ABM Industries, Inc. (ABM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

ExlService Holdings, Inc.

Euronet Worldwide, Inc.

WEX, Inc.

MAXIMUS, Inc.

Exponent, Inc.

ABM Industries, Inc.

The Western Union Co.

Air Lease Corp.

FTI Consulting, Inc.

Herc Holdings, Inc.

Triton International Ltd.

Why is ABM Industries, Inc. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 11.85%

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

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 -21.88%, its profits have risen by 0.5% ; the PEG ratio of the company is 8

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -21.88% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How 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?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

ABM Industries, Inc.

-22.42%

-0.41

30.01%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.00%

EBIT Growth (5y)

3.87%

EBIT to Interest (avg)

6.19

Debt to EBITDA (avg)

2.58

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

2.55

Tax Ratio

40.53%

Dividend Payout Ratio

70.32%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

11.85%

ROE (avg)

11.05%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.63

EV to EBIT

10.40

EV to EBITDA

8.33

EV to Capital Employed

1.34

EV to Sales

0.52

PEG Ratio

7.98

Dividend Yield

223.48%

ROCE (Latest)

12.89%

ROE (Latest)

13.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

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

NET SALES(Q)

Highest at USD 2,224 MM

OPERATING PROFIT(Q)

Highest at USD 110.8 MM

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 131.2 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 437.94

INTEREST(Q)

Highest at USD 25.3 MM

Here's what is working for ABM Industries, Inc.

Net Profit

At USD 41.8 MM has Grown at 196.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

Highest at USD 2,224 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 110.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Dividend per share

Highest at USD 5.51

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by 1.47% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 27.3 MM

in the last five periods

MOJO 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 Coverage Ratio

Lowest at 437.94

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at USD 131.2 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

Highest at USD 25.3 MM

in the last five periods and Increased by 5.86% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)