Aecom Stock Analysis, Valuation (NYSE:ACM)

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$35.7 $0.38 (1.05%) ACM stock closing price Apr 24, 2018 (Closing)
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Aecom
Updated on : Apr 24, 2018
previous close
ACM 35.7 (0%)
S&P 500 2634.6 (0%)
Closing Price On: Apr 24, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Engineering R and D Services
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
3.4%
Sector Average:
7.5%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$52.4M
Net Income:
$111.3M
PROS      CONS
PE Valuation
PS Valuation
Operating Margins
Net Margins
Cash Flow
ROIC
FCF Margin
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:
5.1%
Return on Equity:
10.2%
Free Cash Flow Margin:
0.7%
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Aecom Stock Analysis

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Take a look at Amigobulls Aecom stock analysis video. Our ACM analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Aecom Stock Rating 2.6/5

Amigobulls ACM stock analysis takes into account various financial ratios like relative valuation, Aecom revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Aecom dividend performance. We compare Aecom valuation with its sector peers to gauge relative attractiveness of ACM stock. Based on a company's historical fundamentals we arrive at Aecom stock rating which is indicative of the company's financial performance.

Should you buy ACM stock?

  • The Aecom stock currently trades at a price to earnings ratio of 12. We rate this as a positive, compared to the industry average of 19.9.
  • ACM stock is trading at a favorable price to sales multiple of 0.3 as against the Engineering R and D Services industry average multiple of 0.9.

Should you sell ACM stock?

  • Aecom's TTM operating margin of 3.4% was rather poor.
  • Aecom posted a TTM Net margin of 2.2%.
  • The company has an operating cash flow which is 0.5 times the net income. This is not a healthy sign.
  • Aecom provides a low return on invested capital of 5.1%.
  • The company has a low free cash flow margin of 0.7%.

Comments on this video and Aecom stock

Investors can use Amigobulls Aecom stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

While doing a study of the company financials, Aecom revenue growth and profit or net income are two main metrics which help in identifying whether ACM stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about ACM stock.