Business Services Industry Report
Market Cap: $2.6T
Stocks: 164
Median P/E: 17.4x
Median ROIC: 5.8%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
Part of the Industrials sector.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | -0.4% | 0.0% |
| 1 Week | -2.4% | +0.8% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | +0.2% | +0.1% |
| 1 Year | -6.2% | -18.5% |
| 3 Years | +45.5% | -23.6% |
| 5 Years | +14.2% | -48.1% |
Today's Breadth: 68 advancing · 67 declining · 20 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 17.4x | 1.4x | 34.2x | -12% |
| P/B | 2.1x | 0.6x | 4.5x | -19% |
| P/S | 0.8x | 0.2x | 2.6x | — |
| P/FCF | 10.7x | 4.7x | 17.9x | — |
| EV/EBITDA | 12.3x | 8.2x | 20.0x | — |
| EV/EBIT | 14.4x | 11.4x | 27.0x | — |
Earnings Yield
4.2%
FCF Yield
6.1%
Below Fair Value
67% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 40.3% | 40.1% | 27.6% | 63.1% |
| Operating Margin | 4.9% | — | -1.7% | 13.6% |
| Net Margin | 2.5% | 1.6% | -3.2% | 8.6% |
| FCF Margin | 8.6% | — | 3.2% | 16.7% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | 4.5% | — | -11.0% | 15.8% |
| ROA | 1.7% | — | -5.8% | 6.3% |
| ROIC | 5.8% | 7.1% | -2.7% | 15.4% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | +5.4% | +6.3% | +8.6% |
| EPS | +23.8% | +10.0% | +8.8% |
| Free Cash Flow | +11.3% | +11.3% | +6.5% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
0.7x
Net Debt / EBITDA
1.5x
Interest Coverage
2.3x
Current Ratio
1.3x
Altman Z-Score
Safe (>3): 47 (32%)
Gray (1.8–3): 33 (23%)
Distress (<1.8): 65 (45%)
Piotroski F-Score
Strong (7–9): 28 (17%)
Moderate (4–6): 103 (63%)
Weak (0–3): 32 (20%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| V | 1 | $523.6B | 34.9x | 22.4x | 56.6% | 50.1% | +11.3% | 0.8% | +0.3% | 7/9 |
| MA | 2 | $460.8B | 35.0x | 26.1x | — | 45.6% | +16.4% | 0.6% | -0.6% | 6/9 |
| BABA | 3 | $305.8B | 20.1x | 13.5x | 17.7% | 13.0% | +6.2% | 1.1% | -5.7% | 4/9 |
| UBER | 4 | $153.7B | 17.2x | 27.8x | 20.4% | 19.3% | +18.3% | — | +6.6% | 4/9 |
| PDD | 5 | $143.0B | 8.8x | — | 36.7% | 28.6% | +56.5% | — | -1.9% | 6/9 |
| ACN | 6 | $121.3B | 21.1x | 12.3x | 29.3% | 11.0% | +7.4% | 2.3% | -0.8% | 6/9 |
| MELI | 7 | $92.9B | 50.9x | 26.0x | 35.7% | 6.9% | +39.1% | — | +0.7% | 7/9 |
| DASH | 8 | $70.1B | 109.8x | 68.0x | 14.0% | 6.8% | +27.9% | — | +5.0% | 3/9 |
| URI | 9 | $50.4B | 21.4x | 9.6x | 12.6% | 15.5% | +4.9% | 0.9% | +1.5% | 5/9 |
| INVUP | 10 | $47.4B | — | — | 5.4% | 0.7% | -22.9% | 0.0% | -5.8% | 2/9 |
| PYPL | 11 | $46.0B | 11.1x | 8.2x | 24.2% | 15.8% | +4.3% | 0.2% | +4.0% | 6/9 |
| EBAY | 12 | $45.9B | 19.6x | 16.6x | 22.0% | 18.3% | +8.0% | 1.3% | +4.0% | 5/9 |
| MSCI | 13 | $42.4B | 37.1x | 28.7x | 51.3% | 38.4% | +9.8% | 1.2% | +4.5% | 5/9 |
| TCOM | 14 | $34.0B | 19.4x | 18.5x | 14.7% | 32.0% | +17.9% | — | -0.6% | 3/9 |
| FISV | 15 | $32.3B | 10.7x | 8.6x | 9.0% | 16.4% | +3.6% | — | +3.8% | 5/9 |
| AER | 16 | $26.2B | — | — | 9.1% | 44.0% | +6.5% | — | +3.2% | 2/9 |
| FICO | 17 | $24.6B | 57.2x | 43.2x | 57.7% | 32.8% | +15.9% | — | +9.7% | 5/9 |
| FIS | 18 | $24.3B | 92.0x | 13.0x | 5.3% | 3.6% | +5.4% | 2.4% | +2.0% | 2/9 |
| CPAY | 19 | $22.4B | 20.6x | 11.6x | 16.1% | 23.6% | +13.9% | — | -7.3% | 4/9 |
| GRAB | 20 | $19.6B | — | 368.7x | -2.5% | -5.7% | +18.6% | — | +1.0% | 1/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Services-Business Services, Nec | 91 | $2.4T | 93.4% | |
| Services-Equipment Rental & Leasing, Nec | 7 | $90.6B | 3.5% | |
| Services-Management Consulting Services | 23 | $34.0B | 1.3% | |
| Specialty Business Services | 8 | $31.4B | 1.2% | |
| Services-Help Supply Services | 21 | $10.7B | 0.4% | |
| Services-Advertising | 14 | $3.4B | 0.1% |
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
4%
Median Piotroski F
5/9
Profitable Years
5 of 10
Dividends & Shareholder Returns
Paying Dividends
31%
Median Div Yield
1.8%
Median Buyback Yield
2.9%
Shareholder Yield
3.7%
Payout Ratio
30.6%
Div Growth (3Y)
9.2%
Div Growth (5Y)
5.3%
Strengths & Weaknesses
Strengths
- +[Valuation]67.0% of companies trade below estimated fair value, indicating broad-based undervaluation.
Weaknesses
- −[Financial Health]44.8% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Leverage]Tight interest coverage at 2.3x, leaving limited cushion for debt servicing if earnings decline.
- −[Profitability]Below-average capital returns with a median ROIC of 5.8%, suggesting limited pricing power or capital-intensive operations.
- −[Profitability]Razor-thin net margins at a median of 2.5%, leaving little room for execution error or economic downturn.