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AECOM

NYSE:ACM
Snowflake Description

Good value with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ACM
NYSE
$5B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

AECOM, together with its subsidiaries, engages in designing, building, financing, and operating infrastructure assets worldwide. The last earnings update was 39 days ago. More info.


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ACM Share Price and Events
7 Day Returns
-0.2%
NYSE:ACM
-0.9%
US Construction
0.5%
US Market
1 Year Returns
0.1%
NYSE:ACM
-8%
US Construction
0.8%
US Market
ACM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AECOM (ACM) -0.2% 1.7% 9.5% 0.1% 3.8% 2.7%
US Construction -0.9% 0.4% -0.4% -8% 10.6% -1.6%
US Market 0.5% 0.2% 1.1% 0.8% 37.4% 37.5%
1 Year Return vs Industry and Market
  • ACM outperformed the Construction industry which returned -8% over the past year.
Price Volatility
ACM
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AECOM to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AECOM.

NYSE:ACM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ACM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Construction Unlevered Beta Simply Wall St/ S&P Global 1
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.004 (1 + (1- 21%) (74.06%))
1.397
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.4
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.397 * 5.96%)
11.05%

Discounted Cash Flow Calculation for NYSE:ACM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AECOM is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:ACM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.05%)
2019 604.47 Analyst x2 544.31
2020 677.44 Analyst x2 549.30
2021 795.00 Analyst x1 580.46
2022 890.43 Est @ 12% 585.42
2023 972.54 Est @ 9.22% 575.77
2024 1,043.28 Est @ 7.27% 556.17
2025 1,104.95 Est @ 5.91% 530.42
2026 1,159.72 Est @ 4.96% 501.30
2027 1,209.46 Est @ 4.29% 470.76
2028 1,255.67 Est @ 3.82% 440.10
Present value of next 10 years cash flows $5,334.01
NYSE:ACM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,255.67 × (1 + 2.73%) ÷ (11.05% – 2.73%)
$15,497.73
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $15,497.73 ÷ (1 + 11.05%)10
$5,431.83
NYSE:ACM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,334.01 + $5,431.83
$10,765.84
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $10,765.84 / 157.34
$68.42
NYSE:ACM Discount to Share Price
Calculation Result
Value per share (USD) From above. $68.42
Current discount Discount to share price of $33.40
= -1 x ($33.40 - $68.42) / $68.42
51.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price AECOM is available for.
Intrinsic value
>50%
Share price is $33.4 vs Future cash flow value of $68.42
Current Discount Checks
For AECOM to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AECOM's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AECOM's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ACM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.74
NYSE:ACM Share Price ** NYSE (2019-06-14) in USD $33.4
United States of America Construction Industry PE Ratio Median Figure of 28 Publicly-Listed Construction Companies 17.09x
United States of America Market PE Ratio Median Figure of 3,091 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AECOM.

NYSE:ACM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ACM Share Price ÷ EPS (both in USD)

= 33.4 ÷ 1.74

19.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does AECOM's expected growth come at a high price?
Raw Data
NYSE:ACM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.24x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
20.1%per year
United States of America Construction Industry PEG Ratio Median Figure of 24 Publicly-Listed Construction Companies 1.01x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:ACM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.24x ÷ 20.1%

0.96x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AECOM is good value based on expected growth next year.
Price based on value of assets
What value do investors place on AECOM's assets?
Raw Data
NYSE:ACM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $26.69
NYSE:ACM Share Price * NYSE (2019-06-14) in USD $33.4
United States of America Construction Industry PB Ratio Median Figure of 34 Publicly-Listed Construction Companies 1.73x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:ACM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ACM Share Price ÷ Book Value per Share (both in USD)

= 33.4 ÷ 26.69

1.25x

* Primary Listing of AECOM.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AECOM is good value based on assets compared to the US Construction industry average.
X
Value checks
We assess AECOM's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. AECOM has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
20.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AECOM expected to grow at an attractive rate?
  • AECOM's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • AECOM's earnings growth is expected to exceed the United States of America market average.
  • AECOM's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ACM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ACM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 20.1%
NYSE:ACM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 1.7%
United States of America Construction Industry Earnings Growth Rate Market Cap Weighted Average 25.9%
United States of America Construction Industry Revenue Growth Rate Market Cap Weighted Average 5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ACM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ACM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 21,369 458 3
2020-09-30 21,042 743 446 8
2019-09-30 20,672 674 337 8
NYSE:ACM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 20,531 511 274
2018-12-31 20,282 522 77
2018-09-30 20,156 775 136
2018-06-30 19,706 494 141
2018-03-31 19,120 836 181
2017-12-31 18,756 672 404
2017-09-30 18,203 697 339
2017-06-30 17,670 808 258
2017-03-31 17,517 654 224
2016-12-31 17,472 814 164
2016-09-30 17,411 814 96
2016-06-30 17,811 729 90

