Exploring NYSE:AME's dividend characteristics.

Last update: Nov 6, 2024

Consider AMETEK INC (NYSE:AME) as a top pick for dividend investors, identified by our stock screening tool. NYSE:AME shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Evaluating Dividend: NYSE:AME

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:AME has been awarded a 7 for its dividend quality:

Compared to an average industry Dividend Yield of 2.22, AME pays a better dividend. On top of this AME pays more dividend than 81.11% of the companies listed 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.
AME pays out 18.90% of its income as dividend. This is a sustainable payout ratio.
AME's earnings are growing more than its dividend. This makes the dividend growth sustainable.

What does the Health looks like for NYSE:AME

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:AME was assigned a score of 6 for health:

AME has an Altman-Z score of 6.79. This indicates that AME is financially healthy and has little risk of bankruptcy at the moment.
AME has a Altman-Z score of 6.79. This is amongst the best in the industry. AME outperforms 91.11% of its industry peers.
The Debt to FCF ratio of AME is 1.39, which is an excellent value as it means it would take AME, only 1.39 years of fcf income to pay off all of its debts.
AME's Debt to FCF ratio of 1.39 is amongst the best of the industry. AME outperforms 91.11% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that AME is not too dependend on debt financing.
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.

Profitability Assessment of NYSE:AME

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:AME has achieved a 9:

Looking at the Return On Assets, with a value of 9.02%, AME belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
AME has a better Return On Equity (13.94%) than 86.67% of its industry peers.
AME has a better Return On Invested Capital (11.36%) than 87.78% of its industry peers.
The last Return On Invested Capital (11.36%) for AME is above the 3 year average (11.01%), which is a sign of increasing profitability.
AME has a Profit Margin of 19.27%. This is amongst the best in the industry. AME outperforms 98.89% of its industry peers.
AME's Profit Margin has improved in the last couple of years.
AME has a better Operating Margin (25.83%) than 98.89% of its industry peers.
AME's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.83%, AME belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of AME

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.