ACM

AECOM

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Industrials

industry

Engineering & Construction

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/04/26

Business Summary

ACM operates as a large-scale engineering and construction platform serving infrastructure, environmental, and government-related projects, monetizing long-duration contracts that convert backlog into recurring revenue streams. The firm generates cash through design, consulting, and project execution services, extracting margin from operational efficiency and scale rather than product differentiation. Its moat is rooted in technical expertise, entrenched client relationships, regulatory familiarity, and the ability to manage complex, multi-year projects that smaller competitors cannot handle. High switching costs, qualification barriers, and institutional credibility help sustain contract flow, while disciplined cost management underpins its 21.00% operating margin and 12.10% ROIC.

VALUATION

P/E

18.5

Market Cap ($M USD)

$10,807

Forward P/E

12.6

PEG

1.1

PRICE TO SALES

0.7

PRICE TO BOOK

4.8

EV / EBITDA

10.1

5-Year Average P/E

DIVIDEND

Yield

1.40%

Annual Payout

$1.14

Payout Ratio

30.70%

Consecutive Years of Dividend Growth

4

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$4.55

Next Year EPS Growth Estimate

$6.62

Next Year Revenue Growth Estimate

5.70%

Return on Equity (ROE)

21.00%

Operating Margin

6.70%

Debt-to-Equity

1.4

Piotroski F-Score

5

Altman Z-Score

2.2

Return on Invested Capital (ROIC)

12.10%%

Current Ratio

1.1

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 18.5x earnings and 12.6x forward earnings, the market is pricing ACM as a moderate-growth industrial rather than a cyclical value trap, and the 1.1 forward PEG suggests the valuation is roughly aligned with expected growth rather than euphoric. However, the Altman Z-Score of 2.2 places the company in a gray zone where balance sheet strength cannot be taken for granted, especially in a capital-intensive industry. With a Market Cap of $10,807M and a Price/Sales of 0.7, investors are not paying a premium on revenue, but the spread between current EPS of 10.1 and next year’s estimated $4.55 raises serious earnings durability questions. This is not a distressed multiple, but it is not a fortress either—the stock looks fairly valued to modestly discounted, contingent on execution and balance sheet discipline.

AI Exposure / Tech Reliance

As an Engineering & Construction company, ACM operates in a sector that increasingly integrates digital modeling, automation, and AI-driven project management into large-scale infrastructure delivery. Firms that leverage data analytics and AI for cost control, scheduling precision, and design optimization can materially expand operating efficiency beyond traditional contractors. With a 21.00% operating margin, there is evidence of operational leverage that could benefit from continued technological integration rather than being disrupted by it.

The Bull Case

A GARP-oriented investor would focus immediately on the 12.10% ROIC exceeding many industrial cost-of-capital thresholds, combined with a 21.00% operating margin that signals disciplined execution in a traditionally low-margin sector. The 0.7 Price/Sales multiple implies the market is not overpaying for top-line exposure, while the forward P/E of 12.6 compresses valuation risk if earnings stabilize. A Piotroski F-Score of 5 is neutral but not distressed, and the 1.4 TTM Yield with a Dividend Per Share of 1.40% offers a modest capital return component. Institutional Ownership listed at $127.00 suggests significant professional participation, reinforcing the idea that this is institutionally underwritten infrastructure exposure rather than speculative beta. For value investors seeking real asset exposure with operating efficiency and reasonable growth pricing, the setup is tangible and defensible.

The Bear Case

The red flags are not subtle. Debt/Equity of 6.70% in a cyclical, project-based industry magnifies downside risk if backlog weakens, and the Altman Z-Score of 2.2 confirms that the balance sheet is not bulletproof. The collapse from EPS of 10.1 to an estimated $4.55 next year signals either normalization or margin compression, and a PEG of 1.1 does not provide enough growth cushion if earnings decelerate further. A Current Ratio of 1.1 leaves limited short-term liquidity flexibility, and the Payout Ratio listed at $1.14 raises sustainability concerns relative to projected earnings. This is a company that works well in stable or expanding infrastructure cycles—but if execution slips, leverage and earnings volatility could punish equity holders quickly.

Market Sentiment & Smart Money

Short Interest %

4.60%

Analyst Consensus

1.54

Average Analyst Price Target

$127.00

Institutional Ownership %

92.40%

1-Year Beta

0.9

Insider Buying % (6 Mo)

0.50%%

Distance to 52-Week High

61.70%%

Distance to 52-Week Low

100.90%%