AMETEK INC (AME) Stock Fundamental Analysis
NYSE:AME - New York Stock Exchange, Inc. - US0311001004 - Common Stock
Taking everything into account, AME scores 6 out of 10 in our fundamental rating. AME was compared to 93 industry peers in the Electrical Equipment industry. While AME has a great profitability rating, there are some minor concerns on its financial health. AME is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years AME has always been profitable.
Each year in the past 5 years AME had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 9.02%, AME belongs to the best of the industry, outperforming 91.21% of the companies in the same industry.
AME's Return On Equity of 13.94% is amongst the best of the industry. AME outperforms 86.81% of its industry peers.
With an excellent Return On Invested Capital value of 11.36%, AME belongs to the best of the industry, outperforming 90.11% of the companies in the same industry.
AME had an Average Return On Invested Capital over the past 3 years of 11.01%. This is in line with the industry average of 10.46%.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.02% | ||
| ROE | 13.94% | ||
| ROIC | 11.36% |
ROA(3y)8.8%
ROA(5y)8.71%
ROE(3y)14.99%
ROE(5y)15.29%
ROIC(3y)11.01%
ROIC(5y)10.76%
1.3 Margins
AME has a Profit Margin of 19.27%. This is amongst the best in the industry. AME outperforms 98.90% of its industry peers.
In the last couple of years the Profit Margin of AME has grown nicely.
AME's Operating Margin of 25.83% is amongst the best of the industry. AME outperforms 100.00% of its industry peers.
AME's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 35.83%, AME belongs to the best of the industry, outperforming 81.32% of the companies in the same industry.
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 3Y3.11%
OM growth 5Y3.12%
PM growth 3Y1.18%
PM growth 5Y4.4%
GM growth 3Y1.12%
GM growth 5Y-0.55%
2. Health
2.1 Basic Checks
AME has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AME has more shares outstanding than it did 1 year ago.
AME has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AME is higher compared to a year ago.
2.2 Solvency
AME has an Altman-Z score of 6.75. This indicates that AME is financially healthy and has little risk of bankruptcy at the moment.
AME's Altman-Z score of 6.75 is amongst the best of the industry. AME outperforms 90.11% 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.
With an excellent Debt to FCF ratio value of 1.39, AME belongs to the best of the industry, outperforming 87.91% 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 has a Debt to Equity ratio of 0.18. This is comparable to the rest of the industry: AME outperforms 56.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.39 | ||
| Altman-Z | 6.75 |
ROIC/WACC1.07
WACC10.6%
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 worse Current ratio (1.39) than 68.13% of its industry peers.
A Quick Ratio of 0.84 indicates that AME may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.84, AME is doing worse than 69.23% of the companies in the same industry.
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 | 1.39 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
AME shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.75%.
Measured over the past years, AME shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.09% on average per year.
AME shows a small growth in Revenue. In the last year, the Revenue has grown by 6.45%.
AME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.36% yearly.
EPS 1Y (TTM)6.75%
EPS 3Y17.33%
EPS 5Y14.09%
EPS Q2Q%1.22%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y13.27%
Revenue growth 5Y6.36%
Sales Q2Q%5.28%
3.2 Future
The Earnings Per Share is expected to grow by 7.53% on average over the next years.
AME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.20% yearly.
EPS Next Y7.9%
EPS Next 2Y7.68%
EPS Next 3Y7.85%
EPS Next 5Y7.53%
Revenue Next Year6.28%
Revenue Next 2Y6.03%
Revenue Next 3Y6.02%
Revenue Next 5Y8.2%
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 27.82, AME can be considered very expensive at the moment.
74.73% 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 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.97, the valuation of AME can be described as rather expensive.
Based on the Price/Forward Earnings ratio, AME is valued a bit cheaper than 75.82% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. AME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.82 | ||
| Fwd PE | 24.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AME is valued a bit cheaper than 72.53% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 78.02% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.36 | ||
| EV/EBITDA | 20.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AME has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.52
PEG (5Y)1.97
EPS Next 2Y7.68%
EPS Next 3Y7.85%
5. Dividend
5.1 Amount
AME has a yearly dividend return of 0.62%, which is pretty low.
