ABM Industries Inc
NYSE:ABM
Intrinsic Value
ABM Industries, Inc. engages in the provision of facility services for commercial, industrial, and institutional buildings. [ Read More ]
The intrinsic value of one ABM stock under the Base Case scenario is 57.9 USD. Compared to the current market price of 44.62 USD, ABM Industries Inc is Undervalued by 23%.
Valuation Backtest
ABM Industries Inc
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Fundamental Analysis
Company Raises Full Year EPS Guidance
2024-Q1 Earnings Call
The company reported a 3.9% increase in Q1 revenue, reaching $2.1 billion, propelled by Aviation and Technical Solutions growth of 18% and 13% respectively. Net income rose to $44.7 million, a 16% gain, with earnings per diluted share up by 21%. Adjusted EBITDA declined by 5% to $116.7 million, and the margin slightly decreased to 5.9%. Despite anticipating a low single-digit decline in Q2 revenue, operating profits in sectors like B&I and Aviation are strong, and margins in sectors like Technical Solutions are expected to improve as the year progresses. The company's indebtedness stood at $1.4 billion, but with a healthy liquidity of $507.8 million. Lastly, adjusted EPS guidance for the full year of 2024 has been raised to $3.30-$3.45, due to solid Q1 results and flow-through of discrete tax benefits.
Balance Sheet Decomposition
ABM Industries Inc
Current Assets | 1.7B |
Cash & Short-Term Investments | 58m |
Receivables | 1.5B |
Other Current Assets | 163.5m |
Non-Current Assets | 3.2B |
Long-Term Investments | 28.3m |
PP&E | 251.1m |
Intangibles | 2.8B |
Other Non-Current Assets | 169.3m |
Current Liabilities | 1.2B |
Accounts Payable | 243.5m |
Accrued Liabilities | 408.8m |
Other Current Liabilities | 513m |
Non-Current Liabilities | 2B |
Long-Term Debt | 1.3B |
Other Non-Current Liabilities | 670.5m |
Earnings Waterfall
ABM Industries Inc
Revenue
|
8.2B
USD
|
Cost of Revenue
|
-7.1B
USD
|
Gross Profit
|
1.1B
USD
|
Operating Expenses
|
-648.4m
USD
|
Operating Income
|
412.1m
USD
|
Other Expenses
|
-154.6m
USD
|
Net Income
|
257.5m
USD
|
Free Cash Flow Analysis
ABM Industries Inc
What is Free Cash Flow?
ABM Profitability Score
Profitability Due Diligence
ABM Industries Inc's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
Score
ABM Industries Inc's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
ABM Solvency Score
Solvency Due Diligence
ABM Industries Inc's solvency score is 50/100. The higher the solvency score, the more solvent the company is.
Score
ABM Industries Inc's solvency score is 50/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
ABM Price Targets Summary
ABM Industries Inc
According to Wall Street analysts, the average 1-year price target for ABM is 51.85 USD with a low forecast of 45.45 USD and a high forecast of 63 USD.
Ownership
ABM Insider Trading
Buy and sell transactions by insiders
Period | Sold | Bought | Net |
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3 Months |
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Shareholder Return
ABM Price
ABM Industries Inc
Average Annual Return | 7.51% |
Standard Deviation of Annual Returns | 6.81% |
Max Drawdown | -51% |
Market Capitalization | 2.8B USD |
Shares Outstanding | 63 291 500 |
Percentage of Shares Shorted | 6.15% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
ABM Industries, Inc. engages in the provision of facility services for commercial, industrial, and institutional buildings. The company is headquartered in New York City, New York and currently employs 124,000 full-time employees. The company operates under five segments: Business & Industry (B&I), Manufacturing & Distribution (M&D), Education, Aviation, and Technical Solutions. B&I segment includes janitorial, facilities engineering, and parking services for commercial real estate properties, traditional hospitals, and non-acute healthcare facilities. M&D segment provides integrated facility services, engineering, janitorial, and other specialized services in manufacturing, distribution, and data center facilities. Education segment delivers janitorial, custodial, landscaping and grounds, facilities engineering, and parking services for public school districts, private schools, colleges and universities. Aviation segment supports airlines and airports with services ranging from parking and janitorial to passenger assistance, catering logistics, air cabin maintenance and transportation. Technical Solutions segment includes mechanical and electrical services.
Contact
IPO
Employees
Officers
The intrinsic value of one ABM stock under the Base Case scenario is 57.9 USD.
Compared to the current market price of 44.62 USD, ABM Industries Inc is Undervalued by 23%.