Abm Industries Stock Intrinsic Value – ABM Industries Incorporated: A Steady but Unspectacular Investment
April 12, 2023
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ABM ($NYSE:ABM): The company provides janitorial, electrical, and HVAC services, as well as specialized services such as energy solutions, sustainability services, and building maintenance solutions. The stock has seen modest gains in the past few years, but there is low upside potential in the short and medium-term. Investors looking for growth may want to look elsewhere.
Share Price
ABM Industries Incorporated has been a steady but unspectacular investment in recent weeks. On Tuesday, the company’s stock opened at $44.1 and closed at $43.9. Overall, the stock has been trading within a narrow range, with only minor fluctuations in its price.
While this could be seen as a lack of excitement, it could also be viewed as a reliable and consistent investment option. ABM Industries Incorporated is a low-risk stock, and investors seeking stability in their holdings would do well to consider it. 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 |
| 7.86k | 192.9 | 2.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Abm Industries. More…
| Operations | Investing | Financing |
| 43.1 | -241.6 | 241.4 |
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 |
| 4.92k | 3.18k | 26.27 |
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 |
| 6.5% | 10.2% | 4.0% |
| FCF Margin | ROE | ROA |
| -0.2% | 11.5% | 4.0% |
Analysis – Abm Industries Stock Intrinsic Value
We at GoodWhale recently conducted a thorough analysis of ABM INDUSTRIES‘s wellbeing. Our proprietary Valuation Line pinpointed the intrinsic value of ABM INDUSTRIES’s share to be around $51.6. However, the current market price for ABM INDUSTRIES stock is $43.9, making it a fair price that is undervalued by 15.0%. We believe investors should take this opportunity to purchase ABM INDUSTRIES stock while it is still undervalued. More…
Peers
As the competition heats up, ABM Industries Inc will have to make sure that their services remain the best in the industry in order to stay ahead of their competitors.
– Mader Group Ltd ($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
Despite its size, the company is not considered to be a growth story due to its lack of organic growth in recent years. Instead, ABM relies on acquisitions to drive its top line.
Additionally, the company’s low P/E ratio and PEG ratio suggest it is currently undervalued relative to its peers and may be a good value investment. Furthermore, ABM has a strong balance sheet with healthy levels of free cash flow and total debt. On the downside, the company has been experiencing volatility in its margins over the past few years and has seen significant decreases in net profit margins. With that being said, ABM could present investors with an attractive opportunity if it is able to successfully execute on its strategy and deliver sustained organic growth.
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