AMETEK INC (AME) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AME • US0311001004
223.98 USD
-2.64 (-1.16%)
At close: Jan 30, 2026
223.98 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Overall AME gets a fundamental rating of 6 out of 10. We evaluated AME 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. These ratings could make AME a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- In the past year AME was profitable.
- AME had a positive operating cash flow in the past year.
- Each year in the past 5 years AME has been profitable.
- Each year in the past 5 years AME had a positive operating cash flow.
1.2 Ratios
- AME has a Return On Assets of 9.08%. This is amongst the best in the industry. AME outperforms 89.01% of its industry peers.
- 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 86.81% 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 9.88%.
| 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
- With an excellent Profit Margin value of 20.50%, AME belongs to the best of the industry, outperforming 96.70% of the companies in the same industry.
- 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.
- In the last couple of years the Operating Margin of AME has grown nicely.
- Looking at the Gross Margin, with a value of 36.18%, AME belongs to the top of the industry, outperforming 80.22% of the companies in the same industry.
- 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.
- The number of shares outstanding for AME remains at a similar level compared to 1 year ago.
- The number of shares outstanding for AME has been increased compared to 5 years ago.
- The debt/assets ratio for AME has been reduced compared to a year ago.
2.2 Solvency
- AME has an Altman-Z score of 7.36. This indicates that AME is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of AME (7.36) is better than 87.91% 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 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 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 7.36 |
ROIC/WACC1.33
WACC8.63%
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.
- AME's Quick ratio of 0.72 is on the low side compared to the rest of the industry. AME is outperformed by 69.23% 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
- 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.
- 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
- 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.
- Based on estimates for the next years, AME will show a small growth in Revenue. The Revenue will grow by 7.72% on average per year.
EPS Next Y8.92%
EPS Next 2Y8.74%
EPS Next 3Y8.07%
EPS Next 5Y8.1%
Revenue Next Year4.79%
Revenue Next 2Y6.32%
Revenue Next 3Y6.14%
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
- The Price/Earnings ratio is 30.72, which means the current valuation is very expensive for AME.
- 75.82% of the companies in the same industry are more expensive than AME, based on the Price/Earnings ratio.
- AME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.32.
- A Price/Forward Earnings ratio of 27.74 indicates a quite expensive valuation of AME.
- Based on the Price/Forward Earnings ratio, AME is valued a bit cheaper than the industry average as 73.63% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. AME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.72 | ||
| Fwd PE | 27.74 |
4.2 Price Multiples
- 76.92% 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 78.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.39 | ||
| EV/EBITDA | 23.23 |
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)3.45
PEG (5Y)2.99
EPS Next 2Y8.74%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.55%, AME is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.25, AME pays a better dividend. On top of this AME pays more dividend than 85.71% of the companies listed in the same industry.
- With a Dividend Yield of 0.55, AME pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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 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 2Y8.74%
EPS Next 3Y8.07%
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 of AMETEK INC (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 30.72 and the Price/Book (PB) ratio is 4.9.
What is the financial health of AMETEK INC (AME) stock?
The financial health rating of AMETEK INC (AME) is 7 / 10.