Aecom Technology Net Income vs. Return On Equity

ACM Stock  USD 114.93  0.27  0.24%   
Based on the key profitability measurements obtained from Aecom Technology's financial statements, Aecom Technology's profitability may be sliding down. It has an above-average likelihood of reporting lower numbers next quarter. Profitability indicators assess Aecom Technology's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2004-12-31
Previous Quarter
134.3 M
Current Value
172.5 M
Quarterly Volatility
87.2 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Aecom Technology's Price To Sales Ratio is very stable compared to the past year. As of the 4th of December 2024, Days Sales Outstanding is likely to grow to 121.34, while Sales General And Administrative To Revenue is likely to drop 0.01. At this time, Aecom Technology's Net Income Per Share is very stable compared to the past year. As of the 4th of December 2024, Income Quality is likely to grow to 1.89, while Operating Income is likely to drop about 451.1 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.120.0673
Way Up
Slightly volatile
Operating Profit Margin0.04160.0514
Significantly Down
Slightly volatile
For Aecom Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Aecom Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Aecom Technology utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Aecom Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Aecom Technology over time as well as its relative position and ranking within its peers.
  

Aecom Technology's Revenue Breakdown by Earning Segment

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Is Construction & Engineering space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Aecom Technology. If investors know Aecom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Aecom Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.99)
Earnings Share
3.71
Revenue Per Share
116.019
Quarterly Revenue Growth
0.133
Return On Assets
0.0476
The market value of Aecom Technology is measured differently than its book value, which is the value of Aecom that is recorded on the company's balance sheet. Investors also form their own opinion of Aecom Technology's value that differs from its market value or its book value, called intrinsic value, which is Aecom Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Aecom Technology's market value can be influenced by many factors that don't directly affect Aecom Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Aecom Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Aecom Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aecom Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Aecom Technology Return On Equity vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Aecom Technology's current stock value. Our valuation model uses many indicators to compare Aecom Technology value to that of its competitors to determine the firm's financial worth.
Aecom Technology is rated fifth in net income category among its peers. It is rated below average in return on equity category among its peers . The ratio of Net Income to Return On Equity for Aecom Technology is about  2,742,878,427 . At this time, Aecom Technology's Net Income is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Aecom Technology by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Aecom Return On Equity vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Aecom Technology

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
460.25 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Aecom Technology

Return On Equity

 = 

Net Income

Total Equity

 = 
0.17
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Aecom Return On Equity Comparison

Aecom Technology is currently under evaluation in return on equity category among its peers.

Aecom Technology Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Aecom Technology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Aecom Technology will eventually generate negative long term returns. The profitability progress is the general direction of Aecom Technology's change in net profit over the period of time. It can combine multiple indicators of Aecom Technology, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-882.7 M-838.5 M
Operating Income827.4 M451.1 M
Income Before Tax718.2 M754.1 M
Total Other Income Expense Net-109.3 M-114.8 M
Net Income460.3 M483.3 M
Income Tax Expense152.9 M160.5 M
Net Income Applicable To Common Shares49.8 M90.3 M
Net Income From Continuing Ops181 M207.7 M
Non Operating Income Net Other16.3 M15.5 M
Interest Income36.2 M34.4 M
Net Interest Income-137 M-143.8 M
Change To Netincome477.3 M501.2 M
Net Income Per Share 2.97  3.12 
Income Quality 1.80  1.89 
Net Income Per E B T 0.56  0.42 

Aecom Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Aecom Technology. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Aecom Technology position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Aecom Technology's important profitability drivers and their relationship over time.

Use Aecom Technology in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Aecom Technology position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aecom Technology will appreciate offsetting losses from the drop in the long position's value.

Aecom Technology Pair Trading

Aecom Technology Pair Trading Analysis

The ability to find closely correlated positions to Aecom Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Aecom Technology when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Aecom Technology - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Aecom Technology to buy it.
The correlation of Aecom Technology is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Aecom Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Aecom Technology moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Aecom Technology can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Aecom Technology position

In addition to having Aecom Technology in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Penny
Penny Theme
Solid stocks, funds or ETFs with below average market capitalization and typicl daily price below 2. The Penny theme has 56 constituents at this time.
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When determining whether Aecom Technology is a strong investment it is important to analyze Aecom Technology's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Aecom Technology's future performance. For an informed investment choice regarding Aecom Stock, refer to the following important reports:
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To learn how to invest in Aecom Stock, please use our How to Invest in Aecom Technology guide.
You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
To fully project Aecom Technology's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Aecom Technology at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Aecom Technology's income statement, its balance sheet, and the statement of cash flows.
Potential Aecom Technology investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Aecom Technology investors may work on each financial statement separately, they are all related. The changes in Aecom Technology's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Aecom Technology's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.