Aecom Technology (ACM) AI Stock Analysis

• Market Cap: $13.09B
• Dividend Yield: 0.94%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.72
• Revenue Growth: 8.89%
• EPS Growth: 669.67%
• Country: US
• Employees: 51,000
• Sector: Industrials
• Sector Strength: 75
• Industry: Engineering & Construction
• EPS (TTM): 3.52
• Shares Outstanding: 132,689,650
• 10 Day Avg. Volume: 962,314
• 30 Day Avg. Volume: 1,127,191
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 14.78
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $112.64
• Price Target Upside: 14.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Aecom Technology's stock score is supported by a strong financial performance, highlighted by robust revenue growth and solid cash flow generation. The optimistic earnings call, emphasizing increased guidance and strategic successes, further enhances the outlook. While the technical analysis and valuation present some cautionary notes due to potential overvaluation and mixed momentum signals, the overall strength in operational performance and strategic direction justifies a positive stock score.

Positive Factors

Financial Performance

ACM posted a positive start with EBITDA increasing by 8% on NSR growth of 5.5%.

Operational Efficiency

Americas led the way with NSR growth of 8% and operating margin expanded 40bps.

Strategic Positioning

AECOM has de-risked its portfolio by focusing on technical expertise and competitive differentiation.

Negative Factors

Market Exposure

ACM has limited exposure to government agencies affected by funding pauses, indicating minimal impact from recent policy changes.

Aecom Technology Business Overview & Revenue Model

Company Description

AECOM, together with its subsidiaries, provides professional infrastructure consulting services for governments, businesses, and organizations in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through three segments: Americas, International, and AECOM Capital. The company offers planning, consulting, architectural and engineering design, construction and program management, and investment and development services to commercial and government clients. It also invests in and develops real estate projects. In addition, the company provides construction services, including building construction and energy, and infrastructure and industrial construction. It serves transportation, water, government, facilities, environmental, and energy sectors. The company was formerly known as AECOM Technology Corporation and changed its name to AECOM in January 2015. AECOM was incorporated in 1980 and is headquartered Dallas, Texas.

How the Company Makes Money

AECOM makes money primarily through providing professional services in areas such as planning, consulting, and engineering design. The company's revenue streams are largely derived from contracts with public and private sector clients, including governments, corporations, and non-profit organizations. AECOM engages in both long-term, large-scale projects and smaller, short-term assignments. Key revenue factors include the company's ability to secure contracts, often through competitive bidding processes, and its capacity to deliver complex, multidisciplinary projects that require integrated solutions. Additionally, partnerships and joint ventures with other firms can enhance AECOM's offerings and expand its market reach, contributing to its earnings.

Aecom Technology Financial Statement Overview

Summary

Aecom Technology exhibits strong financial performance with robust revenue growth, effective cost management, and solid cash flow generation. Despite moderate leverage, the company maintains a strong return on equity and solid cash flow metrics. Profitability margins could be improved, but the financial health supports future growth and stability.

Income Statement

Aecom Technology demonstrates strong financial performance with consistent revenue and profit growth. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 6.8%, and the net profit margin is around 2.9%. Notably, the revenue has grown by about 12.8% from the previous year, indicating robust business expansion. EBIT and EBITDA margins also show healthy operating efficiency. However, the net profit margin is relatively modest, suggesting room for improved cost management and profitability.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of approximately 1.37, indicating moderate leverage. The equity ratio is around 18.6%, reflecting a balanced capital structure. Return on Equity (ROE) is approximately 21.5%, showcasing strong profitability relative to shareholder investment. However, the company’s leverage should be monitored to ensure it does not impede financial flexibility.

Cash Flow

Aecom Technology's cash flow performance is solid, with a notable operating cash flow to net income ratio of 1.76, indicating effective cash generation relative to net income. The free cash flow growth rate is impressive at 30.8% year-over-year, suggesting strong cash flow management. The free cash flow to net income ratio is 1.63, reflecting efficient capital expenditure and cash flow utilization. Overall, the company maintains healthy cash flow metrics, supporting ongoing operations and potential investments.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
16.11B	14.38B	13.15B	13.34B	13.24B
	Gross Profit
1.08B	945.47M	847.97M	798.42M	709.56M
	EBIT
827.44M	324.13M	646.80M	629.55M	381.46M
	EBITDA
1.08B	543.64M	826.86M	813.36M	580.02M
	Net Income Common Stockholders
402.27M	55.33M	414.63M	319.79M	186.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.32B	1.26B	1.17B	1.23B	1.71B
	Total Assets
12.06B	11.23B	11.27B	11.85B	13.12B
	Total Debt
3.03B	2.75B	2.80B	2.89B	2.81B
	Net Debt
1.45B	1.49B	1.63B	1.66B	1.10B
	Total Liabilities
9.69B	8.85B	8.66B	9.02B	9.71B
	Stockholders Equity
2.18B	2.21B	2.48B	2.71B	3.29B
Cash Flow		Free Cash Flow
827.49M	590.38M	576.62M	568.41M	215.03M
	Operating Cash Flow
827.49M	695.98M	713.64M	704.67M	329.62M
	Investing Cash Flow
-210.64M	-138.18M	-175.03M	-421.09M	2.04B
	Financing Cash Flow
-295.46M	-472.94M	-588.32M	-872.53M	-1.63B

Aecom Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 98.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACM, the sentiment is Positive. The current price of 98.65 is above the 20-day moving average (MA) of 94.04, above the 50-day MA of 94.99, and below the 200-day MA of 101.02, indicating a neutral trend. The MACD of 0.82 indicates Negative momentum. The RSI at 60.22 is Neutral, neither overbought nor oversold. The STOCH value of 91.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACM.

Aecom Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EME	81 Outperform	$18.06B	18.62	37.25%	0.24%	15.76%	61.64%
ACM	80 Outperform	$13.09B	28.06	26.35%	0.94%	8.89%	669.67%
FIX	78 Outperform	$14.02B	23.85	37.81%	0.34%	31.47%	64.96%
MTZ	75 Outperform	$9.98B	61.40	5.80%	―	2.56%	―
PWR	74 Outperform	$43.09B	48.20	13.32%	0.13%	13.36%	20.00%
J	68 Neutral	$15.00B	25.22	10.92%	0.96%	-13.76%	-13.39%
Sector *	63 Neutral	$4.23B	11.54	5.34%	209.77%	4.14%	-9.49%