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% |
The Technicals
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.
The Competition
Conclusion
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