Switch to:

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.11
ABM's Cash to Debt is ranked lower than
59% of the 993 Companies
in the Global Business Services industry.

( Industry Median: 1.05 vs. ABM: 0.11 )
ABM' s 10-Year Cash to Debt Range
Min: 0   Max: No Debt
Current: 0.11

Equity to Asset 0.44
ABM's Equity to Asset is ranked higher than
61% of the 959 Companies
in the Global Business Services industry.

( Industry Median: 0.46 vs. ABM: 0.44 )
ABM' s 10-Year Equity to Asset Range
Min: 0.37   Max: 0.58
Current: 0.44

0.37
0.58
Interest Coverage 12.02
ABM's Interest Coverage is ranked higher than
54% of the 671 Companies
in the Global Business Services industry.

( Industry Median: 22.17 vs. ABM: 12.02 )
ABM' s 10-Year Interest Coverage Range
Min: 6.55   Max: 288.08
Current: 12.02

6.55
288.08
F-Score: 8
Z-Score: 4.01
M-Score: -2.53
WACC vs ROIC
9.22%
6.61%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) 2.43
ABM's Operating margin (%) is ranked higher than
56% of the 989 Companies
in the Global Business Services industry.

( Industry Median: 6.76 vs. ABM: 2.43 )
ABM' s 10-Year Operating margin (%) Range
Min: 1.94   Max: 5.52
Current: 2.43

1.94
5.52
Net-margin (%) 1.57
ABM's Net-margin (%) is ranked higher than
58% of the 989 Companies
in the Global Business Services industry.

( Industry Median: 4.40 vs. ABM: 1.57 )
ABM' s 10-Year Net-margin (%) Range
Min: 1.25   Max: 4.02
Current: 1.57

1.25
4.02
ROE (%) 8.40
ABM's ROE (%) is ranked higher than
68% of the 944 Companies
in the Global Business Services industry.

( Industry Median: 8.78 vs. ABM: 8.40 )
ABM' s 10-Year ROE (%) Range
Min: 6.99   Max: 22.27
Current: 8.4

6.99
22.27
ROA (%) 3.67
ABM's ROA (%) is ranked higher than
67% of the 1001 Companies
in the Global Business Services industry.

( Industry Median: 3.94 vs. ABM: 3.67 )
ABM' s 10-Year ROA (%) Range
Min: 3.35   Max: 12.05
Current: 3.67

3.35
12.05
ROC (Joel Greenblatt) (%) 26.43
ABM's ROC (Joel Greenblatt) (%) is ranked higher than
70% of the 992 Companies
in the Global Business Services industry.

( Industry Median: 29.02 vs. ABM: 26.43 )
ABM' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 18.12   Max: 65.51
Current: 26.43

18.12
65.51
Revenue Growth (3Y)(%) 3.90
ABM's Revenue Growth (3Y)(%) is ranked higher than
66% of the 808 Companies
in the Global Business Services industry.

( Industry Median: 4.80 vs. ABM: 3.90 )
ABM' s 10-Year Revenue Growth (3Y)(%) Range
Min: 2.5   Max: 13.7
Current: 3.9

2.5
13.7
EBITDA Growth (3Y)(%) 1.50
ABM's EBITDA Growth (3Y)(%) is ranked higher than
62% of the 680 Companies
in the Global Business Services industry.

( Industry Median: 5.90 vs. ABM: 1.50 )
ABM' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -12.6   Max: 32.8
Current: 1.5

-12.6
32.8
EPS Growth (3Y)(%) 1.30
ABM's EPS Growth (3Y)(%) is ranked higher than
64% of the 627 Companies
in the Global Business Services industry.

( Industry Median: 7.30 vs. ABM: 1.30 )
ABM' s 10-Year EPS Growth (3Y)(%) Range
Min: -17.1   Max: 37.1
Current: 1.3

-17.1
37.1
» ABM's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2014

ABM Guru Trades in Q1 2014

John Hussman 12,000 sh (New)
Jim Simons 137,997 sh (+94.36%)
Robert Olstein 290,000 sh (+5.42%)
David Dreman 215,274 sh (+3.11%)
Chuck Royce 1,171,200 sh (-2.36%)
Third Avenue Management 745,547 sh (-28.23%)
Paul Tudor Jones 16,083 sh (-55.04%)
» More
Q2 2014

ABM Guru Trades in Q2 2014

Paul Tudor Jones 25,411 sh (+58%)
Robert Olstein 353,000 sh (+21.72%)
John Hussman Sold Out
Chuck Royce 1,164,300 sh (-0.59%)
David Dreman 210,732 sh (-2.11%)
Third Avenue Management 650,038 sh (-12.81%)
Jim Simons 118,700 sh (-13.98%)
» More
Q3 2014

