AECOM Technology Corporation Stock Upgraded (ACM)

NEW YORK (TheStreet) -- AECOM Technology Corporation (NYSE:ACM) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

• Despite its growing revenue, the company underperformed as compared with the industry average of 10.9%. Since the same quarter one year prior, revenues slightly increased by 4.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
• Net operating cash flow has significantly increased by 96.41% to -$6.43 million when compared to the same quarter last year. In addition, AECOM TECHNOLOGY CORP has also vastly surpassed the industry average cash flow growth rate of -15.74%.
• Despite currently having a low debt-to-equity ratio of 0.51, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that ACM's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.63 is high and demonstrates strong liquidity.
• AECOM TECHNOLOGY CORP's earnings per share declined by 12.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AECOM TECHNOLOGY CORP increased its bottom line by earning $2.34 versus $2.05 in the prior year. This year, the market expects an improvement in earnings ($2.55 versus $2.34).

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AECOM Technology Corporation provides professional technical and management support services for commercial and government clients worldwide. The company has a P/E ratio of 10.1, above the average diversified services industry P/E ratio of 9.7 and below the S&P 500 P/E ratio of 17.7. AECOM Technology has a market cap of $2.6 billion and is part of the services sector and diversified services industry. Shares are up 13% year to date as of the close of trading on Tuesday.

You can view the full AECOM Technology Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff

 

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