| I like companies that have long term contracts and perform functions that others expect, take for granted, and are less than willing to do themselves. ABM is just one of those companies. ABM Industries inc. is a provider of commercial cleaning and maintenance, facilities engineering, energy efficiency, parking and security services for commercial, industrial, government and retail clients across the United States and international locations, with fiscal 2012 revenues of approximately $4.3 billion and over 100,000 employees. |  |
The Company
| ABM Industries Incorporated (ABM) provides integrated facility solutions services in the United States and internationally. It offers carpet cleaning and dusting, floor cleaning and finishing, furniture polishing, window washing, and other building cleaning services for airports and other transportation centers, educational institutions, health facilities, retail stores, shopping centers, stadiums and arenas, and warehouses, as well as commercial office, government, and industrial buildings. The company also provides onsite services comprising mechanical engineering and technical services for facilities and infrastructure systems; and parking and transportation services for clients at various locations. In addition, it offers security services comprising staffing of security officers, mobile patrol services, investigative services, electronic monitoring of fire, life safety systems, access control devices, and security consulting services to various facilities. Further, the company provides heating, ventilation, air-conditioning, electrical, lighting, and other general maintenance and repair services comprising preventative maintenance, retro-commissioning, installations, retrofits and upgrades, environmental services, systems start-ups, performance testing, energy audits, and bundled energy solutions for clients in the private and public sectors. Additionally, it offers support services to the U.S. Government entities, such as military base operations, leadership development, education and training, energy efficiency management, medical support services, and construction management; mechanical and electrical preventive and predictive maintenance solutions; and facility solution services consisting of wheelchair operations, aircraft cabin cleaning, janitorial services, shuttle bus operations, access control, and others to clients in the aviation vertical related to passenger assistance. The company was founded in 1909 and is headquartered in New York, New York. (Daily Chart) (Weekly Chart) | 12 August 2014 Price $25.38 1yr Target $31.14 Analysts 7 1yr Cap Gain 22.69% Dividend $0.62 Yield 2.44% 1yr Tot Return 25.13% 3yr DGR 3.53% 5yr DGR 3.71% Payout Ratio 51.23% Beta 0.93 EPS (ttm) $1.21 EPS next yr $1.81 P/E 20.97 PEG 2.41 ROA 3.20% ROE 7.50% |
The Fundamentals
| Year (Oct) 2015 Est 2014 Est 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 | Revenues $5.23 Bil $5.02 Bil $4.80 Bil $4.30 Bil $4.24 Bil $3.49 Bil $3.48 Bil $3.62 Bil $2.70 Bil $2.64 Bil $2.45 Bil $2.24 Bil $2.26 Bil | Earnings $1.81 $1.64 $1.30 $1.14 $1.27 $1.21 $1.05 $1.03 $1.00 $1.70 $0.81 $0.55 $0.69 | Dividends $0.65 $0.62 $0.60 $0.58 $0.56 $0.54 $0.52 $0.50 $0.48 $0.44 $0.42 $0.40 $0.38 | Payout Ratio 35.91% 37.80% 46.15% 50.87% 44.09% 44.62% 49.52% 48.54% 48.00% 25.88% 51.85% 72.72% 55.07% |
| Revenues Growth Rates 3yr = 11.09% 5yr = 5.80% 10yr = 7.82% Earnings Growth Rates 3yr = 2.39% 5yr = 4.76% 10yr = 6.53% Dividend Growth Rates 3yr = 3.53% 5yr = 3.71% 10yr = 4.67% |  |
The Technicals
The daily chart clearly shows a stock moving upward since the beginning of August with the MACD turning sharply upward. The RSI also shows a stock that was over sold a couple of weeks ago and is now being priced more appropriately as the relative strength stabilized once again near the centerline. The ADX also shows a stock that is turning as the downward pressure is subsiding and upward pressure is starting to take control. For a short term investor, the move appears to have already started.
For the longer term investor, the move may just be getting under way. On the weekly chart the MACD is just now turning, the RSI is bouncing off the 30 line, and the ADX lines are just now beginning to turn. For the long term trader, this just may be the best time to enter.
For the longer term investor, the move may just be getting under way. On the weekly chart the MACD is just now turning, the RSI is bouncing off the 30 line, and the ADX lines are just now beginning to turn. For the long term trader, this just may be the best time to enter.
 Daily Chart |  Weekly Chart |
The Competition
ABM Industries Inc is part of the Business Services Industry which is part of the Services Sector of the economy. Below are a few of the major corporations included in this industry. They are listed in the order of their market capitalization.
Conclusion
It's easy for a dividend growth investor to like this company. It's dividend alone (2.44%) growing at a rate equal to or higher than the rate of inflation is enough to excite this type of investor. Add in the fact that earnings estimates going forward are increasing, the only conclusion would be that dividend estimates will eventually rise also. Add in an estimated one year capital gain of 22.69% and the growth investors will take notice also.
I like this kind of company. One that performs a service that others simply don't want to do. Add in their expansion into other areas of building maintenance, and the future looks bright. I think this could be a nice time for a long term investor to start a position in this stock.
I like this kind of company. One that performs a service that others simply don't want to do. Add in their expansion into other areas of building maintenance, and the future looks bright. I think this could be a nice time for a long term investor to start a position in this stock.
The Live Interactive Chart
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