AMETEK INC (AME)
US0311001004 - Common Stock
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 has an excellent profitability rating, but there are some minor concerns on its financial health. AME has a correct valuation and a medium growth rate. Finally AME also has an excellent dividend rating. This makes AME very considerable for dividend 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
Looking at the Return On Assets, with a value of 9.02%, AME belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
AME's Return On Equity of 13.94% is amongst the best of the industry. AME outperforms 87.78% of its industry peers.
With an excellent Return On Invested Capital value of 11.36%, AME belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AME is in line with the industry average of 10.64%.
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's Profit Margin of 19.27% is amongst the best of the industry. AME outperforms 97.78% 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 25.83%, AME belongs to the top of the industry, outperforming 98.89% of the companies in the same industry.
AME's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 35.83%, AME belongs to the best of the industry, outperforming 81.11% 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 | 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
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 more shares outstanding
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
An Altman-Z score of 7.09 indicates that AME is not in any danger for bankruptcy at the moment.
The Altman-Z score of AME (7.09) is better than 90.00% of its industry peers.
AME has a debt to FCF ratio of 1.39. This is a very positive value and a sign of high solvency as it would only need 1.39 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.39, AME belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
AME has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
AME's Debt to Equity ratio of 0.18 is in line compared to the rest of the industry. AME outperforms 57.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.39 | ||
| Altman-Z | 7.09 |
ROIC/WACC1.18
WACC9.64%
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.
AME's Current ratio of 1.39 is on the low side compared to the rest of the industry. AME is outperformed by 70.00% of its industry peers.
AME has a Quick Ratio of 1.39. 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's Quick ratio of 0.84 is on the low side compared to the rest of the industry. AME is outperformed by 73.33% 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 | 1.39 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.75% 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 14.09% on average per year.
The Revenue has been growing slightly by 6.45% in the past year.
AME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.36% yearly.
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
AME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.00% yearly.
AME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.73% yearly.
EPS Next Y7.95%
EPS Next 2Y7.54%
EPS Next 3Y7.8%
EPS Next 5Y15%
Revenue Next Year6.09%
Revenue Next 2Y5.66%
Revenue Next 3Y5.6%
Revenue Next 5Y13.73%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
AME is valuated quite expensively with a Price/Earnings ratio of 29.35.
AME's Price/Earnings ratio is a bit cheaper when compared to the industry. AME is cheaper than 70.00% of the companies in the same industry.
AME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.65.
Based on the Price/Forward Earnings ratio of 26.41, the valuation of AME can be described as expensive.
Based on the Price/Forward Earnings ratio, AME is valued a bit cheaper than 73.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AME to the average of the S&P500 Index (23.56), we can say AME is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.35 | ||
| Fwd PE | 26.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 72.22% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AME is valued a bit cheaper than 75.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.76 | ||
| EV/EBITDA | 21.56 |
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)3.69
PEG (5Y)2.08
EPS Next 2Y7.54%
EPS Next 3Y7.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.58%, AME is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.18, AME pays a better dividend. On top of this AME pays more dividend than 82.22% of the companies listed in the same industry.
With a Dividend Yield of 0.58, AME pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
The dividend of AME is nicely growing with an annual growth rate of 12.17%!
AME has been paying a dividend for at least 10 years, so it has 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 Years4
Div Non Decr Years26
5.3 Sustainability
AME pays out 18.90% of its income as dividend. This is a sustainable payout ratio.
AME's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.9%
EPS Next 2Y7.54%
EPS Next 3Y7.8%
AMETEK INC
NYSE:AME (11/21/2024, 1:03:00 PM)
194.86
+1.53 (+0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap45.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.35 | ||
| Fwd PE | 26.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.69
PEG (5Y)2.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.02% | ||
| ROE | 13.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.83% | ||
| PM (TTM) | 19.27% | ||
| GM | 35.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.75%
EPS 3Y17.33%
EPS 5Y
EPS Q2Q%
EPS Next Y7.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.45%
Revenue growth 3Y13.27%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y