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%)
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.
AME had a positive operating cash flow in the past year.
Each year in the past 5 years AME has been profitable.
In the past 5 years AME always reported a positive cash flow from operatings.
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.
The Return On Equity of AME (13.95%) is better than 85.56% of its industry peers.
AME has a better Return On Invested Capital (11.51%) than 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 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.
AME's Profit Margin has improved in the last couple of years.
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.
AME has a better Gross Margin (36.18%) than 82.22% 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
AME has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, AME has about the same amount of shares outstanding.
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 6.76. This indicates that AME is financially healthy and has little risk of bankruptcy at the moment.
AME has a better Altman-Z score (6.76) than 87.78% 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 92.22% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that AME is not too dependend on debt financing.
The Debt to Equity ratio of AME (0.14) is better than 67.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 6.76 |
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.
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.
A Quick Ratio of 0.72 indicates that AME may have some problems paying its short term obligations.
AME's Quick ratio of 0.72 is on the low side compared to the rest of the industry. AME is outperformed by 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.
Looking at the last year, AME shows a small growth in Revenue. The Revenue has grown by 3.67% in the last 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
The Earnings Per Share is expected to grow by 8.10% on average over the next years. This is quite good.
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
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
With a Price/Earnings ratio of 27.41, AME can be considered very expensive at the moment.
Based on the Price/Earnings ratio, AME is valued a bit cheaper than the industry average as 78.89% of the companies are valued more expensively.
AME is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.05 indicates a quite expensive valuation of AME.
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.
The average S&P500 Price/Forward Earnings ratio is at 36.10. AME is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.41 | ||
| Fwd PE | 25.05 |
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 | 20.76 |
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)3.56
PEG (5Y)2.67
EPS Next 2Y8.06%
EPS Next 3Y7.56%
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 3.32, AME pays a better dividend. On top of this AME pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, AME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
The dividend of AME is nicely growing with an annual growth rate of 14.93%!
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.
The dividend of AME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19%
EPS Next 2Y8.06%
EPS Next 3Y7.56%
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 Change5.29%
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)5.68%
PT rev (3m)6.21%
EPS NQ rev (1m)2.39%
EPS NQ rev (3m)2.83%
EPS NY rev (1m)1.47%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.41 | ||
| Fwd PE | 25.05 | ||
| P/S | 6.42 | ||
| P/FCF | 28 | ||
| P/OCF | 26.02 | ||
| P/B | 4.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.76 |
EPS(TTM)7.29
EY3.65%
EPS(NY)7.97
Fwd EY3.99%
FCF(TTM)7.14
FCFY3.57%
OCF(TTM)7.68
OCFY3.84%
SpS31.12
BVpS45.73
TBVpS-3.93
PEG (NY)3.56
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 | 6.76 |
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 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 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 7.7% in the next year.