ABM Industries Inc (ABM, Financial) has recently experienced a notable uptick in its stock performance. With a current market capitalization of $3.31 billion, the company's stock price stands at $50.52. Over the past week, ABM has seen a 4.45% gain, and looking at the past three months, the stock has rallied by an impressive 13.31%. When compared to the GF Value of $53.11, which has slightly increased from the past GF Value of $52.64, ABM is currently considered to be Fairly Valued, a shift from its previous status of being Modestly Undervalued.
ABM Industries: A Leader in Business Services
ABM Industries Inc operates within the business services sector, providing a wide array of integrated facility solutions. These services are spread across various segments including business and industry, aviation, technology and manufacturing, education, and technical solutions. The company's primary revenue stream comes from the business and industry segment, which includes janitorial, facilities engineering, and parking services, among others. ABM's main operations are concentrated in the United States, where it has established a significant presence. 
Assessing ABM's Profitability
ABM's Profitability Rank stands at a strong 7 out of 10, indicating a robust position within its industry. The company's operating margin is 4.77%, which is higher than 45.16% of its industry peers. Additionally, ABM's return on equity (ROE) is an impressive 13.52%, surpassing 66.76% of its competitors. The return on assets (ROA) at 4.88% and return on invested capital (ROIC) at 7.21% also place ABM ahead of more than half of its industry counterparts. Notably, ABM has maintained profitability for the past 10 years, a testament to its consistent performance and business resilience.
Growth Trajectory of ABM Industries
The company's Growth Rank is 6 out of 10, reflecting a balanced growth profile. ABM's 3-year revenue growth rate per share stands at 6.00%, which is better than 53.28% of its industry peers. Over a 5-year period, the revenue growth rate per share is 2.30%, outperforming 45.58% of competitors. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is 1.66%, which is more favorable than 20.12% of industry peers. The 3-year EPS without NRI growth rate is a robust 18.60%, and the 5-year rate is 12.90%, both of which are higher than the majority of competitors. These figures highlight ABM's solid growth prospects and its ability to increase earnings over time.
Key Shareholders in ABM Industries
ABM's shareholder base includes notable investors who have demonstrated confidence in the company's potential. Robert Olstein (Trades, Portfolio) holds 272,000 shares, representing a 0.42% share percentage. HOTCHKIS & WILEY follows closely with 262,780 shares, accounting for 0.4% of the shares. Keeley-Teton Advisors, LLC (Trades, Portfolio) also has a significant stake, with 125,069 shares or 0.19% share percentage. These investments by experienced market participants underscore the company's appeal to value investors.
Competitive Landscape
When compared to its competitors, ABM stands strong with a market cap of $3.31 billion. Its closest competitors include CBIZ Inc (CBZ, Financial) with a market cap of $2.96 billion, LegalZoom.com Inc (LZ, Financial) valued at $2.05 billion, and First Advantage Corp (FA, Financial) with a market cap of $2.3 billion. ABM's market position and recent stock performance suggest that it is holding its own in the competitive business services industry.
Conclusion: ABM Industries' Market Position and Outlook
In summary, ABM Industries Inc has demonstrated a solid stock performance, with a recent 13.31% gain over the past three months. The company is currently fairly valued according to the GF Value, with a positive shift from being modestly undervalued. ABM's profitability and growth metrics are commendable, particularly in comparison to industry peers. The company's consistent profitability over the past decade, coupled with its growth prospects and the confidence shown by significant shareholders, positions ABM favorably within the business services sector. As it stands against its competitors, ABM's market cap and stock performance indicate a company that is well-equipped to navigate the challenges and opportunities of the industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
