Is ABM Industries (NYSE:ABM) A Risky Investment?
Is ABM Industries (NYSE:ABM) A Risky Investment?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. We can see that ABM Industries Incorporated (NYSE:ABM) does use debt in its business. But the real question is whether this debt is making the company risky.
霍华德·马克斯很好地阐述了当他说,与其担忧股价波动,“我担心的是永久性损失的可能性…我认识的每一位实际投资者都很担心这个问题。” 所以当您考虑任何给定股票的风险时,需要考虑到该公司的债务,因为太多的债务可能会沉没一家公司。我们可以看到ABm Industries Incorporated (NYSE:ABM)在其业务中使用了债务。但实际问题在于,这些债务是否使公司存在风险。
When Is Debt Dangerous?
债务何时有危险?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. The first step when considering a company's debt levels is to consider its cash and debt together.
债务是帮助企业发展的工具,但如果企业无法偿还其债权人,那么它就处于他们的掌控之下。资本主义的一部分是“创造性毁灭”流程,其中银行家会残酷地清算失败的企业。但是,更常见(但仍然代价高昂)的情况是一家公司不得不以低价发行股票,永久性稀释股东,只是为了支撑其资产负债表。话虽这么说,最常见的情况是一家公司合理地管理其债务,并以其自身的优势。在考虑一家公司的债务水平时,第一步是将其现金和债务合并考虑。
What Is ABM Industries's Debt?
ABM Industries的债务状况如何?
As you can see below, ABM Industries had US$1.27b of debt at April 2024, down from US$1.39b a year prior. However, it does have US$60.7m in cash offsetting this, leading to net debt of about US$1.21b.
正如您在下文中所看到的,ABm Industries于2024年4月负债12.7亿美元,低于一年前的13.9亿美元。然而,它确实有6070万美元的现金抵消了这一负债,直接债务净额约为12.1亿美元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240707/0-93e6972a30f68cefdd3c027b66d24a78-0-d80480a893c053576192d76be406eabf.png/big)
A Look At ABM Industries' Liabilities
ABm Industries负债情况概述
Zooming in on the latest balance sheet data, we can see that ABM Industries had liabilities of US$1.18b due within 12 months and liabilities of US$1.91b due beyond that. Offsetting these obligations, it had cash of US$60.7m as well as receivables valued at US$1.47b due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$1.56b.
通过放大最新的资产负债表数据,我们可以看到ABm Industries有1180万美元的负债到期,逾期超过191亿美元。除此之外,它还有6070万美元的现金和147亿美元的应收账款到期于12个月内。因此,其负债超过了其现金和(短期)应收账款的总和1560万美元。
ABM Industries has a market capitalization of US$3.10b, so it could very likely raise cash to ameliorate its balance sheet, if the need arose. But we definitely want to keep our eyes open to indications that its debt is bringing too much risk.
ABm Industries的市值为31亿美元,因此,如果有需要,它非常可能筹集资金来改善其资产负债表。但我们肯定要密切关注它的债务是否带来了太多的风险。
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
我们通过查看净债务除以利息、税、折旧和摊销前的收益(EBITDA)并计算其利息费用(利息覆盖)来相对衡量公司的负债水平。这样,我们考虑债务的绝对规模以及支付的利息费用。
ABM Industries has a debt to EBITDA ratio of 2.7 and its EBIT covered its interest expense 4.1 times. Taken together this implies that, while we wouldn't want to see debt levels rise, we think it can handle its current leverage. Fortunately, ABM Industries grew its EBIT by 5.0% in the last year, slowly shrinking its debt relative to earnings. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if ABM Industries can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
ABm Industries的债务/ EBITDA比率为2.7,其利息费用4.1倍地被覆盖了。综合来看,这意味着,虽然我们不想看到债务水平上升,但我们认为它可以处理其当前的杠杆比率。幸运的是,ABm Industries去年的EBIt增长了5.0%,缓慢地压缩了相对收益的负债。当分析债务水平时,资产负债表是明显的起点。但最终业务未来的盈利能力将决定ABm Industries能否随着时间的推移加强其资产负债表。因此,如果您想了解专业人士的想法,您可能会发现我们对分析师利润预测的免费报告很有兴趣。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So the logical step is to look at the proportion of that EBIT that is matched by actual free cash flow. Looking at the most recent three years, ABM Industries recorded free cash flow of 37% of its EBIT, which is weaker than we'd expect. That's not great, when it comes to paying down debt.
最后,虽然税务部门可能喜欢会计利润,但贷款人只接受冰冷的现金。因此,逻辑步骤是查看EBIt实际匹配的那部分实际自由现金流的比例。在查看最近三年的情况下,ABm Industries的自由现金流为EBIt的37%,低于我们的预期。在偿还债务方面,这并不是很好。
Our View
我们的观点
While ABM Industries's net debt to EBITDA makes us cautious about it, its track record of covering its interest expense with its EBIT is no better. But its not so bad at growing its EBIT. We think that ABM Industries's debt does make it a bit risky, after considering the aforementioned data points together. Not all risk is bad, as it can boost share price returns if it pays off, but this debt risk is worth keeping in mind. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. Be aware that ABM Industries is showing 3 warning signs in our investment analysis , and 1 of those is potentially serious...
虽然ABm Industries的净债务/ EBITDA让我们对其持谨慎态度,但其以EBIt支付其利息费用的记录并不好。但它在增加EBIt方面做得还不错。我们认为,在考虑到前述数据点后,ABm Industries的债务确实带来了风险。并非所有的风险都是坏的,如果成功,它可以提高股价回报率,但这种债务风险值得我们牢记。资产负债表显然是分析债务的关键领域。然而,并非所有的投资风险都存在于资产负债表中-离它还有很远的路要走。请注意,我们的投资分析中,ABm Industries显示了3个警告信号,其中1个可能非常严重...
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
当然,如果您是那种喜欢购买没有负债负担的股票的投资者,则今天就可以发现我们的独家净现金增长股清单。
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论,只使用公正的方法论,我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议,也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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