ABM Industries (ABM) AI Stock Analysis

• Market Cap: $2.24B
• Dividend Yield: 2.2%
• Average Volume (3M): 512.97K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.91
• Revenue Growth: 4.62%
• EPS Growth: 102.72%
• Country: US
• Employees: 100,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.83
• Shares Outstanding: 58,532,820
• 10 Day Avg. Volume: 657,341
• 30 Day Avg. Volume: 512,968
• PEG Ratio: 0.16
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 17.27
• Enterprise Value/Market Cap: 1.73
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 3.79
• Enterprise Value/Ebitda: 9.20
• 1Y Price Target: $50.60
• Price Target Upside: 32.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 3.99
• Revenue Forecast (FY): $9.15B

• Rating: 64 Neutral
• Price Target: $44.00 ▲(14.94% Upside)
• Action: Downgraded Date: 03/11/26
• Date: Action: Downgraded 03/11/26

The score is held back primarily by weak technicals (below key moving averages with negative MACD) and compressed profitability despite revenue growth. These are partly offset by improved TTM cash generation and a reasonable valuation with a ~2.6% dividend yield, while the latest earnings commentary supports a steady growth outlook and margin improvement initiatives.

Positive Factors

Record new sales bookings / revenue momentum

A record $1.9B in new sales bookings provides multi-quarter revenue visibility and demonstrates sustained demand across end markets. Large, recent wins create a backlog that can be converted to recurring contract revenue, underpinning steady organic growth and cash flow over the coming 2–6 months.

Diversified integrated facility services portfolio

ABM's broad service mix across commercial real estate, education, healthcare, transportation and more creates resilience to sector-specific downturns. Recurring contract structures and cross-selling opportunities support stable revenue streams, scale benefits, and long-term client relationships that favor durability of earnings.

Strengthened cash generation in TTM

Material improvement in operating and free cash flow enhances financial flexibility to fund operations, pay dividends, and support targeted buybacks or investments. Better cash conversion limits reliance on external financing and strengthens the firm's ability to execute strategic initiatives over the medium term.

Negative Factors

Compressed profitability / low margins

Very thin operating and net margins reduce the company's ability to absorb cost inflation or pricing pressure and constrain return on capital. Low margin structure makes earnings and free cash flow sensitive to service mix and project timing, limiting lasting improvement without structural efficiency gains.

ERP-related working capital friction and operational risk

ERP rollout issues have caused working capital swings and execution friction, which can persist for multiple quarters. Such operational disruptions increase cash conversion volatility, raise the risk of contract delivery problems, and may blunt margin recovery unless the system and processes are fully stabilized.

Near-term dilution and leverage from acquisitions

Strategic deals like WGNSTAR expand capabilities but are forecast to be EPS-dilutive initially and add interest/amortization burdens. Combined with elevated reported leverage metrics, this raises near-term earnings pressure and integration risk, constraining free cash flow improvements until synergies materialize.

ABM Industries Business Overview & Revenue Model

Company Description

ABM Industries Incorporated provides integrated facility solutions in the United States and internationally. The company operates through Business & Industry, Technology & Manufacturing, Education, Aviation, and Technical Solutions segments. It provides janitorial, facilities engineering, parking, custodial, landscaping and ground, and mechanical and electrical services; and vehicle maintenance and other services to rental car providers. The company was incorporated in 1985 and is based in New York, New York.

How the Company Makes Money

ABM generates revenue primarily through its comprehensive facility services contracts, which are often long-term agreements with clients in various sectors. Key revenue streams include janitorial services, maintenance and repair services, landscaping, and security personnel services. The company typically charges clients on a recurring basis, either through fixed contracts or hourly rates, depending on the nature of the services provided. ABM also benefits from strategic partnerships with other service providers and suppliers, allowing it to offer bundled services and enhance its value proposition. Additionally, the company capitalizes on economies of scale by serving multiple clients within a single facility or across multiple locations, which contributes to its profitability and stable income flow.

ABM Industries Financial Statement Overview

Summary

Financials are stable but not strong: revenue has grown to ~$8.87B TTM, yet profitability has compressed with low TTM net margin (~1.8%) and operating margin (~2.7%) and net income below the 2023 peak. Offsetting this, cash generation improved materially in TTM (OCF ~$403M, FCF ~$327M) and the balance sheet appears conservative in TTM (very low debt-to-equity), though the sharp shift versus prior years warrants monitoring.

Income Statement

Revenue has grown steadily across the period, reaching $8.87B in TTM (Trailing-Twelve-Months), but the growth rate has slowed materially versus earlier years. Profitability is modest: TTM net margin is ~1.8% and operating margin is ~2.7%, both down versus the stronger 2022–2023 range, indicating meaningful margin compression. Net income in TTM ($158M) is also below the 2023 peak ($251M), suggesting earnings have not kept pace with the higher revenue base.

Balance Sheet

Leverage looks conservative in TTM (Trailing-Twelve-Months) with debt-to-equity around 0.08 and equity of ~$1.72B, which improves balance-sheet resilience. However, the annual trend prior to TTM shows materially higher leverage (debt-to-equity ~0.64–0.95 in 2021–2025), so the sharp TTM change bears monitoring for sustainability/consistency. Returns on equity are moderate in TTM (~8.8%) and below the stronger levels seen in 2022–2023, reflecting reduced profitability.