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AECOM's earnings are expected to grow significantly at over 20% yearly.
  • AECOM's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ACM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from AECOM Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ACM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30 2.93 3.02 2.83 2.00
2020-09-30 2.82 3.21 2.64 6.00
2019-09-30 2.11 2.30 2.03 6.00
NYSE:ACM Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.74
2018-12-31 0.48
2018-09-30 0.86
2018-06-30 0.89
2018-03-31 1.15
2017-12-31 2.58
2017-09-30 2.18
2017-06-30 1.66
2017-03-31 1.44
2016-12-31 1.06
2016-09-30 0.62
2016-06-30 0.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • AECOM is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess AECOM's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AECOM has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has AECOM performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AECOM's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AECOM's year on year earnings growth rate has been positive over the past 5 years.
  • AECOM's 1-year earnings growth exceeds its 5-year average (51.2% vs 18.4%)
  • AECOM's earnings growth has exceeded the US Construction industry average in the past year (51.2% vs 0.4%).
Earnings and Revenue History
AECOM's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AECOM Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ACM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 20,531.29 274.25 145.63
2018-12-31 20,282.18 76.67 138.42
2018-09-30 20,155.51 136.47 135.79
2018-06-30 19,706.05 140.98 131.63
2018-03-31 19,119.60 181.40 130.41
2017-12-31 18,755.89 403.53 132.94
2017-09-30 18,203.40 339.39 133.31
2017-06-30 17,670.11 258.11 124.56
2017-03-31 17,517.43 224.22 119.48
2016-12-31 17,471.52 163.66 119.09
2016-09-30 17,410.83 96.11 115.09
2016-06-30 17,811.37 89.96 112.38
2016-03-31 17,952.16 5.33 107.93
2015-12-31 18,077.06 -36.24 108.28
2015-09-30 17,989.88 -154.85 113.98
2015-06-30 15,828.77 -91.88 104.10
2015-03-31 13,247.35 -5.44 95.35
2014-12-31 10,613.38 34.48 93.60
2014-09-30 8,356.78 229.85 80.91
2014-06-30 7,873.34 242.40 88.51
2014-03-31 7,972.68 243.91 92.86
2013-12-31 8,090.10 257.53 93.16
2013-09-30 8,153.50 239.24 97.32
2013-06-30 8,157.14 -62.66 84.52
2013-03-31 8,184.97 -63.57 87.89
2012-12-31 8,206.27 -68.39 77.89
2012-09-30 8,218.18 -58.57 85.10
2012-06-30 8,253.31 253.72 85.82

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • AECOM has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • AECOM used its assets less efficiently than the US Construction industry average last year based on Return on Assets.
  • AECOM has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AECOM's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AECOM has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is AECOM's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AECOM's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of AECOM's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AECOM Company Filings, last reported 2 months ago.

