Is ABM a high-quality business?

AlphaMadera's AlphaQuality grade scores ABM Industries Incorporated on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how ABM compares to a Buffett-style quality bar.

What is ABM Industries Incorporated's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to ABM based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes ABM a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

ABM - ABM Industries Incorporated

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $50.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

C+ 61.2 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

C- 44.0

5yr Avg ROIC 6.4% 42/100
Operating Margin Trend -0.11 pp/yr 48/100

Capital Efficiency

Weight: 15%

B- 68.2

5yr Avg ROE 9.5% 58/100
5yr Share-Count CAGR -2.0% 88/100

Growth Quality

Weight: 25%

B+ 79.9

5yr Revenue CAGR 8.9% 77/100
5yr EPS CAGR 8.6% 72/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 20%

B- 63.1

5yr FCF Margin 2.0% 35/100
5yr FCF/NI Conversion 1.17x 97/100

Balance Sheet

Weight: 10%

C- 47.3

Net Debt / EBITDA 3.77x 35/100
Interest Coverage (EBIT/Int) 3.28x 48/100
Altman Z-Score 2.79 69/100

Stability

Weight: 5%

C 54.2

EPS Volatility (σ/μ) 0.62 20/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 0/5 100/100

3 of 3 gurus held; 1 new buy; 1 added; 1 trimmed.

Holders: 3 +1
Avg Δ position: +9.1%
New buys: 1
Full exits: 0

Greenblatt new
Dalio increased +66%
Cooperman decreased -48%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.