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Aecom (ACM)
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Aecom Technology (ACM) AI Stock Analysis

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Aecom Technology

(NYSE:ACM)

Rating:80Outperform
Price Target:
$127.00
▲(10.87%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 in delivering the bottom line.
Free Cash Flow
Robust free cash flow visibility even in a slow growth environment.
Profitability
Strong execution on profitability with America's margin reaching a new high of 19.4%.
Negative Factors
Government Policy
Limited exposure to government agencies affected by funding pauses indicates potential risks from recent policy changes.

Aecom Technology (ACM) vs. SPDR S&P 500 ETF (SPY)

Aecom Technology Business Overview & Revenue Model

Company DescriptionAECOM Technology Corporation (ACM) is a leading global infrastructure firm that provides professional technical and management support services. Operating in sectors such as transportation, facilities, environmental, energy, water, and government, AECOM offers a wide range of services, including planning, consulting, architectural and engineering design, and construction management. The company serves a diverse set of clients that include governments, businesses, and organizations worldwide, helping to deliver complex projects and innovative solutions.
How the Company Makes MoneyAECOM 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
85
Very Positive
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
70
Positive
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
78
Positive
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue16.11B14.38B13.15B13.34B13.24B
Gross Profit1.08B945.47M847.97M798.42M709.56M
EBITDA827.44M548.47M871.75M813.36M580.02M
Net Income402.27M55.33M310.61M173.19M-186.37M
Balance Sheet
Total Assets12.06B11.23B11.27B11.73B13.12B
Cash, Cash Equivalents and Short-Term Investments1.58B1.26B1.17B1.23B1.71B
Total Debt3.03B2.75B2.80B2.89B2.81B
Total Liabilities9.69B8.85B8.66B8.90B9.71B
Stockholders Equity2.18B2.21B2.48B2.71B3.29B
Cash Flow
Free Cash Flow707.89M590.38M576.62M568.41M215.03M
Operating Cash Flow827.49M695.98M713.64M704.67M329.62M
Investing Cash Flow-210.64M-138.18M-175.03M-421.09M2.04B
Financing Cash Flow-295.46M-472.94M-588.32M-872.53M-1.63B

Aecom Technology Technical Analysis

Technical Analysis Sentiment
Positive
Last Price114.55
Price Trends
50DMA
109.71
Positive
100DMA
102.24
Positive
200DMA
104.78
Positive
Market Momentum
MACD
1.72
Positive
RSI
61.35
Neutral
STOCH
63.98
Neutral
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 114.55 is above the 20-day moving average (MA) of 113.09, above the 50-day MA of 109.71, and above the 200-day MA of 104.78, indicating a bullish trend. The MACD of 1.72 indicates Positive momentum. The RSI at 61.35 is Neutral, neither overbought nor oversold. The STOCH value of 63.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACM.

Aecom Technology Risk Analysis

Aecom Technology disclosed 43 risk factors in its most recent earnings report. Aecom Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Aecom Technology Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
EMEME
81
Outperform
$24.81B24.4937.76%0.18%14.30%49.19%
ACACM
80
Outperform
$15.14B24.9628.07%0.91%4.55%
FIFIX
77
Outperform
$19.15B32.5737.81%0.33%31.47%64.96%
PWPWR
76
Outperform
$56.88B62.0513.48%0.10%15.77%19.58%
MTMTZ
73
Outperform
$13.43B63.647.70%3.03%
JJ
71
Outperform
$16.21B37.278.46%0.95%-22.81%-30.13%
58
Neutral
HK$14.16B4.57-3.01%6.80%3.67%-54.16%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ACM
Aecom Technology
114.55
23.67
26.05%
FIX
Comfort Systems
542.95
214.22
65.17%
EME
EMCOR Group
556.86
166.65
42.71%
J
Jacobs Engineering
136.04
12.58
10.19%
MTZ
MasTec
172.38
66.05
62.12%
PWR
Quanta Services
387.00
127.96
49.40%

Aecom Technology Corporate Events

Private Placements and Financing
Aecom Technology Launches $1 Billion Note Offering
Neutral
Jul 15, 2025

On July 15, 2025, AECOM announced the launch of a private offering of $1.0 billion in senior unsecured notes due 2033. Concurrently, the company initiated a cash tender offer for its outstanding $997.3 million 5.125% senior notes due 2027. The proceeds from the new notes will be used to purchase and redeem the 2027 notes, enhancing the company’s financial flexibility and potentially impacting its debt profile.

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.

Dividends
Aecom Technology Declares Quarterly Dividend for Shareholders
Positive
Jun 4, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 04, 2025