AB

ABM Industries Inc

ABM
Accountable AI Logo

ABM Industries Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-31

Snapshot

  • Goodwill of 2.6B is 145% of equity (1.8B), creating negative tangible book value of -1.0B - material impairment risk from acquisitions.[Goodwill TTM]
  • EPS growth TTM of 115% vastly exceeds revenue scale (8.7B vs 1.5B median) - margin expansion or one-time items driving earnings.[EPS Growth 1Y TTM]
  • Asset turnover of 1.69x is 2.1x industry median (0.79x) - capital-light model generates $1.69 revenue per $1 assets.[Asset Turnover TTM]

Watch Triggers

  • Goodwill TTM: Any impairment charge >50MAt 145% of equity, even small impairments materially impact book value and debt covenants
  • Operating Margin TTM: Falls below 3.0%Already below industry median; further compression threatens interest coverage
  • Accounts Receivable TTM: DSO exceeds 70 days (currently ~61 days)AR is 1.5B (76% of current assets) - collection slowdown strains working capital

Bull Case

Capital-light model with 1.69x asset turnover (2.1x industry) and minimal capex (79M, <1% of revenue) enables FCF of 155M despite thin margins.

Asset Turnover TTMCapital Expenditure TTMFree Cash Flow TTM

P/E of 15.4x is 39% discount to industry median 25.2x despite 6x revenue scale advantage (8.7B vs 1.5B median).

PE RatioTotal Revenue TTMPS Ratio

Bear Case

Negative tangible book (-1.0B) with goodwill at 145% of equity - any impairment directly erodes already thin equity cushion of 1.8B.

Goodwill TTMTangible Book Value TTMCommon Stockholders Equity TTM

Debt/equity of 0.94x with 96M interest expense consumes 30% of operating income (325M) - limited margin for error.

Debt to EquityInterest Expense TTMOperating Income TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
45%

Leverage ABM's top insights and create a custom strategy based on them in seconds. Our AI editor does it all — in one click.

Take Me to The Editor

Forward Thesis

Margin expansion likely to moderate as 115% EPS growth normalizes against flat 5Y EPS CAGR (-7%)

1-3ymed
  • Operating margin 3.7% below industry median 5.1%
  • Interest expense 96M on 1.7B debt constrains net margin
  • 5Y EPS CAGR of -7% suggests recent growth is mean-reversion
EPS growth 5Y: -7.2% vs 1Y: +115%Net margin 1.9% vs median 3.3%Interest expense 96M TTM
Valuation Context
Caveats

Public Strategies Rankings

See how ABM Industries Inc ranks across different investment strategies.

Leverage ABM's top insights and create a custom strategy in seconds. Our AI editor does it all — in one click.

Data Partners
Morningstar Logo

Fundamental company data provided by Morningstar, updated daily.

Accountable Finance, Inc. Disclaimer
accountable.finance is not operated by a broker or a dealer. Under no circumstances does any information posted on accountable.finance represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. In no event shall accountable.finance be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on accountable.finance, or relating to the use of, or inability to use, accountable.finance or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Stock quotes and fundamental company data provided by Morningstar, updated daily.

Accountable Logo
© 2026 Accountable Finance, Inc. All rights reserved.