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 7 out of 10. We evaluated AME against 94 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AME had positive earnings in the past year.
AME had a positive operating cash flow in the past year.
In the past 5 years AME has always been profitable.
AME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AME has a Return On Assets of 9.52%. This is amongst the best in the industry. AME outperforms 92.55% of its industry peers.
AME has a Return On Equity of 14.21%. This is amongst the best in the industry. AME outperforms 86.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.58%, AME belongs to the top of the industry, outperforming 85.11% of the companies in the same industry.
AME had an Average Return On Invested Capital over the past 3 years of 11.54%. This is in line with the industry average of 9.89%.
The last Return On Invested Capital (11.58%) for AME is above the 3 year average (11.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.52% | ||
| ROE | 14.21% | ||
| ROIC | 11.58% |
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
AME has a Profit Margin of 20.43%. This is amongst the best in the industry. AME outperforms 98.94% of its industry peers.
AME's Profit Margin has improved in the last couple of years.
AME has a Operating Margin of 26.20%. 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.
AME has a better Gross Margin (36.18%) than 84.04% 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 | 26.2% | ||
| PM (TTM) | 20.43% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AME is 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 7.12 indicates that AME is not in any danger for bankruptcy at the moment.
AME has a better Altman-Z score (7.12) than 91.49% of its industry peers.
AME has a debt to FCF ratio of 1.13. This is a very positive value and a sign of high solvency as it would only need 1.13 years to pay back of all of its debts.
AME has a better Debt to FCF ratio (1.13) than 92.55% of its industry peers.
AME has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
AME's Debt to Equity ratio of 0.15 is fine compared to the rest of the industry. AME outperforms 67.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 7.12 |
ROIC/WACC1.34
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.41 indicates that AME should not have too much problems paying its short term obligations.
The Current ratio of AME (1.41) is comparable to the rest of the industry.
A Quick Ratio of 0.86 indicates that AME may have some problems paying its short term obligations.
The Quick ratio of AME (0.86) is comparable to the rest of the 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 | 1.41 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.28% over the past year.
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.
Looking at the last year, AME shows a small growth in Revenue. The Revenue has grown by 2.98% in the last year.
Measured over the past years, AME shows a small growth in Revenue. The Revenue has been growing by 6.12% on average per year.
EPS 1Y (TTM)6.28%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%6.71%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%-0.24%
3.2 Future
The Earnings Per Share is expected to grow by 6.67% on average over the next years.
The Revenue is expected to grow by 7.02% on average over the next years.
EPS Next Y4.52%
EPS Next 2Y5.93%
EPS Next 3Y6.54%
EPS Next 5Y6.67%
Revenue Next Year0.51%
Revenue Next 2Y2.56%
Revenue Next 3Y4%
Revenue Next 5Y7.02%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.08, AME can be considered very expensive at the moment.
76.60% of the companies in the same industry are more expensive than AME, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, AME is valued at the same level.
A Price/Forward Earnings ratio of 23.61 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 74.47% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. AME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.08 | ||
| Fwd PE | 23.61 |
4.2 Price Multiples
AME's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AME is cheaper than 75.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AME is valued cheaper than 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.38 | ||
| EV/EBITDA | 19.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AME may justify a higher PE ratio.
PEG (NY)5.77
PEG (5Y)2.54
EPS Next 2Y5.93%
EPS Next 3Y6.54%
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 4.27. AME pays more dividend than 84.04% of the companies in the same industry.
With a Dividend Yield of 0.67, AME pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
On average, the dividend of AME grows each year by 14.93%, 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.
Dividend Growth(5Y)14.93%
Div Incr Years5
Div Non Decr Years27
5.3 Sustainability
18.74% 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.74%
EPS Next 2Y5.93%
EPS Next 3Y6.54%
180.97
-0.47 (-0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.64%
Inst Owner Change0.01%
Ins Owners0.32%
Ins Owner Change2.43%
Market Cap41.78B
Analysts75.45
Price Target198.59 (9.74%)
Short Float %1.01%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend1.12
Dividend Growth(5Y)14.93%
DP18.74%
Div Incr Years5
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.85%
Min EPS beat(2)-0.93%
Max EPS beat(2)2.63%
EPS beat(4)2
Avg EPS beat(4)0.83%
Min EPS beat(4)-0.93%
Max EPS beat(4)2.63%
EPS beat(8)6
Avg EPS beat(8)1.65%
EPS beat(12)10
Avg EPS beat(12)2.55%
EPS beat(16)14
Avg EPS beat(16)2.94%
Revenue beat(2)0
Avg Revenue beat(2)-2.9%
Min Revenue beat(2)-4.16%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)-1.07%
Revenue beat(8)0
Avg Revenue beat(8)-2.39%
Revenue beat(12)4
Avg Revenue beat(12)-0.82%
Revenue beat(16)7
Avg Revenue beat(16)-0.33%
PT rev (1m)0.86%
PT rev (3m)-3.43%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-4.06%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-2.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.08 | ||
| Fwd PE | 23.61 | ||
| P/S | 6.02 | ||
| P/FCF | 24.38 | ||
| P/OCF | 22.76 | ||
| P/B | 4.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.66 |
EPS(TTM)6.94
EY3.83%
EPS(NY)7.66
Fwd EY4.23%
FCF(TTM)7.42
FCFY4.1%
OCF(TTM)7.95
OCFY4.39%
SpS30.05
BVpS43.18
TBVpS-2.5
PEG (NY)5.77
PEG (5Y)2.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.52% | ||
| ROE | 14.21% | ||
| ROCE | 14.07% | ||
| ROIC | 11.58% | ||
| ROICexc | 11.95% | ||
| ROICexgc | 76% | ||
| OM | 26.2% | ||
| PM (TTM) | 20.43% | ||
| GM | 36.18% | ||
| FCFM | 24.7% |
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%
ROICexcg growth 3Y3.6%
ROICexcg 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-Score9
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 31.3% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.14% | ||
| Profit Quality | 120.94% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 7.12 |
F-Score9
WACC8.66%
ROIC/WACC1.34
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)6.28%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%6.71%
EPS Next Y4.52%
EPS Next 2Y5.93%
EPS Next 3Y6.54%
EPS Next 5Y6.67%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%-0.24%
Revenue Next Year0.51%
Revenue Next 2Y2.56%
Revenue Next 3Y4%
Revenue Next 5Y7.02%
EBIT growth 1Y3.94%
EBIT growth 3Y10.79%
EBIT growth 5Y8.61%
EBIT Next Year24.7%
EBIT Next 3Y12.31%
EBIT Next 5Y10.8%
FCF growth 1Y42.57%
FCF growth 3Y17.47%
FCF growth 5Y10.95%
OCF growth 1Y37.58%
OCF growth 3Y16.37%
OCF growth 5Y10.41%