AMETEK INC (AME) Stock Fundamental Analysis
USA - NYSE:AME - US0311001004 - Common Stock
195.02 USD
+5 (+2.63%)
195.02 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
In the past year AME was profitable.
In the past year AME had a positive cash flow from operations.
In the past 5 years AME has always been profitable.
In the past 5 years AME always reported a positive cash flow from operatings.
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.
AME has a better Return On Equity (13.95%) than 85.71% of its industry peers.
AME has a Return On Invested Capital of 11.51%. This is amongst the best in the industry. AME outperforms 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AME is in line with the industry average of 10.42%.
| 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
The Profit Margin of AME (20.50%) is better 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's Gross Margin of 36.18% is amongst the best of the industry. AME outperforms 82.42% 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.
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
An Altman-Z score of 6.55 indicates that AME is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.55, AME belongs to the top of the industry, outperforming 89.01% of the companies in the same industry.
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's Debt to FCF ratio of 1.50 is amongst the best of 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.
Looking at the Debt to Equity ratio, with a value of 0.14, AME is in the better half of the industry, outperforming 68.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 6.55 |
ROIC/WACC1.36
WACC8.44%
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's Current ratio of 1.16 is on the low side compared to the rest of the industry. AME is outperformed by 68.13% of its industry peers.
A Quick Ratio of 0.72 indicates that AME may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.72, AME is doing worse than 68.13% of the companies in the same industry.
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
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.
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%.
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.
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
With a Price/Earnings ratio of 26.75, AME can be considered very expensive at the moment.
AME's Price/Earnings ratio is a bit cheaper when compared to the industry. AME is cheaper than 74.73% of the companies in the same industry.
When comparing the Price/Earnings ratio of AME to the average of the S&P500 Index (25.45), we can say AME is valued inline with the index average.
AME is valuated rather expensively with a Price/Forward Earnings ratio of 24.45.
72.53% of the companies in the same industry are more expensive than AME, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.46. AME is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.75 | ||
| Fwd PE | 24.45 |
4.2 Price Multiples
AME's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AME is cheaper than 74.73% of the companies in the same industry.
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 | 27.42 | ||
| EV/EBITDA | 19.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AME may justify a higher PE ratio.
PEG (NY)3.47
PEG (5Y)2.61
EPS Next 2Y8.06%
EPS Next 3Y7.56%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, AME is not a good candidate for dividend investing.
AME's Dividend Yield is rather good when compared to the industry average which is at 3.56. AME pays more dividend than 83.52% of the companies in the same industry.
With a Dividend Yield of 0.64, AME pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
The dividend of AME is nicely growing with an annual growth rate of 14.93%!
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)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.
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%
195.02
+5 (+2.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.84%
Inst Owner Change5.35%
Ins Owners0.3%
Ins Owner Change-8.26%
Market Cap45.04B
Revenue(TTM)7.16B
Net Income(TTM)1.47B
Analysts74.78
Price Target211.5 (8.45%)
Short Float %0.97%
Short Ratio1.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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)0.41%
PT rev (3m)1.34%
EPS NQ rev (1m)2.27%
EPS NQ rev (3m)2.67%
EPS NY rev (1m)1.57%
EPS NY rev (3m)3.07%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)3.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.75 | ||
| Fwd PE | 24.45 | ||
| P/S | 6.29 | ||
| P/FCF | 27.42 | ||
| P/OCF | 25.48 | ||
| P/B | 4.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.9 |
EPS(TTM)7.29
EY3.74%
EPS(NY)7.97
Fwd EY4.09%
FCF(TTM)7.11
FCFY3.65%
OCF(TTM)7.65
OCFY3.92%
SpS31.02
BVpS45.58
TBVpS-3.91
PEG (NY)3.47
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 | 6.55 |
F-Score7
WACC8.44%
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 26.75 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.