NYSE:ACM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 4,394.87 3,891.95 826.88
2018-12-31 4,250.43 3,920.29 838.30
2018-09-30 4,278.37 3,626.80 886.73
2018-06-30 4,260.13 3,880.27 801.42
2018-03-31 4,264.63 3,948.72 867.23
2017-12-31 4,330.78 3,902.18 813.17
2017-09-30 4,214.69 3,844.11 802.36
2017-06-30 3,916.35 3,910.94 812.46
2017-03-31 3,728.19 4,203.72 725.97
2016-12-31 3,559.89 4,110.07 697.72
2016-09-30 3,552.49 4,068.48 692.15
2016-06-30 3,759.21 4,295.22 628.00
2016-03-31 3,664.35 4,472.60 669.78
2015-12-31 3,518.90 4,522.86 658.04
2015-09-30 3,630.94 4,606.94 683.89
2015-06-30 3,740.07 4,774.06 605.90
2015-03-31 3,720.85 4,878.60 612.60
2014-12-31 3,839.31 4,982.72 734.65
2014-09-30 2,272.48 1,003.98 574.19
2014-06-30 2,283.47 1,048.13 510.15
2014-03-31 2,190.44 1,091.18 502.54
2013-12-31 2,122.96 1,207.29 681.74
2013-09-30 2,074.09 1,173.33 600.68
2013-06-30 2,041.87 1,152.22 507.59
2013-03-31 2,092.59 1,295.77 627.73
2012-12-31 2,110.13 1,233.24 591.30
2012-09-30 2,224.49 1,069.73 593.78
2012-06-30 2,511.81 1,070.27 398.39
  • AECOM's level of debt (88.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (49.8% vs 88.6% today).
  • Debt is not well covered by operating cash flow (13.1%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess AECOM's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AECOM has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from AECOM dividends. Estimated to be 0% next year.
If you bought $2,000 of AECOM shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ACM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Construction Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 1.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ACM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-09-30 0.00 3.00
2020-09-30 0.00 4.00
2019-09-30 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of AECOM's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess AECOM's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AECOM afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AECOM has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michael Burke
COMPENSATION $15,666,319
AGE 55
TENURE AS CEO 5.3 years
CEO Bio

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 since March 4, 2015. Mr. Burke served as the President of AECOM from October 1, 2011 to October 17, 2014. He served as the Chief Financial Officer and Executive Vice President of AECOM from December 2006 to September 2011. He joined AECOM as Senior Vice President of Corporate Strategy in October 2005 and served as its Chief Corporate Officer from May 2006 to January 2009. His responsibilities include finance and accounting, legal, human resources, information technology, communications, corporate strategy and mergers and acquisitions. From 1990 to 2005, he was with the accounting firm, KPMG LLP. He served at Arthur Andersen & Company from 1986 to 1990. He served in various senior leadership positions as a Western Area Managing Partner from 2002 to 2005. He has served on the Board of Directors for LA 2028. He has been a Director at AECOM since March 6, 2014. He served as an Independent Director of Rentech, Inc. from March 22, 2007 to June 9, 2017. He served as a Director of Rentech Nitrogen GP LLC, General Partner of Rentech Nitrogen Partners L.P from July 2011 to April 1, 2016. Mr. Burke serves as Co-Chair of the World Economic Forum's Infrastructure and Urban Development Community. He served as a Member of Kpmg's Board of Directors from 2000 to 2005. He also serves on various Charitable and Community boards. Mr. Burke holds a B.S. Degree in Accounting from the University of Scranton and a J.D. degree from Southwestern University.

CEO Compensation
  • Michael's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Michael's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the AECOM management team in years:

2.8
Average Tenure
54
Average Age
  • The tenure for the AECOM management team is about average.
Management Team

Michael Burke

TITLE
Chairman of the Board & CEO
COMPENSATION
$16M
AGE
55
TENURE
5.3 yrs

W. Rudd

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
53
TENURE
3.7 yrs

Randy Wotring

TITLE
Chief Operating Officer
COMPENSATION
$4M
AGE
61
TENURE
1.9 yrs

Carla Christofferson

TITLE
Executive VP & Chief Legal Officer
COMPENSATION
$3M
AGE
50
TENURE
4.3 yrs

John Vollmer

TITLE
Group President of Management Services
COMPENSATION
$2M
AGE
60
TENURE
2.8 yrs

Glenn Robson

TITLE
Chief Investment Officer & President of AECOM Capital
COMPENSATION
$1M
AGE
56
TENURE
1.7 yrs

Gaurav Kapoor

TITLE
Senior VP
AGE
41
TENURE
2.5 yrs

Will Gabrielski

TITLE
Vice President of Investor Relations

Heather Rim

TITLE
Chief Marketing & Communications Officer and Senior VP
TENURE
2.6 yrs

Mary Finch

TITLE
Executive VP & Chief Human Resources Officer
AGE
48
TENURE
3.8 yrs
Board of Directors Tenure

Average tenure and age of the AECOM board of directors in years:

