Abm Industries Stock Fair Value Calculation – ABM Industries Shows Strong Performance, But Investors Urge Caution and Technical Analysis for Investment Decisions
September 28, 2024

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ABM ($NYSE:ABM) Industries Inc. is a leading provider of facility solutions, providing a wide range of services including janitorial, parking, and security services to businesses, governments, and institutions. Recently, ABM Industries Inc. has shown strong financial performance, with its stock price increasing by 0.95% over the past year. This has caught the attention of investors who are looking for potential investment opportunities.
However, experts caution that investors should not solely rely on the company’s performance and earnings reports when making investment decisions. While ABM Industries Inc. has shown strong numbers, it is recommended that investors also analyze the stock’s chart patterns for technical guidance. Technical analysis is a method of evaluating securities based on statistics generated by market activity, such as past prices and volume. By looking at these patterns, investors can gain insight into the stock’s future performance and make more informed investment decisions. While the company has a solid track record, there are potential risks that could impact its future performance. For example, the current economic climate and unpredictable market conditions could affect the demand for ABM’s services and ultimately impact its revenue and earnings. It is important to also consider technical analysis and potential risks before investing in the company’s stock.
Stock Price
The company provides a wide range of services, including janitorial, electrical, HVAC, and security, to commercial, industrial, and institutional clients. Recently, the company’s stock performance has caught the attention of investors, with its stock opening at $51.15 and closing at $51.73 on Thursday, representing a 1.93% increase from the previous closing price of $50.75. This positive performance has brought about mixed reactions from investors. While some are encouraged by the company’s growth and potential, others are urging caution and emphasizing the importance of technical analysis before making any investment decisions. One reason for this caution is the overall market conditions. The stock market has been experiencing high levels of volatility, with trade tensions and economic uncertainties weighing heavily on investor sentiment. In such an environment, it is important for investors to conduct thorough technical analysis before making any investment decisions. Technical analysis involves studying past market data, such as price movements and trading volume, to identify patterns and trends that can help predict future stock performance. Moreover, while ABM Industries has shown strong performance in recent years, it is important to consider the company’s fundamentals before making any investment decisions. This includes analyzing the company’s financials, management team, market position, and competitive landscape. By conducting fundamental analysis, investors can gain a deeper understanding of the company’s strengths and weaknesses and make more well-rounded investment decisions.
Additionally, a thorough understanding of the company’s fundamentals is crucial in evaluating its potential for future growth and success. With these factors in mind, investors can make more informed decisions and potentially maximize their returns from investing in ABM Industries. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Abm Industries. More…
| Total Revenues | Net Income | Net Margin |
| 8.17k | 257.5 | 3.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Abm Industries. More…
| Operations | Investing | Financing |
| 314.1 | -62.7 | -282 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Abm Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.96k | 3.13k | 28.8 |
Key Ratios Snapshot
Some of the financial key ratios for Abm Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.7% | 7.0% | 5.1% |
| FCF Margin | ROE | ROA |
| 3.2% | 14.4% | 5.2% |
Analysis – Abm Industries Stock Fair Value Calculation
After conducting a thorough analysis of ABM INDUSTRIES‘s fundamentals, I have determined that the fair value of their shares is approximately $53.0. This valuation was calculated using our proprietary Valuation Line, which takes into account a variety of financial factors such as earnings, cash flow, and growth potential. Currently, ABM INDUSTRIES’s stock is trading at $51.73, which means that it is undervalued by 2.5%. This presents a potential buying opportunity for investors, as the stock has room to grow and reach its fair value. One key factor that contributes to the fair value of ABM INDUSTRIES’s shares is their strong fundamentals. The company has consistently shown strong earnings and cash flow, indicating a healthy financial position. Additionally, their growth potential in the facilities management industry is promising, as there is a growing demand for these services in both the public and private sectors. It’s important to note that while our valuation suggests that ABM INDUSTRIES’s stock is undervalued, market factors and other external influences can also impact the stock’s price. However, based on our analysis of the company’s fundamentals, we believe that the current market price of $51.73 presents a good buying opportunity for investors looking for long-term growth potential. In conclusion, our analysis indicates that ABM INDUSTRIES’s stock is currently undervalued by 2.5% and has a fair value of around $53.0. With their strong financials and growth potential in the facilities management industry, we believe that this stock has the potential to provide positive returns for investors in the long run. 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 Inc. has shown a positive performance with a 0.95% overperformance, making it a potential investment opportunity.
However, investors are advised to conduct further analysis by looking at stock chart patterns for technical insight. This will provide a better understanding of the company’s overall trend and potential future performance. It is important for investors to carefully consider all factors before making any investment decisions. While ABM Industries Inc. may seem like a promising investment based on its recent performance, it is crucial to conduct thorough research and analysis to ensure a sound investment decision.
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