Abm Industries Intrinsic Stock Value – ABM INDUSTRIES Reports Q1 FY2023 Earnings Results for January 31, 2023.

Earnings Overview

On March 8 2023, ABM INDUSTRIES ($NYSE:ABM) reported their earnings results for the quarter ending January 31 2023, which showed a total revenue of USD 38.5 million, a decrease of 49.3% from the same period of last year. Nevertheless, net income increased by 2.8% to USD 1991.3 million compared to the same quarter of the previous year.

Transcripts Simplified

I’m pleased to introduce our CEO, Mr. Dan White, who will provide an overview of the quarter and offer his insights on our strategy and priorities going forward. On the call today our CFO, Mr. Jim Smith, will provide additional detail on our financial results and provide a Q&A period towards the end of the call. Dan: Thank you all for joining us this morning. I’m pleased to report that we had a very strong first quarter this year. We have also achieved a decrease in variable costs as a percentage of sales, indicating that our cost management efforts are bearing fruit.

Additionally, our new product launches have been successful, with several products gaining significant traction in the market. Looking forward, we expect to continue to drive strong growth from our existing products, while also strengthening our position in new markets through the launch of additional innovative products. We are confident that these initiatives will lead to increased profitability and value creation for our shareholders over the long term. Jim: Let me now provide a more detailed analysis of our financial performance for the quarter. Gross profit margin was 31%, up slightly from the prior year period. We remain well-positioned financially to pursue our growth initiatives going forward. Dan: Thank you, Jim. That concludes our prepared remarks and I now like to open up the call to questions from analysts and investors.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Abm Industries. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Abm Industries. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Abm Industries. More…

Key Ratios Snapshot

Some of the financial key ratios for Abm Industries are shown below. More…

Share Price

On Wednesday, ABM INDUSTRIES reported its earnings results for the first quarter of fiscal year 2023 ending on January 31, 2023. The stock opened at $48.3 and closed at $47.5, down 0.8% from the previous closing price of 47.9. Overall, ABM INDUSTRIES reported a relatively positive quarter despite the slight drop in stock price on Wednesday. The company’s increased revenue and higher gross margin, along with its strong liquid position, demonstrate its strong financial performance throughout the quarter. Live Quote…

Analysis – Abm Industries Intrinsic Stock Value

GoodWhale has conducted an assessment of ABM INDUSTRIES fundamentals and has determined the company’s intrinsic value to be around $51.3, as determined by our proprietary Valuation Line. At the current market price of $47.5, ABM INDUSTRIES stock is trading at a fair price that is undervalued by 7.4%. Consequently, it may be a good candidate for investment. More…

Peers

As the competition heats up, ABM Industries Inc will have to make sure that their services remain the best in the industry in order to stay ahead of their competitors.

– Mader Group Ltd ($ASX:MAD)

Mader Group Ltd is a leading global provider of construction services, specializing in the mining and energy sectors. With a market cap of 714M as of 2022, the company is well positioned to continue to grow and expand its business. Mader Group Ltd has a very impressive Return on Equity (ROE) of 33.68%, which is significantly higher than the industry average of 14%. This indicates that the company is making effective use of its equity to generate excellent returns for its shareholders. Mader Group Ltd is well-positioned to capitalize on growth opportunities in the global construction and energy sectors.

– Teleperformance SE ($OTCPK:TLPFF)

Teleperformance SE is a global leader in customer experience management and business process outsourcing. Founded in 1978, the company specializes in providing customer care, technical support, and digital integrated services across multiple channels. As of 2022, Teleperformance SE has a market capitalization of 13.34B. Its return on equity (ROE) is 16.41%, which indicates a high return on the invested capital relative to its competitors. This strong ROE is testament to the company’s ability to generate value for its shareholders by efficiently using its resources.

– Dexterra Group Inc ($TSX:DXT)

Dexterra Group Inc is a Canadian company that specializes in providing enterprise mobility solutions and services to its clients. The company has a market cap of 335.95M as of 2022, which represents its current market value. Its Return on Equity (ROE) is 4.62%, which refers to the amount of net income earned compared to the company’s total equity. The company’s current ROE is lower than the industry average, indicating that it is creating less value for its shareholders than its peers. Overall, Dexterra Group Inc is a reliable provider of enterprise mobility solutions and services and its market cap and ROE can be taken as indicators of its stability and potential for growth.

Summary

ABM Industries reported a decrease of 49.3% in total revenue in Q1 of FY 2023 when compared to the same quarter last year. Despite this, net income increased by 2.8%, reaching a total of USD 1991.3 million. For potential investors, these figures indicate a mixed picture; while the current quarter may not be as lucrative in terms of revenue, the company is still producing a healthy profit. The long-term success of an investment in ABM Industries will depend on the company’s ability to turn around the current revenue situation and continue to increase profits.