ABM Guru Trades in Q3 2014

Robert Olstein 463,000 sh (+31.16%)
Paul Tudor Jones 31,501 sh (+23.97%)
Jim Simons 139,600 sh (+17.61%)
Chuck Royce 1,242,000 sh (+6.67%)
David Dreman 213,605 sh (+1.36%)
Third Avenue Management 650,038 sh (unchged)
» More
Q4 2014

ABM Guru Trades in Q4 2014

David Dreman 226,308 sh (+5.95%)
Robert Olstein 474,000 sh (+2.38%)
Chuck Royce 1,233,100 sh (-0.72%)
Jim Simons 133,700 sh (-4.23%)
Paul Tudor Jones 14,785 sh (-53.06%)
Third Avenue Management 216,472 sh (-66.7%)
» More
» Details

Insider Trades

Latest Guru Trades with ABM

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Third Avenue Management 2014-12-31 Reduce -66.7%0.23%$25.11 - $29.37 $ 29.810%216472
Robert Olstein 2014-09-30 Add 31.16%0.36%$24.57 - $28.34 $ 29.813%463000
Robert Olstein 2014-06-30 Add 21.72%0.23%$26.19 - $28.9 $ 29.810%353000
John Hussman 2014-06-30 Sold Out 0.03%$26.19 - $28.9 $ 29.810%0
Third Avenue Management 2014-03-31 Reduce -28.23%0.15%$26.01 - $29.43 $ 29.87%745547
John Hussman 2014-03-31 New Buy0.03%$26.01 - $29.43 $ 29.87%12000
Joel Greenblatt 2013-12-31 Sold Out 0.01%$25.85 - $28.99 $ 29.88%0
David Dreman 2013-09-30 Reduce -71.76%0.34%$24.15 - $26.6 $ 29.816%182204
Joel Greenblatt 2013-09-30 New Buy0.01%$24.15 - $26.6 $ 29.816%7556
Robert Olstein 2013-06-30 Add 17.46%0.18%$20.46 - $25.44 $ 29.830%296000
Arnold Van Den Berg 2013-03-31 Sold Out 1.65%$19.95 - $23.43 $ 29.837%0
Third Avenue Management 2013-03-31 New Buy0.4%$19.95 - $23.43 $ 29.837%946705
Joel Greenblatt 2013-03-31 Sold Out 0.08%$19.95 - $23.43 $ 29.837%0
Arnold Van Den Berg 2012-12-31 Add 24.43%0.32%$18.06 - $20.5 $ 29.856%749970
Joel Greenblatt 2012-12-31 Add 39.87%0.02%$18.06 - $20.5 $ 29.856%70457
David Dreman 2012-09-30 New Buy0.35%$17.96 - $20.53 $ 29.856%746148
Robert Olstein 2012-09-30 Add 52.44%0.31%$17.96 - $20.53 $ 29.856%250000
Robert Olstein 2012-06-30 Add 1070.68%0.58%$19.54 - $24.13 $ 29.835%164000
Joel Greenblatt 2012-06-30 Add 86.06%0.04%$19.54 - $24.13 $ 29.835%53556
Robert Olstein 2012-03-31 New Buy0.06%$20.22 - $24.5 $ 29.843%14009
Joel Greenblatt 2012-03-31 New Buy0.06%$20.22 - $24.5 $ 29.843%28784
Ken Fisher 2011-12-31 Sold Out 0.06%$17.85 - $22.08 $ 29.847%0
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on ABM Industries Inc

Third Avenue Management Comments on ABM Industries - Mar 08, 2013

ABM Industries (ABM) traces its beginnings back to 1909, when its founder Morris Rosenberg invested $4.50 in cleaning materials and began cleaning windows for shopkeepers in San Francisco. Over a century later, the company is the largest provider of janitorial services in the U.S. and – through a series of acquisitions – has branched into other service areas to offer a one-stop shop for facilities management. Today ABM provides engineering, janitorial, electrical, parking, landscaping and security services (stand-alone or bundled) to thousands of commercial, residential, and governmental customers throughout the U.S. and Canada.

