ABM Industries Story

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ABM -- USA Stock  

USD 41.19  0.86  2.05%

While many traders are getting carried away by overanalyzing industrials space, it is reasonable to summarize ABM Industries Incorporated. We will evaluate why we are still confident in anticipation of a recovery. What is the firm valuation so far in 2020? We are going to cover ABM Industries Incor perspective on valuation to give investors a better transparency on taking a position in it.
Published over three months ago
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Is ABM Industries growth trend slowing down?
The entity has 1.4 B in debt with debt to equity (D/E) ratio of 1.0, which is OK given its current industry classification. ABM Industries has performance score of 3 on a scale of 0 to 100. The firm shows a Beta (market volatility) of -0.0052, which signifies not very significant fluctuations relative to the market. Let's try to break down what ABM Industries's beta means in this case. As returns on the market increase, returns on owning ABM Industries are expected to decrease at a much lower rate. During the bear market, ABM Industries is likely to outperform the market. Although it is extremely important to respect ABM Industries Incor historical returns, it is better to be realistic regarding the information on equity current trending patterns. The approach into foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By examining ABM Industries Incor technical indicators, you can right now evaluate if the expected return of 0.18% will be sustainable into the future. ABM Industries Incor at this time shows a risk of 3.57%. Please confirm ABM Industries Incor treynor ratio, and the relationship between the variance and potential upside to decide if ABM Industries Incor will be following its price patterns.
We determine the current worth of ABM Industries Incorporated using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of ABM Industries Incor based exclusively on its fundamental and basic technical indicators. By analyzing ABM Industries's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of ABM Industries's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of ABM Industries. We calculate exposure to ABM Industries's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to ABM Industries's related companies.

ABM Industries Incor Investment Alerts

ABM Industries investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring ABM Industries Incorporated performance across your portfolios.Please check all investment alerts for ABM Industries

ABM Industries Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare ABM Industries value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across ABM Industries competition to find correlations between indicators driving the intrinsic value of ABM Industries.

How ABM Industries utilizes its cash?

To perform a cash flow analysis of ABM Industries, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash ABM Industries is receiving and how much cash it distributes out in a given period. The ABM Industries cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. ABM Industries Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 567.66 Million

Breaking down the case for ABM Industries

The firm reported the last year's revenue of 6.41 B. Reported Net Loss for the year was (24.3 M) with profit before taxes, overhead, and interest of 731.1 M.
 2011 2019 2020 (projected)
Long Term Debt to Equity0.540.490.46
Interest Coverage18.554.334.44

Margins Breakdown

ABM Industries profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or ABM Industries itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of ABM Industries profit margins.
Operating Margin7.42
EBITDA Margin0.0385
Gross Margin0.13
Profit Margin0.0156

ABM Industries Revenue Per Employee is increasing over the last 8 years. Further, ABM Industries Net Income Per Employee is relatively stable at the moment. ABM Industries Revenue Per Employee is relatively stable at the moment. Further, ABM Industries Net Income Per Employee is relatively stable at the moment.

ABM Industries technical analysis denotes possible reversion

Variance is down to 13.12. It may denote a possible volatility pull down. ABM Industries Incorporated currently demonstrates below-verage downside deviation. It has Information Ratio of 0.48 and Jensen Alpha of 0.21. However, we do advice investors to further question ABM Industries Incorporated expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

While some companies under the specialty business services industry are still a bit expensive, ABM Industries may offer a potential longer-term growth to stakeholders. On the whole, as of the 7th of September 2020, we see that ABM Industries moves indifferently to market moves. The company is fairly valued with below average probability of distress within the next 24 months. However, our latest 30 days buy-hold-sell recommendation on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of ABM Industries Incorporated. Please refer to our Terms of Use for any information regarding our disclosure principles.

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