NYSE:ACM

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Executive Summary

AECOM, together with its subsidiaries, delivers professional services to program and construction management in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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

Stable Share Price: ACM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ACM's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.9%

ACM

1.7%

US Construction

0.6%

US Market


1 Year Return

7.3%

ACM

33.4%

US Construction

21.0%

US Market

Return vs Industry: ACM underperformed the US Construction industry which returned 33% over the past year.

Return vs Market: ACM underperformed the US Market which returned 22% over the past year.


Shareholder returns

ACMIndustryMarket
7 Day-1.9%1.7%0.6%
30 Day12.7%14.0%4.2%
90 Day16.2%33.0%12.4%
1 Year7.3%7.3%34.2%33.4%23.7%21.0%
3 Year39.1%39.1%29.7%27.0%47.4%37.6%
5 Year117.2%117.2%124.9%116.9%131.6%105.9%

Long-Term 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 compared to its fair value and its price relative to the market?

11.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACM ($53.96) is trading below our estimate of fair value ($60.91)

Significantly Below Fair Value: ACM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ACM is poor value based on its PE Ratio (50.3x) compared to the US Construction industry average (25.8x).

PE vs Market: ACM is poor value based on its PE Ratio (50.3x) compared to the US market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: ACM is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ACM's PB Ratio (2.6x) is in line with the US Construction industry average.


Next Steps

Future Growth

How is AECOM forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

28.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACM's forecast earnings growth (28.1% per year) is above the savings rate (2%).

Earnings vs Market: ACM's earnings (28.1% per year) are forecast to grow faster than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ACM's revenue (1.2% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: ACM's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACM's Return on Equity is forecast to be low in 3 years time (14.3%).


Next Steps

Past Performance

How has AECOM performed over the past 5 years?

-9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACM has a large one-off loss of $188.3M impacting its September 30 2020 financial results.

Growing Profit Margin: ACM's current net profit margins (1.3%) are lower than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: ACM has become profitable over the past 5 years, growing earnings by -9.1% per year.

Accelerating Growth: ACM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ACM had negative earnings growth (-17.2%) over the past year, making it difficult to compare to the Construction industry average (15.3%).


Return on Equity

High ROE: ACM's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is AECOM's financial position?


Financial Position Analysis

Short Term Liabilities: ACM's short term assets ($7.5B) exceed its short term liabilities ($6.1B).

Long Term Liabilities: ACM's short term assets ($7.5B) exceed its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: ACM's debt to equity ratio (59.5%) is considered high.

Reducing Debt: ACM's debt to equity ratio has reduced from 126.9% to 59.5% over the past 5 years.

Debt Coverage: ACM's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: ACM's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ACM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ACM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ACM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ACM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ACM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.4yrs

Average management tenure


CEO

W. Rudd (55 yo)

0.42

Tenure

US$4,082,290

Compensation

Mr. W. Troy Rudd has been Chief Executive Officer and Director at AECOM since August 15, 2020. Mr. Rudd had been Chief Financial Officer and Executive Vice President at AECOM since October 2015 until Augus...


CEO Compensation Analysis

Compensation vs Market: W.'s total compensation ($USD4.08M) is below average for companies of similar size in the US market ($USD6.27M).

Compensation vs Earnings: W.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
W. Rudd
CEO & Director0.42yrUS$4.08m0.069%
$ 5.6m
Daniel Tishman
Executive Director10.5yrsUS$269.53k0.076%
$ 6.2m
Lara Maria Poloni
President0.42yrno data0.012%
$ 971.3k
Gaurav Kapoor
Chief Financial Officer0.42yrno data0.011%
$ 873.7k
Giles Price
Chief Technical Officer1.17yrsno datano data
Sarah Urbanowicz
Chief Information Officer0.17yrno datano data
William Gabrielski
Senior Vice President of Finance & Investor Relationsno datano datano data
David Gan
Executive VP & Chief Legal Officer1.17yrsno data0.0031%
$ 255.4k
Brendan Ranson-Walsh
Vice President of Global Communications & Corporate Responsibilityno datano datano data
Shirley Adams
Chief Human Resources Officer0.17yrno data0.0045%
$ 362.8k
John Kinley
Chief Operating Officer of Americasno datano datano data
Régis Damour
Chief Risk Officer & Senior VP12yrsno datano data

0.4yrs

Average Tenure

51yo

Average Age

Experienced Management: ACM's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
W. Rudd
CEO & Director0.42yrUS$4.08m0.069%
$ 5.6m
Daniel Tishman
Executive Director10.5yrsUS$269.53k0.076%
$ 6.2m
Deepak Parekh
Member of Global Advisory Board8.92yrsno datano data
John Major
Chairman of Global Advisory Board8.92yrsno datano data
Robert Routs
Independent Director10.08yrsUS$289.53k0.020%
$ 1.6m
Douglas Stotlar
Independent Chairman of the Board0.42yrUS$291.53k0.036%
$ 2.9m
Clarence Schmitz
Independent Director6.58yrsUS$298.53k0.022%
$ 1.8m
Daniel Thorniley
Member of Global Advisory Board8.92yrsno datano data
Chok Goh
Member of Global Advisory Board8.92yrsno datano data
Abdullah Alireza
Member of Global Advisory Board7.75yrsno datano data
Janet Wolfenbarger
Independent Director5.42yrsUS$289.03k0.015%
$ 1.2m
Steven Kandarian
Lead Independent Director1.17yrsUS$229.11k0%
$ 0

8.3yrs

Average Tenure

65yo

Average Age

Experienced Board: ACM's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$8.135b
  • Shares outstanding: 150.76m
  • Website: https://www.aecom.com

Number of Employees


Location

  • AECOM
  • 300 South Grand Avenue
  • 9th Floor
  • Los Angeles
  • California
  • 90071
  • 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, delivers professional services to program and construction management in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through thre...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 00:31
End of Day Share Price2021/01/14 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.