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ABM Industries

ABM
42
Specialty Business Services · Industrials
Price
$47.58
-0.59 (-1.22%)
Market Cap
$2.79B
Winston Score
42
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

7.8% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 68.0M (2021) → 62.7M (2025)

ABM Industries is a company that keeps buildings clean, safe, and running properly. It provides janitorial services, facility maintenance, parking management, and engineering services to offices, hospitals, schools, airports, and sports stadiums across the United States. ABM is one of the largest facility services companies in the country, serving thousands of commercial and institutional clients.

ABM makes money by signing service contracts with building owners and managers, who pay ABM to handle the day-to-day upkeep of their properties. The company operates almost entirely in the United States and generates roughly $8 billion in annual revenue, though its thin margins — around 11% gross and under 4% operating — reflect how competitive and labor-intensive this industry is. ABM's main competitive advantage is its scale and long-term client relationships, but its biggest ongoing risk is rising labor costs, since wages for its large hourly workforce directly squeeze profits.

Winston Score History

Politician Trades

2 trades / 12mo

2 Congressional buys and 0 sells on ABM in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+6.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-8.6% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

1.6%ownership

Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$100M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

ABM Industries is growing revenue at 6% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin
11.1%
Thin — 11.1% gross margin
Operating Margin
3.5%
Thin — 3.5% operating margin
ROCE
2.3%
Weak — 2.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+5.6%
Slow sales growth (5.6% YoY)
EPS YoY
+100.1%
Earnings growing fast (100.1% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
255%
Turns 255% of profit into real cash
FCF Margin
3.7%
Thin free cash flow (3.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.96
Moderate — manageable debt (0.96)
Interest Cover
3.34x
Tight — interest eats into profit (3.3x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
18.7x
Fair value — P/E 18.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+9.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (18.7 → 9.7)

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Dividends

Dividend Yield
2.56%
Moderate income — 2.56% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+11.3%
Dividend growing fast (11.3% YoY)

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