AMETEK INC (AME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AME - US0311001004 - Common Stock
208.45 USD
+0.17 (+0.08%)
208.45 USD
0 (0%)
Overall AME gets a fundamental rating of 6 out of 10. We evaluated AME against 91 industry peers in the Electrical Equipment industry. AME scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AME is not valued too expensively and it also shows a decent growth rate. These ratings would make AME suitable 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.
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 89.01% of the companies in the same industry.
The Return On Equity of AME (13.95%) is better than 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.51%, AME belongs to the top of the industry, outperforming 86.81% of the companies in the same industry.
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 9.90%.
| 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 96.70% of its industry peers.
In the last couple of years the Profit Margin of AME has grown nicely.
AME's Operating Margin of 26.43% is amongst the best of 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 80.22% of its industry peers.
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.
Compared to 5 years ago, AME has more shares outstanding
The debt/assets ratio for AME has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.98 indicates that AME is not in any danger for bankruptcy at the moment.
AME's Altman-Z score of 6.98 is amongst the best of the industry. AME outperforms 91.21% 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.
The Debt to FCF ratio of AME (1.50) is better than 92.31% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that AME is not too dependend on debt financing.
AME has a better Debt to Equity ratio (0.14) than 70.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 6.98 |
ROIC/WACC1.35
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.16 indicates that AME should not have too much problems paying 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 69.23% of its industry peers.
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 70.33% 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 | 1.16 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.79% over the past year.
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.
The Revenue has been growing slightly by 3.67% in the past year.
The Revenue has been growing slightly by 6.12% on average over the past years.
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.
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 2Y8.5%
EPS Next 3Y8.21%
EPS Next 5Y8.1%
Revenue Next Year4.66%
Revenue Next 2Y6.14%
Revenue Next 3Y6.11%
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 28.59, AME can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 75.82% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. AME is around the same levels.
A Price/Forward Earnings ratio of 25.92 indicates a quite expensive valuation of AME.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 72.53% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AME to the average of the S&P500 Index (23.46), we can say AME is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 25.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AME is valued a bit cheaper than the industry average as 75.82% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AME is valued a bit cheaper than the industry average as 75.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.21 | ||
| EV/EBITDA | 21.68 |
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)3.35
PEG (5Y)2.79
EPS Next 2Y8.5%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, 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 0.27. AME pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, AME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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.
AME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19%
EPS Next 2Y8.5%
EPS Next 3Y8.21%
208.45
+0.17 (+0.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.24%
Inst Owner Change5.05%
Ins Owners0.29%
Ins Owner Change-5.31%
Market Cap47.99B
Revenue(TTM)7.16B
Net Income(TTM)1.47B
Analysts74.78
Price Target223.76 (7.34%)
Short Float %1.03%
Short Ratio1.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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)0.52%
PT rev (3m)6.23%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)2.98%
EPS NY rev (1m)0.78%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 25.92 | ||
| P/S | 6.7 | ||
| P/FCF | 29.21 | ||
| P/OCF | 27.15 | ||
| P/B | 4.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.68 |
EPS(TTM)7.29
EY3.5%
EPS(NY)8.04
Fwd EY3.86%
FCF(TTM)7.14
FCFY3.42%
OCF(TTM)7.68
OCFY3.68%
SpS31.12
BVpS45.73
TBVpS-3.93
PEG (NY)3.35
PEG (5Y)2.79
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 | 6.98 |
F-Score7
WACC8.5%
ROIC/WACC1.35
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 2Y8.5%
EPS Next 3Y8.21%
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 2Y6.14%
Revenue Next 3Y6.11%
Revenue Next 5Y7.72%
EBIT growth 1Y6.1%
EBIT growth 3Y10.79%
EBIT growth 5Y8.61%
EBIT Next Year28.97%
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 28.59 and the Price/Book (PB) ratio is 4.56.
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.