ABM Industries (ABM) AI Stock Analysis

• Market Cap: $2.54B
• Dividend Yield: 2.2%
• Average Volume (3M): 734.03K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.83
• Revenue Growth: 4.62%
• EPS Growth: 102.72%
• Country: US
• Employees: 100,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.88
• Shares Outstanding: 60,177,624
• 10 Day Avg. Volume: 1,268,140
• 30 Day Avg. Volume: 734,032
• 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: 1.66
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 4.07
• Enterprise Value/Ebitda: 10.01
• 1Y Price Target: $52.75
• Price Target Upside: 25.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 3.99
• Revenue Forecast (FY): $9.14B

• Rating: 69 Neutral
• Price Target: $46.00 ▲(9.08% Upside)

ABM Industries' strong financial performance and positive earnings call are key strengths, supported by record revenue and strategic growth initiatives. However, technical indicators suggest bearish momentum, and valuation metrics are moderate. Increasing leverage and income-to-cash conversion challenges are areas of concern.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong market demand and effective business strategies, ensuring long-term financial stability.

Strategic Acquisition

The acquisition of WGNSTAR positions ABM to capitalize on growth in the semiconductor market, expanding its service offerings and client base.

Operational Efficiency

Improved operational efficiency enhances profitability and competitiveness, supporting sustainable growth and shareholder value.

Negative Factors

Increasing Leverage

Rising leverage can strain financial flexibility and increase risk, potentially impacting long-term financial health and investment capacity.

Dilutive Acquisition Impact

Initial dilution from the acquisition may pressure earnings, affecting short-term profitability and requiring careful integration management.

Income-to-Cash Conversion

Challenges in converting income to cash can affect liquidity and operational flexibility, impacting the ability to fund growth initiatives.

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

ABM Industries shows solid financial performance with consistent revenue growth and improved profitability. The balance sheet is stable, but increasing leverage is a concern. Cash flow metrics are positive, though income-to-cash conversion needs improvement.

Income Statement

ABM Industries has demonstrated consistent revenue growth over the years, with a notable increase in the latest period. However, the gross profit margin has seen a slight decline, indicating potential cost pressures. The net profit margin has improved, reflecting better profitability management. EBIT and EBITDA margins are stable, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased over time, indicating higher leverage, which could pose a risk if not managed properly. However, the return on equity remains healthy, showing effective use of shareholder funds. The equity ratio is stable, reflecting a balanced capital structure.

Cash Flow

ABM Industries has shown significant improvement in free cash flow growth, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is relatively low, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is strong, highlighting efficient cash management.

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

ABM Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 42.17 is below the 20-day moving average (MA) of 44.33, below the 50-day MA of 43.69, and below the 200-day MA of 46.36, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 42.50 is Neutral, neither overbought nor oversold. The STOCH value of 6.72 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
MMS	74 Outperform	$4.73B	15.78	18.14%	1.38%	2.36%	11.30%
UNF	72 Outperform	$3.47B	25.01	6.93%	0.71%	0.20%	2.72%
ABM	69 Neutral	$2.54B	16.28	9.10%	2.20%	4.62%	102.72%
CBZ	66 Neutral	$2.86B	34.58	7.44%	―	59.19%	-35.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BV	59 Neutral	$1.22B	297.01	3.13%	―	-3.40%	-51.58%
FA	51 Neutral	$2.67B	-18.27	-12.48%	―	93.41%	-2515.85%

ABM Industries Corporate Events

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.

ABM Industries Appoints Barry Hytinen to Board

On October 29, 2025, ABM Industries announced the appointment of Barry A. Hytinen to its Board of Directors, expanding the board from eleven to twelve members. Hytinen, who is the Executive Vice President and Chief Financial Officer of Iron Mountain Incorporated, brings extensive financial and strategic expertise to ABM. His experience in driving growth and transformation in global organizations is expected to support ABM’s long-term strategic goals and continued growth.