ABM Industries (ABM) AI Stock Analysis

• Market Cap: $2.96B
• Dividend Yield: 2.14%
• Average Volume (3M): 522.61K
• Price to Earnings (P/E): 38.0
• Beta (1Y): 0.89
• Revenue Growth: 3.52%
• EPS Growth: -67.27%
• Country: US
• Employees: 100,000
• Sector: Industrials
• Sector Strength: 93
• Industry: Specialty Business Services
• EPS (TTM): 0.86
• Shares Outstanding: 62,258,022
• 10 Day Avg. Volume: 443,609
• 30 Day Avg. Volume: 522,614
• PEG Ratio: -24.32
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -106.45
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 4.05
• Enterprise Value/Ebitda: 2.60
• 1Y Price Target: $56.00
• Price Target Upside: 17.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: $55.00 ▲(15.30%Upside)

ABM Industries' overall score is driven by strong financial performance and positive developments in corporate governance. Technical analysis and valuation suggest caution due to potential overvaluation and mixed technical signals. Earnings call insights show growth prospects tempered by operational challenges. Corporate events, including strategic appointments, bolster future outlook.

Positive Factors

Financial Performance

ABM reported revenue and operating EPS above expectations, indicating strong financial performance.

Future Prospects

ABM increased the lower end of FY25 operating EPS guidance, showing confidence in future earnings growth.

Growth Opportunities

Strong organic growth in the technical solutions business contributed to better-than-expected top-line performance.

Negative Factors

Competitive Pressure

Competition for facility services contracts is limiting margin and EPS growth.

Market Reaction

Shares traded down roughly 15% as investors put more focus on the pacing of free cash flow generation than on the B&I group’s faster return to positive organic growth.

Profitability Challenges

Segment operating margin and free cash flow were below expectations, suggesting challenges in profitability.

ABM Industries Business Overview & Revenue Model

Company Description

ABM Industries Inc. is a leading provider of integrated facility solutions, operating across various sectors including business and industry, aviation, education, healthcare, and technology. The company offers a broad range of services such as janitorial, electrical and lighting, energy solutions, facilities engineering, HVAC and mechanical, landscape and turf, and parking. Founded in 1909, ABM is headquartered in New York City and serves a diverse clientele across the United States and internationally.

How the Company Makes Money

ABM Industries generates revenue through the provision of facility management services. Its revenue model is primarily based on service contracts with clients across different sectors they serve. The company earns money by offering recurring and non-recurring services, often structured as multi-year agreements. Key revenue streams include janitorial services, facility maintenance, and technical solutions, which are tailored to meet the specific needs of each client. ABM's significant partnerships with businesses, government entities, and educational institutions are crucial in securing long-term contracts that contribute substantially to its earnings. Additionally, the company leverages its expertise in energy solutions to help clients reduce energy consumption and costs, which also serves as a vital revenue channel.

ABM Industries Financial Statement Overview

Summary

ABM Industries shows strong revenue growth and stable profitability, with a solid balance sheet and manageable leverage. However, cash flow management needs improvement due to negative free cash flow, indicating a need to enhance liquidity.

Income Statement

ABM Industries demonstrates robust revenue growth, with a TTM revenue increase of 1.66% from the previous year. The gross profit margin stands at a healthy 13.35%, and the company maintains a stable EBIT margin of 2.55%. Net profit margin is slightly lower at 0.93%, indicating potential areas for cost optimization. Overall, the company's revenue trajectory and consistent profitability reflect strong operational performance.

Balance Sheet

ABM Industries exhibits a solid balance sheet with a debt-to-equity ratio of 0.91, indicating manageable leverage levels. The equity ratio is 34.36%, reflecting a stable financial foundation. Return on equity (ROE) is modest at 4.32%, suggesting room for enhancing shareholder returns. The company's balance sheet stability supports its growth and operational strategies.

