📊 ABM Key Takeaways
Is Abm Industries Inc. /DE/ (ABM) a Good Investment?
ABM exhibits adequate operational fundamentals with positive free cash flow generation and manageable leverage, but a 99.5% YoY net income surge on 4.6% revenue growth raises sustainability concerns. The business operates with thin margins (1.8% net) and poor capital returns (4.7% ROE), limiting earnings quality and long-term value creation.
ABM shows modest top-line growth and a sharp year-over-year rebound in net income and EPS, while remaining free-cash-flow positive. However, the business still operates with thin margins, weak returns on capital, and limited interest coverage, which tempers the quality of the earnings improvement and keeps the fundamental outlook balanced rather than clearly strong.
Abm Industries Inc. /DE/ Key Strengths (ABM)
- Positive free cash flow generation ($71.2M annually) provides financial flexibility
- Adequate liquidity position with 1.46x current ratio and 1.46x quick ratio
- Consistent revenue growth of 4.6% YoY demonstrates stable top-line performance
- Moderate debt levels with 3.9x interest coverage and manageable 1.04x debt-to-equity ratio
- Revenue grew 4.6% year over year, indicating steady underlying demand
- Net income and diluted EPS nearly doubled year over year, showing improved earnings momentum
- Liquidity is adequate with a 1.50x current ratio and the company remains free-cash-flow positive
ABM Stock Risks: Abm Industries Inc. /DE/ Investment Risks
- Exceptional 99.5% net income growth on 4.6% revenue growth is mathematically inconsistent and suggests one-time items or operational adjustments that may not be sustainable
- Extremely thin operating margins (3.6%) and net margins (1.8%) limit profitability per revenue dollar and indicate commodity-like competitive pressures
- Poor capital efficiency with 4.7% ROE and 1.4% ROA indicate suboptimal returns for shareholders despite assets deployed
- Low free cash flow margin (1.6% of revenue) and minimal cash position ($94.9M) provide limited cushion for economic downturns
- Zero insider Form 4 filings in 90 days signals lack of management confidence in business trajectory
- Profitability remains structurally thin with 10.8% gross margin, 3.3% operating margin, and 1.7% net margin
- Interest coverage of 1.8x suggests limited cushion against financing pressure
- Returns are weak with ROE of 2.3% and ROA of 0.7%, raising questions about capital efficiency
Key Metrics to Watch
- Net income sustainability in next quarter—confirm if 99% YoY growth was one-time or repeatable
- Operating margin trend—any decline would be problematic given already-thin 3.6% baseline
- Free cash flow to net income ratio—verify cash conversion quality as proxy for earnings quality
- Debt-to-EBITDA ratio—monitor in case earnings growth reverses and leverage metrics deteriorate
- Operating margin and net margin progression
- Interest coverage and free cash flow conversion
Abm Industries Inc. /DE/ (ABM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.6% FCF margin may limit capital allocation flexibility.
ABM Profit Margin, ROE & Profitability Analysis
ABM vs Services Sector: How Abm Industries Inc. /DE/ Compares
How Abm Industries Inc. /DE/ compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Abm Industries Inc. /DE/ Stock Overvalued? ABM Valuation Analysis 2026
Based on fundamental analysis, Abm Industries Inc. /DE/ shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Abm Industries Inc. /DE/ Balance Sheet: ABM Debt, Cash & Liquidity
ABM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Abm Industries Inc. /DE/'s revenue has grown significantly by 35% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.79 reflects profitable operations.
ABM Revenue Growth, EPS Growth & YoY Performance
ABM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $2.1B | $42.2M | $0.67 |
| Q1 2026 | $2.1B | $38.8M | $0.64 |
| Q3 2025 | $2.1B | $4.7M | $0.07 |
| Q2 2025 | $2.0B | $42.2M | $0.67 |
| Q1 2025 | $2.1B | $43.6M | $0.69 |
| Q3 2024 | $2.0B | $4.7M | $0.07 |
| Q2 2024 | $2.0B | $43.8M | $0.69 |
| Q1 2024 | $2.0B | $38.5M | $0.58 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Abm Industries Inc. /DE/ Dividends, Buybacks & Capital Allocation
ABM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Abm Industries Inc. /DE/ (CIK: 0000771497)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ABM
What is the AI rating for ABM?
Abm Industries Inc. /DE/ (ABM) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ABM's key strengths?
Claude: Positive free cash flow generation ($71.2M annually) provides financial flexibility. Adequate liquidity position with 1.46x current ratio and 1.46x quick ratio. ChatGPT: Revenue grew 4.6% year over year, indicating steady underlying demand. Net income and diluted EPS nearly doubled year over year, showing improved earnings momentum.
What are the risks of investing in ABM?
Claude: Exceptional 99.5% net income growth on 4.6% revenue growth is mathematically inconsistent and suggests one-time items or operational adjustments that may not be sustainable. Extremely thin operating margins (3.6%) and net margins (1.8%) limit profitability per revenue dollar and indicate commodity-like competitive pressures. ChatGPT: Profitability remains structurally thin with 10.8% gross margin, 3.3% operating margin, and 1.7% net margin. Interest coverage of 1.8x suggests limited cushion against financing pressure.
What is ABM's revenue and growth?
Abm Industries Inc. /DE/ reported revenue of $4.5B.
Does ABM pay dividends?
Abm Industries Inc. /DE/ pays dividends, with $34.2M distributed to shareholders in the trailing twelve months.
Where can I find ABM SEC filings?
Official SEC filings for Abm Industries Inc. /DE/ (CIK: 0000771497) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ABM's EPS?
Abm Industries Inc. /DE/ has a diluted EPS of $1.37.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ABM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Abm Industries Inc. /DE/ has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ABM stock overvalued or undervalued?
Valuation metrics for ABM: ROE of 4.7% (sector avg: 16%), net margin of 1.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ABM's AI grade for 2026?
Our dual AI analysis gives Abm Industries Inc. /DE/ a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ABM's free cash flow?
Abm Industries Inc. /DE/'s operating cash flow is $128.2M, with capital expenditures of $57.0M. FCF margin is 1.6%.
How does ABM compare to other Services stocks?
Vs Services sector averages: Net margin 1.8% (avg: 10%), ROE 4.7% (avg: 16%), current ratio 1.46 (avg: 1.5).