Stock fact sheet · data as of
ABM Industries Inc. (ABM): fair value, margin of safety and Wheel Score
Industrials · Specialty Business Services · United States · Defensive
Is ABM undervalued?
At 50.76 (close of 16 Oct 2026), ABM trades 39% below the GLS average fair value of 82.96. That average comes from 9 models run on the latest filings, and 5 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns ABM Industries Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 9 models disagree widely: Lynch gives 14.65 while Payback Time gives 209.96. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files ABM under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for ABM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 70.37 | +39% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 43.95 | -13% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 52.12 | +3% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 14.65 | -71% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 172.95 | +241% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 134.18 | +164% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 209.96 | +314% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 17.07 | -66% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 31.39 | -38% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -29.62 | -158% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 51.88 | +2% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health ABM scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 5.1 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are thin or negative - ROIC 4.7%, ROE 9.1%, ROA 3.0% - with debt at 0.95 times equity and a free-cash-flow yield of 10.5%.
The dividend yield is 2.29% at a payout ratio of 41%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Janitorial 63%, Facility Services 14%, Building And Energy Solutions 13% (quarter Q4 FY2024).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 4.7% |
|---|---|---|---|
| GLS Moat | 5.1 / 10 | ROE | 9.1% |
| Debt / equity | 0.95 | ROA | 3.0% |
| Free-cash-flow yield | 10.5% | Payout ratio | 41% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 77: Good
ABM scores 77 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (16/20), the GLS moat (8/15), the option premium on offer (15/20) and how easily the stock trades (14/20). Moat (8/15) is the part holding the score back.
Implied volatility is 30% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (15 of 20 points). Chain open interest is 4,809 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 497k shares a day on a market cap of $3.0B, with a beta of 0.64 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 14 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 39% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 8 / 15 | moat 5.1/10 | |
| Premium | 15 / 20 | implied volatility 30% | |
| Stability | 14 / 20 | 497k shares/day, $3.0B cap, beta 0.64 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 16 Dec 2026, 61 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Specialty Business Services
The 12 companies below are the closest to ABM Industries Inc. by market cap within the Specialty Business Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PAGS PagSeguro Digital Ltd. | 10.83 | 46.36 | +77% | 84Prime | $3.0B |
| CBZ CBIZ, Inc. | 54.73 | 66.87 | +18% | 78Good | $3.0B |
| MMS Maximus, Inc. | 60.24 | 137.06 | +56% | 86Prime | $3.2B |
| BFAM Bright Horizons Family Solutions Inc. | 70.42 | 107.32 | +34% | 85Prime | $3.4B |
| FA First Advantage Corporation | 20.08 | 17.04 | -18% | 60Fair | $3.4B |
| FLYW Flywire Corp | 19.35 | 15.27 | -27% | 60Fair | $2.4B |
| EVTC EVERTEC, Inc. | 31.40 | 39.37 | +20% | 73Good | $1.9B |
| UNF UniFirst Corporation | 258.08 | 110.82 | -133% | 54Fair | $4.7B |
| TIC TIC Solutions, Inc. | 8.68 | 12.57 | +31% | 45Weak | $1.9B |
| CMPR Cimpress plc | 76.72 | 166.98 | +54% | 75Good | $1.9B |
| TH Target Hospitality Corp. | 17.26 | 14.81 | -17% | 45Weak | $1.7B |
| DLX Deluxe Corporation | 22.89 | 49.45 | +54% | 77Good | $1.0B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about ABM
Is ABM undervalued right now?
By the GLS models, yes: at 50.76 the stock is 39% below the average fair value of 82.96 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of ABM and what does it mean?
ABM scores 77 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for ABM?
82.96 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does ABM Industries Inc. report earnings next?
The next earnings report is due on 16 Dec 2026, 61 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does ABM have listed options, and how liquid are they?
Yes. The nightly snapshot found 206 listed contracts with 4,809 open interest across all expiries and implied volatility of 30% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.