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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 0.08
ABM's Cash to Debt is ranked lower than
63% of the 976 Companies
in the Global Business Services industry.

( Industry Median: 1.09 vs. ABM: 0.08 )
ABM' s 10-Year Cash to Debt Range
Min: 0   Max: No Debt
Current: 0.08

Equity to Asset 0.44
ABM's Equity to Asset is ranked higher than
60% of the 946 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 9.23
ABM's Interest Coverage is ranked higher than
50% of the 663 Companies
in the Global Business Services industry.

( Industry Median: 24.18 vs. ABM: 9.23 )
ABM' s 10-Year Interest Coverage Range
Min: 6.55   Max: 319.67
Current: 9.23

6.55
319.67
F-Score: 5
Z-Score: 3.90
M-Score: -2.47
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 (%) 2.47
ABM's Operating margin (%) is ranked higher than
55% of the 968 Companies
in the Global Business Services industry.

( Industry Median: 6.23 vs. ABM: 2.47 )
ABM' s 10-Year Operating margin (%) Range
Min: 1.96   Max: 5.67
Current: 2.47

1.96
5.67
Net-margin (%) 1.45
ABM's Net-margin (%) is ranked higher than
57% of the 968 Companies
in the Global Business Services industry.

( Industry Median: 4.08 vs. ABM: 1.45 )
ABM' s 10-Year Net-margin (%) Range
Min: 1.25   Max: 4
Current: 1.45

1.25
4
ROE (%) 7.75
ABM's ROE (%) is ranked higher than
66% of the 927 Companies
in the Global Business Services industry.

( Industry Median: 8.95 vs. ABM: 7.75 )
ABM' s 10-Year ROE (%) Range
Min: 6.88   Max: 21.78
Current: 7.75

6.88
21.78
ROA (%) 3.35
ABM's ROA (%) is ranked higher than
65% of the 980 Companies
in the Global Business Services industry.

( Industry Median: 3.94 vs. ABM: 3.35 )
ABM' s 10-Year ROA (%) Range
Min: 3.34   Max: 12.05
Current: 3.35

3.34
12.05
ROC (Joel Greenblatt) (%) 28.41
ABM's ROC (Joel Greenblatt) (%) is ranked higher than
70% of the 971 Companies
in the Global Business Services industry.

( Industry Median: 28.41 vs. ABM: 28.41 )
ABM' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 19.84   Max: 72.84
Current: 28.41

19.84
72.84
Revenue Growth (%) 9.10
ABM's Revenue Growth (%) is ranked higher than
79% of the 821 Companies
in the Global Business Services industry.

( Industry Median: 4.70 vs. ABM: 9.10 )
ABM' s 10-Year Revenue Growth (%) Range
Min: 3.6   Max: 11.1
Current: 9.1

3.6
11.1
EBITDA Growth (%) 6.50
ABM's EBITDA Growth (%) is ranked higher than
70% of the 677 Companies
in the Global Business Services industry.

( Industry Median: 6.50 vs. ABM: 6.50 )
ABM' s 10-Year EBITDA Growth (%) Range
Min: -12.8   Max: 36.7
Current: 6.5

-12.8
36.7
EPS Growth (%) 2.40
ABM's EPS Growth (%) is ranked higher than
63% of the 612 Companies
in the Global Business Services industry.

( Industry Median: 8.30 vs. ABM: 2.40 )
ABM' s 10-Year EPS Growth (%) Range
Min: -14.3   Max: 35.1
Current: 2.4

