Aecom
$72.41
+1.7%AECOM, together with its subsidiaries, provides professional infrastructure consulting services for governments, businesses, and organizations in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through three segments: Americas, International, and AECOM Capital. The company offers planning, consulting, architectural and engineering design, construction and program management, and investment and development services to commercial and government clients. It also invests in and develops real estate projects. In addition, the company provides construction services, including building construction and energy, and infrastructure and industrial construction. It serves transportation, water, government, facilities, environmental, and energy sectors. The company was formerly known as AECOM Technology Corporation and changed its name to AECOM in January 2015. AECOM was incorporated in 1980 and is headquartered Dallas, Texas.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 17.1).
Valuation inputs: P/E 17.1, earnings yield +5.9%, momentum +1.7%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +22.5%, ROIC +12.3%).
Profitability stack: net margin +3.5%, ROE +22.5%, ROIC +12.3%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +77.9%, momentum +1.7%, net margin +3.5%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Aecom Market vs Earnings Trajectory
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Aecom Profit Bridge
Profitability Analysis
Gross Margin
Thin margins leave little room for error. Cost management and pricing strategy are critical.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.
Aecom Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Flat FCF growth. Stable but not expanding—monitor for signs of business maturity or temporary headwinds.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Aecom Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
Aecom Street Expectations Map
Wall Street analysts project that ACM stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 110.57, with estimates ranging from a low of 90.00 to a high of 145.00.
The consensus 1-year price target stands at 110.57, with estimates ranging from a low of 90.00 to a high of 145.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Aecom Insider Positioning
During the last 12 months, insiders have purchased $401K and sold $4.53M worth of ACM shares, resulting in $4.13M of net selling activity.
3 Months
5.6K
401.05K
0
0.00
+401K
+$401K
3-6 Months
0
0.00
32.8K
3.20M
-3.2M
-$3.20M
6-9 Months
0
0.00
0
0.00
+0
+$0
9-12 Months
0
0.00
11.1K
1.33M
-1.3M
-$1.33M
Top Buyers
Rudd Troy
Director, Officer: Chief Executive Officer
$300K
Kapoor Gaurav
Officer: Chief Financial Officer (Pao)
$101K
Top Sellers
Poloni Lara
Officer: President
$1.68M
Gan David Y.
Officer: Chief Legal Officer
$1.51M
Rudd Troy
Director, Officer: Chief Executive Officer
$1.33M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $4.13M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
3 insider sellers vs. 2 buyers. More insiders selling than buying suggests cautious or negative sentiment.
acm Dividend History
Learning Layer
Related Guides
Build conviction on ACM by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.