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Fundamental analysis: ABM Industries Incorporated (ABM)

Awarener score: 6.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Good) and growth (Lacking), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

  • Business has been slightly shrinking. It's been similar to peer companies.
  • ABM Industries Incorporated business trend stability is good. The higher the stability, the lower the risk. It looks somewhat better than rivals.

Margins score: 5.0

  • ABM profit margins -on goods and services sold- are usually hardly sufficient. They stand somewhat worse than rival companies.
  • Business profit on sales tends to be sufficient. It's almost average when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain in a weak position compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still slightly worse than similar companies.
  • Profits -before income taxes- are usually hardly sufficient considering total sales, and remain almost average when measured against rivals.
  • Total net profit tends to be hardly sufficient when confronted to sales. Company stands similar to comparable firms.

Growth score: 6.1

  • ABM Industries Incorporated profit -on goods and services sold- has been growing at an extremely fast pace. It's been excellent in relation to competitors.
  • In recent years, earnings -on operations- have been growing at a very good step, which has been top-notch against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a normal pace, which compares encouraging in relation to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be in good shape compared to similar stocks.
  • In past years, profits -before income taxes- grew at an excellent speed. It was top-notch against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 3.0

  • ABM had to pay a lot of income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.8

  • ABM Industries Incorporated usually gets good returns on the resources it controls. It proves similar to peer firms.
  • The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
  • There's usually some profitability -in relation to owned resources-. It ranks similar to competitors.
  • In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 5.9

  • ABM usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands encouraging in relation to rival firms.
  • The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is weak when measured against industry peers.
  • In the past twelve months it paid some dividends, considering the current stock price. It came well ranked against competitors.
  • Has increased dividend payments in the past years. Business prospects may have improved. The company has behaved in a weak position compared to similar firms.
  • Dividend payments usually represent a modest portion of genuine funds generation and should be reasonable safe. Sustainability looks mediocre against comparable companies.
  • The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains close to average when compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
  • The company uses a modest portion of genuine fund generation to reward investors, which can probably be sustained. It still looks below average when measured against competitors.

Balance Sheet score: 5.1

  • ABM Industries Incorporated intangible assets (like brands and goodwill) represent a very large portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be weak when measured against peer companies.
  • The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be lacking compared to similar firms.
  • Roughly a third of resources controlled were provided for with financial debt. Creditors have claims on the company. It remains slightly worse than rival firms.
  • Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks weak when measured against rivals.
  • For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's lacking compared to peer firms.
  • For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is worse than most similar enterprises.
  • Usually, sales are on slightly higher than two months credit. It still ranks almost average when measured against peers.
  • Days of inventory outstanding are not known. It comes up as a big question mark against competitors.
  • We could not gauge the normal operating cycle of the company. It happens to be a mystery against peers.
  • Unfortunately, we had not enough data to estimate the days of payables outstanding. It ranks unknown against industry peers.
  • Cash conversion cycle remains unknown, due to not having enough inputs. It's incomparable against similar companies.
  • Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands well ranked against rival firms.
  • Business earnings have usually been low when measured against loans taken. Even cutting back reinvesting in the business, it could take more than seven years to repay the obligations with current profitability. It ranks almost average when measured against comparable enterprises.
  • Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks impressive in relation to similar firms.
  • Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 6.1

  • ABM Industries Incorporated looks somewhat expensive in relation to profits and financial position. It happens to be similar to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands well ranked against similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still more than average in relation to industry firms.
  • In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
  • The company is indebted, it should focus on loan repayment. It looks slightly worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation might be more or less reasonable, but hardly cheap. It ranks similar to peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks in good shape compared to rival firms.
  • The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly better than peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be similar to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still in good shape compared to peer companies.

Total score: 5.4


ABM logos

Company at a glance: ABM Industries Incorporated (ABM)

Sector, industry: Industrials, Specialty Business Services

Market Cap: 3.10 billions

Revenues TTM: 7.49 billions

ABM Industries Incorporated provides integrated facility solutions in the United States and internationally. The company operates through Business & Industry, Technology & Manufacturing, Education, Aviation, and Technical Solutions segments. It provides janitorial, facilities engineering, parking, custodial, landscaping and ground, and mechanical and electrical services; and vehicle maintenance and other services to rental car providers. The company was incorporated in 1985 and is based in New York, New York.

Awarener score: 6.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Good) and growth (Lacking), and the company's inclination to return cash to the stockholders (Good).