AMETEK INC (AME) Stock Fundamental Analysis
NYSE:AME - New York Stock Exchange, Inc. - US0311001004 - Common Stock - Currency: USD
Overall AME gets a fundamental rating of 6 out of 10. We evaluated AME against 93 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making AME a very profitable company, without any liquidiy or solvency issues. AME has a decent growth rate and is not valued too expensively. This makes AME very considerable for quality investing!
1. Profitability
1.1 Basic Checks
AME had positive earnings in the past year.
In the past year AME had a positive cash flow from operations.
AME had positive earnings in each of the past 5 years.
Of the past 5 years AME 4 years had a positive operating cash flow.
1.2 Ratios
AME has a Return On Assets of 9.02%. This is amongst the best in the industry. AME outperforms 91.30% of its industry peers.
Looking at the Return On Equity, with a value of 13.94%, AME belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
AME has a better Return On Invested Capital (11.47%) than 88.04% 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 10.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.02% | ||
| ROE | 13.94% | ||
| ROIC | 11.47% |
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
With an excellent Profit Margin value of 19.27%, AME belongs to the best of the industry, outperforming 97.83% of the companies in the same industry.
AME's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 25.83%, AME belongs to the best of the industry, outperforming 98.91% of the companies in the same industry.
AME's Operating Margin has improved in the last couple of years.
AME's Gross Margin of 35.83% is amongst the best of the industry. AME outperforms 81.52% 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 | 25.83% | ||
| PM (TTM) | 19.27% | ||
| GM | 35.83% |
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.
Compared to 5 years ago, AME has more shares outstanding
Compared to 1 year ago, AME has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.97 indicates that AME is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.97, AME belongs to the top of the industry, outperforming 93.48% of the companies in the same industry.
AME has a debt to FCF ratio of 1.39. This is a very positive value and a sign of high solvency as it would only need 1.39 years to pay back of all of its debts.
The Debt to FCF ratio of AME (1.39) is better than 88.04% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that AME is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.18, AME is in line with its industry, outperforming 55.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.39 | ||
| Altman-Z | 6.97 |
ROIC/WACC1.32
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.39 indicates that AME should not have too much problems paying its short term obligations.
AME has a Current ratio of 1.39. This is in the lower half of the industry: AME underperforms 68.48% of its industry peers.
A Quick Ratio of 0.84 indicates that AME may have some problems paying its short term obligations.
With a Quick ratio value of 0.84, AME is not doing good in the industry: 67.39% of the companies in the same industry are doing better.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.05% over the past year.
AME shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.27% yearly.
Looking at the last year, AME shows a small growth in Revenue. The Revenue has grown by 5.22% in the last year.
The Revenue has been growing slightly by 6.12% on average over the past years.
EPS 1Y (TTM)7.05%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%11.31%
Revenue 1Y (TTM)5.22%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%1.77%
3.2 Future
Based on estimates for the next years, AME will show a small growth in Earnings Per Share. The EPS will grow by 7.65% on average per year.
The Revenue is expected to grow by 8.70% on average over the next years. This is quite good.
EPS Next Y5.52%
EPS Next 2Y7.13%
EPS Next 3Y7.7%
EPS Next 5Y7.65%
Revenue Next Year4.11%
Revenue Next 2Y5.01%
Revenue Next 3Y5.82%
Revenue Next 5Y8.7%
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
A Price/Earnings ratio of 27.26 indicates a quite expensive valuation of AME.
75.00% of the companies in the same industry are more expensive than AME, based on the Price/Earnings ratio.
AME is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.83 indicates a quite expensive valuation of AME.
75.00% of the companies in the same industry are more expensive than AME, based on the Price/Forward Earnings ratio.
AME is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.26 | ||
| Fwd PE | 25.83 |
4.2 Price Multiples
72.83% of the companies in the same industry are more expensive than AME, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AME is valued a bit cheaper than 77.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.57 | ||
| EV/EBITDA | 21.08 |
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)4.94
PEG (5Y)2.66
EPS Next 2Y7.13%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
AME has a yearly dividend return of 0.67%, which is pretty low.
