Balancing Dividends and Fundamentals: The Case of NYSE:AME.

Unearth the potential of AMETEK INC (NYSE:AME) as a dividend stock recommended by our stock screening tool. NYSE:AME maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

ChartMill's Evaluation of Dividend

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:AME has received a 7 out of 10:

• AME's Dividend Yield is rather good when compared to the industry average which is at 2.34. AME pays more dividend than 82.22% of the companies in the same industry.
• On average, the dividend of AME grows each year by 12.17%, which is quite nice.
• AME has paid a dividend for at least 10 years, which is a reliable track record.
• AME has not decreased their dividend for at least 10 years, which is a reliable track record.
• 18.37% of the earnings are spent on dividend by AME. This is a low number and sustainable payout ratio.
• AME's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Exploring NYSE:AME's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:AME scores a 6 out of 10:

• An Altman-Z score of 6.18 indicates that AME is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 6.18, AME belongs to the top of the industry, outperforming 91.11% of the companies in the same industry.
• AME has a debt to FCF ratio of 1.59. This is a very positive value and a sign of high solvency as it would only need 1.59 years to pay back of all of its debts.
• AME has a better Debt to FCF ratio (1.59) than 87.78% of its industry peers.
• AME has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
• AME does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:AME scores a 9 out of 10:

• With an excellent Return On Assets value of 9.00%, AME belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 14.40%, AME belongs to the top of the industry, outperforming 87.78% of the companies in the same industry.
• AME has a better Return On Invested Capital (11.49%) than 86.67% of its industry peers.
• The 3 year average ROIC (11.01%) for AME is below the current ROIC(11.49%), indicating increased profibility in the last year.
• AME has a better Profit Margin (19.52%) than 98.89% of its industry peers.
• In the last couple of years the Profit Margin of AME has grown nicely.
• AME's Operating Margin of 26.04% is amongst the best of the industry. AME outperforms 98.89% of its industry peers.
• AME's Operating Margin has improved in the last couple of years.
• AME has a better Gross Margin (36.08%) than 86.67% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of AME contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.