AMETEK INC (AME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AME - US0311001004 - Common Stock
199.8 USD
+0.58 (+0.29%)
199.8 USD
0 (0%)
Overall AME gets a fundamental rating of 6 out of 10. We evaluated AME against 90 industry peers in the Electrical Equipment industry. AME scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AME is not valued too expensively and it also shows a decent growth rate. This makes AME very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year AME was profitable.
In the past year AME had a positive cash flow from operations.
Each year in the past 5 years AME has been profitable.
In the past 5 years AME always reported a positive cash flow from operatings.
1.2 Ratios
AME has a better Return On Assets (9.08%) than 88.89% of its industry peers.
With an excellent Return On Equity value of 13.95%, AME belongs to the best of the industry, outperforming 85.56% of the companies in the same industry.
AME's Return On Invested Capital of 11.51% is amongst the best of the industry. AME outperforms 85.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AME is in line with the industry average of 9.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.08% | ||
| ROE | 13.95% | ||
| ROIC | 11.51% |
ROA(3y)9.16%
ROA(5y)8.84%
ROE(3y)14.93%
ROE(5y)14.77%
ROIC(3y)11.54%
ROIC(5y)10.91%
1.3 Margins
Looking at the Profit Margin, with a value of 20.50%, AME belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
AME's Profit Margin has improved in the last couple of years.
AME has a Operating Margin of 26.43%. This is amongst the best in the industry. AME outperforms 100.00% of its industry peers.
AME's Operating Margin has improved in the last couple of years.
AME has a Gross Margin of 36.18%. This is in the better half of the industry: AME outperforms 78.89% of its industry peers.
In the last couple of years the Gross Margin of AME has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.43% | ||
| PM (TTM) | 20.5% | ||
| GM | 36.18% |
OM growth 3Y2.81%
OM growth 5Y2.35%
PM growth 3Y3.56%
PM growth 5Y3.5%
GM growth 3Y1.14%
GM growth 5Y-1.15%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AME is still creating some value.
The number of shares outstanding for AME remains at a similar level compared to 1 year ago.
The number of shares outstanding for AME has been increased compared to 5 years ago.
Compared to 1 year ago, AME has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.77 indicates that AME is not in any danger for bankruptcy at the moment.
AME has a better Altman-Z score (6.77) than 88.89% of its industry peers.
The Debt to FCF ratio of AME is 1.50, which is an excellent value as it means it would take AME, only 1.50 years of fcf income to pay off all of its debts.
AME's Debt to FCF ratio of 1.50 is amongst the best of the industry. AME outperforms 92.22% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that AME is not too dependend on debt financing.
The Debt to Equity ratio of AME (0.14) is better than 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 6.77 |
ROIC/WACC1.36
WACC8.49%
2.3 Liquidity
A Current Ratio of 1.16 indicates that AME should not have too much problems paying its short term obligations.
AME has a worse Current ratio (1.16) than 71.11% of its industry peers.
A Quick Ratio of 0.72 indicates that AME may have some problems paying its short term obligations.
AME has a worse Quick ratio (0.72) than 72.22% of its industry peers.
The current and quick ratio evaluation for AME is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
AME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.79%, which is quite good.
Measured over the past years, AME shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.27% on average per year.
AME shows a small growth in Revenue. In the last year, the Revenue has grown by 3.67%.
The Revenue has been growing slightly by 6.12% on average over the past years.
EPS 1Y (TTM)9.79%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%13.86%
Revenue 1Y (TTM)3.67%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%10.77%
3.2 Future
The Earnings Per Share is expected to grow by 8.10% on average over the next years. This is quite good.
Based on estimates for the next years, AME will show a small growth in Revenue. The Revenue will grow by 7.72% on average per year.
EPS Next Y8.54%
EPS Next 2Y8.46%
EPS Next 3Y8.58%
EPS Next 5Y8.1%
Revenue Next Year4.66%
Revenue Next 2Y6.12%
Revenue Next 3Y6.08%
Revenue Next 5Y7.72%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.41, AME can be considered very expensive at the moment.
AME's Price/Earnings ratio is a bit cheaper when compared to the industry. AME is cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of AME to the average of the S&P500 Index (26.49), we can say AME is valued inline with the index average.
A Price/Forward Earnings ratio of 24.87 indicates a rather expensive valuation of AME.
Based on the Price/Forward Earnings ratio, AME is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.69. AME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.41 | ||
| Fwd PE | 24.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AME is valued a bit cheaper than the industry average as 75.56% of the companies are valued more expensively.
78.89% of the companies in the same industry are more expensive than AME, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28 | ||
| EV/EBITDA | 20.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AME does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of AME may justify a higher PE ratio.
PEG (NY)3.21
PEG (5Y)2.67
EPS Next 2Y8.46%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, AME is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.08, AME pays a better dividend. On top of this AME pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, AME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
The dividend of AME is nicely growing with an annual growth rate of 14.93%!
AME has been paying a dividend for at least 10 years, so it has a reliable track record.
