ABM Industries (ABM) AI Stock Analysis

• Market Cap: $2.64B
• Dividend Yield: 2.2%
• Average Volume (3M): 556.20K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.86
• 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: 58,598,373
• 10 Day Avg. Volume: 379,538
• 30 Day Avg. Volume: 556,204
• 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: 1.58
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 4.02
• Enterprise Value/Ebitda: 9.89
• 1Y Price Target: $51.60
• Price Target Upside: 16.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $53.00 ▲(20.10% Upside)
• Action: Upgraded Date: 02/06/26
• Date: Action: Upgraded 02/06/26

The score is driven primarily by solid financial performance (growth and improving profitability, tempered by leverage and cash-conversion quality) and supportive technical momentum (price above major moving averages with positive MACD). Valuation is reasonable for the profile (P/E ~18 with a ~2.3% dividend), and the latest earnings call added confidence via strong bookings and constructive FY2026 guidance despite near-term acquisition dilution and restructuring/self-insurance headwinds.

Positive Factors

Strong new sales bookings

Record $1.9B in new bookings materially improves revenue visibility and creates a durable pipeline of recurring service contracts. High bookings indicate sustained demand and cross-selling success, supporting multi-quarter organic growth and utilization leverage as bookings convert to long-term contracts.

Diversified end-market exposure

Revenue strength across Technical Solutions, Manufacturing, Aviation and other segments reduces reliance on any single cyclical market, smoothing demand through business cycles. Diversification supports stable utilization, cross-selling of bundled facility services, and resilience to sector-specific downturns over the medium term.

Improving free cash flow and liquidity

Material free cash flow improvement and sizable available liquidity strengthen financial flexibility to fund integrations, reinvest in operations, and support dividends. Better FCF from ERP progress and working capital controls enhances sustained capital allocation capacity over the next several quarters.

Negative Factors

Rising leverage

An increasing debt load reduces covenant and payout flexibility and raises sensitivity to interest-cost swings. With leverage around 2.7x pro forma adjusted EBITDA, elevated debt constrains the balance sheet's ability to absorb shocks or pursue large inorganic growth without further funding or deleveraging.

Weak operating cash conversion

Lower operating-cash-to-net-income implies earnings are not fully converted into cash, limiting internal funding for capex, M&A or dividends if margins compress. Persistent conversion gaps raise reliance on external financing and amplify liquidity risk during cyclical revenue weakness or working-capital strain.

Near-term acquisition dilution and financing needs

Strategic acquisitions expand capabilities but first-year EPS dilution from amortization and added interest increases pressure on reported earnings and leverage metrics. Successful integration and realized synergies are required to justify incremental debt and restore EPS accretion over the medium term.

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

Solid overall fundamentals: consistent revenue growth and improved net profitability, with stable EBIT/EBITDA margins. Offsetting factors include rising leverage (higher debt-to-equity) and weaker cash conversion (low operating cash flow to net income), despite strong free cash flow trends.

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	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 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: 44.13
• 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 44.13 is below the 20-day moving average (MA) of 45.71, below the 50-day MA of 44.78, and below the 200-day MA of 45.79, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 44.08 is Neutral, neither overbought nor oversold. The STOCH value of 48.77 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
UNF	77 Outperform	$4.19B	31.92	6.50%	0.71%	0.20%	2.72%
ABM	73 Outperform	$2.64B	17.40	9.10%	2.20%	4.62%	102.72%
CBZ	66 Neutral	$1.62B	19.67	7.44%	―	59.19%	-35.47%
MMS	64 Neutral	$4.11B	11.45	22.09%	1.38%	2.36%	11.30%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BV	59 Neutral	$1.29B	-1,667.47	3.13%	―	-3.40%	-51.58%
FA	51 Neutral	$1.70B	-11.45	-12.48%	―	93.41%	-2515.85%

ABM Industries Corporate Events

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.