ABM Industries Inc (ABM) Stock Analysis
Verdict: WATCH (do not buy)
High FCF yield and defensive low-beta profile offer downside protection, but thin 3.6% margins and insider selling cap near-term upside.
Investment score: 58/100
Analysis as of
Is ABM Industries Inc stock worth reviewing? The TradeMates thesis
ABM offers a compelling 11.8% FCF yield and a 2.4% dividend, but persistent earnings misses and thin operating margins (3.6%) suggest the recent rally to $48.20 has reached fair value.
7-factor investment score
- Valuation: 65/100 (weight 20%)
- Financial Health: 45/100 (weight 15%)
- Technical Momentum: 75/100 (weight 15%)
- Earnings Quality: 40/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 50/100 (weight 10%)
- Risk-Adjusted Return: 70/100 (weight 15%)
ABM Industries Inc opportunities and risks
What speaks for ABM
- High Free Cash Flow Generation
What speaks against ABM
- Labor Cost Sensitivity
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ABM | 18.5x | 0.3x | 11.0x | 11.5% | 1.8% | 11.8% |
| ROL | 33.0x | 4.5x | 21.4x | 50.7% | 13.6% | 3.5% |
| CLH | 39.0x | 2.7x | 16.1x | 26.6% | 7.0% | 1.1% |
| TTEK | 21.8x | 1.9x | 15.4x | 18.8% | 8.6% | 5.8% |
| CWST | 980.2x | 2.9x | 17.3x | 25.4% | 0.3% | 1.8% |
| BV | n/a | 0.4x | 6.6x | 21.0% | 0.4% | -2.3% |
| Peer median | 33.0x | 2.7x | 16.1x | 25.4% | 7.0% | 1.8% |
Frequently asked questions about ABM Industries Inc (ABM)
Is ABM stock a good investment?
The TradeMates model rates ABM Industries Inc as WATCH (do not buy) with an investment score of 58/100. ABM offers a compelling 11.8% FCF yield and a 2.4% dividend, but persistent earnings misses and thin operating margins (3.6%) suggest the recent rally to $48.20 has reached fair value. This is algorithmic model output, not personal investment advice.
Is ABM stock a buy?
The TradeMates model verdict for ABM is WATCH (do not buy) with an investment score of 58/100. Treat this as a model signal to review, not a personal buy recommendation.