Added to YB: 2025-06-16
Pitch date: 2025-06-13
ABM [neutral]
ABM Industries Incorporated
+4.23%
current return
Author Info
Directionally Correct Research shares is a generalist hedge fund analyst sharing stock pitches in the small to mid cap space. Sign up for the newsletter.
Company Info
ABM Industries Incorporated, through its subsidiaries, engages in the provision of integrated facility, infrastructure, and mobility solutions in the United States and internationally.
Market Cap
$2.6B
Pitch Price
$44.75
Price Target
68.00 (+46%)
Dividend
2.52%
EV/EBITDA
7.07
P/E
22.82
EV/Sales
0.48
Sector
Commercial Services and Supplies
Category
turnaround
Quick Take: ABM Industries (ABM)
ABM (overview): Facilities services co showing green shoots w/ B&I returning to LSD growth, record ATS backlog (+40% QoQ), overall organic growth +3.8%. FCF inflecting positive after ERP/invoice issues. Trades ~14x FCF. Bull case: $68 stock by FY'27 (20% IRR) at 9x EBITDA ($600M) + 2% div yield. Risks: levered small cap, cash collection issues, M&A uncertainty.
Read full article (3 min)