Aecom Technology (ACM) AI Stock Analysis

• Market Cap: $14.84B
• Dividend Yield: 0.93%
• Average Volume (3M): 803.46K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.72
• Revenue Growth: 4.55%
• EPS Growth: N/A
• Country: US
• Employees: 51,000
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): 1.25
• Shares Outstanding: 132,300,600
• 10 Day Avg. Volume: 864,750
• 30 Day Avg. Volume: 803,463
• PEG Ratio: 0.65
• Price to Book (P/B): 3.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.69
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 9.88
• Enterprise Value/Ebitda: 2.61
• 1Y Price Target: $118.93
• Price Target Upside: 6.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 80 Outperform
• Price Target: $127.00 ▲(13.40%Upside)

Aecom Technology's strong financial performance and positive earnings call are significant strengths, driving a high stock score. Technical analysis supports a bullish outlook, though caution is advised due to high RSI. Fair valuation and positive corporate events further bolster the score, indicating a well-positioned company in its industry.

Positive Factors

Financial Guidance

Raised the low-end of its FY EBITDA & EPS guide, signaling confidence on delivering the bottom line.

Portfolio Resilience

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

Profitability

Strong execution on profitability with Americas margin up 130bps YoY to a new high of 19.4%.

Revenue Growth

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

Negative Factors

Market Conditions

Companies in coverage are cutting guidance during earnings season, indicating challenging market conditions.

Policy Impact

Funding pauses in government agencies may impact companies with greater exposure to these sectors.

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 its comprehensive suite of services provided across various sectors. The company's revenue model is largely based on contracts for large-scale infrastructure projects, which include project planning, design, consulting, and management services. Key revenue streams for AECOM include its Design & Consulting Services segment, which involves planning and designing infrastructure projects, and its Construction Management segment, which oversees the execution of these projects. Additionally, AECOM often forms strategic partnerships and joint ventures to expand its project capabilities and market reach. Government contracts and long-term client relationships also play a significant role in contributing to its earnings, providing a steady flow of projects and revenue.

Aecom Technology Financial Statement Overview

Summary

Aecom Technology shows solid financial performance with strong revenue growth, improved profitability, and efficient cash flow management. Despite a moderately high leverage, the company effectively utilizes its equity to generate substantial returns.

Income Statement

Aecom Technology exhibits strong revenue growth with a notable increase from $13.1 billion in 2020 to $16 billion in TTM (Trailing-Twelve-Months). The gross profit margin has remained stable, though slightly improving from 5.4% in 2020 to 7.1% in TTM. Net profit margins have improved significantly from 1.4% in 2020 to 3.8% in TTM, indicating enhanced profitability. The EBIT and EBITDA margins show a consistent upward trend, reflecting operational efficiency. Overall, the company demonstrates solid revenue growth and improved profitability.

Balance Sheet

The balance sheet indicates a moderately leveraged position with a debt-to-equity ratio of approximately 1.32 in TTM, slightly decreasing from 1.05 in 2020. While the equity ratio has decreased from 25.1% in 2020 to 19.4% in TTM, indicating increased reliance on debt, the return on equity has improved from 5.7% in 2020 to 27% in TTM, suggesting better utilization of equity to generate profits. Despite the higher leverage, the company maintains stable financial health with a solid equity base.

Cash Flow

The cash flow analysis reveals strong operating cash flow, increasing from $329 million in 2020 to $931 million in TTM, supporting robust financial operations. Free cash flow has shown notable growth, increasing from $215 million in 2020 to $836 million in TTM, with a positive free cash flow to net income ratio. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to reported profits, which enhances liquidity and financial sustainability.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
16.05B	16.11B	14.38B	13.15B	13.34B	13.24B
	Gross Profit
1.14B	1.08B	945.47M	847.97M	798.42M	709.56M
	EBIT
958.90M	827.44M	324.13M	646.80M	629.55M	381.46M
	EBITDA
1.15B	827.44M	548.47M	871.75M	813.36M	580.02M
	Net Income Common Stockholders
617.26M	402.27M	55.33M	310.61M	173.19M	-186.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.60B	1.58B	1.26B	1.17B	1.23B	1.71B
	Total Assets
11.78B	12.06B	11.23B	11.27B	11.73B	13.12B
	Total Debt
3.02B	3.03B	2.75B	2.80B	2.89B	2.81B
	Net Debt
1.42B	1.45B	1.49B	1.63B	1.66B	1.10B
	Total Liabilities
9.32B	9.69B	8.85B	8.66B	8.90B	9.71B
	Stockholders Equity
2.29B	2.18B	2.21B	2.48B	2.71B	3.29B
Cash Flow		Free Cash Flow
836.36M	707.89M	590.38M	576.62M	568.41M	215.03M
	Operating Cash Flow
931.82M	827.49M	695.98M	713.64M	704.67M	329.62M
	Investing Cash Flow
-174.75M	-210.64M	-138.18M	-175.03M	-421.09M	2.04B
	Financing Cash Flow
-343.48M	-295.46M	-472.94M	-588.32M	-872.53M	-1.63B

Aecom Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 111.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 111.99 is above the 20-day moving average (MA) of 109.83, above the 50-day MA of 102.56, and above the 200-day MA of 103.49, indicating a bullish trend. The MACD of 2.41 indicates Positive momentum. The RSI at 70.10 is Negative, neither overbought nor oversold. The STOCH value of 88.77 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	$21.12B	20.85	37.76%	0.21%	14.30%	49.19%
ACM	80 Outperform	$14.84B	24.47	28.07%	0.93%	4.55%	―
FIX	79 Outperform	$17.52B	29.79	37.81%	0.36%	31.47%	64.96%
PWR	76 Outperform	$52.73B	57.52	13.48%	0.11%	15.77%	19.58%
MTZ	73 Outperform	$12.85B	60.29	7.70%	―	3.03%	―
J	71 Outperform	$15.24B	35.04	8.46%	1.00%	-22.81%	-30.13%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%

Aecom Technology Corporate Events

Aecom Technology Declares Quarterly Dividend for Shareholders

On June 4, 2025, AECOM’s Board of Directors declared a quarterly cash dividend of $0.26 per share, continuing its ongoing dividend program. The dividend will be payable on July 18, 2025, to stockholders of record as of July 2, 2025, reflecting the company’s commitment to returning value to its shareholders.

The most recent analyst rating on (ACM) stock is a Buy with a $104.00 price target. To see the full list of analyst forecasts on Aecom Technology stock, see the ACM Stock Forecast page.