Cash Flow

Cash generation strengthened in TTM (Trailing-Twelve-Months): operating cash flow is ~$403M and free cash flow is ~$327M, with free cash flow well above net income (free cash flow to net income ~0.81), supporting earnings quality. The business has also shown it can convert profits to cash in most years, though 2022 was a notable weak spot with very low operating cash flow and negative free cash flow. Free cash flow growth is very strong in TTM, but recent annual free cash flow was softer (2024–2025), implying some volatility in cash conversion.

Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	8.87B	8.75B	8.36B	8.10B	7.81B	6.23B
Gross Profit	1.02B	1.02B	1.12B	1.13B	1.05B	970.40M
EBITDA	421.90M	422.00M	414.40M	460.60M	461.10M	296.10M
Net Income	157.60M	162.40M	81.40M	251.30M	230.40M	126.30M
Balance Sheet
Total Assets	5.29B	5.46B	5.10B	4.93B	4.87B	4.44B
Cash, Cash Equivalents and Short-Term Investments	100.40M	104.10M	64.60M	69.50M	73.00M	62.80M
Total Debt	1.74B	1.69B	1.45B	1.44B	1.40B	1.03B
Total Liabilities	3.56B	3.67B	3.32B	3.13B	3.15B	2.83B
Stockholders Equity	1.72B	1.79B	1.78B	1.80B	1.72B	1.61B
Cash Flow
Free Cash Flow	326.80M	155.10M	167.30M	190.70M	-30.40M	280.00M
Operating Cash Flow	402.60M	234.40M	226.70M	243.30M	20.40M	314.30M
Investing Cash Flow	-113.70M	-115.60M	-171.90M	-62.10M	-241.50M	-740.00M
Financing Cash Flow	-252.40M	-80.20M	-61.50M	-186.30M	235.50M	92.40M

ABM Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABM, the sentiment is Negative. The current price of 38.28 is below the 20-day moving average (MA) of 43.19, below the 50-day MA of 44.39, and below the 200-day MA of 45.18, indicating a bearish trend. The MACD of -1.52 indicates Positive momentum. The RSI at 23.04 is Positive, neither overbought nor oversold. The STOCH value of 3.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABM.

ABM Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNF	78 Outperform	$4.75B	21.89	6.45%	0.71%	0.20%	2.72%
MMS	67 Neutral	$3.95B	12.60	21.76%	1.38%	2.36%	11.30%
ABM	64 Neutral	$2.24B	17.89	8.80%	2.20%	4.62%	102.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FA	63 Neutral	$1.80B	-72.27	-2.68%	―	93.41%	-2515.85%
CBZ	60 Neutral	$1.42B	27.64	6.21%	―	59.19%	-35.47%
BV	59 Neutral	$1.14B	-19.84	3.13%	―	-3.40%	-51.58%

ABM Industries Corporate Events

ABM Industries Reports Q1 Results, Reaffirms 2026 Outlook

On March 10, 2026, ABM reported fiscal first-quarter 2026 results for the period ended January 31, 2026, posting revenue of $2.2 billion, up 6.1% year on year with 5.5% organic growth, driven by broad-based gains led by Technical Solutions and Aviation and supported by growth in Manufacturing & Distribution, Business & Industry, and Education. Net income declined to $38.8 million, or $0.64 per diluted share, while adjusted net income and adjusted EBITDA also eased, as margins were pressured by project timing and service mix in Technical Solutions and newer contract ramps, even as operating and free cash flow improved sharply on better working capital and ERP progress.

The company closed its acquisition of WGNSTAR at the start of the second quarter, reinforcing its push into the fast-growing semiconductor market and enhancing capabilities in fabrication environments, and it continued to return capital by repurchasing about 2.1 million shares for $91.1 million during the quarter. ABM ended the quarter with $1.7 billion of total debt, a leverage ratio of 2.9 times and $608.1 million in liquidity, and on March 10, 2026, the board declared a quarterly dividend of $0.29 per share payable on May 4, 2026, while management reaffirmed its unchanged fiscal 2026 outlook, signaling confidence in demand trends and expected margin improvement as project timing normalizes and cost initiatives take hold.

The most recent analyst rating on (ABM) stock is a Buy with a $53.00 price target. To see the full list of analyst forecasts on ABM Industries stock, see the ABM Stock Forecast page.

ABM Industries Secures New Term Loan for Acquisition

On February 3, 2026, ABM Industries entered into a first amendment to its existing credit agreement, securing a new $255 million incremental term loan and loosening restrictions on shareholder payouts by increasing the annual cap on certain restricted payments, including regular quarterly cash dividends, from the greater of $50 million and $1.00 per share to the greater of $72 million and $1.16 per share. The company simultaneously drew the full $255 million under this new term facility, on terms broadly consistent with its other term loans, and used the proceeds to partially finance its previously announced $275 million cash acquisition of Ireland-based Iveagh New Opportunities Limited and its subsidiaries, providing additional funding for strategic expansion while signaling continued commitment to dividend payments.

The most recent analyst rating on (ABM) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on ABM Industries stock, see the ABM Stock Forecast page.

ABM Industries to Acquire WGNSTAR for $275M

ABM Industries announced plans to acquire WGNSTAR, an Ireland-based company, for $275 million to strengthen its presence in the semiconductor market and enhance its technical capabilities in fabrication environments. The company also reported strong fiscal 2025 results, with record revenues of $8.7 billion, significant growth across segments, and an optimistic outlook for fiscal 2026, projecting continued organic growth and robust earnings driven by operational efficiency, market demand, and strategic initiatives.

The most recent analyst rating on (ABM) stock is a Hold with a $47.00 price target. To see the full list of analyst forecasts on ABM Industries stock, see the ABM Stock Forecast page.