NYSE:ACM

Stock Analysis Report

Executive Summary

AECOM, together with its subsidiaries, engages in designing, building, financing, and operating infrastructure assets worldwide.

Snowflake

Fundamentals

Proven track record and fair value.


Similar Companies

Share Price & News

How has AECOM's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.3%

NYSE:ACM

4.0%

US Construction

2.9%

US Market


1 Year Return

1.0%

NYSE:ACM

-12.3%

US Construction

0.2%

US Market

ACM outperformed the Construction industry which returned -13.6% over the past year.

ACM outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

ACMIndustryMarket
7 Day4.3%4.0%2.9%
30 Day-7.2%-6.7%-2.3%
90 Day7.2%0.1%3.1%
1 Year1.0%1.0%-11.6%-12.3%2.4%0.2%
3 Year5.1%5.1%9.4%7.1%41.7%32.4%
5 Year-10.6%-10.6%-0.2%-3.5%55.1%37.9%

Price Volatility Vs. Market

How volatile is AECOM's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AECOM undervalued based on future cash flows and its price relative to the stock market?

22%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

AECOM's share price is below the future cash flow value, and at a moderate discount (> 20%).

AECOM's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

AECOM is overvalued based on earnings compared to the US Construction industry average.

AECOM is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

AECOM is good value based on expected growth next year.


Price Based on Value of Assets

AECOM is good value based on assets compared to the US Construction industry average.


Next Steps

Future Growth

How is AECOM expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

AECOM's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).

AECOM's earnings are expected to grow significantly at over 20% yearly.

AECOM's revenue growth is positive but not above the United States of America market average.

AECOM's earnings growth is expected to exceed the United States of America market average.

AECOM's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

AECOM is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has AECOM performed over the past 5 years?

26.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

AECOM has delivered over 20% year on year earnings growth in the past 5 years.

AECOM's 1-year earnings growth exceeds its 5-year average (110.7% vs 26.9%)

AECOM's earnings growth has exceeded the US Construction industry average in the past year (110.7% vs 2.6%).


Return on Equity

AECOM has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

AECOM used its assets less efficiently than the US Construction industry average last year based on Return on Assets.


Return on Capital Employed

AECOM has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is AECOM's financial position?


Financial Position Analysis

AECOM is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

AECOM's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

AECOM's level of debt (84.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (45.9% vs 84.8% today).

Debt is not well covered by operating cash flow (13.5%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.8x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

What is AECOM's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate AECOM's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate AECOM's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as AECOM has not reported any payouts.

Unable to verify if AECOM's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as AECOM has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of AECOM's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

  • Explore strong dividend paying companies in the Capital Goods industry.

Management

What is the CEO of AECOM's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Michael Burke (56yo)

5.4yrs

Tenure

US$15,666,319

Compensation

Mr. Michael S. Burke serves as Independent Director of Archer-Daniels-Midland Company since May 04, 2018. He has been the Chief Executive Officer at AECOM since March 6, 2014 and has been its Chairman sinc ...


CEO Compensation Analysis

Michael's remuneration is higher than average for companies of similar size in United States of America.

Michael's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

55yo

Average Age

The tenure for the AECOM management team is about average.


Board Age and Tenure

7.5yrs

Average Tenure

67yo

Average Age

The tenure for the AECOM board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Glenn Robson (57yo)

    Chief Investment Officer & President of AECOM Capital

    • Tenure: 1.8yrs
    • Compensation: US$1.08m
  • Carla Christofferson (51yo)

    Executive VP & Chief Legal Officer

    • Tenure: 4.4yrs
    • Compensation: US$2.81m
  • Randy Wotring (62yo)

    Chief Operating Officer

    • Tenure: 2.1yrs
    • Compensation: US$4.38m
  • Will Gabrielski

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Michael Burke (56yo)

    Chairman of the Board & CEO

    • Tenure: 5.4yrs
    • Compensation: US$15.67m
  • Heather Rim

    Chief Marketing & Communications Officer and Senior VP

    • Tenure: 2.8yrs
  • Mary Finch (49yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 3.9yrs
  • W. Rudd (54yo)

    Executive VP & CFO

    • Tenure: 3.8yrs
    • Compensation: US$3.44m
  • John Vollmer (61yo)

    Group President of Management Services

    • Tenure: 2.9yrs
    • Compensation: US$2.21m
  • Gaurav Kapoor (42yo)

    Senior VP

    • Tenure: 2.7yrs

Board Members

  • Jim Fordyce (59yo)

    Lead Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$340.25k
  • Deepak Parekh (75yo)

    Member of Global Advisory Board

    • Tenure: 7.5yrs
  • Linda Griego (71yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$301.01k
  • John Major

    Chairman of Global Advisory Board

    • Tenure: 7.5yrs
  • Rob Routs (73yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$291.01k
  • Clarence Schmitz (70yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$301.01k
  • Dan Tishman (64yo)

    Vice Chairman

    • Tenure: 9.1yrs
    • Compensation: US$54.75k
  • Daniel Thorniley (64yo)

    Member of Global Advisory Board

    • Tenure: 7.5yrs
  • Chok Goh

    Member of Global Advisory Board

    • Tenure: 7.5yrs
  • Michael Burke (56yo)

    Chairman of the Board & CEO

    • Tenure: 5.4yrs
    • Compensation: US$15.67m

Company Information

AECOM's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AECOM
  • Ticker: ACM
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$5.334b
  • Shares outstanding: 157.73m
  • Website: https://www.aecom.com

Number of Employees


Location

  • AECOM
  • 1999 Avenue of the Stars
  • Suite 2600
  • Los Angeles
  • California
  • 90067
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACMNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2007
E6ZDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2007
0H9NLSE (London Stock Exchange)YesCommon StockGBUSDMay 2007

Biography

AECOM, together with its subsidiaries, engages in designing, building, financing, and operating infrastructure assets worldwide. It operates through four segments: Design and Consulting Services (DCS), Con ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:02
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.