AMETEK INC (AME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AME - US0311001004 - Common Stock
200.66 USD
+4.69 (+2.39%)
200.66 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 gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past year AME had a positive cash flow from operations.
AME had positive earnings in each of the past 5 years.
AME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.08%, AME belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
AME's Return On Equity of 13.95% is amongst the best of the industry. AME outperforms 85.56% of its industry peers.
AME's Return On Invested Capital of 11.51% is amongst the best of the industry. AME outperforms 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 has a Profit Margin of 20.50%. This is amongst the best in the industry. AME outperforms 96.67% of its industry peers.
AME's Profit Margin has improved in the last couple of years.
AME has a better Operating Margin (26.43%) than 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.
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.
Compared to 1 year ago, AME has an improved debt to assets ratio.
2.2 Solvency
AME has an Altman-Z score of 6.79. This indicates that AME is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.79, AME belongs to the best of the industry, outperforming 87.78% 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.
AME's Debt to FCF ratio of 1.50 is amongst the best of the industry. AME outperforms 92.22% of its industry peers.
AME has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.14, AME is in the better half of the industry, outperforming 71.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 6.79 |
ROIC/WACC1.35
WACC8.53%
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 Current ratio of 1.16. This is in the lower half of the industry: AME underperforms 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 Quick ratio of 0.72. This is in the lower half of the industry: AME underperforms 72.22% of its industry peers.
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 | 1.16 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.79% over the past year.
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.
The Revenue has been growing slightly by 3.67% in the past year.
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
AME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.10% yearly.
AME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.72% yearly.
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
Based on the Price/Earnings ratio of 27.53, the valuation of AME can be described as expensive.
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.
The average S&P500 Price/Earnings ratio is at 26.59. AME is around the same levels.
A Price/Forward Earnings ratio of 24.97 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 73.33% of the companies are valued more expensively.
AME's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.53 | ||
| Fwd PE | 24.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 75.56% of the companies listed 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 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.12 | ||
| EV/EBITDA | 20.9 |
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)3.22
PEG (5Y)2.68
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.
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.
With a Dividend Yield of 0.62, AME pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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
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%
200.66
+4.69 (+2.39%)
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 Cap46.19B
Revenue(TTM)7.16B
Net Income(TTM)1.47B
Analysts74.78
Price Target223.44 (11.35%)
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 | 27.53 | ||
| Fwd PE | 24.97 | ||
| P/S | 6.45 | ||
| P/FCF | 28.12 | ||
| P/OCF | 26.13 | ||
| P/B | 4.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.9 |
EPS(TTM)7.29
EY3.63%
EPS(NY)8.03
Fwd EY4%
FCF(TTM)7.14
FCFY3.56%
OCF(TTM)7.68
OCFY3.83%
SpS31.12
BVpS45.73
TBVpS-3.93
PEG (NY)3.22
PEG (5Y)2.68
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 | 6.79 |
F-Score7
WACC8.53%
ROIC/WACC1.35
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 27.53 and the Price/Book (PB) ratio is 4.39.
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.