AMETEK INC (AME)
US0311001004 - Common Stock
Overall AME gets a fundamental rating of 6 out of 10. We evaluated AME against 88 industry peers in the Electrical Equipment industry. AME scores excellent on profitability, but 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
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.
Each year in the past 5 years AME had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.02%, AME belongs to the top of the industry, outperforming 92.05% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.94%, AME belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
AME has a Return On Invested Capital of 11.36%. This is amongst the best in the industry. AME outperforms 90.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AME is in line with the industry average of 9.38%.
The 3 year average ROIC (11.01%) for AME is below the current ROIC(11.36%), indicating increased profibility in the last year.
| 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 better Profit Margin (19.27%) than 98.86% of its industry peers.
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 100.00% of the companies in the same industry.
AME's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.83%, AME belongs to the top of the industry, outperforming 80.68% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AME 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 6.79. 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 6.79, AME belongs to the top of the industry, outperforming 92.05% of the companies in the same industry.
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.
AME has a Debt to FCF ratio of 1.39. This is amongst the best in the industry. AME outperforms 87.50% of its industry peers.
AME has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
AME has a Debt to Equity ratio of 0.18. This is comparable to the rest of the industry: AME outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.39 | ||
| Altman-Z | 6.79 |
ROIC/WACC1.16
WACC9.79%
2.3 Liquidity
AME has a Current Ratio of 1.39. This is a normal value and indicates that AME is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.39, AME is doing worse than 71.59% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that AME may have some problems paying its short term obligations.
The Quick ratio of AME (0.84) is worse than 71.59% 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 | 1.39 | ||
| 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%.
Measured over the past years, AME shows a small growth in Revenue. The Revenue has been growing by 6.36% on average per year.
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
Based on estimates for the next years, AME will show a small growth in Earnings Per Share. The EPS will grow by 6.31% on average per year.
Based on estimates for the next years, AME will show a small growth in Revenue. The Revenue will grow by 6.03% on average per year.
EPS Next Y7.9%
EPS Next 2Y7.58%
EPS Next 3Y7.85%
EPS Next 5Y6.31%
Revenue Next Year6.12%
Revenue Next 2Y5.81%
Revenue Next 3Y5.8%
Revenue Next 5Y6.03%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.61, the valuation of AME can be described as expensive.
Based on the Price/Earnings ratio, AME is valued a bit cheaper than 73.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. AME is around the same levels.
AME is valuated rather expensively with a Price/Forward Earnings ratio of 24.83.
75.00% of the companies in the same industry are more expensive than AME, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, AME is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.61 | ||
| Fwd PE | 24.83 |
4.2 Price Multiples
AME's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AME is cheaper than 72.73% 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 76.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.18 | ||
| EV/EBITDA | 20.36 |
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)3.49
PEG (5Y)1.96
EPS Next 2Y7.58%
EPS Next 3Y7.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, AME is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.89, AME pays a better dividend. On top of this AME pays more dividend than 81.82% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
On average, the dividend of AME grows each year by 12.17%, which is quite nice.
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.
The dividend of AME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.9%
EPS Next 2Y7.58%
EPS Next 3Y7.85%
AMETEK INC
NYSE:AME (12/20/2024, 8:04:00 PM)
After market: 183.36 0 (0%)183.36
+1.25 (+0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.69%
Inst Owner Change-2.71%
Ins Owners0.39%
Ins Owner Change-0.1%
Market Cap42.41B
Analysts74.29
Price Target200.95 (9.59%)
Short Float %0.87%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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)6.08%
PT rev (3m)5.97%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)1.77%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-5.29%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.61 | ||
| Fwd PE | 24.83 | ||
| P/S | 6.14 | ||
| P/FCF | 25.18 | ||
| P/OCF | 23.31 | ||
| P/B | 4.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.36 |
EPS(TTM)6.64
EY3.62%
EPS(NY)7.38
Fwd EY4.03%
FCF(TTM)7.28
FCFY3.97%
OCF(TTM)7.87
OCFY4.29%
SpS29.88
BVpS41.29
TBVpS-4.11
PEG (NY)3.49
PEG (5Y)1.96
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 | 6.79 |
F-Score5
WACC9.79%
ROIC/WACC1.16
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 2Y7.58%
EPS Next 3Y7.85%
EPS Next 5Y6.31%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y13.27%
Revenue growth 5Y6.36%
Sales Q2Q%5.28%
Revenue Next Year6.12%
Revenue Next 2Y5.81%
Revenue Next 3Y5.8%
Revenue Next 5Y6.03%
EBIT growth 1Y7.48%
EBIT growth 3Y16.79%
EBIT growth 5Y9.69%
EBIT Next Year29.14%
EBIT Next 3Y13.84%
EBIT Next 5Y19.72%
FCF growth 1Y82.69%
FCF growth 3Y9.84%
FCF growth 5Y13.65%
OCF growth 1Y73.9%
OCF growth 3Y10.65%
OCF growth 5Y13.4%