# ABM Industries (ABM.US)

Canonical: https://gigainvestors.com/s/ABM

Analysis as of: 2026-10-16T07:26:08.210Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $50.76 per share; close as of 2026-10-15.

Estimated value: low $39.41 per share, central $47.06 per share, high $54.80 per share. Buy at or below the central value $47.06 per share. Valuation as of 2026-10-16T07:26:08.210Z; scenarios are not confidence intervals.

Expected annual return: 9.5% at the stated quote. About 9.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.29×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.02×

- FY2018: 0.02×

- FY2019: 0.03×

- FY2020: 0.05×

- FY2021: 0.03×

- FY2022: 0.04×

- FY2023: 0.05×

- FY2024: 0.03×

- FY2025: 0.04×

- LTM to Jul 2026: 0.04×

### moat: pass

- ROIC, median of available years: 34.0%

- ROIC, second-lowest year: 23.2%

- Typical minus recent gross margin: 0.2 pp

- Typical gross margin (annual median): 11.9%

- Recent gross margin (lower of latest and 3-year median): 11.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.8%

- ROIC including acquisitions, ten-year median: 5.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 14.6%

- FY2018: 26.7%

- FY2019: 36.9%

- FY2020: 56.4%

- FY2021: 41.4%

- FY2022: 46.2%

- FY2023: 45.6%

- FY2024: 23.2%

- FY2025: 30.6%

- LTM to Jul 2026: 31.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.21×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.0B

- Net income, five-year total: $852M

- Return on incremental invested capital: 45.6%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 0.8 pp

- Working capital / revenue, final three-year average: 15.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.10×

- FY2022: 1.10×

- FY2023: 1.27×

- FY2024: 1.58×

- FY2025: 1.16×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 20.0% vs 30.6%

- Per-share earnings: 1.01 to 2.59 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.9%

- Ordinary dilution, 5-year annual growth: -1.4%

- Market cap gain: $415M

- Cumulative retained earnings: $612M

- Diluted shares, 10-year annual growth: 0.9%

- Diluted shares, 5-year annual growth: -1.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 12.6%

- Per-share value change: $1.58

- Per-share value, starting three-year median: $1.01

- Per-share value, ending three-year median: $2.59

- Buybacks concentrated in cheaper years (correlation): 0.53

- Average buyback yield: 2.0%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $2.3B

- Cumulative net income, 10 years: $1.1B

- ROIC, first three-year median: 20.0%

- ROIC, last three-year median: 30.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.01

- FY2017: $0.07

- FY2018: $1.47

- FY2019: $1.90

- FY2020: $0.00

- FY2021: $1.86

- FY2022: $3.41

- FY2023: $3.79

- FY2024: $1.28

- FY2025: $2.59

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -1.3%

- Receivables to sales index (DSRI): 1.03×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 16.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.44×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.59×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.2%

- FY2017: -0.0%

- FY2018: -6.2%

- FY2019: -3.7%

- FY2020: -12.1%

- FY2021: -4.2%

- FY2022: 4.3%

- FY2023: 0.2%

- FY2024: -2.9%

- FY2025: -1.3%

## Holders

- [Alex Roepers](https://gigainvestors.com/AIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [C.T. Fitzpatrick](https://gigainvestors.com/VVP): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 3% a year for ten years · sales +4.6%

Story as of 2026-10-16T09:58:12.950Z; price observation 2026-10-15.

