NYSE:ABM

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record established dividend payer.


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

-9.4%

ABM

-5.0%

US Commercial Services

-7.6%

US Market


1 Year Return

-1.0%

ABM

13.7%

US Commercial Services

10.2%

US Market

Return vs Industry: ABM underperformed the US Commercial Services industry which returned 13.7% over the past year.

Return vs Market: ABM underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

ABMIndustryMarket
7 Day-9.4%-5.0%-7.6%
30 Day-9.7%-2.4%-4.5%
90 Day-7.1%1.6%-0.6%
1 Year0.9%-1.0%17.6%13.7%12.5%10.2%
3 Year-9.1%-14.3%54.0%43.8%37.1%28.3%
5 Year30.7%18.5%91.5%71.1%60.8%43.2%

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?

16.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABM ($35.84) is trading below our estimate of fair value ($41.98)

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 good value based on its PE Ratio (18.7x) compared to the Commercial Services industry average (27.1x).

PE vs Market: ABM is poor value based on its PE Ratio (18.7x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: ABM is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: ABM is good value based on its PB Ratio (1.5x) compared to the US Commercial Services industry average (1.9x).


Next Steps

Future Growth

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

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABM's forecast earnings growth (7.2% per year) is above the savings rate (1.7%).

Earnings vs Market: ABM's earnings (7.2% per year) are forecast to grow slower than the US market (13.2% per year).

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

Revenue vs Market: ABM's revenue (1.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ABM's revenue (1.3% per year) is forecast to grow slower than 20% 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 (8.9%).


Next Steps

Past Performance

How has ABM Industries performed over the past 5 years?

12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABM has high quality earnings.

Growing Profit Margin: ABM's current net profit margins (2%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: ABM's earnings have grown by 12.2% per year over the past 5 years.

Accelerating Growth: ABM's earnings growth over the past year (32.8%) exceeds its 5-year average (12.2% per year).

Earnings vs Industry: ABM earnings growth over the past year (32.8%) exceeded the Commercial Services industry -4.6%.


Return on Equity

High ROE: ABM's Return on Equity (8.3%) is considered low.


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 ($902.4M).

Long Term Liabilities: ABM's short term assets ($1.3B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: ABM's debt to equity ratio (52.9%) is considered high.

Reducing Debt: ABM's debt to equity ratio has increased from 33.1% to 52.9% over the past 5 years.

Debt Coverage: ABM's debt is well covered by operating cash flow (32.2%).

Interest Coverage: ABM's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: ABM's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

2.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABM's dividend (2.06%) is higher than the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: ABM's dividend (2.06%) is low compared to the top 25% of dividend payers in the US market (3.96%).


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: With its reasonably low payout ratio (37.6%), ABM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABM's dividends in 3 years are forecast to be well covered by earnings (34.2% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Scott Salmirs (57yo)

4.9yrs

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 ($USD6.46M) is above average for companies of similar size in the US market ($USD3.92M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Scott Salmirs
President4.9yrsUS$6.46m0.12% $2.9m
Diego Scaglione
Executive VP & CFO4.8yrsUS$2.56m0.053% $1.3m
Andrea Newborn
Executive VP2.6yrsUS$1.44m0.014% $345.0k
Rene Jacobsen
Executive VP & Chief Facilities Services Officer4yrsUS$1.70m0.0064% $154.1k
Scott Giacobbe
Executive VP & Chief Revenue Officer0.3yrsUS$2.26m0.070% $1.7m
Dean Chin
Senior VP9.7yrsUS$789.76k0.017% $413.2k
Brant Miller
Senior VP and President of Technology & Manufacturing0.8yrsno datano data
Susie Choi
VP of Investor Relations & Treasurer0yrsno datano data
Anthony Piniella
Chief Communication Officer4.3yrsno datano data
Cary Bainbridge
Chief Marketing Officer0.8yrsno datano data

4.0yrs

Average Tenure

56.5yo

Average Age

Experienced Management: ABM's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Salmirs
President4.9yrsUS$6.46m0.12% $2.9m
Linda Chavez
Independent Director23.1yrsUS$244.71k0.0083% $197.9k
Art Garcia
Independent Director3.1yrsUS$247.75k0.0022% $53.8k
Winifred Webb
Independent Director5.2yrsUS$245.06k0.015% $364.6k
Filippo Passerini
Independent Director3.1yrsUS$242.96k0.015% $347.9k
Donald Colleran
Independent Director1.4yrsUS$220.72k0.0056% $134.2k
Thomas Gartland
Independent Director4.3yrsUS$242.84k0.015% $351.4k
Sudhakar Kesavan
Independent Chairman of the Board2.9yrsUS$355.63k0.039% $930.4k
LeighAnne Baker
Independent Director1.3yrsUS$214.24k0.0049% $117.5k
Jill Golder
Independent Director0.4yrsUS$57.09kno data

3.1yrs

Average Tenure

61yo

Average Age

Experienced Board: ABM's board of directors are considered experienced (3.1 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$2.392b
  • Shares outstanding: 66.75m
  • 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, Education, and Technical Solutions segments. It provides janitorial, facilities engineering, parking, custodial, landscaping and ground, and mechanical and electrical services; and vehicle maintenance and other services to rental car providers. The company was founded in 1909 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 23:46
End of Day Share Price2020/02/27 00:00
Earnings2019/10/31
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.