📊 ACM Key Takeaways
Is Aecom (ACM) a Good Investment?
AECOM demonstrates stable revenue with modest profitability, but faces headwinds from declining net income and weak cash generation relative to asset base. The company's thin 1.9% net margin and concerning 0.6% ROA indicate inefficient asset utilization, while moderate leverage at 1.18x debt-to-equity and adequate interest coverage of 2.5x provide some financial stability.
AECOM shows stable revenue and positive operating profitability, but the quality of growth is mixed because net income declined while EPS growth likely benefited from share count effects rather than stronger core earnings. The balance sheet is manageable with adequate liquidity, yet leverage, thin margins, weak returns on capital, and modest free cash flow limit the fundamental upside.
Why Buy Aecom Stock? ACM Key Strengths
- Solid liquidity position with 1.10x current ratio and $1.2B cash reserves
- Positive free cash flow of $41.9M demonstrates ability to generate cash despite margins
- Operating margin expansion to 5.8% shows some operational discipline
- Positive operating income and a 5.8% operating margin indicate the core business remains profitable
- Liquidity is adequate with $1.25B in cash and a 1.10x current ratio
- Revenue is stable year over year, which supports resilience in a project-based engineering business
ACM Stock Risks: Aecom Investment Risks
- Net income declined 11.7% YoY despite flat revenue growth, indicating margin compression
- Extremely low profitability metrics (1.9% net margin, 0.6% ROA) suggest operational inefficiencies
- Elevated leverage at 1.18x debt-to-equity with modest 2.5x interest coverage limits financial flexibility
- Free cash flow margin of only 1.1% relative to $3.8B revenue is inadequate for debt service and growth
- Minimal ROE of 3.3% indicates poor returns on shareholder capital
- Net income declined 11.7% year over year despite flat revenue, pointing to pressure below the operating line
- Profitability is thin with 1.9% net margin, 3.3% ROE, and 0.6% ROA
- Leverage is meaningful with 1.18x debt-to-equity and only 2.5x interest coverage
Key Metrics to Watch
- Operating margin trend and ability to sustain 5.8% level
- Free cash flow conversion and working capital management efficiency
- Debt-to-equity ratio trajectory and refinancing requirements for $2.6B long-term debt
- Revenue growth acceleration and gross margin stability at 7.3%
- Return on assets improvement from current 0.6% baseline
- Free cash flow margin and operating cash flow conversion
- Interest coverage and trend in net income margin
Aecom (ACM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.1% FCF margin may limit capital allocation flexibility.
ACM Profit Margin, ROE & Profitability Analysis
ACM vs Services Sector: How Aecom Compares
How Aecom compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Aecom Stock Overvalued? ACM Valuation Analysis 2026
Based on fundamental analysis, Aecom shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Aecom Balance Sheet: ACM Debt, Cash & Liquidity
ACM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Aecom's revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.39 reflects profitable operations.
ACM Revenue Growth, EPS Growth & YoY Performance
ACM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.8B | $74.5M | $0.56 |
| Q3 2025 | $4.2B | $131.0M | $0.98 |
| Q2 2025 | $3.8B | $1.0M | $0.01 |
| Q1 2025 | $3.9B | $94.4M | $0.69 |
| Q3 2024 | $3.7B | $29.9M | $0.21 |
| Q2 2024 | $3.5B | $1.0M | $0.01 |
| Q1 2024 | $3.4B | $87.9M | $0.63 |
| Q3 2023 | $3.2B | $29.9M | $0.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Aecom Dividends, Buybacks & Capital Allocation
ACM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Aecom (CIK: 0000868857)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ACM
What is the AI rating for ACM?
Aecom (ACM) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACM's key strengths?
Claude: Solid liquidity position with 1.10x current ratio and $1.2B cash reserves. Positive free cash flow of $41.9M demonstrates ability to generate cash despite margins. ChatGPT: Positive operating income and a 5.8% operating margin indicate the core business remains profitable. Liquidity is adequate with $1.25B in cash and a 1.10x current ratio.
What are the risks of investing in ACM?
Claude: Net income declined 11.7% YoY despite flat revenue growth, indicating margin compression. Extremely low profitability metrics (1.9% net margin, 0.6% ROA) suggest operational inefficiencies. ChatGPT: Net income declined 11.7% year over year despite flat revenue, pointing to pressure below the operating line. Profitability is thin with 1.9% net margin, 3.3% ROE, and 0.6% ROA.
What is ACM's revenue and growth?
Aecom reported revenue of $3.8B.
Does ACM pay dividends?
Aecom pays dividends, with $35.4M distributed to shareholders in the trailing twelve months.
Where can I find ACM SEC filings?
Official SEC filings for Aecom (CIK: 0000868857) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACM's EPS?
Aecom has a diluted EPS of $0.56.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ACM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Aecom has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ACM stock overvalued or undervalued?
Valuation metrics for ACM: ROE of 3.3% (sector avg: 16%), net margin of 1.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ACM stock in 2026?
Our dual AI analysis gives Aecom a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ACM's free cash flow?
Aecom's operating cash flow is $70.2M, with capital expenditures of $28.3M. FCF margin is 1.1%.
How does ACM compare to other Services stocks?
Vs Services sector averages: Net margin 1.9% (avg: 10%), ROE 3.3% (avg: 16%), current ratio 1.10 (avg: 1.5).