | 2.94% | -43774.00% (disorted) | Weak |
| Debt/Equity | 1.72 | 0.80 | Weak (High Leverage) |
| Current Ratio | 1.10 | 10.63 | Neutral |
| ROA | 3.93% | -1539613.00% (disorted) | Weak |
ACM outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aecom's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.43%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
462.07%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
199.40%
Industry Style: Cyclical, Value, Infrastructure
High Growth