AMETEK INC (AME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AME - US0311001004 - Common Stock
203.84 USD
+3.18 (+1.58%)
204.5 USD
+0.66 (+0.32%)
Taking everything into account, AME scores 7 out of 10 in our fundamental rating. AME was compared to 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 has a correct valuation and a medium growth rate. These ratings could make AME a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year AME was profitable.
AME had a positive operating cash flow in the past year.
AME had positive earnings in each of the past 5 years.
Each year in the past 5 years AME had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AME (9.08%) is better than 88.89% of its industry peers.
AME has a Return On Equity of 13.95%. This is amongst the best in the industry. AME outperforms 85.56% of its industry peers.
AME has a better Return On Invested Capital (11.51%) than 85.56% of its industry peers.
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 9.93%.
| 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
AME's Profit Margin of 20.50% is amongst the best of the industry. AME outperforms 96.67% of its industry peers.
AME's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.43%, AME belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AME has grown nicely.
AME has a better Gross Margin (36.18%) than 78.89% of its industry peers.
AME's Gross Margin has been stable in the last couple of years.
| 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
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.
AME has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AME has been reduced compared to a year ago.
2.2 Solvency
AME has an Altman-Z score of 6.87. 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 6.87, AME belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.50, AME belongs to the top of the industry, outperforming 92.22% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that AME is not too dependend on debt financing.
AME has a better Debt to Equity ratio (0.14) than 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 6.87 |
ROIC/WACC1.36
WACC8.48%
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.
With a Quick ratio value of 0.72, AME is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
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
The Earnings Per Share has grown by an nice 9.79% over the past year.
The Earnings Per Share has been growing by 10.27% on average over the past years. This is quite good.
AME shows a small growth in Revenue. In the last year, the Revenue has grown by 3.67%.
AME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.12% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AME is valuated quite expensively with a Price/Earnings ratio of 27.96.
Based on the Price/Earnings ratio, AME is valued a bit cheaper than 78.89% of the companies in the same industry.
AME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.76.
Based on the Price/Forward Earnings ratio of 25.37, the valuation of AME can be described as expensive.
Based on the Price/Forward Earnings ratio, AME is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AME to the average of the S&P500 Index (23.96), we can say AME is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.96 | ||
| Fwd PE | 25.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AME is valued a bit cheaper than 75.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AME is valued cheaply inside the industry as 81.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.57 | ||
| EV/EBITDA | 21.22 |
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.
AME has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.27
PEG (5Y)2.72
EPS Next 2Y8.46%
EPS Next 3Y8.58%
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 3.08. AME pays more dividend than 83.33% of the companies 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
203.84
+3.18 (+1.58%)
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 Cap46.92B
Revenue(TTM)7.16B
Net Income(TTM)1.47B
Analysts74.78
Price Target223.44 (9.62%)
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 | 27.96 | ||
| Fwd PE | 25.37 | ||
| P/S | 6.55 | ||
| P/FCF | 28.57 | ||
| P/OCF | 26.55 | ||
| P/B | 4.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.22 |
EPS(TTM)7.29
EY3.58%
EPS(NY)8.03
Fwd EY3.94%
FCF(TTM)7.14
FCFY3.5%
OCF(TTM)7.68
OCFY3.77%
SpS31.12
BVpS45.73
TBVpS-3.93
PEG (NY)3.27
PEG (5Y)2.72
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 | 6.87 |
F-Score7
WACC8.48%
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 27.96 and the Price/Book (PB) ratio is 4.46.
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.