Price needs cash profits to grow 3% a year for ten years

- 2025-09-05: ABM Industries Inc (NYSE:ABM) Reports Q3 Revenue Beat but Misses on Earnings ([chartmill.com](https://www.chartmill.com/news/ABM/Chartmill-34040-ABM-Industries-Inc-NYSEABM-Reports-Q3-Revenue-Beat-but-Misses-on-Earnings))

- 2025-10-06: ABM Industries (ABM): Assessing Valuation Following Mixed Earnings, Margin Pressures, and Insider Selling ([finance.yahoo.com](https://finance.yahoo.com/news/abm-industries-abm-assessing-valuation-112553578.html))

- 2025-12-23: ABM Stock Price Decreases 8% Since Reporting Q4 Earnings Miss ([finance.yahoo.com](https://finance.yahoo.com/news/abm-stock-price-decreases-8-163700983.html))

- 2026-03-13: ABM Stock Price Decreases 11% Since Reporting Q1 Earnings Miss ([finance.yahoo.com](https://finance.yahoo.com/news/abm-stock-price-decreases-11-123100153.html))

- 2026-06-08: ABM Q2 Earnings Call Flags Strong Back-Half Margin Push ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/abm-q2-earnings-call-flags-085100598.html))

- 2026-09-09: ABM Q2 Deep Dive: High-Growth Segments Offset Regional Pressures, Guidance Raised ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/abm-q2-deep-dive-high-193838414.html))

### Sales · FY2025–2026

sales +4.6%; source https://www.sec.gov/Archives/edgar/data/771497/000077149725000031/abm-20251031.htm; observed 2025-12-19.

- FY2017: $5.5B 

- FY2018: $6.4B 

- FY2019: $6.5B 

- FY2020: $6.0B 

- FY2021: $6.2B 

- FY2022: $7.8B 

- FY2023: $8.1B 

- FY2024: $8.4B 

- FY2025: $8.7B 

- FY2026: $9.1B 

### Gross margin · FY2026

gross margin 11.7%; source https://www.sec.gov/Archives/edgar/data/771497/000077149725000031/abm-20251031.htm; observed 2025-12-19.

- FY2017: 10.5% 

- FY2018: 10.8% 

- FY2019: 11.3% 

- FY2020: 13.9% 

- FY2021: 15.6% 

- FY2022: 13.4% 

- FY2023: 12.1% 

- FY2024: 13.3% 

- FY2025: 11.7% 

- FY2026: 11.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty business services; annual sales are USD 8.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/771497/000077149725000031/abm-20251031.htm (filed 2025-12-19); FY2025: revenue 8745900000; grossProfit 1022600000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ABM.US: ABM Industries Incorporated, through its subsidiaries, engages in the provision of facility maintenance, engineering and infrastructure solutions in the United States and internationally. The company operates through five segments: Business & Industry, Manufacturing & Distribution, Education, Aviation, and Technical Solutions. It offers janitorial, facilities engineering, and parking services for commercial real estate properties, including corporate offices for high-tech clients, sports and entertainment venues, and traditional hospitals and non-acute healthcare facilities; and vehicle maintenance and other services to rental car providers. The company also offers integrated facility services, engineering, and other specialized services in various types of manufacturing, distribution, and data center facilities. In addition, it delivers custodial and landscaping and grounds for public school districts, private schools, colleges, and universities. Further, the company supports airlines and airports with services comprising passenger assistance, catering logistics, air cabin maintenance, and transportation services. Additionally, it provides facility infrastructure, mechanical and electrical services; EV power design, installation and maintenance, and microgrid systems design, installation, and maintenance services. ABM Industries Incorporated was founded in 1909 and is headquartered in New York, New York.

### Why customers stay

Margins ranged from 11.7% to 13.3% during 2023–25; it earns 34% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-19); FY2023: grossProfit / revenue = 12.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-19); FY2024: grossProfit / revenue = 13.3%.

