AECOM Technology Corp (NYSE:ACM)
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The Company provides planning, consulting, architectural and engineering design and program and construction management services for a range of projects including highways, airports, bridges, mass transit systems, to government and commercial clients.
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Scott Black pick. Market capitalization is $3.12 billion. In the fiscal year that ended last september they did $6.55 billion in gross revenue. Based on a record backlog of $14.7 billion, up 55% from last year, gross revenue could be $8.4 billion this year. After pass-through costs to subcontractors for time and material, in many cases, net revenue will be $5.124 billion. With operating income of $425 million and a 30% tax rate, you get net income of $298 million. Subcontract out noncontrolling interests in other entities, and net is $2.45 a share. The stock sells for 10.9 times estimated earnings. Jacobs engineering sells for 19 times this years earnings. Fluor is 20 times. (there is some gov exposure)- Private funding accounts for 33% of the backlog. Federal contracts are 34%, and state and local are 12%. Aecom also has contracts with other governments. The company has a net debt-to-equity ratio of only 0.15.