AMETEK INC (AME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AME - US0311001004 - Common Stock
195.22 USD
+0.2 (+0.1%)
195.22 USD
0 (0%)
Taking everything into account, AME scores 6 out of 10 in our fundamental rating. AME was compared to 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make AME a good candidate for quality investing.
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.
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 88.89% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.95%, AME belongs to the top of the industry, outperforming 85.56% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.51%, AME belongs to the best of the industry, outperforming 85.56% 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 10.41%.
| 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 96.67% of its industry peers.
In the last couple of years the Profit Margin of AME has grown nicely.
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.
AME's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 36.18%, AME belongs to the top of the industry, outperforming 82.22% of the companies in the same industry.
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.
Compared to 1 year ago, AME has about the same amount of shares outstanding.
AME has more shares outstanding than it did 5 years ago.
AME has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.67 indicates that AME is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.67, AME belongs to the best 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.
AME has a better Debt to FCF ratio (1.50) than 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.
AME has a better Debt to Equity ratio (0.14) than 67.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 6.67 |
ROIC/WACC1.37
WACC8.4%
2.3 Liquidity
A Current Ratio of 1.16 indicates that AME should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, AME is doing worse than 68.89% of the companies in the same industry.
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 Quick ratio of 0.72. This is in the lower half of the industry: AME underperforms 68.89% 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
AME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.79%, which is quite good.
The Earnings Per Share has been growing by 10.27% on average over the past years. This is quite good.
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
Based on estimates for the next years, AME will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.10% on average per year.
The Revenue is expected to grow by 7.72% on average over the next years.
EPS Next Y7.7%
EPS Next 2Y8.06%
EPS Next 3Y7.56%
EPS Next 5Y8.1%
Revenue Next Year4.05%
Revenue Next 2Y5.78%
Revenue Next 3Y5.67%
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.
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
Based on the Price/Earnings ratio of 26.78, the valuation of AME can be described as expensive.
Based on the Price/Earnings ratio, AME is valued a bit cheaper than the industry average as 75.56% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.65, AME is valued at the same level.
With a Price/Forward Earnings ratio of 24.48, AME is valued on the expensive side.
AME's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AME is cheaper than 71.11% of the companies in the same industry.
AME's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.78 | ||
| Fwd PE | 24.48 |
4.2 Price Multiples
75.56% of the companies in the same industry are more expensive than AME, based on the Enterprise Value to EBITDA ratio.
77.78% 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 | 27.45 | ||
| EV/EBITDA | 20.4 |
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)3.48
PEG (5Y)2.61
EPS Next 2Y8.06%
EPS Next 3Y7.56%
5. Dividend
5.1 Amount
AME has a yearly dividend return of 0.65%, which is pretty low.
AME's Dividend Yield is rather good when compared to the industry average which is at 3.49. AME pays more dividend than 83.33% of the companies in the same industry.
With a Dividend Yield of 0.65, AME pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 2Y8.06%
EPS Next 3Y7.56%
195.22
+0.2 (+0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.84%
Inst Owner Change5.28%
Ins Owners0.3%
Ins Owner Change-3.83%
Market Cap45.09B
Revenue(TTM)7.16B
Net Income(TTM)1.47B
Analysts74.78
Price Target222.6 (14.03%)
Short Float %0.97%
Short Ratio1.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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)5.68%
PT rev (3m)6.21%
EPS NQ rev (1m)2.27%
EPS NQ rev (3m)2.67%
EPS NY rev (1m)1.47%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.78 | ||
| Fwd PE | 24.48 | ||
| P/S | 6.29 | ||
| P/FCF | 27.45 | ||
| P/OCF | 25.51 | ||
| P/B | 4.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.4 |
EPS(TTM)7.29
EY3.73%
EPS(NY)7.97
Fwd EY4.09%
FCF(TTM)7.11
FCFY3.64%
OCF(TTM)7.65
OCFY3.92%
SpS31.02
BVpS45.58
TBVpS-3.91
PEG (NY)3.48
PEG (5Y)2.61
Graham Number86.47
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 | 6.67 |
F-Score7
WACC8.4%
ROIC/WACC1.37
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 Y7.7%
EPS Next 2Y8.06%
EPS Next 3Y7.56%
EPS Next 5Y8.1%
Revenue 1Y (TTM)3.67%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%10.77%
Revenue Next Year4.05%
Revenue Next 2Y5.78%
Revenue Next 3Y5.67%
Revenue Next 5Y7.72%
EBIT growth 1Y6.1%
EBIT growth 3Y10.79%
EBIT growth 5Y8.61%
EBIT Next Year27.05%
EBIT Next 3Y14.08%
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 26.78 and the Price/Book (PB) ratio is 4.28.
What is the earnings growth outlook for AMETEK INC?
The Earnings per Share (EPS) of AMETEK INC (AME) is expected to grow by 7.7% in the next year.