AMETEK INC (AME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AME - US0311001004 - Common Stock
199.8 USD
+0.58 (+0.29%)
199.8 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. Both the health and profitability get an excellent rating, making AME a very profitable company, without any liquidiy or solvency issues. AME has a decent growth rate and is not valued too expensively. With these ratings, AME could be worth investigating further 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.
In the past 5 years AME has always been profitable.
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 has a Return On Equity of 13.95%. This is amongst the best in the industry. AME outperforms 85.56% of its industry peers.
The Return On Invested Capital of AME (11.51%) is better than 85.56% 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 9.93%.
| 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 Operating Margin of 26.43%. This is amongst the best in the industry. AME outperforms 100.00% of its industry peers.
AME's Operating Margin has improved in the last couple of years.
The Gross Margin of AME (36.18%) is better than 78.89% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AME is still creating some value.
AME has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AME has been increased compared to 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 6.77. This indicates that AME is financially healthy and has little risk of bankruptcy at the moment.
AME has a Altman-Z score of 6.77. This is amongst the best in the industry. AME outperforms 88.89% of its industry peers.
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.
A Debt/Equity ratio of 0.14 indicates that AME is not too dependend on debt financing.
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 | 6.77 |
ROIC/WACC1.36
WACC8.49%
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 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 worse Quick ratio (0.72) than 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.
AME shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.27% yearly.
AME shows a small growth in Revenue. In the last year, the Revenue has grown by 3.67%.
Measured over the past years, AME shows a small growth in Revenue. The Revenue has been growing by 6.12% on average per year.
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.
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
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
Based on the Price/Earnings ratio of 27.41, the valuation of AME can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 77.78% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AME to the average of the S&P500 Index (26.49), we can say AME is valued inline with the index average.
A Price/Forward Earnings ratio of 24.87 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 72.22% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AME to the average of the S&P500 Index (23.69), we can say AME is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.41 | ||
| Fwd PE | 24.87 |
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.
Based on the Price/Free Cash Flow ratio, AME is valued a bit cheaper than the industry average as 78.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28 | ||
| EV/EBITDA | 20.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AME has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.21
PEG (5Y)2.67
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 been paying a dividend for at least 10 years, so it has 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
19.00% 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.
DP19%
EPS Next 2Y8.46%
EPS Next 3Y8.58%
199.8
+0.58 (+0.29%)
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 Cap45.99B
Revenue(TTM)7.16B
Net Income(TTM)1.47B
Analysts74.78
Price Target223.44 (11.83%)
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 | 27.41 | ||
| Fwd PE | 24.87 | ||
| P/S | 6.42 | ||
| P/FCF | 28 | ||
| P/OCF | 26.02 | ||
| P/B | 4.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.82 |
EPS(TTM)7.29
EY3.65%
EPS(NY)8.03
Fwd EY4.02%
FCF(TTM)7.14
FCFY3.57%
OCF(TTM)7.68
OCFY3.84%
SpS31.12
BVpS45.73
TBVpS-3.93
PEG (NY)3.21
PEG (5Y)2.67
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 | 6.77 |
F-Score7
WACC8.49%
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 27.41 and the Price/Book (PB) ratio is 4.37.
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.