ABM Industries Inc. (ABM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+33.7%

$72.35

vs $54.12 price

Levered DCF

$36.78

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.81

Grey zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	16.48×	41.13×	10.33×	12.98×	24.33×	11,573.33×	19.09×	21.21×
P/B	1.5×	1.88×	1.44×	1.74×	1.91×	1.55×	1.57×	1.4×
P/S	0.31×	0.4×	0.32×	0.38×	0.49×	0.39×	0.37×	0.32×
EV / EBITDA	10.11×	11.44×	8.62×	9.36×	13.63×	7.56×	9.7×	9.67×
Gross margin	11.7%	13.3%	13.9%	13.4%	15.6%	13.9%	11.3%	10.8%
Operating margin	3.7%	2.5%	5.1%	4.5%	3.3%	1.6%	3.2%	2.2%
Net margin	1.9%	1.0%	3.1%	3.0%	2.0%	0.0%	2.0%	1.5%
Current ratio	1.48×	1.33×	1.4×	1.15×	1.09×	1.46×	1.41×	1.48×
Debt / equity	0.95×	0.82×	0.8×	0.82×	0.64×	0.59×	0.52×	0.65×
Interest coverage	3.37×	2.49×	4.98×	8.49×	7.21×	2.15×	4.08×	2.56×
Dividend yield	2.4%	1.7%	2.2%	1.7%	1.7%	2.1%	2.0%	2.3%
Payout ratio	40.4%	69.4%	22.9%	22.5%	40.4%	16433.3%	37.4%	47.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.1%	4.6%	14.0%	13.4%	7.8%	0.0%	8.3%	6.7%
Return on invested capital	5.7%	3.4%	8.2%	7.0%	4.5%	0.0%	5.8%	4.8%
Return on assets	3.0%	1.6%	5.1%	4.7%	2.8%	0.0%	3.5%	2.7%
Free cash flow yield	5.8%	5.0%	7.3%	-1.0%	9.1%	18.1%	8.4%	13.3%
Earnings yield	6.1%	2.4%	9.7%	7.7%	4.1%	0.0%	5.2%	4.8%
Enterprise value	$4.3B	$4.7B	$4B	$4.3B	$4B	$2.8B	$3.2B	$2.9B
Net debt / EBITDA	3.77×	3.35×	2.98×	2.88×	3.28×	1.32×	2.27×	2.97×
Cash conversion cycle (days)	51	51	52	46	50	36	43	43