7.3
Average Tenure
66
Average Age
  • The tenure for the AECOM board of directors is about average.
Board of Directors

Michael Burke

TITLE
Chairman of the Board & CEO
COMPENSATION
$16M
AGE
55
TENURE
4.3 yrs

Dan Tishman

TITLE
Vice Chairman
COMPENSATION
$55K
AGE
63
TENURE
8.9 yrs

Linda Griego

TITLE
Independent Director
COMPENSATION
$301K
AGE
70
TENURE
14.1 yrs

Jim Fordyce

TITLE
Lead Independent Director
COMPENSATION
$340K
AGE
58
TENURE
3.3 yrs

Rob Routs

TITLE
Independent Director
COMPENSATION
$291K
AGE
72
TENURE
8.5 yrs

John Major

TITLE
Chairman of Global Advisory Board
TENURE
7.3 yrs

Clarence Schmitz

TITLE
Independent Director
COMPENSATION
$301K
AGE
69
TENURE
5 yrs

Chok Goh

TITLE
Member of Global Advisory Board
TENURE
7.3 yrs

Deepak Parekh

TITLE
Member of Global Advisory Board
AGE
74
TENURE
7.3 yrs

Daniel Thorniley

TITLE
Member of Global Advisory Board
AGE
63
TENURE
7.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess AECOM's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AECOM has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is AECOM (NYSE:ACM) Potentially Underrated?

According to my intrinsic value of the stock, which is driven by analyst consensus forecast of ACM's earnings, investors now have the opportunity to buy into the stock to reap capital gains. … NYSE:ACM Income Statement, June 12th 2019 Next Steps: For AECOM, I've compiled three essential aspects you should further research: Future Outlook: What are well-informed industry analysts predicting for ACM’s future growth? … Take a look at our free research report of analyst consensus for ACM’s outlook.

Simply Wall St -

AECOM (NYSE:ACM): Can Growth Justify Its May Share Price?

As the legendary value investor Ben Graham once said, “Price is what you pay, value is what you get.” AECOM is trading at price-to-earnings (PE) ratio of 18.18x, which tells us the stock is overvalued based on current earnings compared to the Construction industry average of 16.08x , and overvalued compared to the US market average ratio of 17.45x. … However, since AECOM is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … Based on this growth, AECOM's stock can be considered fairly valued , based on fundamental analysis.

Simply Wall St -

Does AECOM (NYSE:ACM) Deserve A Spot On Your Watchlist?

View our latest analysis for AECOM AECOM's Improving Profits In the last three years AECOM's earnings per share took off like a rocket; fast, and from a low base. … Although AECOM certainly looks good to me, I would like it more if insiders were buying up shares. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Simply Wall St -

Why AECOM’s (NYSE:ACM) Use Of Investor Capital Doesn’t Look Great

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Are AECOM's (NYSE:ACM) Interest Costs Too High?

However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. … Today we will look at ACM’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … ACM’s Debt (And Cash Flows)

Simply Wall St -

Why AECOM (NYSE:ACM) Could Be Worth Watching

saw a decent share price growth in the teens level on the NYSE over the last few months. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on AECOM’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Should You Be Pleased About The CEO Pay At AECOM's (NYSE:ACM)

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Michael Burke's Compensation Compare With Similar Sized Companies. … According to our data, AECOM has a market capitalization of US$4.7b, and pays its CEO total annual compensation worth US$16m.

Simply Wall St -

Should You Be Worried About AECOM's (NYSE:ACM) 3.2% Return On Equity?

AECOM has a ROE of 3.2%, based on the last twelve months. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.032 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Do You Get For Owning AECOM (NYSE:ACM)?

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … To understand AECOM’s capital returns we will look at a useful metric called return on capital employed. … This will tell us if the company is growing your capital and placing you in good stead to sell your shares at a profit

Simply Wall St -

Does AECOM's (NYSE:ACM) CEO Pay Matter?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Michael Burke's Compensation Compare With Similar Sized Companies. … As you can see, Michael Burke is paid more than the median CEO pay at companies of a similar size, in the same market

Simply Wall St -

Company Info

Description

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, public-private partnership, and infrastructure 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.

Details
Name: AECOM
ACM
Exchange: NYSE
Founded: 1980
$5,255,282,986
157,343,802
Website: http://www.aecom.com
Address: AECOM
1999 Avenue of the Stars,
Suite 2600,
Los Angeles,
California, 90067,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ACM Common Stock New York Stock Exchange US USD 10. May 2007
DB E6Z Common Stock Deutsche Boerse AG DE EUR 10. May 2007
LSE 0H9N Common Stock London Stock Exchange GB USD 10. May 2007
Number of employees
Current staff
Staff numbers
87,000
AECOM employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 00:13
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.