NYSE:ABM

Stock Analysis Report

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Executive Summary

ABM Industries Incorporated provides integrated facility solutions in the United States and internationally. More Details


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ABM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.0%

ABM

-1.3%

US Commercial Services

-1.3%

US Market


1 Year Return

-8.7%

ABM

7.3%

US Commercial Services

18.5%

US Market

Return vs Industry: ABM underperformed the US Commercial Services industry which returned 7.3% over the past year.

Return vs Market: ABM underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

ABMIndustryMarket
7 Day-6.0%-1.3%-1.3%
30 Day-8.0%4.3%5.3%
90 Day-2.9%11.1%7.5%
1 Year-6.6%-8.7%9.0%7.3%21.3%18.5%
3 Year-13.8%-19.2%51.4%41.8%42.4%32.9%
5 Year30.6%18.2%110.7%89.2%84.2%63.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is ABM Industries undervalued compared to its fair value and its price relative to the market?

0.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABM ($34.13) is trading below our estimate of fair value ($34.18)

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


Price To Earnings Ratio

PE vs Industry: ABM is unprofitable, so we can't compare its PE Ratio to the US Commercial Services industry average.

PE vs Market: ABM 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 ABM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ABM's PB Ratio (1.6x) is in line with the US Commercial Services industry average.


Next Steps

Future Growth

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

113.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: ABM's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: ABM's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABM's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has ABM Industries performed over the past 5 years?

2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABM is currently unprofitable.

Growing Profit Margin: ABM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ABM is unprofitable, but has reduced losses over the past 5 years at a rate of 2.1% per year.

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

Earnings vs Industry: ABM is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-9.7%).


Return on Equity

High ROE: ABM has a negative Return on Equity (-0.33%), as it is currently unprofitable.


Next Steps

Financial Health

How is ABM Industries's financial position?


Financial Position Analysis

Short Term Liabilities: ABM's short term assets ($1.3B) exceed its short term liabilities ($877.4M).

Long Term Liabilities: ABM's short term assets ($1.3B) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: ABM's debt to equity ratio (53%) is considered high.

Reducing Debt: ABM's debt to equity ratio has increased from 30.6% to 53% over the past 5 years.

Debt Coverage: ABM's debt is well covered by operating cash flow (52.9%).

Interest Coverage: ABM is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

2.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABM's dividend (2.17%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: ABM's dividend (2.17%) is low compared to the top 25% of dividend payers in the US market (4.68%).


Stability and Growth of Payments

Stable Dividend: ABM's dividends per share have been stable in the past 10 years.

Growing Dividend: ABM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: ABM is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: ABM's dividends in 3 years are forecast to be well covered by earnings (32.8% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Scott Salmirs (58 yo)

5.58yrs

Tenure

US$6,455,654

Compensation

Mr. Scott B. Salmirs has been the Chief Executive Officer and President of ABM Industries Incorporated since March 31, 2015. Mr. Salmirs served as an Executive Vice President of ABM Industries Incorporated ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD6.46M) is above average for companies of similar size in the US market ($USD4.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Scott Salmirs
President5.58yrsUS$6.46m0.080%
$ 1.8m
Andrea Newborn
Executive VP3.25yrsUS$1.44m0.012%
$ 266.3k
Rene Jacobsen
Executive VP & Chief Facilities Services Officer4.67yrsUS$1.70m0.066%
$ 1.5m
Scott Giacobbe
Executive VP & Chief Revenue Officer1yrUS$2.26m0.071%
$ 1.6m
Dean Chin
Senior VP0.25yrUS$789.76k0.018%
$ 405.4k
Brant Miller
Senior VP and President of Technology & Manufacturing1.5yrsno datano data
Melanie Kirkwood Ruiz
Chief Information Officer0.25yrno datano data
Susie Choi
VP of Investor Relations & Treasurerno datano datano data
Cary Bainbridge
Chief Marketing Officer1.5yrsno datano data
Sean Mahoney
Senior VP & President of Sales1.5yrsno datano data
Andrew Block
Executive VP & Chief Human Resource Officer2.33yrsno data0.0033%
$ 74.4k
Bill Maurer
Senior Vice President of ABM's Energy Business14yrsno datano data

1.5yrs

Average Tenure

57.5yo

Average Age

Experienced Management: ABM's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Scott Salmirs
President5.58yrsUS$6.46m0.080%
$ 1.8m
Linda Chavez
Independent Director23.75yrsUS$244.71k0.0042%
$ 95.8k
Art Garcia
Independent Director3.75yrsUS$247.75k0.0022%
$ 51.2k
Winifred Webb
Independent Director5.83yrsUS$245.06k0.015%
$ 347.1k
Donald Colleran
Independent Director2.08yrsUS$220.72k0.0056%
$ 127.9k
Thomas Gartland
Independent Director5yrsUS$242.84k0.015%
$ 334.6k
Sudhakar Kesavan
Independent Chairman of the Board3.58yrsUS$355.63k0.039%
$ 886.1k
LeighAnne Baker
Independent Director2yrsUS$214.24k0.0049%
$ 111.8k
Jill Golder
Independent Director1.08yrsUS$57.09k0.0011%
$ 26.2k

3.8yrs

Average Tenure

62yo

Average Age

Experienced Board: ABM's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ABM insiders have only sold shares 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

ABM Industries Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ABM Industries Incorporated
  • Ticker: ABM
  • Exchange: NYSE
  • Founded: 1909
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$2.276b
  • Shares outstanding: 66.69m
  • Website: https://www.abm.com

Number of Employees


Location

  • ABM Industries Incorporated
  • One Liberty Plaza
  • 7th Floor
  • New York
  • New York
  • 10006
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABMNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
AB4DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969

Biography

ABM Industries Incorporated provides integrated facility solutions in the United States and internationally. The company operates through Business & Industry, Aviation, Technology & Manufacturing, Educatio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 00:06
End of Day Share Price2020/10/20 00:00
Earnings2020/07/31
Annual Earnings2019/10/31


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.