AMETEK INC (AME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AME - US0311001004 - Common Stock
211.18 USD
-2.98 (-1.39%)
211.18 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. Both the health and profitability get an excellent rating, making AME a very profitable company, without any liquidiy or solvency issues. AME has a correct valuation and a medium growth rate. These ratings would make AME suitable 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
The Return On Assets of AME (9.08%) is better than 89.01% of its industry peers.
Looking at the Return On Equity, with a value of 13.95%, AME belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Invested Capital of AME (11.51%) is better than 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 9.90%.
| 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.
AME's Profit Margin has improved in the last couple of years.
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
AME has an Altman-Z score of 7.12. This indicates that AME is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.12, AME belongs to the top of the industry, outperforming 90.11% 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.
The Debt to FCF ratio of AME (1.50) is better than 92.31% 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.
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 | 7.12 |
ROIC/WACC1.35
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.16 indicates that AME should not have too much problems paying its short term obligations.
With a Current ratio value of 1.16, AME is not doing good in the industry: 68.13% of the companies in the same industry are doing better.
A Quick Ratio of 0.72 indicates that AME may have some problems paying its short term obligations.
The Quick ratio of AME (0.72) is worse than 69.23% 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
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.
The Earnings Per Share has been growing by 10.27% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.67% in the past year.
Measured over the past years, AME shows a small growth in Revenue. The Revenue has been growing by 6.12% on average per year.
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 Y8.54%
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.
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
Based on the Price/Earnings ratio of 28.97, the valuation of AME can be described as expensive.
Based on the Price/Earnings ratio, AME is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
AME is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 26.26, the valuation of AME can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 73.63% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. AME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.97 | ||
| Fwd PE | 26.26 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 78.02% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.6 | ||
| EV/EBITDA | 22.25 |
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)3.39
PEG (5Y)2.82
EPS Next 2Y8.5%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
AME has a yearly dividend return of 0.60%, which is pretty low.
AME's Dividend Yield is rather good when compared to the industry average which is at 0.28. AME pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, AME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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 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
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 2Y8.5%
EPS Next 3Y8.21%
211.18
-2.98 (-1.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.06%
Inst Owner Change0%
Ins Owners0.28%
Ins Owner Change-5.47%
Market Cap48.61B
Revenue(TTM)7.16B
Net Income(TTM)1.47B
Analysts74.78
Price Target223.76 (5.96%)
Short Float %1.17%
Short Ratio1.84
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-DateN/A
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%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.97 | ||
| Fwd PE | 26.26 | ||
| P/S | 6.79 | ||
| P/FCF | 29.6 | ||
| P/OCF | 27.5 | ||
| P/B | 4.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.25 |
EPS(TTM)7.29
EY3.45%
EPS(NY)8.04
Fwd EY3.81%
FCF(TTM)7.14
FCFY3.38%
OCF(TTM)7.68
OCFY3.64%
SpS31.12
BVpS45.73
TBVpS-3.93
PEG (NY)3.39
PEG (5Y)2.82
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 | 7.12 |
F-Score7
WACC8.54%
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 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 28.97 and the Price/Book (PB) ratio is 4.62.
What is the financial health of AMETEK INC (AME) stock?
The financial health rating of AMETEK INC (AME) is 7 / 10.