AECOM engages in designing, building, financing, and operating infrastructure assets worldwide. The company operates through three segments: Design and Consulting Services (DCS), Construction Services (CS), and Management Services (MS). The company was founded in 1980 and is based in Los Angeles, California.
ACM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ACM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Aecom ranked in the 17th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Aecom ended up being:
In the past 5.48 years, Aecom has a compound free cash flow growth rate of -0.03%; that's higher than merely 17.51% of free cash flow generating stocks in the Industrials sector.
Aecom's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Aecom's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.51. This coverage rate is greater than that of merely 18.75% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DESP, HTLD, ABB, FDX, and MMS can be thought of as valuation peers to ACM, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
AECOM (ACM) has completed ~$155M share repurchase program, which was initiated in September.In addition, the Company has entered into a plan to repurchase up to $300M of stock through open market repurchases based on a pre-determined pricing grid during the first quarter of fiscal year 2021.After giving effect to the...
Channel checks are suggesting that engineering & consulting companies are still OK headed into Q3 earnings, Baird says, but certain aspects of the outlook have deteriorated. In particular, that's backlog, where trends in September are likely holding up "reasonably well" but there's degrading visibility. Nonresidential construction is degrading the most,...
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Richland and Spokane, WA – Today, the United States Attorney’s Office for the Eastern District of Washington announced that major federal contractors Bechtel National Inc., Bechtel Corporation (Bechtel), AECOM Energy & Construction, Inc. (AECOM), and their subsidiary Waste Treatment Completion Company, LLC (WTCC), agreed to pay $57,750,000 to the U.S. Department of Justice (DOJ) to resolve claims that Bechtel and AECOM fraudulently overcharged the U.S. Department of Energy (DOE) in connection with its operation of the Hanford Waste Treatment Plant (WTP) project. The False Claims Act (FCA) claims arose from allegations that Bechtel and AECOM management were aware of and failed to prevent inflated labor hours being charged to DOE, and for falsely billing DOE for work not actually performed.