ABM Industries (ABM, Financial) experienced a notable stock price increase of 3.52% recently, reaching $48.25. This surge in stock value came on the heels of two analyst upgrades, which reflected confidence in the company's ongoing performance, despite a mixed fiscal 2025 second-quarter earnings report.
From a valuation perspective, ABM Industries is currently valued as "Fairly Valued" according to the GF Value metric. The GF Value is approximately $51.97, suggesting that the stock is trading close to its intrinsic value. With a market capitalization of $3.00 billion, ABM is positioned within the Industrials sector, specifically in the Business Services industry.
The company shows a P/E ratio of 38.29, which is relatively high compared to the industry median of 16.44. ABM also has a price-to-book ratio (P/B) of 1.69, indicating a moderate valuation of the company’s assets. The PS Ratio stands at 0.37, close to its 5-year low, emphasizing potential undervaluation relative to sales.
Despite some financial challenges highlighted by warning signs such as a declining operating margin and significant long-term debt issuance of $524.9 million over three years, ABM's growth potential remains strong. The company boasts a predictable revenue and earnings growth pattern and an attractive dividend yield of 2.05%, near its 5-year high.
Analyst upgrades from Baird and UBS underscore the belief in ABM’s ability to capitalize on new contract acquisitions and growth in its core business segments. With price targets of $56 and $50 from Baird and UBS, respectively, these reflect a positive outlook on ABM’s future trajectory.
