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ACM AECOM - Fundamental Analysis

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ACM Stock | Fundamental Analysis & Investment Insights
NYSE Industrials Engineering & Construction
Current Price Live
$97.08
Analyst Target
$130.33
+34.3% Upside
52W High
$135.52
52W Low
$85.0

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AI Analysis

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Confidence Score
65%
Analysis Accuracy
ACM's Piotroski F-Score of 5/9 indicates stable financial health, though the absence of an Altman Z-Score limits distress risk assessment. The stock trades at a significant premium to both the Graham Number ($44.91) and intrinsic value ($33.18), currently priced at $97.08, suggesting overvaluation. Despite solid ROE of 28.09% and a history of consistent earnings beats (22 of 25 quarters), recent YoY earnings decline (-29.10%) and insider selling raise concerns. Analysts maintain a 'buy' recommendation with a $130.33 target, implying 24% upside, but weak technical trend (0/100) and bearish insider activity temper near-term optimism.

Key Strengths

Consistent earnings beat record: 22 out of 25 quarters exceeded estimates, with strong average surprise of 4.25% over last four
High ROE of 28.09% significantly exceeds sector average of 7.49%, indicating efficient use of equity
Low payout ratio of 21.71% provides dividend sustainability and reinvestment flexibility
Forward P/E of 15.84 is below current P/E of 20.48, suggesting earnings recovery expectations
Analyst target price implies 24% upside, supported by 12 analysts maintaining 'buy' consensus

Key Risks

Piotroski F-Score of 5 is borderline stable; absence of Altman Z-Score creates uncertainty in financial distress risk modeling
Recent earnings deterioration: YoY earnings growth at -29.10% and Q/Q at -30.20% indicate sharp profit contraction
Significant insider selling: $9.56M in sales over last 6 months with zero buys, including CEO and officers
Stock trades at 2.16x Graham Number and 2.93x intrinsic value, indicating substantial overvaluation relative to defensive and growth metrics
Technical trend score of 0/100 signals strong bearish momentum, corroborated by -9.5% 1Y return and -15.4% 6M performance
AI Fair Value Estimate
Based on comprehensive analysis
$44.91
-53.7% below current price

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