One-glance verdict
Within fair range
$50.70 our estimate vs market $48.54
Wall Street consensus: $52.43 (3.4% higher than our fair-value estimate)
4% below our estimate
Fundamentals snapshot
ABM Industries Incorporated
ABM · NYQ · Industrials · Specialty Business Services
Current price
$48.54
52-week range
$36.96 - $50.12
Market cap
$2.84B
Balance sheet
Stretched
3.37x Stretched
Net debt $1.87B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.5% last year.
- Reward Returns 8.9% on equity, ahead of 50% of its peers.
- Risk Net debt grew 18.4% over 3 years.
- Risk Operating margin compressed from 4.5% to 3.9% over 3 years.
What this company does
ABM Industries Incorporated
ABM Industries is a company that keeps other businesses' buildings and facilities running by providing a wide range of services like cleaning, parking management, and general maintenance. It makes most of its money through contracts with clients like offices, airports, and schools to handle these essential, everyday tasks. This business model matters because it can create a steady stream of recurring revenue (income that is predictable and likely to continue in the future), as clients consistently need these services to operate.
How the company got here
ABM Industries started in 1909 when its founder, Morris Rosenberg, began a window-washing business in San Francisco with a small investment. The company, originally named American Building Maintenance, grew by offering cleaning contracts to businesses on the West Coast. Over many decades, it expanded across the country and added new services like parking management and building engineering, often by acquiring other companies. A major step was becoming a publicly traded company, which means its shares are available for anyone to buy on the stock exchange, in the 1960s. Today, it's a large company that provides a wide range of services to keep buildings and facilities running smoothly.
What it actually does
Think of ABM as a company that businesses hire to take care of their buildings and properties. Instead of a company hiring its own janitors, electricians, and parking lot attendants, they can pay ABM to handle all of those tasks. Their services include everything from cleaning offices and restrooms to maintaining heating and cooling systems, providing landscaping, managing parking garages, and even offering support services at airports. Essentially, ABM does the essential, behind-the-scenes work that keeps commercial buildings, schools, airports, and factories operating safely and efficiently.
Business & Industry
This is ABM's largest segment and it serves a wide variety of commercial properties. This includes cleaning the offices of tech companies, providing engineering services for large buildings, and managing the parking for sports stadiums and entertainment venues. They also provide services to hospitals and other healthcare facilities. The clients in this segment are typically property managers and building owners who pay ABM through contracts to handle these essential facility services.
Manufacturing & Distribution
This part of the company focuses on keeping industrial facilities running smoothly. They provide services like specialized cleaning for manufacturing plants, maintaining building systems for distribution centers, and supporting data centers (the buildings that house the computers that run the internet). The customers are manufacturing and logistics companies who need reliable and often specialized facility services to ensure their operations are not interrupted.
Education
As the name suggests, this segment provides services to schools, from K-12 public districts to colleges and universities. Their work includes keeping the schools clean (custodial services), taking care of the lawns and grounds (landscaping), and maintaining the school buildings' engineering systems. The schools pay ABM for these services, allowing them to focus on education rather than facility management.
Aviation
This segment is all about supporting airports and airlines. Their services include cleaning the airport terminals, assisting passengers, maintaining the cabin interiors of airplanes, and managing transportation services around the airport. Airlines and airport authorities are the main customers, and they rely on ABM to help create a smooth and pleasant experience for travelers.
Technical Solutions
This is a more specialized and faster-growing part of ABM's business. It focuses on complex building systems, such as electrical work, heating and air conditioning (HVAC), and energy efficiency projects. A key area of growth is providing services for electric vehicle (EV) charging stations and designing microgrid systems (small, self-sufficient energy grids). Customers for these services are often looking for ways to save energy, upgrade their infrastructure, or meet sustainability goals.
