Stock analysis · Bull Rankings model

ACM analysis

AECOMEngineering & Construction. Scored on the same transparent model behind the daily rankings.

Infrastructure & Reshoring
ACM
AECOM · Engineering & Construction
FCF$410mC
Rev-0.4%D+
D/E1.35C
P/E15.6xA-
PEG0.73A-
68.1Score
$74.80$9.6B
1Y Target$99.21Analyst consensus · 12 analysts
5Y Target$125.25Compound horizon
10Y Target$160.63Long-dated conviction
FCF$410mTTM
C
FCF $410m — modest; watch for margin expansion
Rev-0.4%TTM YoY
D+
Revenue -0.4% — shrinking; needs a catalyst to reverse
D/E1.35
C
D/E 1.35 — more levered than most Industrials peers (≈90th pctile)
P/E15.6x
A-
P/E 15.6 — cheaper than most Industrials peers (≈25th pctile)
PEG0.73
A-
PEG 0.73 — strong; Lynch's preferred zone

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 68.1
Quality0.71
Growth0.50
Value0.89
Why this score
  • Buying back stock
  • Raising its dividend
  • Revenue shrinking
Entry · Margin of safety
52-week rangeNear 52-week low
45% off the 12-month high
vs DCF fair value21% aboveest. fair value ~$62
What the price assumes: free cash flow compounding at ~13% a year for the next decade — vs the ~13% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability10% · C+gross profit ÷ total assets (Novy-Marx)
ROIC22.8% · Areturn on invested capital — not score-weighted
Why now
Engineering & Construction · market cap $9.6b. Down 45% from 52-week high of $135.52 — deep drawdown territory. PEG 0.73 — paying under fair value for the growth rate. 12 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $99.21 (implying +33% upside).
Moat
ROE 22% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately.
Risk
Down 45% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Net margin 3.2% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Horizon
1-3 yr $99.21 (12-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $125.25 at ~11% CAGR — dividend + buyback compounding. 10 yr $160.63 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

ACM vs the Top Picks average

PillarACMBook avgDiff
Quality0.710.83-0.12
Growth0.500.91-0.41
Value0.890.75+0.14

Averaged across the 30 names in today's Top Picks (mean score 81.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-1.3 over 33 daily scores
From 69.4 (Jun 22) → 68.1 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
26
Position size
$1,945
3.9% of portfolio
Stop price
$56.10
25% below $74.80
$ at risk if stopped
$486.20
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

AECOM (ACM): score, valuation & FAQ

AECOM (ACM) is a Engineering & Construction company that scores 68.1 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/E (A-) and PEG (A-), while Rev (D+) rate weaker. On valuation, ACM sits about 21% above our discounted-cash-flow fair value — the current price implies roughly 13% annual free-cash-flow growth over the next decade.

Is ACM a good stock to buy?

Bull Rankings scores ACM 68.1 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by P/E (A-) and PEG (A-). A score is a quantitative screen of AECOM's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does ACM score 68.1 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). ACM earns its highest marks on P/E (A-) and PEG (A-), and is held back by Rev (D+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is ACM overvalued or undervalued?

Based on $74.80, ACM sits about 21% above our discounted-cash-flow fair value — the current price implies roughly 13% annual free-cash-flow growth over the next decade. It trades at a 15.6x× P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in ACM?

Down 45% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Net margin 3.2% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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