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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Aecom. To summarize, we found that Aecom ranked in the 9th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 93%. The most interesting components of our discounted cash flow analysis for Aecom ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 0.12 -- which is good for besting merely 23.69% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The company's compound free cash flow growth rate over the past 5.78 years comes in at -0.11%; that's greater than only 12.72% of US stocks we're applying DCF forecasting to.
Aecom's effective tax rate, as measured by taxes paid relative to net income, is at 70 -- greater than 95.96% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BKNG, CODA, MFCO, PSN, and FLR 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,...
Part of the country’s "Vision 2030" roadmap plan to diversify its economy, Neom is designed to be a high-tech city and business hub by the Red Sea. A brainchild of Saudi Crown Prince Mohammed bin Salman, the futuristic development is supposed to mix robotics, artificial intelligence and sustainable technologies.
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.