ABM Industries Incorporated

Dividend Kings have a 50+ year track record of increasing dividends, showcasing resilience through economic challenges. I rank the Dividend Kings using my 9F Quality Scores, blending qualitative and quantitative factors for a robust, investment-grade assessment. ADP stands out as the best total-return candidate. It is undervalued, high-quality, and offering a strong projected dividend growth rate and Adjusted Chowder Number.

ABM Industries remains attractively valued at ~11x forward earnings, with a compelling margin of safety despite a 20% total return since the last review. ABM demonstrates healthy mid-single-digit revenue growth, driven by strong performance in Data Centers, Semiconductors, and M&A, with new segments now 11% of revenue. Margin expansion opportunities exist through operational efficiencies, M&A integration, and technology adoption, though low EBITDA margins highlight industry challenges and competitive pricing risks.

ABM Industries (ABM) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

Investors with an interest in Business - Services stocks have likely encountered both ABM Industries (ABM) and Thomson Reuters (TRI). But which of these two companies is the best option for those looking for undervalued stocks?