Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

ABM Industries Incorporated (ABM)

Company Dividend Discount ModelIndustry: Specialty Business ServicesSector: Industrials

Valuation Snapshot

Stable Growth$35.93 - $80.63$52.03
Multi-Stage$39.92 - $43.71$41.78
Blended Fair Value$46.90
Current Price$46.13
Upside1.68%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.44%5.03%0.900.910.820.810.780.760.730.630.580.57
YoY Growth---1.74%10.79%1.76%3.45%3.35%3.70%16.46%7.05%2.50%4.05%
Dividend Yield--1.68%2.23%1.75%1.94%2.04%1.98%2.13%1.65%1.45%1.90%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)115.90
(-) Cash Dividends Paid (M)63.50
(=) Cash Retained (M)52.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)23.1814.498.69
Cash Retained (M)52.4052.4052.40
(-) Cash Required (M)-23.18-14.49-8.69
(=) Excess Retained (M)29.2237.9143.71
(/) Shares Outstanding (M)63.1363.1363.13
(=) Excess Retained per Share0.460.600.69
LTM Dividend per Share1.011.011.01
(+) Excess Retained per Share0.460.600.69
(=) Adjusted Dividend1.471.611.70
WACC / Discount Rate7.24%7.24%7.24%
Growth Rate3.03%4.03%5.03%
Fair Value$35.93$52.03$80.63
Upside / Downside-22.12%12.78%74.79%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)115.90120.57125.42130.47135.72141.19145.42
Payout Ratio54.79%61.83%68.87%75.92%82.96%90.00%92.50%
Projected Dividends (M)63.5074.5586.3899.05112.59127.07134.52

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.24%7.24%7.24%
Growth Rate3.03%4.03%5.03%
Year 1 PV (M)68.8569.5270.18
Year 2 PV (M)73.6875.1176.56
Year 3 PV (M)78.0280.3182.65
Year 4 PV (M)81.9185.1488.46
Year 5 PV (M)85.3789.6093.99
PV of Terminal Value (M)2,132.342,237.862,347.51
Equity Value (M)2,520.172,637.532,759.35
Shares Outstanding (M)63.1363.1363.13
Fair Value$39.92$41.78$43.71
Upside / Downside-13.45%-9.42%-5.24%

High-Yield Dividend Screener

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