Shares of ABM have languished over the last two years in the wake of an ill-timed acquisition by the company – in December 2010 ABM bought another building-maintenance specialist named The Linc Group, a contractor whose business included the management of barracks in Iraq for the U.S. Government. With the swift withdrawal of U.S. troops in 2011 Linc's Iraq business has largely disappeared. Even so, Linc accounts for only about 12% of ABM's sales and the lost Iraq business was only 2% of ABM's total revenue by our estimates. We believe the untimely acquisition has helped afford us a rare opportunity to invest in a very strong company at attractive prices (around 7.5 times estimated EBITDA1 for this year). Ultimately, ABM still exhibits many of the elements we look for in our search for high-quality companies:

Stability: While periods of soft economic conditions will certainly pressure ABM's sales and profitability, the impact is unusually benign owing to the largely non-discretionary nature of its services, bolstered by long-term, cost-plus customer contracts. We believe ABM's services face minimal obsolescence risk over the long term and that the company's resilient performance during the recent recession (no step-back in earnings) demonstrates its staying power and the necessity of its services

Growth: ABM has long enjoyed a trend towards outsourced facilities management and continues to do so, particularly within the engineering services space. ABM also stands to take or acquire market share from competitors given the facilities management industry remains very fragmented despite ongoing consolidation. In the case of Linc, the acquisition significantly strengthened ABM's engineering offerings and, thus, the potential for outsized growth from 'bundled' services solutions, e.g., providing integrated janitorial and engineering services for a building. Lastly

ABM generally stands to benefit from the ongoing recovery of the U.S. economy and resultant improvements in office and hotel occupancy rates.

•Financial position: ABM enjoys a strong financial position, as Management has firmly committed to keeping the company's debt level modest2. Combined with the manageable reinvestment needs of the business and its very stable generation of free cash flow, this conservatism has afforded ABM the important flexibility to pursue attractive acquisition opportunities and consistently pay and grow its dividend3.

•Management: ABM's management team is very experienced in the business, with the majority having very long tenures with the company. On the whole, management appears to have done a good job identifying and integrating the numerous acquisitions completed by ABM over the years without assuming compromising levels of debt. Management also enjoys a reputation for being good operators and disciplined around the pricing of contracts.

•Resource conversion: With the ongoing consolidation across the industry and the stable business model seemingly attractive to private equity investors, the facilities management industry has seen a considerable number of ABM's peers taken private over the years. As such, we believe there is a possibility ABM could be acquired at some point. Based on the valuations of prior industry transactions, shares of ABM could command an acquisition price substantially higher than today's prices.

From Third Avenue's first quarter 2013 commentary.


Check out Third Avenue Management latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 21.10
ABM's P/E(ttm) is ranked higher than
75% of the 1144 Companies
in the Global Business Services industry.

( Industry Median: 33.40 vs. ABM: 21.10 )
ABM' s 10-Year P/E(ttm) Range
Min: 9.19   Max: 35.64
Current: 21.1

9.19
35.64
Forward P/E 13.83
ABM's Forward P/E is ranked higher than
89% of the 1144 Companies
in the Global Business Services industry.

( Industry Median: 0.00 vs. ABM: 13.83 )
N/A
PE(NRI) 21.10
ABM's PE(NRI) is ranked higher than
75% of the 1144 Companies
in the Global Business Services industry.

( Industry Median: 32.10 vs. ABM: 21.10 )
ABM' s 10-Year PE(NRI) Range
Min: 10.09   Max: 35.82
Current: 21.1

10.09
35.82
P/B 1.70
ABM's P/B is ranked higher than
77% of the 1144 Companies
in the Global Business Services industry.

( Industry Median: 3.41 vs. ABM: 1.70 )
ABM' s 10-Year P/B Range
Min: 0.96   Max: 2.56
Current: 1.7

0.96
2.56
P/S 0.30
ABM's P/S is ranked higher than
92% of the 1144 Companies
in the Global Business Services industry.

( Industry Median: 1.78 vs. ABM: 0.30 )
ABM' s 10-Year P/S Range
Min: 0.17   Max: 0.56
Current: 0.3

0.17
0.56
PFCF 18.10
ABM's PFCF is ranked higher than
79% of the 1144 Companies
in the Global Business Services industry.

( Industry Median: 47.46 vs. ABM: 18.10 )
ABM' s 10-Year PFCF Range
Min: 6.96   Max: 102.95
Current: 18.1

6.96
102.95
POCF 13.42
ABM's POCF is ranked higher than
73% of the 1144 Companies
in the Global Business Services industry.

( Industry Median: 18.67 vs. ABM: 13.42 )
ABM' s 10-Year POCF Range
Min: 5.27   Max: 79.96
Current: 13.42

5.27
79.96
EV-to-EBIT 16.53
ABM's EV-to-EBIT is ranked higher than
75% of the 1144 Companies
in the Global Business Services industry.

