ABM

ABM Indus

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Industrials

industry

Specialty Business Services

Exchange

NYSE

County of HQ

United States

Next Earnings Date

06/05/26

Business Summary

ABM operates a large-scale outsourced facility and specialty services platform, embedding itself into clients’ recurring operating budgets rather than discretionary capital cycles. Its model generates cash through long-term service contracts that convert labor management, maintenance, and operational execution into predictable revenue streams. Scale enables it to spread administrative overhead and drive operating leverage, reflected in its 9.10% operating margin. The moat is not technological dominance but contractual stickiness, embedded relationships, and operational scale that smaller regional competitors struggle to replicate consistently.

VALUATION

P/E

15.5

Market Cap ($M USD)

$2,296

Forward P/E

9

PEG

0.8

PRICE TO SALES

0.3

PRICE TO BOOK

1.3

EV / EBITDA

9.4

5-Year Average P/E

DIVIDEND

Yield

2.80%

Annual Payout

$1.16

Payout Ratio

42.40%

Consecutive Years of Dividend Growth

5

5-Year Dividend Growth Rate

9.20%

Financial Health & Profitability

Earnings Per Share

$2.56

Next Year EPS Growth Estimate

$4.34

Next Year Revenue Growth Estimate

3.50%

Return on Equity (ROE)

9.10%

Operating Margin

3.70%

Debt-to-Equity

1

Piotroski F-Score

6

Altman Z-Score

2.8

Return on Invested Capital (ROIC)

7.40%%

Current Ratio

1.5

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 15.5x earnings and just 9x forward earnings with a 0.8 PEG, the market is pricing ABM like a no-growth cyclical despite implied earnings acceleration. A 0.3 Price/Sales and 1.3 Price/Book multiple signal deep value territory, especially for a company generating a 9.10% operating margin. The Altman Z-Score of 2.8 places the firm in a stable, non-distress zone, not pristine but far from crisis, suggesting solvency risk is manageable. This looks like a statistically cheap industrial services name where forward multiple compression implies either skepticism around earnings durability or a material mispricing opportunity.

AI Exposure / Tech Reliance

As a Specialty Business Services company, ABM operates in an industry increasingly shaped by automation, data analytics, and AI-driven facility optimization. Margins of 9.10% suggest there is room for efficiency gains through tech-enabled workforce management and predictive maintenance systems. Firms in this segment that integrate automation effectively can defend margins and offset labor cost pressure, making technological adaptation a key lever rather than an existential threat.

The Bull Case

A GARP investor sees 9x forward earnings and a 0.8 PEG and immediately pays attention. ROIC at 7.40% exceeds many traditional industrial cost-of-capital thresholds, while a Piotroski F-Score of 6 indicates fundamentally stable operations rather than deterioration. The 9.10% operating margin combined with a 1.5 current ratio suggests operational efficiency with adequate short-term liquidity. Add in a 1 TTM yield, a 2.80% dividend per share metric, and 51.43% institutional ownership, and you have a reasonably capital-return-friendly, institutionally supported value name trading at 0.3x sales. This is classic multiple re-rating potential if forward earnings materialize as implied by the 9x forward P/E.

The Bear Case

The balance sheet is the glaring issue: Debt/Equity of 3.70% indicates meaningful leverage relative to equity, limiting flexibility if earnings falter. Return on Equity is only 3.50%, which is weak and suggests that despite leverage, shareholder returns are not being amplified effectively. A Short % of Float at 9.20% is not trivial, signaling that a meaningful cohort of the market is betting against the story. Add in the mismatch between a 15.5 trailing P/E and an EPS Next Year estimate of $2.56 versus current EPS of 9.4, and earnings visibility becomes questionable, which could explain why the stock trades at such compressed multiples.

Market Sentiment & Smart Money

Short Interest %

5.50%

Analyst Consensus

2.33

Average Analyst Price Target

$51.43

Institutional Ownership %

100.00%

1-Year Beta

0.75

Insider Buying % (6 Mo)

1.60%%

Distance to 52-Week High

74.10%%

Distance to 52-Week Low

106.10%%