-14.3
35.1
» ABM's 10-Y Financials

Financials


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

» Details

Guru Trades

Q4 2013

ABM Guru Trades in Q4 2013

Jim Simons 71,000 sh (New)
Paul Tudor Jones 35,775 sh (+153.72%)
David Dreman 208,775 sh (+14.58%)
Chuck Royce 1,199,500 sh (+0.91%)
Joel Greenblatt Sold Out
Third Avenue Management 1,038,773 sh (-0.29%)
Robert Olstein 275,100 sh (-3.51%)
» More
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
» 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
Robert Olstein 2014-09-30 Add 31.16%0.36%$24.57 - $28.34 $ 27.153%463000
Robert Olstein 2014-06-30 Add 21.72%0.23%$26.19 - $28.9 $ 27.150%353000
John Hussman 2014-06-30 Sold Out 0.03%$26.19 - $28.9 $ 27.150%0
Third Avenue Management 2014-03-31 Reduce -28.23%0.15%$26.01 - $29.43 $ 27.15-3%745547
John Hussman 2014-03-31 New Buy0.03%$26.01 - $29.43 $ 27.15-2%12000
Joel Greenblatt 2013-12-31 Sold Out 0.01%$25.85 - $28.99 $ 27.15-2%0
David Dreman 2013-09-30 Reduce -71.76%0.34%$24.15 - $26.6 $ 27.156%182204
Joel Greenblatt 2013-09-30 New Buy0.01%$24.15 - $26.6 $ 27.156%7556
Robert Olstein 2013-06-30 Add 17.46%0.18%$20.46 - $25.44 $ 27.1518%296000
Arnold Van Den Berg 2013-03-31 Sold Out 1.65%$19.95 - $23.43 $ 27.1525%0
Third Avenue Management 2013-03-31 New Buy0.4%$19.95 - $23.43 $ 27.1525%946705
Joel Greenblatt 2013-03-31 Sold Out 0.08%$19.95 - $23.43 $ 27.1525%0
Arnold Van Den Berg 2012-12-31 Add 24.43%0.32%$18.06 - $20.5 $ 27.1542%749970
Joel Greenblatt 2012-12-31 Add 39.87%0.02%$18.06 - $20.5 $ 27.1542%70457
David Dreman 2012-09-30 New Buy0.35%$17.96 - $20.53 $ 27.1542%746148
Robert Olstein 2012-09-30 Add 52.44%0.31%$17.96 - $20.53 $ 27.1542%250000
Robert Olstein 2012-06-30 Add 1070.68%0.58%$19.54 - $24.13 $ 27.1523%164000
Joel Greenblatt 2012-06-30 Add 86.06%0.04%$19.54 - $24.13 $ 27.1523%53556
Robert Olstein 2012-03-31 New Buy0.06%$20.22 - $24.5 $ 27.1530%14009
Joel Greenblatt 2012-03-31 New Buy0.06%$20.22 - $24.5 $ 27.1530%28784
Ken Fisher 2011-12-31 Sold Out 0.06%$17.85 - $22.08 $ 27.1534%0
Arnold Van Den Berg 2011-09-30 Add 286.55%0.85%$17.29 - $24 $ 27.1531%622532
Ken Fisher 2011-09-30 Reduce -45.24%0.05%$17.29 - $24 $ 27.1531%900419
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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) 21.40
ABM's P/E(ttm) is ranked higher than
77% of the 1121 Companies
in the Global Business Services industry.

( Industry Median: 33.80 vs. ABM: 21.40 )
ABM' s 10-Year P/E(ttm) Range
Min: 9.09   Max: 35.07
Current: 21.4

9.09
35.07
P/B 1.59
ABM's P/B is ranked higher than
78% of the 1121 Companies
in the Global Business Services industry.

( Industry Median: 3.41 vs. ABM: 1.59 )
ABM' s 10-Year P/B Range
Min: 0.96   Max: 2.56
Current: 1.59

0.96
2.56
P/S 0.31
ABM's P/S is ranked higher than
93% of the 1121 Companies
in the Global Business Services industry.

( Industry Median: 1.75 vs. ABM: 0.31 )
ABM' s 10-Year P/S Range
Min: 0.17   Max: 0.52
Current: 0.31

0.17
0.52
PFCF 22.44
ABM's PFCF is ranked higher than
81% of the 1121 Companies
in the Global Business Services industry.

( Industry Median: 187.82 vs. ABM: 22.44 )
ABM' s 10-Year PFCF Range
Min: 6.96   Max: 102.95
Current: 22.44

6.96
102.95
EV-to-EBIT 14.65
ABM's EV-to-EBIT is ranked higher than
75% of the 1121 Companies
in the Global Business Services industry.

( Industry Median: 19.99 vs. ABM: 14.65 )
ABM' s 10-Year EV-to-EBIT Range
Min: 5.1   Max: 21.8
Current: 14.65

5.1
21.8
PEG 3.06
ABM's PEG is ranked higher than
85% of the 1121 Companies
in the Global Business Services industry.

( Industry Median: 9999.00 vs. ABM: 3.06 )
ABM' s 10-Year PEG Range
Min: 0.51   Max: 154.8
Current: 3.06

0.51
154.8
Shiller P/E 21.84
ABM's Shiller P/E is ranked higher than
88% of the 1121 Companies
in the Global Business Services industry.