- Source: https://www.sec.gov/Archives/edgar/data/771497/000077149725000031/abm-20251031.htm (filed 2025-12-19); FY2025: grossProfit / revenue = 11.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-19); 10-year return on capital observations [[2017,0.14608552027153907],[2018,0.2666410157752982],[2019,0.3687318398709798],[2020,0.5638871571072319],[2021,0.4139241640478376],[2022,0.4618513473905622],[2023,0.45610696551743385],[2024,0.23206466823846414],[2025,0.306223536853201],[2026,0.31111420637158754]]; median 0.33992302312128364. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 122.2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-19); FY2016: growth capex 3830097.351042874; upkeep 40169902.648957126; owner earnings 42030097.351042874. Growth capex / owner earnings = 0.09112749178411883.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-19); FY2018: growth capex 0; upkeep 50900000; owner earnings 112900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-19); FY2019: growth capex 0; upkeep 59600000; owner earnings 140500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-19); FY2020: growth capex 0; upkeep 38000000; owner earnings 10600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-19); FY2021: growth capex 0; upkeep 34300000; owner earnings 139100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-19); FY2022: growth capex 0; upkeep 50800000; owner earnings 254000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-19); FY2023: growth capex 0; upkeep 52600000; owner earnings 319400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-19); FY2024: growth capex 0; upkeep 59400000; owner earnings 128600000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/771497/000077149725000031/abm-20251031.htm (filed 2025-12-19); FY2025: growth capex 0; upkeep 79300000; owner earnings 188700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-19); Dividend observations: [[2016,36900000],[2017,39500000],[2018,46000000],[2019,47700000],[2020,49300000],[2021,51000000],[2022,51900000],[2023,57500000],[2024,56500000],[2025,65600000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/771497/000077149725000031/abm-20251031.htm (filed 2025-12-19); FY2025: cash repurchases 122200000 USD.

### Are managers owners

Insiders own 1.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ABM.US SharesStats.PercentInsiders = 1.552 percentage points; cache date 2026-10-16.

### What could break it

We employ approximately 113,000 persons, and our operations depend on the services of a large and diverse workforce.

- Source: https://www.sec.gov/Archives/edgar/data/771497/000077149725000031/abm-20251031.htm (filed 2025-12-19); Our results of operations can be adversely affected by labor shortages, turnover, and labor cost increases. We employ approximately 113,000 persons, and our operations depend on the services of a large and diverse workforce. We must attract, train, and retain a large and growing number of qualified employees while controlling related labor costs.

### What the price says

The price assumes cash profits grow 3% yearly over ten years; actual growth was 8.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-19); Ten-year compound average after fade. Initial solved rate 0.030277821082090317. Price 50.76; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.289198606271777 → FY2025 3.0095693779904304. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $39.08 per share