AME has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.93%
Div Incr Years5
Div Non Decr Years27
5.3 Sustainability
AME pays out 19.00% of its income as dividend. This is a sustainable payout ratio.
AME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19%
EPS Next 2Y8.46%
EPS Next 3Y8.58%
199.8
+0.58 (+0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.24%
Inst Owner Change5.31%
Ins Owners0.29%
Ins Owner Change-3.02%
Market Cap45.99B
Revenue(TTM)7.16B
Net Income(TTM)1.47B
Analysts74.78
Price Target223.44 (11.83%)
Short Float %0.92%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend1.12
Dividend Growth(5Y)14.93%
DP19%
Div Incr Years5
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.42%
Min EPS beat(2)4.48%
Max EPS beat(2)6.35%
EPS beat(4)3
Avg EPS beat(4)3.13%
Min EPS beat(4)-0.93%
Max EPS beat(4)6.35%
EPS beat(8)6
Avg EPS beat(8)2.26%
EPS beat(12)10
Avg EPS beat(12)2.57%
EPS beat(16)14
Avg EPS beat(16)3.07%
Revenue beat(2)2
Avg Revenue beat(2)2.17%
Min Revenue beat(2)1.49%
Max Revenue beat(2)2.86%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)2.86%
Revenue beat(8)2
Avg Revenue beat(8)-1.37%
Revenue beat(12)4
Avg Revenue beat(12)-0.89%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)5.65%
PT rev (3m)6.61%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)2.81%
EPS NY rev (1m)0.78%
EPS NY rev (3m)2.65%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.41 | ||
| Fwd PE | 24.87 | ||
| P/S | 6.42 | ||
| P/FCF | 28 | ||
| P/OCF | 26.02 | ||
| P/B | 4.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.82 |
EPS(TTM)7.29
EY3.65%
EPS(NY)8.03
Fwd EY4.02%
FCF(TTM)7.14
FCFY3.57%
OCF(TTM)7.68
OCFY3.84%
SpS31.12
BVpS45.73
TBVpS-3.93
PEG (NY)3.21
PEG (5Y)2.67
Graham Number86.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.08% | ||
| ROE | 13.95% | ||
| ROCE | 13.99% | ||
| ROIC | 11.51% | ||
| ROICexc | 11.9% | ||
| ROICexgc | 93.74% | ||
| OM | 26.43% | ||
| PM (TTM) | 20.5% | ||
| GM | 36.18% | ||
| FCFM | 22.93% |
ROA(3y)9.16%
ROA(5y)8.84%
ROE(3y)14.93%
ROE(5y)14.77%
ROIC(3y)11.54%
ROIC(5y)10.91%
ROICexc(3y)11.92%
ROICexc(5y)11.49%
ROICexgc(3y)93.58%
ROICexgc(5y)86.23%
ROCE(3y)14.02%
ROCE(5y)13.26%
ROICexgc growth 3Y3.6%
ROICexgc growth 5Y1.71%
ROICexc growth 3Y3.76%
ROICexc growth 5Y-0.05%
OM growth 3Y2.81%
OM growth 5Y2.35%
PM growth 3Y3.56%
PM growth 5Y3.5%
GM growth 3Y1.14%
GM growth 5Y-1.15%
F-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 30.26% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.63% | ||
| Profit Quality | 111.83% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 6.77 |
F-Score7
WACC8.49%
ROIC/WACC1.36
Cap/Depr(3y)39.02%
Cap/Depr(5y)36.8%
Cap/Sales(3y)2.05%
Cap/Sales(5y)1.96%
Profit Quality(3y)110.86%
Profit Quality(5y)115.39%
High Growth Momentum
Growth
EPS 1Y (TTM)9.79%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%13.86%
EPS Next Y8.54%
EPS Next 2Y8.46%
EPS Next 3Y8.58%
EPS Next 5Y8.1%
Revenue 1Y (TTM)3.67%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%10.77%
Revenue Next Year4.66%
Revenue Next 2Y6.12%
Revenue Next 3Y6.08%
Revenue Next 5Y7.72%
EBIT growth 1Y6.1%
EBIT growth 3Y10.79%
EBIT growth 5Y8.61%
EBIT Next Year28.81%
EBIT Next 3Y14.79%
EBIT Next 5Y12.18%
FCF growth 1Y13.68%
FCF growth 3Y17.47%
FCF growth 5Y10.95%
OCF growth 1Y11.9%
OCF growth 3Y16.37%
OCF growth 5Y10.41%
AMETEK INC / AME FAQ
What is the fundamental rating for AME stock?
ChartMill assigns a fundamental rating of 6 / 10 to AME.
What is the valuation status for AME stock?
ChartMill assigns a valuation rating of 4 / 10 to AMETEK INC (AME). This can be considered as Fairly Valued.
What is the profitability of AME stock?
AMETEK INC (AME) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for AME stock?
The Price/Earnings (PE) ratio for AMETEK INC (AME) is 27.41 and the Price/Book (PB) ratio is 4.37.
What is the earnings growth outlook for AMETEK INC?
The Earnings per Share (EPS) of AMETEK INC (AME) is expected to grow by 8.54% in the next year.