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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

ExlService Holdings, Inc.

Exponent, Inc.

WEX, Inc.

MAXIMUS, Inc.

Euronet Worldwide, Inc.

Air Lease Corp.

ABM Industries, Inc.

FTI Consulting, Inc.

The Western Union Co.

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 -17.01%, 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.

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 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

ABM Industries, Inc.

-17.62%

-0.20

30.26%

S&P 500

20.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.87%

EBIT Growth (5y)

3.38%

EBIT to Interest (avg)

6.19

Debt to EBITDA (avg)

2.58

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

2.56

Tax Ratio

40.53%

Dividend Payout Ratio

40.93%

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

1.52

EV to EBIT

13.12

EV to EBITDA

9.90

EV to Capital Employed

1.29

EV to Sales

0.50

PEG Ratio

1.52

Dividend Yield

251.43%

ROCE (Latest)

9.82%

ROE (Latest)

9.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 47.21%

DIVIDEND PER SHARE(HY)

Highest at USD 5.45

NET SALES(Q)

Highest at USD 2,295.3 MM

-3What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 5.89% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 89.01 %

OPERATING PROFIT MARGIN(Q)

Lowest at 4.78 %

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

Net Sales

Highest at USD 2,295.3 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Dividend per share

Highest at USD 5.45

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 47.21%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for ABM Industries, Inc.

Operating Profit Margin

Lowest at 4.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 89.01 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 5.89% (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