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ABM Industries

ABM
42
Specialty Business Services · Industrials
Price
$46.81
-0.29 (-0.62%)
Market Cap
$2.74B
Winston Score
42
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Apr 30, 2026
How the score breaks down
Quality
Weak
Growth
Mixed
Cash Flow
Strong
Stability
Mixed
Valuation
Strong
Dividends
Strong

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)

Winston Score History

The full picture

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.

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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

+8.4% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+9.0% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

1.6%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$126M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

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

Growth context

ABM Industries is growing revenue at 8% 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.

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Quality

Profit per sale
Gross Margin
12.1%
Thin — 12.1% gross margin
Profit after running costs
Operating Margin
3.8%
Thin — 3.8% operating margin
Return on the money invested
ROCE
9.1%
Below par — 9.1% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+6.5%
Slow sales growth (+6.5% YoY)
Profit growth
EPS YoY
+108.1%
Earnings growing fast (+108.1% YoY)

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

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
275%
Turns 275% of profit into real cash
Spare cash per sale
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

What it owes vs what it owns
Debt / Equity
1.07
Elevated debt (1.07)
Covers its interest
Interest Cover
3.25x
Tight — interest eats into profit (3.2x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
17.9x
Fair value — P/E 17.9

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

Cheaper or dearer next year
P/E vs Forward
+7.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (17.9 → 10.7)

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Dividends

Dividend
Dividend Yield
2.34%
Moderate income — 2.34% yield

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

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

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