| 2021 | 2022 (projected) | Consolidated Income | 145.25 M | 116.9 M | Direct Expenses | 42.79 M | 39.92 M |
Breaking down ABM Industries volatility
 | By Gabriel Shpitalnik | Macroaxis Story |
Considering the 90-day investment horizon ABM Industries is expected to generate 1.51 times more return on investment than the market. However, the company is 1.51 times more volatile than its market benchmark. It trades about 0.08 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating roughly 0.09 per unit of risk. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to summarize the risk of investing in ABM Industries Incorporated. We will summarize if the expected returns on ABM Industries will justify its current volatility.
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Reviewed by Ellen Johnson
ABM Industries Incorporated has roughly 62.8 M in cash with 314.3 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.97. Volatility is a rate at which the price of ABM Industries or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of ABM Industries may increase or decrease. In other words, similar to ABM's beta indicator, it measures the risk of ABM Industries and helps estimate the fluctuations that may happen in a short period of time. So if prices of ABM Industries fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
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. Financial leverage can amplify the potential profits to ABM Industries' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of ABM Industries' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between ABM Industries's total debt and its cash.
ABM Industries Gross Profit
ABM Industries Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ABM Industries previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ABM Industries Gross Profit growth over the last 10 years. Please check ABM Industries' gross profit and other fundamental indicators for more details.
ABM Industries Volatility Drivers
ABM Industries unsystematic risk is unique to ABM Industries rporated and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in ABM Industries you can also buy Maximus. You can also mitigate this risk by investing in the industrials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing ABM Industries important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in ABM Industries income statement and balance sheet. Here are more details about ABM volatility.Click cells to compare fundamentals
Breaking down ABM Industries Further
The company reported the last year's revenue of 6.23 B. Total Income to common stockholders was 126.3 M with profit before taxes, overhead, and interest of 1.02 B.
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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 Gabriel Shpitalnik do not own shares of ABM Industries Incorporated. Please refer to our Terms of Use for any information regarding our disclosure principles.