Exploring NYSE:AME's dividend characteristics.

Last update: Nov 28, 2024

Our stock screener has singled out AMETEK INC (NYSE:AME) as a promising choice for dividend investors. NYSE:AME not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Assessing Dividend for NYSE:AME

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:AME scores a 7 out of 10:

AME's Dividend Yield is rather good when compared to the industry average which is at 1.75. AME pays more dividend than 83.15% 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 been paying a dividend for at least 10 years, so it has a reliable track record.
AME has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
18.90% of the earnings are spent on dividend by AME. This is a low number and sustainable payout ratio.
The dividend of AME is growing, but earnings are growing more, so the dividend growth is sustainable.

How We Gauge Health for NYSE:AME

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:

AME has an Altman-Z score of 7.14. This indicates that AME is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.14, AME belongs to the top of the industry, outperforming 92.13% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.39, AME belongs to the top of the industry, outperforming 89.89% of the companies in the same industry.
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.

Exploring NYSE:AME's Profitability

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:

AME has a Return On Assets of 9.02%. This is amongst the best in the industry. AME outperforms 92.13% of its industry peers.
AME has a Return On Equity of 13.94%. This is amongst the best in the industry. AME outperforms 87.64% of its industry peers.
AME has a Return On Invested Capital of 11.36%. This is amongst the best in the industry. AME outperforms 91.01% of its industry peers.
The 3 year average ROIC (11.01%) for AME is below the current ROIC(11.36%), indicating increased profibility in the last year.
The Profit Margin of AME (19.27%) is better than 98.88% of its industry peers.
In the last couple of years the Profit Margin of AME has grown nicely.
AME has a Operating Margin of 25.83%. This is amongst the best in the industry. AME outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of AME has grown nicely.
With an excellent Gross Margin value of 35.83%, AME belongs to the best of the industry, outperforming 80.90% of the companies in the same industry.

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

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.