ScoreWhy is ABM Industries, Inc. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 11.85%
2
The company declared positive results in Jan'25 after negative results in Oct'24
- NET PROFIT(Q) At USD 41.8 MM has Grown at 196.45%
- RAW MATERIAL COST(Y) Fallen by 1.47% (YoY)
- DIVIDEND PER SHARE(HY) Highest at USD 5.51
3
With ROCE of 12.89%, it has a very expensive valuation with a 1.34 Enterprise value to Capital Employed
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -17.01%, its profits have risen by 0.5% ; the PEG ratio of the company is 8
4
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -17.01% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to ABM Industries, Inc. should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is ABM Industries, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
ABM Industries, Inc.
-0.84%
-0.20
30.26%
S&P 500
22.93%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.63%
EBIT Growth (5y)
-0.59%
EBIT to Interest (avg)
6.19
Debt to EBITDA (avg)
2.58
Net Debt to Equity (avg)
0.83
Sales to Capital Employed (avg)
2.58
Tax Ratio
40.53%
Dividend Payout Ratio
40.93%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
11.85%
ROE (avg)
11.05%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.27
EV to EBIT
11.46
EV to EBITDA
8.67
EV to Capital Employed
1.14
EV to Sales
0.42
PEG Ratio
0.81
Dividend Yield
327.05%
ROCE (Latest)
9.97%
ROE (Latest)
9.95%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 436.5 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 39.76%
INTEREST COVERAGE RATIO(Q)
Highest at 565.12
DIVIDEND PER SHARE(HY)
Highest at USD 5.28
OPERATING PROFIT(Q)
Highest at USD 158.8 MM
OPERATING PROFIT MARGIN(Q)
Highest at 6.93 %
PRE-TAX PROFIT(Q)
Highest at USD 101.4 MM
NET PROFIT(Q)
Highest at USD 73.21 MM
EPS(Q)
Highest at USD 0.73
-7What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 107.27 %
RAW MATERIAL COST(Y)
Grown by 7.06% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.28 times
INTEREST(Q)
Highest at USD 28.1 MM
Here's what is working for ABM Industries, Inc.
Interest Coverage Ratio
Highest at 565.12
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at USD 436.5 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend Payout Ratio
Highest at 39.76% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Operating Profit
Highest at USD 158.8 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 6.93 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 101.4 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 101.4 MM has Grown at 69.57%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 73.21 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 73.21 MM has Grown at 73.47%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.73
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Dividend per share
Highest at USD 5.28
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Depreciation
Highest at USD 30.2 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for ABM Industries, Inc.
Interest
At USD 28.1 MM has Grown at 17.08%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 107.27 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Interest
Highest at USD 28.1 MM
in the last five periods and Increased by 17.08% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debtors Turnover Ratio
Lowest at 5.28 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 7.06% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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