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Services-business services, nec company · DE · FY ends Dec · Revenue $11.60B · 19.62% margin
$113.01
+$2.61 (+2.36%)
Price from 21 days ago
Margins and capital returns are both well above average: 20.51% operating margin, ROIC at 16.14%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 7.9%, steady but not accelerating. Margins contracted 2.0pp, which offsets some of the top-line progress.
At 26x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Free cash flow declined 27% versus the prior year, cash generation momentum has weakened.
25.6x earnings, 36.0x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$11.60B
▲ +7.9% YoY
Net Income (TTM)
$2.04B
▲ +2.8% YoY
Op. Margin
19.62%
▼ -2.0pp YoY
ROIC
17.28%
▲ +1.7pp YoY
Cash Flow & Balance Sheet
FCF (FY)
$1.43B
▼ -26.7% YoY
Op. Cash Flow (FY)
$1.96B
▼ -18.8% YoY
Net Debt
$4.31B
Cash & Equiv.
$2.89B
5Y CAGR: +4.5%
5Y CAGR: -6.0%
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