AMETEK INC (AME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AME - US0311001004 - Common Stock
222.49 USD
+1.93 (+0.88%)
222.49 USD
0 (0%)
AME gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 91 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. This makes AME very considerable for quality investing!
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.
- Each year in the past 5 years AME has been profitable.
- AME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 9.08%, AME belongs to the top of the industry, outperforming 89.01% of the companies in the same industry.
- The Return On Equity of AME (13.95%) is better than 85.71% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 11.51%, AME belongs to the top of the industry, outperforming 86.81% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AME is in line with the industry average of 9.92%.
| 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 better Profit Margin (20.50%) than 96.70% of its industry peers.
- In the last couple of years the Profit Margin of AME has grown nicely.
- 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 amongst the best in the industry. AME outperforms 80.22% 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 | 26.43% | ||
| 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
- An Altman-Z score of 7.28 indicates that AME is not in any danger for bankruptcy at the moment.
- AME has a better Altman-Z score (7.28) than 87.91% of its industry peers.
- AME has a debt to FCF ratio of 1.50. This is a very positive value and a sign of high solvency as it would only need 1.50 years to pay back of all of its debts.
- AME has a Debt to FCF ratio of 1.50. This is amongst the best in the industry. AME outperforms 91.21% 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.
- AME's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. AME outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 7.28 |
ROIC/WACC1.34
WACC8.61%
2.3 Liquidity
- AME has a Current Ratio of 1.16. This is a normal value and indicates that AME is financially healthy and should not expect problems in meeting its short term obligations.
- AME has a worse Current ratio (1.16) than 68.13% of its industry peers.
- AME has a Quick Ratio of 1.16. This is a bad value and indicates that AME is not financially healthy enough and could expect problems in meeting its short term obligations.
- AME has a worse Quick ratio (0.72) than 69.23% of its industry peers.
- 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.
- 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.
- AME shows a small growth in Revenue. In the last year, the Revenue has grown by 3.67%.
- The Revenue has been growing slightly by 6.12% on average over the past years.
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.
- The Revenue is expected to grow by 7.72% on average over the next years.
EPS Next Y8.92%
EPS Next 2Y8.74%
EPS Next 3Y8.07%
EPS Next 5Y8.1%
Revenue Next Year4.79%
Revenue Next 2Y6.32%
Revenue Next 3Y6.14%
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.
- 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 30.52, 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 75.82% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, AME is valued at the same level.
- With a Price/Forward Earnings ratio of 27.55, AME can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 74.73% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of AME to the average of the S&P500 Index (25.83), we can say AME is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.52 | ||
| Fwd PE | 27.55 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AME is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
- 79.12% of the companies in the same industry are more expensive than AME, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.18 | ||
| EV/EBITDA | 22.89 |
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)3.42
PEG (5Y)2.97
EPS Next 2Y8.74%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
- AME has a yearly dividend return of 0.56%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.26, AME pays a better dividend. On top of this AME pays more dividend than 85.71% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, AME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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 2Y8.74%
EPS Next 3Y8.07%
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 of AMETEK INC (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 30.52 and the Price/Book (PB) ratio is 4.87.
What is the financial health of AMETEK INC (AME) stock?
The financial health rating of AMETEK INC (AME) is 7 / 10.