ABM Industries Story

ABM -- USA Stock

USD 41.19 0.86 2.05%

Macroaxis Story

ABM Industries Incor is scheduled to announce its earnings today. The next earnings report is expected on the 16th of December 2020. ABM Industries Inventory Turnover is relatively stable at the moment as compared to the past year. The company's current value of Inventory Turnover is estimated at 2.34. Accounts Payable Turnover is expected to hike to 45.39 this year, although the value of Average Assets will most likely fall to nearly 3.6 B. As many of us are excited about industrials space, it is fair to summarize ABM Industries Incorporated as a unique alternative.

Published over three months ago

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You think ABM Industries (NYSE:ABM) debt is an issue for stakeholders?

ABM Industries Incor 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 advice module can be used to check and cross-verify current investment recommendation provided by analysts examining the company's potential to grow using all of fundamental, technical, data market data available right now.

ABM Industries financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of ABM Industries, including all of ABM Industries's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of ABM Industries assets, the company is considered highly leveraged. Understanding the composition and structure of overall ABM Industries debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding ABM Industries Total Liabilities

ABM Industries Incor liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. ABM Industries Incor has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on ABM Industries balance sheet include debt obligations and money owed to different ABM Industries vendors, workers, and loan providers. Below is the chart of ABM Industries short long-term liabilities accounts currently reported on its balance sheet.

You can use ABM Industries Incorporated financial leverage analysis tool to get a better grip on understanding its financial position

How important is ABM Industries's Liquidity

ABM Industries financial leverage refers to using borrowed capital as a funding source to finance ABM Industries Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ABM Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between ABM Industries's total debt and its cash.

Breaking down the case for ABM Industries

The entity 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.

Asset Breakdown

2.3 B

Assets Non Current

2 B

Goodwill

1.3 B

Current Assets

	Total Assets	3.64 Billion
	Current Assets	1.3 Billion
	Assets Non Current	2.34 Billion
	Goodwill	2.01 Billion
	Tax Assets	45.79 Million

Will ABM Industries pull back in October 2020?

New semi variance is at 7.09. As of the 8th of September, ABM Industries shows the Mean Deviation of 2.26, coefficient of variation of 2701.95, and Downside Deviation of 2.81. ABM Industries Incor technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the entity's future prices. Put another way, you can use this information to find out if the entity will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for ABM Industries Incorporated, which can be compared to its rivals. Please confirm ABM Industries Incor treynor ratio, and the relationship between the variance and potential upside to decide if ABM Industries Incor is priced adequately, providing market reflects its regular price of 38.33 per share. Given that ABM Industries has jensen alpha of 0.1486, we suggest you to validate ABM Industries Incorporated's prevailing market performance to make sure the company can sustain itself in the future.

Our Final Perspective on ABM Industries

While some other firms under the specialty business services industry are still a bit expensive, ABM Industries may offer a potential longer-term growth to stakeholders. To conclude, as of the 8th of September 2020, we believe that at this point, ABM Industries is very steady with below average probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be fairly valued. However, our latest 30 days buy-or-sell advice on the company is Strong Sell.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

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 Ellen Johnson 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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