( Industry Median: 9999.00 vs. ABM: 21.84 )
ABM' s 10-Year Shiller P/E Range
Min: 9.06   Max: 23.89
Current: 21.84

9.06
23.89
Current Ratio 1.78
ABM's Current Ratio is ranked higher than
74% of the 965 Companies
in the Global Business Services industry.

( Industry Median: 1.43 vs. ABM: 1.78 )
ABM' s 10-Year Current Ratio Range
Min: 1.62   Max: 2.29
Current: 1.78

1.62
2.29
Quick Ratio 1.78
ABM's Quick Ratio is ranked higher than
76% of the 965 Companies
in the Global Business Services industry.

( Industry Median: 1.31 vs. ABM: 1.78 )
ABM' s 10-Year Quick Ratio Range
Min: 1.62   Max: 2.2
Current: 1.78

1.62
2.2

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.28
ABM's Dividend Yield is ranked higher than
56% of the 636 Companies
in the Global Business Services industry.

( Industry Median: 2.05 vs. ABM: 2.28 )
ABM' s 10-Year Dividend Yield Range
Min: 1.53   Max: 4.13
Current: 2.28

1.53
4.13
Dividend Payout 0.49
ABM's Dividend Payout is ranked higher than
91% of the 1121 Companies
in the Global Business Services industry.

( Industry Median: 9999.00 vs. ABM: 0.49 )
ABM' s 10-Year Dividend Payout Range
Min: 0.07   Max: 1.59
Current: 0.49

0.07
1.59
Dividend growth (3y) 3.60
ABM's Dividend growth (3y) is ranked higher than
66% of the 398 Companies
in the Global Business Services industry.

( Industry Median: 9.40 vs. ABM: 3.60 )
ABM' s 10-Year Dividend growth (3y) Range
Min: 3.6   Max: 17
Current: 3.6

3.6
17
Yield on cost (5-Year) 2.74
ABM's Yield on cost (5-Year) is ranked higher than
56% of the 655 Companies
in the Global Business Services industry.

( Industry Median: 2.51 vs. ABM: 2.74 )
ABM' s 10-Year Yield on cost (5-Year) Range
Min: 1.83   Max: 4.93
Current: 2.74

1.83
4.93
Share Buyback Rate -2.00
ABM's Share Buyback Rate is ranked higher than
65% of the 691 Companies
in the Global Business Services industry.

( Industry Median: -1.00 vs. ABM: -2.00 )
ABM' s 10-Year Share Buyback Rate Range
Min: 0.4   Max: -6.5
Current: -2

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 0.78
ABM's Price/DCF (Projected) is ranked higher than
90% of the 1121 Companies
in the Global Business Services industry.

( Industry Median: 5.45 vs. ABM: 0.78 )
ABM' s 10-Year Price/DCF (Projected) Range
Min: 0.59   Max: 2.06
Current: 0.78

0.59
2.06
Price/Median PS Value 0.95
ABM's Price/Median PS Value is ranked higher than
82% of the 1121 Companies
in the Global Business Services industry.

( Industry Median: 1.21 vs. ABM: 0.95 )
ABM' s 10-Year Price/Median PS Value Range
Min: 0.44   Max: 1.59
Current: 0.95

0.44
1.59
Price/Peter Lynch Fair Value 2.91
ABM's Price/Peter Lynch Fair Value is ranked higher than
90% of the 1121 Companies
in the Global Business Services industry.

( Industry Median: 9999.00 vs. ABM: 2.91 )
ABM' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.65   Max: 4.14
Current: 2.91

0.65
4.14
Earnings Yield (Greenblatt) 6.80
ABM's Earnings Yield (Greenblatt) is ranked higher than
72% of the 960 Companies
in the Global Business Services industry.

( Industry Median: 5.80 vs. ABM: 6.80 )
ABM' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.6   Max: 19.5
Current: 6.8

4.6
19.5
Forward Rate of Return (Yacktman) 14.27
ABM's Forward Rate of Return (Yacktman) is ranked higher than
84% of the 739 Companies
in the Global Business Services industry.

( Industry Median: 6.67 vs. ABM: 14.27 )
ABM' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -6.4   Max: 24.8
Current: 14.27

-6.4
24.8

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

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