Aecom Stock Analysis, Valuation (NYSE:ACM)

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$34.94 $0.06 (0.17%) ACM stock closing price Sep 21, 2017 (Closing)
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Aecom
Updated on : Sep 21, 2017
previous close
ACM 34.9 (0%)
S&P 500 2500.6 (0%)
Closing Price On: Sep 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Engineering R and D Services
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
2.9%
Sector Average:
7.5%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$413.9M
Net Income:
$101.3M
PROS      CONS
Cash Flow
FCF Margin
PE Valuation
PS Valuation
Recent Growth
Operating Margins
Net Margins
ROIC
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ACM PS :
0.3
Industry PS :
0.9
Sector:   Construction.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.2%
Return on Equity:
7%
Free Cash Flow Margin:
8.6%
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Aecom Stock Analysis

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View Aecom stock analysis video. This is our analyst opinion covering the buy and sell arguments for ACM stock.

Aecom Stock Rating 2.6/5

Our Aecom stock opinion is based on fundamentals of the company. This Aecom stock analysis is based on latest 2017 Q3 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy ACM stock?

  • The operating cash flow looks good at 4.1 times the net income.
  • The Aecom stock currently trades at a price to earnings ratio of 12.3. We rate this as a positive, compared to the industry average of 20.4.
  • The lower PS ratio 0.3 for ACM stock versus Engineering R and D Services industry average of 0.9 is a positive for the company.
  • The company has a good Free Cash Flow (FCF) margin of 8.6%.

Should you sell ACM stock?

  • 2017 Q3 revenue growth of 3.5% YoY was meagre.
  • Aecom had an unimpressive average operating margin of 2.9% during the Last Twelve Months (LTM).
  • Aecom's LTM Net margins were poor at 1.5%.
  • Aecom provides a low return on invested capital of 4.2%.

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