NYSE:ACM

Stock Analysis Report

Executive Summary

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


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

ACM

-1.4%

US Construction

0.06%

US Market


1 Year Return

52.5%

ACM

10.1%

US Construction

19.4%

US Market

Return vs Industry: ACM exceeded the US Construction industry which returned 10.1% over the past year.

Return vs Market: ACM exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

ACMIndustryMarket
7 Day-1.2%-1.4%0.06%
30 Day-6.1%-1.3%1.1%
90 Day11.4%4.1%8.9%
1 Year52.5%52.5%11.1%10.1%21.9%19.4%
3 Year24.3%24.3%3.3%0.9%48.9%39.3%
5 Year57.5%57.5%33.5%28.2%71.9%53.1%

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?

2.03x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ACM ($47.24) is trading above our estimate of fair value ($25.55)

Significantly Below Fair Value: ACM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ACM is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: ACM is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ACM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ACM is overvalued based on its PB Ratio (2x) compared to the US Construction industry average (1.8x).


Next Steps

Future Growth

How is AECOM forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

70.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: ACM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ACM's is expected to become profitable in the next 3 years.

Revenue vs Market: ACM's revenue is expected to decline over the next 3 years (-11.7% per year).

High Growth Revenue: ACM's revenue is forecast to decline over the next 3 years (-11.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ACM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has AECOM performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACM is currently unprofitable.

Growing Profit Margin: ACM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ACM is unprofitable, but has reduced losses over the past 5 years at a rate of 8.9% per year.

Accelerating Growth: Unable to compare ACM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ACM is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (2.4%).


Return on Equity

High ROE: ACM has a negative Return on Equity (-4.82%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


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 ($6.5B).

Long Term Liabilities: ACM's short term assets ($7.5B) exceed its long term liabilities ($4.9B).


Debt to Equity History and Analysis

Debt Level: ACM's debt to equity ratio (88.4%) is considered high.

Reducing Debt: ACM's debt to equity ratio has reduced from 129.8% to 88.4% over the past 5 years.


Balance Sheet

Inventory Level: ACM has a low level of unsold assets or inventory.

Debt Coverage by Assets: ACM's debt is covered by short term assets (assets are 2.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ACM has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: ACM has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Years0%

Current dividend yield vs market & industry

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

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

2.5yrs

Average management tenure


CEO

Michael Burke (56yo)

5.9yrs

Tenure

US$15,910,241

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

Compensation vs Market: Michael's total compensation ($USD15.91M) is above average for companies of similar size in the US market ($USD6.27M).

Compensation vs Earnings: Michael's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Burke
Chairman of the Board & CEO5.9yrsUS$15.91m0.45% $34.1m
W. Rudd
Executive VP & CFO4.3yrsUS$4.08m0.043% $3.3m
Randall Wotring
Chief Operating Officer2.6yrsUS$4.95m0.088% $6.7m
Daniel Tishman
Executive Director9.6yrsUS$269.53k0.065% $5.0m
Stephen Morriss
President of Design & Consulting Services - Americas2.3yrsUS$2.68m0.0049% $368.4k
Glenn Robson
Chief Investment Officer & President of AECOM Capital2.3yrsUS$1.08mno data
Gaurav Kapoor
Senior VP3.2yrsno data0.0086% $648.1k
Giles Price
Chief Technical Officer0.3yrsno datano data
Will Gabrielski
Vice President of Investor Relations0yrsno datano data
David Gan
Executive VP & Chief Legal Officer0.3yrsno datano data

2.5yrs

Average Tenure

55yo

Average Age

Experienced Management: ACM's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Burke
Chairman of the Board & CEO5.9yrsUS$15.91m0.45% $34.1m
Daniel Tishman
Executive Director9.6yrsUS$269.53k0.065% $5.0m
Deepak Parekh
Member of Global Advisory Board8yrsno datano data
John Major
Chairman of Global Advisory Board8yrsno datano data
Robert Routs
Independent Director9.2yrsUS$289.53k0.016% $1.2m
Douglas Stotlar
Independent Director5.3yrsUS$291.53k0.031% $2.3m
Clarence Schmitz
Independent Director5.7yrsUS$298.53k0.018% $1.3m
Daniel Thorniley
Member of Global Advisory Board8yrsno datano data
Chok Goh
Member of Global Advisory Board8yrsno datano data
Steven Kandarian
Lead Independent Director0.3yrsUS$229.11kno data

8.0yrs

Average Tenure

65yo

Average Age

Experienced Board: ACM's board of directors are considered experienced (8 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$7.581b
  • Shares outstanding: 158.62m
  • 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), Construction Services (CS), Management Services (MS), and AECOM Capital (ACAP). The DCS segment offers planning, consulting, architectural and engineering design, program management, and construction management services for industrial, commercial, institutional, and government clients, including the transportation, facilities, environmental, energy, and water markets. The CS segment provides building construction and energy, as well as infrastructure and industrial construction services. The MS segment offers program and facilities management and maintenance, training, logistics, consulting, technical assistance, and systems integration and information technology services primarily for agencies of the United States government and other national governments. The ACAP segment invests in and develops real estate projects. The company was formerly known as AECOM Technology Corporation and changed its name to AECOM in January 2015. AECOM was founded in 1980 and is headquartered in Los Angeles, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:43
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.