( Industry Median: 20.71 vs. ABM: 16.53 )
ABM' s 10-Year EV-to-EBIT Range
Min: 5.7   Max: 22
Current: 16.53

5.7
22
PEG 3.35
ABM's PEG is ranked higher than
87% of the 1144 Companies
in the Global Business Services industry.

( Industry Median: 0.00 vs. ABM: 3.35 )
ABM' s 10-Year PEG Range
Min: 0.53   Max: 77.04
Current: 3.35

0.53
77.04
Shiller P/E 23.40
ABM's Shiller P/E is ranked higher than
86% of the 1144 Companies
in the Global Business Services industry.

( Industry Median: 0.00 vs. ABM: 23.40 )
ABM' s 10-Year Shiller P/E Range
Min: 9.06   Max: 23.89
Current: 23.4

9.06
23.89
Current Ratio 1.93
ABM's Current Ratio is ranked higher than
73% of the 975 Companies
in the Global Business Services industry.

( Industry Median: 1.43 vs. ABM: 1.93 )
ABM' s 10-Year Current Ratio Range
Min: 1.64   Max: 2.29
Current: 1.93

1.64
2.29
Quick Ratio 1.93
ABM's Quick Ratio is ranked higher than
76% of the 975 Companies
in the Global Business Services industry.

( Industry Median: 1.31 vs. ABM: 1.93 )
ABM' s 10-Year Quick Ratio Range
Min: 1.64   Max: 2.2
Current: 1.93

1.64
2.2
Days Sales Outstanding 55.96
ABM's Days Sales Outstanding is ranked higher than
79% of the 1144 Companies
in the Global Business Services industry.

( Industry Median: 75.74 vs. ABM: 55.96 )
ABM' s 10-Year Days Sales Outstanding Range
Min: 46.24   Max: 68.34
Current: 55.96

46.24
68.34

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.10
ABM's Dividend Yield is ranked lower than
54% of the 648 Companies
in the Global Business Services industry.

( Industry Median: 2.14 vs. ABM: 2.10 )
ABM' s 10-Year Dividend Yield Range
Min: 1.53   Max: 4.13
Current: 2.1

1.53
4.13
Dividend Payout 0.45
ABM's Dividend Payout is ranked higher than
80% of the 1144 Companies
in the Global Business Services industry.

( Industry Median: 0.00 vs. ABM: 0.45 )
ABM' s 10-Year Dividend Payout Range
Min: 0.07   Max: 1.59
Current: 0.45

0.07
1.59
Dividend growth (3y) 3.50
ABM's Dividend growth (3y) is ranked higher than
65% of the 397 Companies
in the Global Business Services industry.

( Industry Median: 9.60 vs. ABM: 3.50 )
ABM' s 10-Year Dividend growth (3y) Range
Min: 3.5   Max: 17
Current: 3.5

3.5
17
Yield on cost (5-Year) 2.51
ABM's Yield on cost (5-Year) is ranked lower than
53% of the 667 Companies
in the Global Business Services industry.

( Industry Median: 2.59 vs. ABM: 2.51 )
ABM' s 10-Year Yield on cost (5-Year) Range
Min: 1.83   Max: 4.93
Current: 2.51

1.83
4.93
Share Buyback Rate -1.80
ABM's Share Buyback Rate is ranked higher than
68% of the 687 Companies
in the Global Business Services industry.

( Industry Median: -1.20 vs. ABM: -1.80 )
ABM' s 10-Year Share Buyback Rate Range
Min: 0.4   Max: -6.5
Current: -1.8

Valuation & Return

vs
industry
vs
history
Earnings Yield (Greenblatt) 6.00
ABM's Earnings Yield (Greenblatt) is ranked higher than
72% of the 988 Companies
in the Global Business Services industry.

( Industry Median: 5.50 vs. ABM: 6.00 )
ABM' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.5   Max: 17.6
Current: 6

4.5
17.6
Forward Rate of Return (Yacktman) 12.65
ABM's Forward Rate of Return (Yacktman) is ranked higher than
75% of the 594 Companies
in the Global Business Services industry.

