ABM Industries Beneish M Score

ABM
 Stock
  

USD 45.84  0.45  0.97%   

This module uses fundamental data of ABM Industries to approximate the value of its Beneish M Score. ABM Industries M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please continue to ABM Industries Piotroski F Score and ABM Industries Altman Z Score analysis.
  
ABM Industries Debt Current is relatively stable at the moment as compared to the past year. The company's current value of Debt Current is estimated at 76 Million. Issuance Repayment of Debt Securities is expected to hike to about 138.7 M this year, although the value of Total Debt will most likely fall to nearly 962.5 M. ABM Industries Accounts Payable Turnover is relatively stable at the moment as compared to the past year. The company's current value of Accounts Payable Turnover is estimated at 45.39. Accrued Expenses Turnover is expected to hike to 27.23 this year, although the value of Calculated Tax Rate will most likely fall to 25.10.
At this time, it appears that ABM Industries Incor is an unlikely manipulator. The earnings manipulation may begin if ABM Industries' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by ABM Industries executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of ABM Industries' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.77
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.91Focus
Asset Quality0.83Focus
Expense Coverage0.85Focus
Gross Margin Strengs1.07Focus
Accruals Factor0.85Focus
Depreciation Resistance0.89Focus
Net Sales Growth0.97Focus
Financial Leverage Condition0.87Focus

ABM Industries Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if ABM Industries' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense682.1 M827.1 M
Significantly Down
Increasing
Slightly volatile
Revenues93.7 M96.4 M
Fairly Down
Decreasing
Very volatile
Trade and Non Trade Receivables1.2 B1.4 B
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net217.2 M274.2 M
Significantly Down
Increasing
Slightly volatile
Operating Income7.9 M7.7 M
Fairly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations13.2 M12 M
Significantly Up
Decreasing
Stable
Liabilities Non Current1.5 B1.8 B
Fairly Down
Increasing
Slightly volatile
Current Liabilities60.6 M56.1 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities51.8 M57.3 M
Moderately Down
Increasing
Stable
Investments Non Current15.7 M10.6 M
Way Up
Decreasing
Slightly volatile
Investments Current39.1 M36.3 M
Significantly Up
Decreasing
Slightly volatile
Investments10.9 M10.6 M
Fairly Up
Decreasing
Slightly volatile
Gross Margin68.3463.94
Notably Up
Increasing
Stable
Depreciation Amortization and Accretion97.1 M103.4 M
Notably Down
Increasing
Slightly volatile
Debt Non Current907.1 M1.1 B
Significantly Down
Increasing
Slightly volatile
Debt Current76 M72.7 M
Sufficiently Up
Increasing
Slightly volatile
Total Debt962.5 M1.2 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current2.9 B3.5 B
Significantly Down
Increasing
Slightly volatile
Current Assets79.3 M84.9 M
Significantly Down
Increasing
Stable
Total Assets118.6 M126.6 M
Notably Down
Increasing
Stable

ABM Industries Incor Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between ABM Industries' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards ABM Industries in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find ABM Industries' degree of accounting gimmicks and manipulations.

About ABM Industries Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

746.6 Million

ABM Industries Operating Expenses is relatively stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 746.6 Million

ABM Industries Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as ABM Industries. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Assets Non Current2.46 B2.42 B2.33 B3.04 B3.49 B2.9 B
Total Debt939 M801.4 M886.1 M1.03 B1.19 B962.54 M
Debt Current37 M57.2 M151.7 M63.2 M72.68 M76 M
Debt Non Current902 M744.2 M734.4 M969.4 M1.11 B907.13 M
Investments16.3 M14 M11.1 M11.8 M10.62 M10.9 M

About ABM Industries Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze ABM Industries Incorporated's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of ABM Industries using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of ABM Industries Incorporated based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
ABM Industries Incorporated provides integrated facility solutions in the United States and internationally. The company was incorporated in 1985 and is based in New York, New York. ABM Industries operates under Specialty Business Services classification in the United States and is traded on New York Stock Exchange. It employs 124000 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in ABM Industries without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Correlation

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Pair Trading with ABM Industries

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ABM Industries position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ABM Industries will appreciate offsetting losses from the drop in the long position's value.

Moving together with ABM Industries

+0.68CARAvis Budget Group Downward RallyPairCorr
+0.79DALDelta Air Lines Fiscal Year End 12th of January 2023 PairCorr
The ability to find closely correlated positions to ABM Industries could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ABM Industries when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ABM Industries - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ABM Industries Incorporated to buy it.
The correlation of ABM Industries is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ABM Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ABM Industries Incor moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ABM Industries can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to ABM Industries Piotroski F Score and ABM Industries Altman Z Score analysis. Note that the ABM Industries Incor information on this page should be used as a complementary analysis to other ABM Industries' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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When running ABM Industries Incor price analysis, check to measure ABM Industries' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ABM Industries is operating at the current time. Most of ABM Industries' value examination focuses on studying past and present price action to predict the probability of ABM Industries' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move ABM Industries' price. Additionally, you may evaluate how the addition of ABM Industries to your portfolios can decrease your overall portfolio volatility.
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Is ABM Industries' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ABM Industries. If investors know ABM Industries will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ABM Industries listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.56
Market Capitalization
3.1 B
Quarterly Revenue Growth YOY
0.27
Return On Assets
0.0492
Return On Equity
0.13
The market value of ABM Industries Incor is measured differently than its book value, which is the value of ABM Industries that is recorded on the company's balance sheet. Investors also form their own opinion of ABM Industries' value that differs from its market value or its book value, called intrinsic value, which is ABM Industries' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ABM Industries' market value can be influenced by many factors that don't directly affect ABM Industries' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ABM Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine ABM Industries value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ABM Industries' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.