- 2016-11: $44.00 per share

- 2016-12: $40.84 per share

- 2017-01: $40.39 per share

- 2017-02: $40.79 per share

- 2017-03: $43.60 per share

- 2017-04: $43.19 per share

- 2017-05: $43.04 per share

- 2017-06: $41.52 per share

- 2017-07: $44.62 per share

- 2017-08: $44.43 per share

- 2017-09: $41.71 per share

- 2017-10: $41.97 per share

- 2017-11: $42.80 per share

- 2017-12: $37.72 per share

- 2018-01: $38.03 per share

- 2018-02: $35.16 per share

- 2018-03: $33.48 per share

- 2018-04: $31.13 per share

- 2018-05: $28.46 per share

- 2018-06: $29.18 per share

- 2018-07: $31.20 per share

- 2018-08: $31.72 per share

- 2018-09: $32.25 per share

- 2018-10: $30.75 per share

- 2018-11: $31.68 per share

- 2018-12: $32.11 per share

- 2019-01: $34.19 per share

- 2019-02: $35.66 per share

- 2019-03: $36.35 per share

- 2019-04: $37.97 per share

- 2019-05: $36.25 per share

- 2019-06: $40.00 per share

- 2019-07: $42.09 per share

- 2019-08: $37.26 per share

- 2019-09: $36.32 per share

- 2019-10: $36.46 per share

- 2019-11: $37.99 per share

- 2019-12: $37.71 per share

- 2020-01: $38.14 per share

- 2020-02: $32.92 per share

- 2020-03: $24.36 per share

- 2020-04: $34.49 per share

- 2020-05: $30.73 per share

- 2020-06: $36.30 per share

- 2020-07: $35.90 per share

- 2020-08: $38.14 per share

- 2020-09: $36.66 per share

- 2020-10: $34.72 per share

- 2020-11: $38.50 per share

- 2020-12: $37.84 per share

- 2021-01: $36.74 per share

- 2021-02: $43.18 per share

- 2021-03: $51.01 per share

- 2021-04: $51.41 per share

- 2021-05: $49.89 per share

- 2021-06: $44.35 per share

- 2021-07: $46.49 per share

- 2021-08: $49.52 per share

- 2021-09: $45.01 per share

- 2021-10: $44.01 per share

- 2021-11: $45.00 per share

- 2021-12: $40.85 per share

- 2022-01: $41.69 per share

- 2022-02: $44.83 per share

- 2022-03: $46.04 per share

- 2022-04: $48.27 per share

- 2022-05: $48.35 per share

- 2022-06: $43.42 per share

- 2022-07: $44.84 per share

- 2022-08: $46.40 per share

- 2022-09: $38.23 per share

- 2022-10: $44.51 per share

- 2022-11: $47.18 per share

- 2022-12: $44.42 per share

- 2023-01: $46.91 per share

- 2023-02: $48.41 per share

- 2023-03: $44.94 per share

- 2023-04: $42.58 per share

- 2023-05: $44.16 per share

- 2023-06: $42.65 per share

- 2023-07: $46.28 per share

- 2023-08: $45.42 per share

- 2023-09: $40.01 per share

- 2023-10: $39.34 per share

- 2023-11: $40.99 per share

- 2023-12: $44.83 per share

- 2024-01: $40.79 per share

- 2024-02: $41.31 per share

- 2024-03: $44.62 per share

- 2024-04: $43.70 per share

- 2024-05: $47.27 per share

- 2024-06: $50.57 per share

- 2024-07: $55.56 per share

- 2024-08: $57.15 per share

- 2024-09: $52.76 per share

- 2024-10: $53.06 per share

- 2024-11: $57.17 per share

- 2024-12: $51.18 per share

- 2025-01: $53.36 per share

- 2025-02: $54.33 per share

- 2025-03: $47.36 per share

- 2025-04: $48.74 per share

- 2025-05: $52.65 per share

- 2025-06: $47.21 per share

- 2025-07: $46.13 per share

- 2025-08: $49.17 per share

- 2025-09: $46.12 per share

- 2025-10: $43.00 per share

- 2025-11: $43.00 per share

- 2025-12: $42.30 per share

- 2026-01: $46.04 per share

- 2026-02: $44.50 per share

- 2026-03: $38.52 per share

- 2026-04: $40.80 per share

- 2026-05: $39.06 per share

- 2026-06: $44.24 per share

- 2026-07: $47.91 per share

- 2026-08: $46.63 per share

- 2026-09: $48.10 per share

- 2026-10: $50.76 per share

## Annual estimated value (USD per share)

- FY2016: low $13.44 per share, central $15.30 per share, high $17.76 per share

- FY2017: low $14.46 per share, central $17.14 per share, high $19.95 per share

- FY2018: low $14.78 per share, central $17.25 per share, high $20.06 per share

- FY2019: low $16.54 per share, central $19.43 per share, high $22.60 per share

- FY2020: low $12.02 per share, central $13.12 per share, high $14.58 per share

- FY2021: low $17.55 per share, central $19.96 per share, high $23.19 per share

- FY2022: low $28.12 per share, central $32.98 per share, high $38.36 per share

- FY2023: low $30.55 per share, central $35.67 per share, high $41.48 per share

- FY2024: low $33.01 per share, central $38.71 per share, high $45.02 per share

- FY2025: low $35.65 per share, central $42.57 per share, high $49.56 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/771497/000077149725000031/abm-20251031.htm); period 2025-10-31, filed 2025-12-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.