( Industry Median: 11.42 vs. ABM: 12.65 )
ABM' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -6.3   Max: 25.8
Current: 12.65

-6.3
25.8

Business Description

Industry: Business Services » Business Services
Compare:ADP, G, ENV, CMPGY, SGSOY » details
Traded in other countries:AB4.Germany,
ABM Industries Inc was founded in 1909. The Company is a provider of integrated facility solutions.The Company provides end-to-end integrated facilities management services to thousands of commercial, governmental, industrial, institutional, residential, and retail client facilities in hundreds of cities, primarily throughout the United States. The Companys capabilities include expansive facility services, energy solutions, commercial cleaning, maintenance and repair, HVAC, electrical, landscaping, parking and security, through stand-alone or integrated solutions. With revenues exceeding $4 billion and approximately 100,000 employees deployed across the United States and international locations, it delivers custom facility solutions to diverse sites across multiple industries - from healthcare, government and education to high-tech, aviation and manufacturing. The Company operates parking lots and garages at various facilities, including office buildings, hotels, medical centers, retail centers, sports and entertainment arenas, educational institutions, municipalities, and airports. Under the managed locations arrangements, the Company manages the underlying parking facility for the owner in exchange for a management fee. Under leased locations arrangements, the Company leases parking facilities from the owner and is responsible for a majority of the operating expenses incurred. Under these arrangements, it retains all revenues from monthly and transient parkers and pays rent to the owner per the terms and conditions of the lease. The lease terms generally range from one to five years and provide for payment of a fixed amount of rent plus a percentage of revenues. The Company provides security services to various businesses. Security services include staffing of security officers; mobile patrol services; investigative services; electronic monitoring of fire, life safety systems, and access control devices; and security consulting services. Clients served include high rise, commercial, industrial, retail, medical, petro-chemical, and residential facilities. Security staffing, or guarding, is the provision of dedicated security officers to a client facility. The Company has a technology platform that is utilized to augment guard force operations.
» More Articles for ABM

Headlines

Articles On GuruFocus.com
Athabasca Minerals Announces Operations Update Jan 28 2015 
Athabasca Announces Preliminary Economic Assessment Status and Change to Fiscal Year End Dec 11 2014 
Bob Olstein On 'Boring' Stocks Printing Money Nov 13 2014 
Athabasca Minerals Inc. Announces Record Revenue and Strong Net Income During Q3 2014 Oct 22 2014 
8 Dividend Stocks Building Future Yield Dec 16 2013 
Third Avenue Management Comments on ABM Industries Mar 08 2013 
The Best Stocks With Dividend Growth From Last Week Dec 16 2012 
43 Top Yielding Stocks With Ex-Dividend Date In October 2012 Sep 28 2012 
Weekly Top Insider Buys: AES, ITT, NPBC, ADTN, ABM Jul 23 2012 
Five Dividend Hikes In the News: NUE, O, BEN, ABM, UBP Dec 16 2011 


More From Other Websites
Looking for Value? Why It Might Be Time to Try ABM Industries (ABM) - Tale of the Tape Mar 06 2015
ABM INDUSTRIES INC /DE/ Files SEC form 8-K, Change in Directors or Principal Officers, Submission of... Mar 04 2015
ABM INDUSTRIES INC /DE/ Files SEC form 10-Q, Quarterly Report Mar 04 2015
ABM Marginally Beats on Q1 Earnings with Record Revenues - Analyst Blog Mar 04 2015
ABM Industries Announces 2015 First Quarter Financial Results Mar 03 2015
ABM Industries beats 1Q profit forecasts Mar 03 2015
ABM Industries beats 1Q profit forecasts Mar 03 2015
ABM INDUSTRIES INC /DE/ Files SEC form 8-K, Results of Operations and Financial Condition, Other... Mar 03 2015
ABM Industries Announces 2015 First Quarter Financial Results Mar 03 2015
ABM Scales New 52-Week High on Sustained Organic Growth - Analyst Blog Mar 03 2015
DXP Q4 Earnings Miss, Sales Beat on Acquisition Benefits - Analyst Blog Mar 03 2015
Q1 2015 ABM Industries Inc Earnings Release - After Market Close Mar 03 2015
ABM Healthcare Support Services Awarded Contract With Allegiance Health Feb 26 2015
ABM Healthcare Support Services Awarded Contract With Allegiance Health Feb 26 2015
ABM Schedules First Quarter Fiscal 2015 Earnings Announcement and Investor Webcast Feb 23 2015
ABM Schedules First Quarter Fiscal 2015 Earnings Announcement and Investor Webcast Feb 23 2015
ABM to Present at Baird's 2015 Business Solutions Conference Feb 17 2015
ABM to Present at Baird's 2015 Business Solutions Conference Feb 17 2015
Can VASCO (VDSI) Keep its Earnings Streak Alive in Q4? - Analyst Blog Feb 13 2015
ABM to Reduce West Boylston, MA Energy and Operating Costs by More Than $4.1 Million Feb 12 2015

Personalized Checklist

Checklist has been moved to "Checklist" tab.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK