We recently issued an updated report on
ABM Industries Incorporated
ABM
.
The company started a comprehensive transformational initiative — 2020 Vision — in 2015. The goal of this initiative is to attain long-term, profitable growth through an industry-based go-to-market approach. As parts of this initiative, the company has centralized key functional areas, reinforced sales capabilities as well as began investing in service delivery tools and processes for supporting standard operating practices that are important for its long-term success. These, in turn, have enhanced the ABM’s Janitorial, Parking, Facilities Services, Building & Energy Solutions and Airline Services offerings as well as strengthened its position as a leading integrated facilities management company.
We are also impressed with ABM Industries’ endeavors in rewarding its shareholders through dividend payments. In fiscal 2020, the company returned $49.3 million through dividend payment. In fiscal 2019 and fiscal 2018, the company returned $47.7 million and $46 million as dividend payouts to shareholders, respectively. Such moves reflect on the company’s commitment to boost shareholders’ value and underline its confidence in its business.
Meanwhile, ABM Industries’ cash and cash equivalent balance of $378 million at the end of first-quarter fiscal 2021 was well below the long-term debt level of $574 million. This underscores that the company doesn’t have enough cash to meet this debt burden. However, the cash level can meet the short-term debt of $117 million.
Zacks Rank and Other Stocks to Consider
ABM Industries currently carries a Zacks Rank #2 (Buy).
Investors can also consider some other top-ranked stocks like
S&P Global Inc.
SPGI
, Gartner, Inc.
IT
and
TeleTech Holdings
TTEC
. S&P Global and Gartner carry a Zacks Rank #2 (Buy), while TeleTech sports a Zacks #1 Rank (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected earnings per share (three to five years) growth rate for S&P Global, Gartner and TeleTech is pegged at 10%, 13.5% and 14.7%, respectively.
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