What management is betting on now
The company's current strategy, which they call ELEVATE, focuses on a few key areas. They are working to grow their more technical and higher-value services, like energy efficiency projects and support for data centers. Management also aims to sell more of their different services to their existing customers, making the relationship more valuable. They are also investing in technology and data to improve how they work and to provide better insights to their clients. The overall goal is to shift from being seen just as a cleaning and maintenance provider to a broader partner that helps companies run their facilities more efficiently and sustainably.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$63.90M
FY2024 Q4
$15.60M
FY2025 Q1
$-122.90M
FY2025 Q2
$15.20M
FY2025 Q3
$150.10M
FY2025 Q4
$112.70M
FY2026 Q1
$48.80M
FY2026 Q2
$22.40M
Revenue
$2.29B
Net income
$43.10M
Diluted EPS
0.73
Operating cash flow
$66.20M
Free cash flow
$22.40M
Fetching…
Sources
Revenue
$2.24B
Net income
$38.80M
Diluted EPS
0.64
Operating cash flow
$62.00M
Free cash flow
$48.80M
Fetching…
Sources
Revenue
$2.30B
Net income
$34.80M
Diluted EPS
0.56
Operating cash flow
$133.40M
Free cash flow
$112.70M
Fetching…
Sources
Revenue
$2.22B
Net income
$41.80M
Diluted EPS
0.67
Operating cash flow
$174.90M
Free cash flow
$150.10M
Fetching…
Sources
Revenue
$2.11B
Net income
$42.20M
Diluted EPS
0.67
Operating cash flow
$32.30M
Free cash flow
$15.20M
Fetching…
Sources
Revenue
$2.11B
Net income
$43.60M
Diluted EPS
0.69
Operating cash flow
$-106.20M
Free cash flow
$-122.90M
Fetching…
Sources
Revenue
$2.18B
Net income
$-11.80M
Diluted EPS
-0.18
Operating cash flow
$30.40M
Free cash flow
$15.60M
Fetching…
Sources
Revenue
$2.09B
Net income
$4.70M
Diluted EPS
0.07
Operating cash flow
$79.40M
Free cash flow
$63.90M
Fetching…
Sources
Is it cheap or expensive?
Fair value $50.70 vs current price $48.54
Wall Street consensus is the average analyst price target: $52.43 (3.4% higher than our fair-value estimate).
Our most-likely fair value is $50.70 a share — about 4.5% away from today's price of $48.54, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $1.9B. Interest coverage 3.4x.
Net debt
$1.87B
Interest coverage
3.37x
ABM Industries Incorporated's profit covers its interest bill about 3.4 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
ABM
BASELINE
ABM Industries Incorporated
Total debt $1.97B Interest coverage 3.37x This is the baseline the peer rows are being compared against.
Total debt $17.73M Interest coverage 35.32x +947% vs ABM Carries about 10.5x more debt cushion than ABM.
Total debt $963.40M Interest coverage 2.51x -26% vs ABM Carries about 1.3x less debt cushion than ABM.
Total debt $1.45B Interest coverage 1.50x -56% vs ABM Carries about 2.3x less debt cushion than ABM.
Total debt $19.95B Interest coverage 1.66x -51% vs ABM Carries about 2.0x less debt cushion than ABM.
What you should know
The case for and against ABM
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.5% last year.
-
Returns 8.9% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Net debt grew 18.4% over 3 years.
-
Operating margin compressed from 4.5% to 3.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
18.67x
Forward P/E
11.15x
P/B
1.63x
P/S
0.31x
EV/EBITDA
10.71x
PEG ratio
2.25x
Profitability
How much profit each dollar creates
Gross margin
12.9%
Operating margin
3.9%
Net margin
1.8%
ROE
8.9%
ROA
3.8%
Health
Liquidity and balance-sheet strength
Debt / equity
1.13x
Current ratio
1.46x
Quick ratio
1.28x
Total debt
$1.97B
Total cash
$95.90M
Growth
How the business has been compounding
Revenue TTM
$9.05B
Revenue 5Y CAGR
8.9%
EPS TTM
2.60
EPS 5Y CAGR
-8.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$436.50M
Free CF TTM
$155.10M
FCF margin
1.7%
Dividend
Shareholder payout
Yield
2.4%
Payout ratio
42.7%
Last ex-div date
2026-07-02