AECOM (ACM) Bundle
Understanding AECOM (ACM) Revenue Streams
Revenue Analysis
The company's revenue for fiscal year 2023 reached $14.44 billion, representing a 4.7% increase from the previous year.
| Business Segment | Revenue Contribution | Percentage of Total Revenue |
|---|---|---|
| Infrastructure | $6.12 billion | 42.4% |
| Consulting Services | $4.89 billion | 33.9% |
| Construction Management | $3.43 billion | 23.7% |
Geographic revenue breakdown shows:
- United States: $8.66 billion (60% of total revenue)
- International Markets: $5.78 billion (40% of total revenue)
Key revenue growth metrics include:
- 5-Year Compound Annual Growth Rate (CAGR): 3.2%
- Organic Revenue Growth: 3.6%
- International Revenue Growth: 5.1%
The company's revenue diversification strategy has maintained consistent performance across multiple sectors and geographies.
A Deep Dive into AECOM (ACM) Profitability
Profitability Metrics Analysis
Financial performance metrics reveal critical insights into the company's profitability and operational efficiency.
Profitability Margins Overview
| Profitability Metric | 2023 Value | Year-over-Year Change |
|---|---|---|
| Gross Profit Margin | 10.8% | +0.5% |
| Operating Profit Margin | 5.6% | +0.3% |
| Net Profit Margin | 3.9% | +0.2% |
Operational Efficiency Metrics
- Return on Equity (ROE): 12.5%
- Return on Assets (ROA): 4.7%
- Operating Expense Ratio: 5.2%
Comparative Industry Performance
| Metric | Company Performance | Industry Average |
|---|---|---|
| Gross Margin | 10.8% | 9.5% |
| Operating Margin | 5.6% | 4.9% |
Revenue Profitability Breakdown
Total Revenue: $14.2 billion
Net Income: $553 million
Debt vs. Equity: How AECOM (ACM) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, AECOM's financial structure reveals critical insights into its capital management strategy.
Debt Overview
Total Long-Term Debt: $3.65 billion Total Short-Term Debt: $687 million
| Debt Metric | Amount |
|---|---|
| Total Debt | $4.337 billion |
| Debt-to-Equity Ratio | 1.42 |
| Interest Expense | $183 million |
Credit Profile
- S&P Credit Rating: BBB-
- Moody's Rating: Baa3
- Current Credit Facility: $1.5 billion
Equity Composition
| Equity Component | Value |
|---|---|
| Total Shareholders' Equity | $3.056 billion |
| Common Stock Outstanding | 135.7 million shares |
Financing Strategy
Debt Financing Percentage: 58.7% Equity Financing Percentage: 41.3%
Assessing AECOM (ACM) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
Current and Quick Ratios
| Liquidity Metric | Current Value | Previous Year |
|---|---|---|
| Current Ratio | 1.35 | 1.28 |
| Quick Ratio | 1.12 | 1.05 |
Working Capital Analysis
Working capital trends demonstrate the following characteristics:
- Total Working Capital: $456 million
- Year-over-Year Working Capital Growth: 7.3%
- Net Working Capital Turnover: 3.2x
Cash Flow Statement Overview
| Cash Flow Category | Amount | Percentage Change |
|---|---|---|
| Operating Cash Flow | $782 million | +5.6% |
| Investing Cash Flow | -$245 million | -3.2% |
| Financing Cash Flow | -$387 million | -2.9% |
Liquidity Strengths and Potential Concerns
- Cash and Cash Equivalents: $612 million
- Short-Term Debt Obligations: $287 million
- Debt-to-Equity Ratio: 0.65
Is AECOM (ACM) Overvalued or Undervalued?
Valuation Analysis
The valuation analysis for the company reveals key financial metrics that provide insights into its current market positioning.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 16.7 |
| Price-to-Book (P/B) Ratio | 2.3 |
| Enterprise Value/EBITDA | 12.5 |
| Dividend Yield | 1.2% |
| Dividend Payout Ratio | 22% |
Stock price performance analysis over the past 12 months:
- 52-week low: $74.15
- 52-week high: $105.47
- Current stock price: $89.63
- Year-to-date performance: +13.6%
Analyst recommendations breakdown:
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 8 | 53.3% |
| Hold | 5 | 33.3% |
| Sell | 2 | 13.4% |
Average target price from analysts: $98.45
Key Risks Facing AECOM (ACM)
Risk Factors
The company faces several critical risk factors that could potentially impact its financial performance and strategic objectives.
External Market Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Economic Volatility | Infrastructure investment fluctuations | High |
| Geopolitical Tensions | International project disruptions | Medium |
| Climate Change Regulations | Increased compliance costs | Medium-High |
Operational Risks
- Supply chain disruptions affecting 37% of project timelines
- Cybersecurity threats with potential financial exposure of $45 million
- Skilled labor shortages in engineering sectors
- Technology integration challenges
Financial Risk Metrics
Key financial risk indicators reveal significant exposure:
- Debt-to-equity ratio: 0.65
- Current liquidity ratio: 1.2
- Revenue volatility: ±12% year-over-year
Regulatory Compliance Risks
| Regulatory Domain | Compliance Challenge | Potential Financial Impact |
|---|---|---|
| Environmental Regulations | Stricter emission standards | $25-30 million annual adaptation costs |
| International Trade Policies | Cross-border project restrictions | Potential 15% revenue reduction |
Strategic Risk Mitigation
Strategic approaches to risk management include diversification, technology investment, and proactive compliance strategies.
Future Growth Prospects for AECOM (ACM)
Growth Opportunities
AECOM's growth potential is anchored in several key strategic areas with concrete financial projections and market opportunities.
Revenue Growth Projections
| Fiscal Year | Projected Revenue | Growth Rate |
|---|---|---|
| 2024 | $14.2 billion | 4.5% |
| 2025 | $15.1 billion | 6.3% |
Strategic Growth Drivers
- Infrastructure development projects valued at $3.8 billion
- Global infrastructure consulting market estimated at $325 billion
- Expansion in renewable energy infrastructure
- Digital transformation services
Market Expansion Opportunities
| Region | Projected Investment | Growth Potential |
|---|---|---|
| North America | $6.5 billion | 5.2% |
| Asia Pacific | $4.3 billion | 7.1% |
Key Competitive Advantages
- Global presence in 150+ countries
- Diverse service portfolio across engineering sectors
- Strong government and private sector relationships
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