Abm Industries Inc

ABM

Services-To Dwellings & Other Buildings

Mkt Cap

$2.946B

PE

11.44

Debt

$1.329B

Cash

$58M

EV

$4.216B

FCF

$261.7M

Market Cap

$2.946B

P/E Ratio

11.44

Debt

$1.329B

Cash

$58M

EV

$4.216B

FCF

$261.7M

Charts data: {"Earnings":[{"time":"2014-10-30","value":75600000},{"time":"2015-10-30","value":76300000},{"time":"2016-10-30","value":57200000},{"time":"2017-10-30","value":3800000},{"time":"2018-10-30","value":97800000},{"time":"2019-10-30","value":127400000},{"time":"2020-10-30","value":300000},{"time":"2021-10-30","value":126300000},{"time":"2022-10-30","value":230400000},{"time":"2023-10-30","value":251300000}],"Sales":[{"time":"2014-10-30","value":5032800000},{"time":"2015-10-30","value":4897800000},{"time":"2016-10-30","value":5144700000},{"time":"2017-10-30","value":5453600000},{"time":"2018-10-30","value":6442200000},{"time":"2019-10-30","value":6498600000},{"time":"2020-10-30","value":5987600000},{"time":"2021-10-30","value":6228600000},{"time":"2022-10-30","value":7806600000},{"time":"2023-10-30","value":8096400000}],"Net Margins":[{"time":"2014-10-30","value":0.015021459227467811},{"time":"2015-10-30","value":0.015578422965413043},{"time":"2016-10-30","value":0.011118238186871927},{"time":"2017-10-30","value":0.0006967874431568138},{"time":"2018-10-30","value":0.015181149296824067},{"time":"2019-10-30","value":0.019604222447911858},{"time":"2020-10-30","value":0.00005010354733115105},{"time":"2021-10-30","value":0.020277429920046237},{"time":"2022-10-30","value":0.029513488586580587},{"time":"2023-10-30","value":0.03103848624079838}],"Assets":[{"time":"2014-10-30","value":2192900000},{"time":"2015-10-30","value":2149800000},{"time":"2016-10-30","value":2281200000},{"time":"2017-10-30","value":3812600000},{"time":"2018-10-30","value":3627500000},{"time":"2019-10-30","value":3692600000},{"time":"2020-10-30","value":3776900000},{"time":"2021-10-30","value":4436200000},{"time":"2022-10-30","value":4868900000},{"time":"2023-10-30","value":4933700000}],"Stockholders Equity":[{"time":"2014-10-30","value":968800000},{"time":"2015-10-30","value":1007500000},{"time":"2016-10-30","value":974000000},{"time":"2017-10-30","value":1375700000},{"time":"2018-10-30","value":1454600000},{"time":"2019-10-30","value":1542000000},{"time":"2020-10-30","value":1500300000},{"time":"2021-10-30","value":1609200000},{"time":"2022-10-30","value":1717200000},{"time":"2023-10-30","value":1799900000}],"ROE":[{"time":"2014-10-30","value":0.07803468208092486},{"time":"2015-10-30","value":0.07573200992555831},{"time":"2016-10-30","value":0.05872689938398357},{"time":"2017-10-30","value":0.002762230137384604},{"time":"2018-10-30","value":0.06723497868829918},{"time":"2019-10-30","value":0.08261997405966277},{"time":"2020-10-30","value":0.0001999600079984003},{"time":"2021-10-30","value":0.0784862043251305},{"time":"2022-10-30","value":0.13417190775681342},{"time":"2023-10-30","value":0.13961886771487306}],"ROA":[{"time":"2014-10-30","value":0.05864380500706826},{"time":"2015-10-30","value":0.03842217880733091},{"time":"2016-10-30","value":0.027310187620550586},{"time":"2017-10-30","value":0.027828778261553794},{"time":"2018-10-30","value":0.03909028256374914},{"time":"2019-10-30","value":0.05722255321453718},{"time":"2020-10-30","value":0.025920728639889857},{"time":"2021-10-30","value":0.04697714259952211},{"time":"2022-10-30","value":0.072110743699809},{"time":"2023-10-30","value":0.08379106958266615}]}