AME's Dividend Yield is rather good when compared to the industry average which is at 3.59. AME pays more dividend than 83.70% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, AME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
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.
Dividend Growth(5Y)12.17%
Div Incr Years5
Div Non Decr Years27
5.3 Sustainability
18.90% of the earnings are spent on dividend by AME. This is a low number and sustainable payout ratio.
AME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.9%
EPS Next 2Y7.13%
EPS Next 3Y7.7%
186.19
-2.59 (-1.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.69%
Inst Owner Change1.36%
Ins Owners0.39%
Ins Owner Change-0.1%
Market Cap43.07B
Analysts76.19
Price Target206.94 (11.14%)
Short Float %0.85%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend1
Dividend Growth(5Y)12.17%
DP18.9%
Div Incr Years5
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.8%
Min EPS beat(2)-0.07%
Max EPS beat(2)1.68%
EPS beat(4)3
Avg EPS beat(4)1.39%
Min EPS beat(4)-0.07%
Max EPS beat(4)2.05%
EPS beat(8)7
Avg EPS beat(8)2.28%
EPS beat(12)11
Avg EPS beat(12)3.05%
EPS beat(16)15
Avg EPS beat(16)3.37%
Revenue beat(2)0
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-3.67%
Max Revenue beat(2)-1.07%
Revenue beat(4)0
Avg Revenue beat(4)-2.37%
Min Revenue beat(4)-3.67%
Max Revenue beat(4)-1.07%
Revenue beat(8)2
Avg Revenue beat(8)-1.16%
Revenue beat(12)5
Avg Revenue beat(12)-0.29%
Revenue beat(16)8
Avg Revenue beat(16)0.13%
PT rev (1m)1.88%
PT rev (3m)9.24%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)0.75%
EPS NY rev (1m)-2.58%
EPS NY rev (3m)-2.32%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)-1.64%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.26 | ||
| Fwd PE | 25.83 | ||
| P/S | 6.23 | ||
| P/FCF | 25.57 | ||
| P/OCF | 23.67 | ||
| P/B | 4.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.08 |
EPS(TTM)6.83
EY3.67%
EPS(NY)7.21
Fwd EY3.87%
FCF(TTM)7.28
FCFY3.91%
OCF(TTM)7.87
OCFY4.22%
SpS29.88
BVpS41.29
TBVpS-4.11
PEG (NY)4.94
PEG (5Y)2.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.02% | ||
| ROE | 13.94% | ||
| ROCE | 13.94% | ||
| ROIC | 11.47% | ||
| ROICexc | 11.84% | ||
| ROICexgc | 77.16% | ||
| OM | 25.83% | ||
| PM (TTM) | 19.27% | ||
| GM | 35.83% | ||
| FCFM | 24.38% |
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)105.86%
ROICexgc(5y)93.59%
ROCE(3y)14.02%
ROCE(5y)13.26%
ROICexcg growth 3Y16.57%
ROICexcg growth 5Y9.16%
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-Score8
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.39 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 35.65% | ||
| Cap/Sales | 1.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.09% | ||
| Profit Quality | 126.48% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 6.97 |
F-Score8
WACC8.69%
ROIC/WACC1.32
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.05%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%11.31%
EPS Next Y5.52%
EPS Next 2Y7.13%
EPS Next 3Y7.7%
EPS Next 5Y7.65%
Revenue 1Y (TTM)5.22%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%1.77%
Revenue Next Year4.11%
Revenue Next 2Y5.01%
Revenue Next 3Y5.82%
Revenue Next 5Y8.7%
EBIT growth 1Y7.48%
EBIT growth 3Y10.79%
EBIT growth 5Y8.61%
EBIT Next Year29.3%
EBIT Next 3Y14%
EBIT Next 5Y12.94%
FCF growth 1Y16.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y15.19%
OCF growth 3YN/A
OCF growth 5YN/A