XVARY Composite Score
61
/ 100
Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
Start here if you're new
What it is
ABM keeps offices, airports, schools, and factories running, cleaned, repaired, and powered.
How it gets paid
Last year ABM Industries made $8.7B in revenue. Business & Industry was the main engine at $4.13B, or 47% of sales.
Why it's growing
Revenue grew 4.6% last year. Revenue reached a record $8.746 billion, driven by strong volume, favorable service mix, and new client additions.
What just happened
ABM grew quarterly revenue to about $2.2B, but profit went the wrong way.
At a Glance
B++ balance sheet — above average — nothing keeping you up at night
90/100 earnings predictability — you can trust these numbers
13.5x trailing p/e — the market's not buying it — or you found a deal
2.5% dividend yield — cash in your pocket every quarter
10.5% return on capital — nothing to write home about
XVARY composite: 61/100 — average
What They Do
ABM keeps offices, airports, schools, and factories running, cleaned, repaired, and powered.
ABM wins because your building still needs to work before anyone debates the budget. It serves 225+ local offices and 113,000 employees across cleaning, engineering, parking, and power work, which makes it hard to replace with one vendor. Switching costs (pain of changing providers) → changing crews and systems risks service failures → so what: customers stay because leaving is a hassle.
How They Make Money
$8.7B
annual revenue · their business grew +4.6% last year
Business & Industry
$4.13B
+1.6%
Manufacturing & Distribution
$1.62B
+4.1%
Aviation
$1.12B
+8.3%
Education
$0.92B
+2.0%
Technical Solutions
$0.98B
+18.7%
The Products That Matter
Janitorial and facility services
Business & Industry
$4.13B · ~47% of revenue
matches the Business & Industry line in the table—contract wins, renewals, and pricing here matter more than anything else.
core driver
Industrial facility services
Manufacturing & Distribution
$1.62B · 18.6% of sales
this segment produced $1.62B in revenue on the table above (+4.1% growth in that same feed), giving ABM a foothold in warehouses, logistics, and industrial sites.
steady
Energy and microgrid projects
Technical Solutions
$980.6M · +18.7% growth
this $980.6M business grew 18.7% last year. it's only 11.2% of revenue, but it's the fastest-growing piece and one of the few segments changing the story.
growth engine
Key Numbers
13.5x
trailing p/e
You are paying 13.5 times trailing earnings for a company with record revenue, which is cheap versus the market but cheap for a reason.
$8.746B
record revenue
ABM hit record sales in fiscal 2025, which tells you demand is fine even while profits are under pressure.
7.0%
operating margin
Operating margin means profit after running the business but before interest and taxes, so what: ABM has little room for cost mistakes.
10.5%
return on capital
Return on capital means profit earned on the money invested in the business, so what: ABM is decent, not elite.
Financial Health
B++
Strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 65 / 100
- long-term debt $1.5B (35% of capital)
- net profit margin 3.0% — keeps 3 cents of every dollar in revenue
- return on equity 15% — $0.15 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total Return vs. Market
You invested $10000 in ABM 3 years ago → it's now worth $9940.
The index would have given you $13880.
source: institutional data · total return
What Just Happened
missed estimates
ABM grew quarterly revenue to about $2.2B, but profit went the wrong way.
Latest quarter revenue rose 6.0% vs. prior year, while EPS fell 7% to $0.64. Higher labor, material, and insurance costs ate the benefit from new business and better mix.
$2.2B
rev (q)
$0.64
eps (q)
~+6%
rev vs. prior year (q)
the number that mattered
EPS fell 7% while revenue rose 6.0%, which is the cleanest proof that ABM's problem is margin, not demand.
-
Revenue reached a record $8.746 billion, driven by strong volume, favorable service mix, and new client additions.
-
Specifically, technical solutions was the fastest grower (up 18.7% vs. prior year, to $980.6 million), due to catalysts within microgrid and energy projects, but business & industry [+1.6%; $4.13 billion], manufacturing & distribution [+4.1%; $1.62 billion], aviation [+8.3%; $1.12 billion], and education [+2.0%; $922 million] all improved, albeit at lesser clips.
-
Nonetheless, material, labor, and insurance costs eroded bottom-line prospects.
-
Share earnings declined 3.6% from the year-ago tally, to $3.44.
-
The company agreed to acquire wgnstar for about $275 million in cash.this aims to strengthen abm’s manufacturing & distribution division by adding semiconductor facility expertise. following the purchase, abm’s semiconductor solutions portfolio looks to generate about $325 million in annual revenue.
source: company earnings report, 2026
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What Could Go Wrong
The #1 risk is labor and insurance cost inflation on a ~3.0% net margin in the health panel.
Med
Labor and insurance costs keep outrunning pricing
Management already said labor, material, and insurance costs eroded profit. When the consolidated net margin in the health panel is ~3.0% and the latest quarter ran near ~1.9%, you do not have much buffer.
If margin pressure stays near that 1.9% quarterly level, the earnings recovery case weakens quickly.
Med
WGNSTAR has to earn its $275M price tag
ABM is paying about $275M in cash to add semiconductor facility expertise. The strategic logic is clear, but integration always looks cleaner in the press release than in the operating model.
The deal is meant to support a semiconductor portfolio reaching about $325M in annual revenue. If that falls short, the acquisition adds complexity without enough payoff.
Med
Core contract growth stays too slow
Business & Industry is roughly 55% of revenue. It grew 1.6% in the latest segment disclosure, which is fine for stability but not enough to move the stock on its own.
If the biggest segment stays in low-growth mode, ABM becomes more dependent on smaller specialty businesses to drive the story.
Med
Technical Solutions cools back toward company-average growth
Technical Solutions grew 18.7% last year against 4.6% for the company overall. That's the one segment making the profile look faster than a plain vanilla facilities contractor.
At only 11.2% of sales, it cannot carry the whole company forever. If that growth rate fades, the multiple probably stays cheap for a reason.
ABM does not need a dramatic failure to disappoint you. A few quarters of cost pressure and a stalled growth segment are enough when the consolidated net margin starts near ~3.0% on this page.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Metric
Quarterly margin recovery
The latest quarter ran near ~1.9% margin versus ~3.0% net margin in the health panel. If that gap does not close, the EPS rebound case gets shaky.
Risk
WGNSTAR integration
The $275M cash deal is supposed to support a semiconductor solutions portfolio of about $325M in annual revenue. Watch whether management starts showing clean execution, not just strategic adjectives.
Trend
Technical Solutions growth
This segment grew 18.7% last year. If that pace cools sharply, the whole “ABM is becoming more specialized” argument loses force.
Calendar
Next earnings for proof
You want to see whether revenue growth still outruns cost growth. With 90/100 earnings predictability, even small changes in guidance matter here.
Analyst Rankings
short-term outlook
average
momentum score 3 — middle of the pack. in human-speak, analysts do not see a strong near-term edge either way.
risk profile
average
stability score 3 — typical risk for a mid-cap operator. not a bunker stock, not a drama factory.
chart momentum
bottom 5%
technical score 5 — the weakest rating. the chart says investors want more proof before paying up.
earnings predictability
90 / 100
management's earnings pattern is unusually consistent. that helps you model the business, even if it does not make the business exciting.
Source: institutional data
Institutional Activity
143 buyers vs. 152 sellers in 3q2025. total institutional holdings: 60.1M shares.
Source: institutional data
Price Targets
3-5 year target range
$38
$78
$46
Current price
$58
Target midpoint · +25% from current · 3-5yr high: $85 (+85% · 18% ann'l return)
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