Cash Flow

The cash flow analysis reveals challenges with a negative free cash flow in the TTM, primarily due to capital expenditures. However, the operating cash flow to net income ratio is 0.46, indicating that the company generates a reasonable amount of cash relative to earnings. Despite current cash flow constraints, ABM Industries has the potential to improve its liquidity and cash generation capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.36B	8.10B	7.81B	6.23B	5.99B
Gross Profit	1.12B	1.13B	1.05B	970.40M	830.60M
EBITDA	414.40M	460.60M	461.10M	296.10M	372.50M
Net Income	81.40M	251.30M	230.40M	126.30M	300.00K
Balance Sheet
Total Assets	5.10B	4.93B	4.87B	4.44B	3.78B
Cash, Cash Equivalents and Short-Term Investments	64.60M	69.50M	73.00M	62.80M	394.20M
Total Debt	1.47B	1.44B	1.40B	1.03B	886.10M
Total Liabilities	3.32B	3.13B	3.15B	2.83B	2.28B
Stockholders Equity	1.78B	1.80B	1.72B	1.61B	1.50B
Cash Flow
Free Cash Flow	167.30M	190.70M	-30.40M	280.00M	419.50M
Operating Cash Flow	226.70M	243.30M	20.40M	314.30M	457.50M
Investing Cash Flow	-171.90M	-62.10M	-241.50M	-740.00M	-27.50M
Financing Cash Flow	-61.50M	-186.30M	235.50M	92.40M	-94.10M

ABM Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 47.7 is below the 20-day moving average (MA) of 47.96, below the 50-day MA of 48.43, and below the 200-day MA of 50.61, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 49.46 is Neutral, neither overbought nor oversold. The STOCH value of 21.34 is Neutral, 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
MMS	80 Outperform	$4.14B	14.61	17.36%	1.63%	5.29%	31.95%
ABM	75 Outperform	$2.96B	38.04	4.30%	2.14%	3.52%	-67.27%
RTO	73 Outperform	$12.71B	32.57	7.44%	0.11%	3.96%	-17.48%
ARMK	71 Outperform	$11.37B	33.39	11.77%	0.93%	-3.47%	-45.03%
BV	66 Neutral	$1.55B	85.78	2.56%	―	-2.85%	-108.99%
Sector *	65 Neutral	$11.16B	15.86	5.39%	1.92%	3.11%	-24.90%
UNF	61 Neutral	$3.11B	21.43	7.15%	0.80%	4.18%	18.93%

ABM Industries Corporate Events

ABM Industries Expands Board with New Director

On June 11, 2025, ABM Industries announced the election of Carol A. Clements to its Board of Directors, expanding the board from ten to eleven members. Ms. Clements, a technology and digital transformation leader with over 25 years of experience, currently serves as Chief Digital and Technology Officer at JetBlue Airways Corporation. Her appointment is seen as a strategic move to leverage her expertise in technology and innovation, aligning with ABM’s focus on redefining industry standards through advanced digital solutions.

The most recent analyst rating on (ABM) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on ABM Industries stock, see the ABM Stock Forecast page.

ABM Industries Appoints New CFO David Orr

On June 6, 2025, ABM Industries appointed David Orr as the new Executive Vice President and Chief Financial Officer, succeeding Earl Ellis who has served since November 2020. Orr, who has been with ABM since 2001, brings extensive experience in finance and strategy, having previously held roles such as Senior Vice President of Financial Planning and Analysis. His appointment is seen as a move to leverage his deep understanding of the industry and operational excellence to drive growth and transformation for ABM. Ellis will continue as a Senior Advisor until September 5, 2025, and will receive severance benefits as per his employment agreement.

The most recent analyst rating on (ABM) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on ABM Industries stock, see the ABM Stock Forecast page.

ABM Industries Reports Q2 Revenue Growth and New Bookings

On June 6, 2025, ABM Industries announced its fiscal second quarter results, reporting a 4.6% increase in revenue to $2.1 billion, driven by 3.8% organic growth. Despite a slight decrease in net income compared to the previous year, adjusted net income and EBITDA showed improvement. The company secured $1.1 billion in new bookings, highlighting its strong market position. ABM also declared a quarterly dividend of $0.265 per share, payable in August 2025, marking its 237th consecutive quarterly dividend.

The most recent analyst rating on (ABM) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on ABM Industries stock, see the ABM Stock Forecast page.