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 slightly overvalued.


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

10.5%

ACM

4.8%

US Construction

1.8%

US Market


1 Year Return

31.9%

ACM

7.2%

US Construction

7.3%

US Market

Return vs Industry: ACM exceeded the US Construction industry which returned 7.2% over the past year.

Return vs Market: ACM exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

ACMIndustryMarket
7 Day10.5%4.8%1.8%
30 Day7.2%0.4%-0.7%
90 Day12.5%3.1%0.06%
1 Year31.9%31.9%8.1%7.2%9.7%7.3%
3 Year52.2%52.2%27.5%24.7%46.3%36.9%
5 Year26.0%26.0%23.3%19.0%64.5%46.5%

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?

26.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ACM ($41.08) is trading below our estimate of fair value ($56.11)

Significantly Undervalued: 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 (21.7x) compared to the Construction industry average (17.4x).

PE vs Market: ACM is poor value based on its PE Ratio (21.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: ACM is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ACM is good value based on its PB Ratio (1.5x) compared to the US Construction industry average (1.7x).


Next Steps

Future Growth

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

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACM's forecast earnings growth (16.3% per year) is above the savings rate (2.7%).

Earnings vs Market: ACM's earnings (16.3% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: ACM's earnings are forecast to grow, but not significantly.

Revenue vs Market: ACM's revenue is expected to decline over the next 3 years (-3.1% per year).

High Growth Revenue: ACM's revenue is forecast to decline over the next 3 years (-3.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ACM's Return on Equity is forecast to be low in 3 years time (10.3%).


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

Earnings Trend: ACM's earnings have grown significantly by 26.9% per year over the past 5 years.

Accelerating Growth: ACM's earnings growth over the past year (110.7%) exceeds its 5-year average (26.9% per year).

Earnings vs Industry: ACM earnings growth over the past year (110.7%) exceeded the Construction industry 2.6%.


Return on Equity

High ROE: ACM's Return on Equity (8.2%) is considered low.


Return on Assets

ROA vs Industry: ACM's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: ACM has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is AECOM's financial position?


Financial Position Analysis

Short Term Liabilities: ACM's short term assets ($7.3B) exceeds its short term liabilities ($5.9B)

Long Term Liabilities: ACM's short term assets (7.3B) exceeds its long term liabilities (4.4B)


Debt to Equity History and Analysis

Debt Level: ACM's debt to equity ratio (84.8%) is considered high

Reducing Debt: ACM's debt to equity ratio has increased from 45.9% to 84.8% over the past 5 years.

Debt Coverage: ACM's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: ACM's interest payments on its debt are not well covered by EBIT (2.8x coverage).


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 1.907150x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

3.0yrs

Average management tenure


CEO

Michael Burke (56yo)

5.6yrs

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

Compensation vs. Market: Michael's total compensation ($USD15.67M) is about average for companies of similar size in the US market ($USD6.79M).

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


Management Age and Tenure

3.0yrs

Average Tenure

56yo

Average Age

Experienced Management: ACM's management team is considered experienced (3 years average tenure).


Board Age and Tenure

7.7yrs

Average Tenure

67yo

Average Age

Experienced Board: ACM's board of directors are considered experienced (7.7 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Glenn Robson (57yo)

    Chief Investment Officer & President of AECOM Capital

    • Tenure: 2yrs
    • Compensation: US$1.08m
  • Carla Christofferson (51yo)

    Executive VP & Chief Legal Officer

    • Tenure: 4.6yrs
    • Compensation: US$2.81m
  • Randy Wotring (62yo)

    Chief Operating Officer

    • Tenure: 2.3yrs
    • Compensation: US$4.38m
  • Will Gabrielski

    Vice President of Investor Relations

    • Tenure: 0yrs
  • John Kinley

    Chief Operating Officer of Americas

    • Tenure: 0yrs
  • Michael Burke (56yo)

    Chairman of the Board & CEO

    • Tenure: 5.6yrs
    • Compensation: US$15.67m
  • Heather Rim

    Chief Marketing & Communications Officer and Senior VP

    • Tenure: 2.9yrs
  • W. Rudd (54yo)

    Executive VP & CFO

    • Tenure: 4yrs
    • Compensation: US$3.44m
  • John Vollmer (61yo)

    Group President of Management Services

    • Tenure: 3.1yrs
    • Compensation: US$2.21m
  • Gaurav Kapoor (42yo)

    Senior VP

    • Tenure: 2.8yrs

Board Members

  • Jim Fordyce (59yo)

    Lead Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$340.25k
  • Deepak Parekh (75yo)

    Member of Global Advisory Board

    • Tenure: 7.7yrs
  • Linda Griego (71yo)

    Independent Director

    • Tenure: 14.4yrs
    • Compensation: US$301.01k
  • John Major

    Chairman of Global Advisory Board

    • Tenure: 7.7yrs
  • Rob Routs (73yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$291.01k
  • Clarence Schmitz (70yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$301.01k
  • Dan Tishman (64yo)

    Vice Chairman

    • Tenure: 9.3yrs
    • Compensation: US$54.75k
  • Daniel Thorniley (64yo)

    Member of Global Advisory Board

    • Tenure: 7.7yrs
  • Chok Goh

    Member of Global Advisory Board

    • Tenure: 7.7yrs
  • Michael Burke (56yo)

    Chairman of the Board & CEO

    • Tenure: 5.6yrs
    • 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$6.479b
  • 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 Analysis2019/10/18 00:03
End of Day Share Price2019/10/17 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.