With a price-to-earnings (or "P/E") ratio of 11.3x ABM Industries Incorporated (NYSE:ABM) may be sending bullish signals at the moment, given that almost half of all companies in the United States have P/E ratios greater than 18x and even P/E's higher than 33x are not unusual. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
Recent times have been pleasing for ABM Industries as its earnings have risen in spite of the market's earnings going into reverse. It might be that many expect the strong earnings performance to degrade substantially, possibly more than the market, which has repressed the P/E. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.
NYSE:ABM Price to Earnings Ratio vs Industry May 12th 2024
Keen to find out how analysts think ABM Industries' future stacks up against the industry? In that case, our free report is a great place to start.
How Is ABM Industries' Growth Trending?
The only time you'd be truly comfortable seeing a P/E as low as ABM Industries' is when the company's growth is on track to lag the market.
Taking a look back first, we see that the company grew earnings per share by an impressive 36% last year. Pleasingly, EPS has also lifted 481% in aggregate from three years ago, thanks to the last 12 months of growth. Therefore, it's fair to say the earnings growth recently has been superb for the company.
Looking ahead now, EPS is anticipated to slump, contracting by 2.9% each year during the coming three years according to the eight analysts following the company. With the market predicted to deliver 9.9% growth per year, that's a disappointing outcome.
In light of this, it's understandable that ABM Industries' P/E would sit below the majority of other companies. Nonetheless, there's no guarantee the P/E has reached a floor yet with earnings going in reverse. Even just maintaining these prices could be difficult to achieve as the weak outlook is weighing down the shares.
What We Can Learn From ABM Industries' P/E?
It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
As we suspected, our examination of ABM Industries' analyst forecasts revealed that its outlook for shrinking earnings is contributing to its low P/E. At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio. Unless these conditions improve, they will continue to form a barrier for the share price around these levels.
We don't want to rain on the parade too much, but we did also find 3 warning signs for ABM Industries (1 is a bit concerning!) that you need to be mindful of.
Of course, you might also be able to find a better stock than ABM Industries. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
ABM Industries Incorporated(紐約證券交易所代碼:ABM)的市盈率(或 "P/E")爲11.3倍,目前可能發出了看漲信號,因爲美國幾乎有一半公司的市盈率超過18倍,甚至市淨率超過33倍也並不罕見。 儘管如此,我們需要更深入地挖掘,以確定降低市盈率是否有合理的基礎。
最近一段時間令ABM Industries感到高興,因爲儘管市場的收益出現逆轉,但其收益卻有所增加。許多人可能預計,強勁的盈利表現將大幅下降,可能超過抑制市盈率的市場。如果你喜歡該公司,你會希望情況並非如此,這樣你就有可能在股票失寵的時候買入一些股票。
紐約證券交易所:ABM 與行業的市盈率 2024 年 5 月 12 日
想了解分析師如何看待ABM Industries的未來與該行業的對立嗎?在這種情況下,我們的免費報告是一個很好的起點。
ABM Industries的增長趨勢如何?
只有當公司的增長有望落後於市場時,你才能真正放心地看到市盈率低至ABM Industries的水平。
首先回顧一下,我們發現該公司去年的每股收益增長了令人印象深刻的36%。令人高興的是,由於過去12個月的增長,每股收益也比三年前增長了481%。因此,可以公平地說,該公司最近的收益增長非常好。
展望未來,預計每股收益將下滑,根據關注該公司的八位分析師的說法,未來三年每年收縮2.9%。預計市場每年將實現9.9%的增長,這是一個令人失望的結果。
有鑑於此,ABM Industries的市盈率將低於其他大多數公司是可以理解的。儘管如此,還不能保證市盈率已達到最低水平,收益反轉。由於疲軟的前景壓低了股價,即使僅僅維持這些價格也可能難以實現。
我們可以從ABM Industries的市盈率中學到什麼?
有人認爲,市盈率是衡量某些行業價值的次要指標,但它可能是一個有力的商業情緒指標。
正如我們所懷疑的那樣,我們對ABM Industries分析師預測的審查顯示,其收益萎縮的前景是其低市盈率的原因。在現階段,投資者認爲,收益改善的可能性不足以證明提高市盈率是合理的。除非這些條件有所改善,否則它們將繼續構成股價在這些水平附近的障礙。
我們不想在遊行隊伍中下太多雨,但我們還發現了 ABM Industries 的 3 個警告標誌(1 個有點令人擔憂!)你需要注意的。
當然,你也可以找到比ABM Industries更好的股票。因此,你不妨免費查看其他市盈率合理且收益強勁增長的公司。
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。