AMETEK INC (AME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AME - US0311001004 - Common Stock
220.56 USD
+0.76 (+0.35%)
220.56 USD
0 (0%)
Taking everything into account, AME scores 6 out of 10 in our fundamental rating. AME was compared to 91 industry peers in the Electrical Equipment industry. AME has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. AME has a decent growth rate and is not valued too expensively. These ratings could make AME a good candidate 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.
- AME had positive earnings in each of the past 5 years.
- AME had a positive operating cash flow in each of the past 5 years.
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.
- With an excellent Return On Invested Capital value of 11.51%, AME belongs to the best of the industry, outperforming 86.81% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AME is in line with the industry average of 9.92%.
| 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
- Looking at the Profit Margin, with a value of 20.50%, AME belongs to the top 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 has a Operating Margin of 26.43%. This is amongst the best in the industry. AME outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of AME has grown nicely.
- AME has a better Gross Margin (36.18%) 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.
- AME has about the same amout of shares outstanding than it did 1 year ago.
- AME has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for AME has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.28 indicates that AME is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 7.28, AME belongs to the top of the industry, outperforming 87.91% of the companies in the same industry.
- The Debt to FCF ratio of AME is 1.50, which is an excellent value as it means it would take AME, only 1.50 years of fcf income to pay off 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.
- A Debt/Equity ratio of 0.14 indicates that AME is not too dependend on debt financing.
- AME's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. AME outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 7.28 |
ROIC/WACC1.34
WACC8.59%
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 has a Current ratio of 1.16. This is in the lower half of the industry: AME underperforms 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 has a Quick ratio of 0.72. This is in the lower half of the industry: AME underperforms 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
- 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.
- 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
- AME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.10% yearly.
- AME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.72% yearly.
EPS Next Y8.92%
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
- A Price/Earnings ratio of 30.26 indicates a quite expensive valuation of AME.
- 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.
- When comparing the Price/Earnings ratio of AME to the average of the S&P500 Index (28.82), we can say AME is valued inline with the index average.
- AME is valuated quite expensively with a Price/Forward Earnings ratio of 27.31.
- Based on the Price/Forward Earnings ratio, AME is valued a bit cheaper than 74.73% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. AME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.26 | ||
| Fwd PE | 27.31 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AME is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, AME is valued a bit cheaper than 79.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.91 | ||
| EV/EBITDA | 22.89 |
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)3.39
PEG (5Y)2.95
EPS Next 2Y8.74%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.56%, 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 0.26. AME pays more dividend than 85.71% of the companies in the same industry.
- With a Dividend Yield of 0.56, AME pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
- On average, the dividend of AME grows each year by 14.93%, which is quite nice.
- 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.
- The dividend of AME is growing, but the earnings are growing slower. 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 30.26 and the Price/Book (PB) ratio is 4.82.
What is the financial health of AMETEK INC (AME) stock?
The financial health rating of AMETEK INC (AME) is 7 / 10.