Aecom reported solid fiscal second-quarter results, as its adjusted EPS improved by 13% from the prior-year period. While nothing in the no-moat firm's earnings release materially alters our long-term outlook, we've bumped up our fair value estimate to $90 from $89 due to time value of money. We view the name as fairly valued at current levels.
Thanks to its diversified portfolio, we expect Aecom to take advantage of growth opportunities in sectors with favorable long-term prospects, including transportation and water.
Aecom faces high uncertainty as volatility in oil and natural gas prices could lead customers to delay or even cancel projects.
|
Metric
|
ACM
|
KBR
|
J
|
|---|---|---|---|
Price/Earnings (Normalized) | 22.95 | 23.35 | 18.27 |
Price/Book Value | 5.73 | 6.36 | 2.64 |
Price/Sales | 0.84 | 1.27 | 1.05 |
Price/Cash Flow | 19.11 | 24.52 | 19.40 |
|
Metric
|
ACM
|
KBR
|
J
|
|---|---|---|---|
Quick Ratio | 0.92 | 0.89 | 1.12 |
Current Ratio | 1.06 | 1.10 | 1.17 |
Interest Coverage | 2.05 | −0.28 | 5.81 |
|
Metric
|
ACM
|
KBR
|
J
|
|---|---|---|---|
Return on Assets (Normalized) | 4.91% | −2.37% | 6.52% |
Return on Equity (Normalized) | 23.85% | −9.10% | 14.80% |
Return on Invested Capital (Normalized) | 12.23% | −1.23% | 9.80% |
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Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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