AME's Dividend Yield is rather good when compared to the industry average which is at 3.40. AME pays more dividend than 82.42% of the companies in the same industry.
With a Dividend Yield of 0.62, AME pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
The dividend of AME is nicely growing with an annual growth rate of 12.17%!
AME has paid a dividend for at least 10 years, which is 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 2Y7.68%
EPS Next 3Y7.85%
AMETEK INC
NYSE:AME (1/21/2025, 7:40:22 PM)
After market: 184.7 0 (0%)184.7
+3.97 (+2.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.69%
Inst Owner Change0.18%
Ins Owners0.39%
Ins Owner Change-0.1%
Market Cap42.72B
Analysts76.19
Price Target203.13 (9.98%)
Short Float %1.1%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend1
Dividend Growth(5Y)12.17%
DP18.9%
Div Incr Years5
Div Non Decr Years27
Ex-DateN/A
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)1.09%
PT rev (3m)7.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.29%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.82 | ||
| Fwd PE | 24.97 | ||
| P/S | 6.18 | ||
| P/FCF | 25.36 | ||
| P/OCF | 23.48 | ||
| P/B | 4.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.22 |
EPS(TTM)6.64
EY3.6%
EPS(NY)7.4
Fwd EY4.01%
FCF(TTM)7.28
FCFY3.94%
OCF(TTM)7.87
OCFY4.26%
SpS29.88
BVpS41.29
TBVpS-4.11
PEG (NY)3.52
PEG (5Y)1.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.02% | ||
| ROE | 13.94% | ||
| ROCE | 13.94% | ||
| ROIC | 11.36% | ||
| ROICexc | 11.72% | ||
| ROICexgc | 76.38% | ||
| OM | 25.83% | ||
| PM (TTM) | 19.27% | ||
| GM | 35.83% | ||
| FCFM | 24.38% |
ROA(3y)8.8%
ROA(5y)8.71%
ROE(3y)14.99%
ROE(5y)15.29%
ROIC(3y)11.01%
ROIC(5y)10.76%
ROICexc(3y)11.38%
ROICexc(5y)11.38%
ROICexgc(3y)89.75%
ROICexgc(5y)83.96%
ROCE(3y)13.51%
ROCE(5y)13.21%
ROICexcg growth 3Y20.2%
ROICexcg growth 5Y7.96%
ROICexc growth 3Y3.09%
ROICexc growth 5Y-0.94%
OM growth 3Y3.11%
OM growth 5Y3.12%
PM growth 3Y1.18%
PM growth 5Y4.4%
GM growth 3Y1.12%
GM growth 5Y-0.55%
F-Score5
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 | 6.75 |
F-Score5
WACC10.6%
ROIC/WACC1.07
Cap/Depr(3y)40.59%
Cap/Depr(5y)38.91%
Cap/Sales(3y)2.11%
Cap/Sales(5y)1.99%
Profit Quality(3y)104.98%
Profit Quality(5y)114.16%
High Growth Momentum
Growth
EPS 1Y (TTM)6.75%
EPS 3Y17.33%
EPS 5Y14.09%
EPS Q2Q%1.22%
EPS Next Y7.9%
EPS Next 2Y7.68%
EPS Next 3Y7.85%
EPS Next 5Y7.53%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y13.27%
Revenue growth 5Y6.36%
Sales Q2Q%5.28%
Revenue Next Year6.28%
Revenue Next 2Y6.03%
Revenue Next 3Y6.02%
Revenue Next 5Y8.2%
EBIT growth 1Y7.48%
EBIT growth 3Y16.79%
EBIT growth 5Y9.69%
EBIT Next Year29.14%
EBIT Next 3Y13.94%
EBIT Next 5Y11.51%
FCF growth 1Y82.69%
FCF growth 3Y9.84%
FCF growth 5Y13.65%
OCF growth 1Y73.9%
OCF growth 3Y10.65%
OCF growth 5Y13.4%