ABM Industries Incorporated [NYSE:ABM]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to ABM Industries Incorporated [ABM], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in October. On average, stock market experts give ABM an Outperform rating. Its stock price has been found in the range of 29.97 to 59.05. This is compared to its latest closing price of $35.96.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for ABM Industries Incorporated [ABM] is sitting at 2.20. This is compared to 1 month ago, when its average rating was 2.25.
For the quarter ending in Oct-18 ABM Industries Incorporated [ABM] generated $1.65 billion in sales. That’s 1.78% lower than the average estimate of $1.68 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Tue 5 Mar (In 15 Days).
Fundamental Analysis of ABM Industries Incorporated [ABM]
Now let’s turn to look at profitability: with a current Operating Margin for ABM Industries Incorporated [ABM] sitting at +2.96 and its Gross Margin at +9.76, this company’s Net Margin is now 1.50%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 7.69, and its Return on Invested Capital has reached 5.10%. Its Return on Equity is 6.78, and its Return on Assets is 2.45. These metrics suggest that this ABM Industries Incorporated does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, ABM Industries Incorporated [ABM] has generated a Total Debt to Total Equity ratio of 64.55. Similarly, its Total Debt to Total Capital is 39.23, while its Total Debt to Total Assets stands at 24.89. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 62.01, and its Long-Term Debt to Total Capital is 37.68. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 10.87 and its Total Debt to EBITDA Value is 3.10. The Enterprise Value to Sales for this firm is now 0.51, and its Total Debt to Enterprise Value stands at 0.32. ABM Industries Incorporated [ABM] has a Price to Book Ratio of 1.40, a Price to Cash Flow Ratio of 6.36 and P/E Ratio of 24.53. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, ABM Industries Incorporated [ABM] earns $46,016 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 6.28 and its Total Asset Turnover is 1.65. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.48 and its Current Ratio is 1.48. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: ABM Industries Incorporated [ABM] has 65.59M shares outstanding, amounting to a total market cap of $2.37B. Its stock price has been found in the range of 25.64 to 38.37. At its current price, it has moved by -5.66% from its 52-week high, and it has moved 41.19% from its 52-week low.
This stock’s Beta value is currently 0.57, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 69.26. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is ABM Industries Incorporated [ABM] a Reliable Buy?
ABM Industries Incorporated [ABM] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.