ABM Industries Incorporated, through its subsidiaries, engages in the provision of integrated facility, infrastructure, and mobility solutions in the United States and internationally. The company operates through Business & Industry, Manufacturing & Distribution, Education, Aviation, and Technical Solutions segments. The company offers janitorial, facilities engineering, and parking services for commercial real estate properties, including corporate offices for high tech clients, sports and entertainment venues, and traditional hospitals and non-acute healthcare facilities; provides vehicle maintenance and other services to rental car providers. It also offers integrated facility services, engineering, and other specialized services in different types of manufacturing, distribution, and data center facilities. In addition, the company delivers custodial and landscaping and grounds for public school districts, private schools, colleges, and universities. Further, it supports airlines and airports with services comprising passenger assistance, catering logistics, air cabin maintenance, and transportation services. Additionally, the company provides electric vehicle power design, installation, and maintenance, as well as microgrid systems installations. ABM Industries Incorporated was founded in 1909 and is based in New York, New York.

Sector

10-Q
7/31/23
10-Q
4/30/23
10-Q
1/31/23
10-K
10/31/22
10-Q
7/31/22
10-Q
4/30/22
10-Q
1/31/22
10-K
10/31/21
10-Q
7/31/21
10-Q
4/30/21
10-Q
1/31/21
10-K
10/31/20
10-Q
7/31/20
10-Q
4/30/20
10-Q
1/31/20
10-K
10/31/19
10-Q
7/31/19
10-Q
4/30/19
10-Q
1/31/19
10-K
10/31/18
10-Q
7/31/18
10-Q
4/30/18
10-Q
1/31/18

DCF

Discounted Cash Flow Valuation of Abm Industries Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$261.7M	$302.1M	$345.3M	$390.6M	$437.4M	$484.6M	$531.4M	$576.5M	$618.7M	$656.8M	$689.6M	$6.896B
DCF		$262.7M	$261.1M	$256.8M	$250.1M	$241M	$229.7M	$216.7M	$202.2M	$186.7M	$170.5M	$1.705B
Value	$3.982B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 22%

Earnings Stability 6.6%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	10-2015	10-2016	10-2017	10-2018	10-2019	10-2020	10-2021	10-2022	10-2023	TTM
Net Margin	1.6%	1.1%	0.07%	1.5%	2%	0.005%	2%	3%	3.1%	3.1%
ROA	3.8%	2.7%	2.8%	3.9%	5.7%	2.6%	4.7%	7.2%	8.4%	8.4%
ROE	7.6%	5.9%	0.28%	6.7%	8.3%	0.02%	7.8%	13%	14%	14%

What is the average Net Margin?

The average Net Margin over the past 5 years is +1.93%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.37%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.42%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.83%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +8.37%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.7%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	10-2015	10-2016	10-2017	10-2018	10-2019	10-2020	10-2021	10-2022	10-2023	TTM
Debt FCF	-	4.03	26.48	3.48	3.94	1.72	3.16	-41.70	6.88	5.08
Debt Equity	-	0.28	0.86	0.65	0.52	0.48	0.55	0.74	0.73	0.73
MIN
Graham Stability	-	-	5.5%	100%	100%	0.39%	100%	100%	100%	0.39%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 5.08.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -3.39.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	10-2016	10-2018	10-2020	10-2022	Trend
Revenue	6.7%	4.7%	11%	3.7%	0.94%
Net Income	24%	21%	840%	9.1%	1.4K%
Stockholders Equity	9.2%	4.4%	6.3%	4.8%	-0.72%
FCF	16%	-6.7%	-23%	-	2.9%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +4.68%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.94%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +20.77%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +1.37K%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +4.35%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.72%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -6.72%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +2.92%.