ABM Industries Inc
NYSE:ABM

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ABM Industries Inc
NYSE:ABM
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Price: 40.26 USD -0.2% Market Closed
Market Cap: $2.4B

EV/OCF

9.6
Current
44%
Cheaper
vs 3-y average of 17.2

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
9.6
=
Enterprise Value
$3.8B
/
Operating Cash Flow
$402.8m

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
9.6
=
Enterprise Value
$3.8B
/
Operating Cash Flow
$402.8m

Valuation Scenarios

ABM Industries Inc is trading below its 3-year average

If EV/OCF returns to its 3-Year Average (17.2), the stock would be worth $72.16 (79% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+87%
Average Upside
79%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 9.6 $40.26
0%
3-Year Average 17.2 $72.16
+79%
5-Year Average 17 $71.32
+77%
Industry Average 17.9 $75.24
+87%
Country Average 16.7 $70.1
+74%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
US
ABM Industries Inc
NYSE:ABM
2.4B USD 9.6 15
US
Waste Management Inc
NYSE:WM
90B USD 18.5 33.2
US
Republic Services Inc
NYSE:RSG
63.2B USD 17.7 29.6
CA
Waste Connections Inc
TSX:WCN
55.8B CAD 20.3 37.3
US
Rollins Inc
NYSE:ROL
26.3B USD 39.4 50
US
Veralto Corp
NYSE:VLTO
22.3B USD 20.4 23.7
UK
Rentokil Initial PLC
LSE:RTO
12.5B GBP 15.9 26.5
US
Clean Harbors Inc
NYSE:CLH
16.1B USD 20.2 40.6
CA
GFL Environmental Inc
TSX:GFL
19.2B CAD 20.2 5
CN
Spic Yuanda Environmental Protection Co Ltd
SSE:600292
68.5B CNY 102.7 18 906.1
US
Tetra Tech Inc
NASDAQ:TTEK
8.3B USD 17.1 23.6

Market Distribution

Lower than 79% of companies in the United States of America
Percentile
21th
Based on 9 518 companies
21th percentile
9.6
Low
0 — 11.7
Typical Range
11.7 — 23.6
High
23.6 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 11.7
Median 16.7
70th Percentile 23.6
Max 3 178 983.5

ABM Industries Inc
Glance View

ABM Industries Inc. has carved its niche as a formidable player in the facility management services industry, tracing its origins back to 1909. Originally, it began as a small window-cleaning business in San Francisco, but over the years, it has grown into a diversified giant offering an array of essential services that keep modern infrastructure functional and inviting. The company's operations span across building maintenance, janitorial services, energy solutions, HVAC and mechanical services, landscape and grounds maintenance, as well as parking solutions. With ventures spread across various sectors such as education, healthcare, commercial real estate, aviation, and more, ABM ensures that environments are clean, efficient, and sustainable, fulfilling the critical backend operations that form the backbone of everyday business activities. At its core, ABM makes money by offering end-to-end solutions tailored to meet the specific needs of its clients, a strategy that has afforded it long-standing contracts and recurring revenue streams. It focuses on creating value through operational excellence, productivity improvements, and implementation of state-of-the-art technology and equipment. The company's ability to provide self-performing services ensures cost efficiency and enhanced control over service quality, which is central to its financial success. By aligning its service offerings with the increasing demand for sustainability and energy efficiency, ABM not only meets contemporary needs but also sets the stage for future growth, ensuring its clients are equipped to handle the ever-evolving challenges of facility management.

ABM Intrinsic Value
85.05 USD
Undervaluation 53%
Intrinsic Value
Price $40.26
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