ABM Industries (ABM) AI Stock Analysis

• Market Cap: $2.77B
• Dividend Yield: 2.35%
• Average Volume (3M): 533.38K
• Price to Earnings (P/E): 36.1
• Beta (1Y): 0.90
• Revenue Growth: 3.52%
• EPS Growth: -67.27%
• Country: US
• Employees: 100,000
• Sector: Industrials
• Sector Strength: 84
• Industry: Specialty Business Services
• EPS (TTM): 0.86
• Shares Outstanding: 62,258,022
• 10 Day Avg. Volume: 555,905
• 30 Day Avg. Volume: 533,383
• PEG Ratio: 0.66
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.96
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 1.80
• 1Y Price Target: $55.00
• Price Target Upside: 23.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: $47.00 ▲(5.74%Upside)

ABM Industries' overall stock score reflects solid financial performance and positive strategic initiatives. However, technical analysis indicates bearish market conditions, and the high valuation poses risks. Earnings call insights and corporate events provide optimism for future growth, but immediate caution is advised given current market momentum.

Positive Factors

Earnings Guidance

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

Financial Performance

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

Growth Opportunities

Very strong new work/awards are easily overlooked and bode well for a record year to unfold.

Negative Factors

Free Cash Flow Concerns

Free cash flow was well below expectations due to the timing of collecting accounts receivable.

Margin Challenges

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

Market Reaction

ABM underperformed the S&P 500 by a significant margin on the F2Q25 report, marking the fourth consecutive quarter with a negative reaction.

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 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 demonstrates strong revenue growth and stable profitability, with a solid balance sheet. However, cash flow management needs improvement, as indicated by negative free cash flow due to capital expenditures. The company's financial health is robust, but liquidity enhancements are necessary.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.50B	8.36B	8.10B	7.81B	6.23B	5.99B
Gross Profit	1.13B	1.12B	1.13B	1.05B	970.40M	830.60M
EBITDA	455.00M	414.40M	460.60M	461.10M	296.10M	372.50M
Net Income	78.80M	81.40M	251.30M	230.40M	126.30M	300.00K
Balance Sheet
Total Assets	5.31B	5.10B	4.93B	4.87B	4.44B	3.78B
Cash, Cash Equivalents and Short-Term Investments	58.70M	64.60M	69.50M	73.00M	62.80M	394.20M
Total Debt	1.67B	1.47B	1.44B	1.40B	1.03B	886.10M
Total Liabilities	3.49B	3.32B	3.13B	3.15B	2.83B	2.28B
Stockholders Equity	1.82B	1.78B	1.80B	1.72B	1.61B	1.50B
Cash Flow
Free Cash Flow	-28.20M	167.30M	190.70M	-30.40M	280.00M	419.50M
Operating Cash Flow	35.90M	226.70M	243.30M	20.40M	314.30M	457.50M
Investing Cash Flow	-174.90M	-171.90M	-62.10M	-241.50M	-740.00M	-27.50M
Financing Cash Flow	135.20M	-61.50M	-186.30M	235.50M	92.40M	-94.10M

ABM Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.45
• 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 44.45 is below the 20-day moving average (MA) of 47.83, below the 50-day MA of 48.94, and below the 200-day MA of 51.13, indicating a bearish trend. The MACD of -1.69 indicates Positive momentum. The RSI at 34.58 is Neutral, neither overbought nor oversold. The STOCH value of 30.63 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	81 Outperform	$3.86B	13.64	17.36%	1.73%	5.29%	31.95%
UNF	77 Outperform	$3.32B	23.11	7.17%	0.74%	5.04%	31.69%
RTO	76 Outperform	$11.89B	30.64	7.44%	3.21%	3.96%	-17.48%
BV	74 Outperform	$1.51B	85.78	2.56%	―	-2.85%	-108.99%
ARMK	71 Outperform	$10.59B	31.11	11.77%	1.03%	-3.47%	-45.03%
Sector *	71 Outperform	¥249.54B	12.85	8.49%	3.15%	6.30%	12.86%
ABM	61 Neutral	$2.77B	36.06	4.30%	2.35%	3.52%	-67.27%

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.

ABM Industries Approves 2025 Equity and Stock Plans

At the Annual Meeting on March 26, 2025, ABM Industries’ stockholders approved the amended 2021 Equity and Incentive Compensation Plan, increasing the authorized shares for issuance by 2,425,000 to a total of 6,400,000. This plan allows for various cash and equity awards to employees, directors, and consultants, with a focus on performance metrics such as stockholder return and operational efficiency. Additionally, the 2025 Employee Stock Purchase Plan was approved, allowing employees to purchase shares at a 5% discount, replacing the 2004 plan. The meeting also saw the election of directors, approval of executive compensation, and ratification of KPMG LLP as the independent auditor for 2025.