AMETEK INC (AME) Stock Fundamental Analysis
USA - NYSE:AME - US0311001004 - Common Stock
193.36 USD
-0.79 (-0.41%)
193.36 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 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. With these ratings, AME could be worth investigating further 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.
Each year in the past 5 years AME had a positive operating cash flow.
1.2 Ratios
AME's Return On Assets of 9.08% is amongst the best of the industry. AME outperforms 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 84.62% of the companies in the same industry.
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.
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 10.45%.
| 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.
With an excellent Operating Margin value of 26.43%, AME belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AME has grown nicely.
AME has a better Gross Margin (36.18%) than 82.42% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AME is still creating some value.
The number of shares outstanding for AME remains at a similar level compared to 1 year ago.
Compared to 5 years ago, AME has more shares outstanding
AME has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.65 indicates that AME is not in any danger for bankruptcy at the moment.
AME has a Altman-Z score of 6.65. This is amongst the best in the industry. AME outperforms 86.81% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.50, AME belongs to the top of the industry, outperforming 91.21% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that AME is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.14, AME is doing good in 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 | 6.65 |
ROIC/WACC1.36
WACC8.45%
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.
The Current ratio of AME (1.16) is worse than 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.
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.
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.
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 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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
AME is valuated quite expensively with a Price/Earnings ratio of 26.52.
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.
Compared to an average S&P500 Price/Earnings ratio of 25.89, AME is valued at the same level.
Based on the Price/Forward Earnings ratio of 24.25, the valuation of AME can be described as rather expensive.
Based on the Price/Forward Earnings ratio, AME is valued a bit cheaper than 73.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, AME is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 24.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 75.82% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AME is valued a bit cheaper than the industry average as 79.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.19 | ||
| EV/EBITDA | 20.32 |
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)3.44
PEG (5Y)2.58
EPS Next 2Y8.06%
EPS Next 3Y7.56%
5. Dividend
5.1 Amount
AME has a yearly dividend return of 0.63%, which is pretty low.
Compared to an average industry Dividend Yield of 3.16, AME pays a better dividend. On top of this AME pays more dividend than 83.52% of the companies listed in the same industry.
With a Dividend Yield of 0.63, AME pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
On average, the dividend of AME grows each year by 14.93%, which is quite nice.
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.
The dividend of AME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19%
EPS Next 2Y8.06%
EPS Next 3Y7.56%
193.36
-0.79 (-0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.84%
Inst Owner Change-0.94%
Ins Owners0.3%
Ins Owner Change-3.6%
Market Cap44.66B
Revenue(TTM)7.16B
Net Income(TTM)1.47B
Analysts74.78
Price Target211.5 (9.38%)
Short Float %1.15%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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)2.58%
EPS NQ rev (3m)2.76%
EPS NY rev (1m)1.57%
EPS NY rev (3m)3.07%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)1.56%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)3.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 24.25 | ||
| P/S | 6.23 | ||
| P/FCF | 27.19 | ||
| P/OCF | 25.27 | ||
| P/B | 4.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.32 |
EPS(TTM)7.29
EY3.77%
EPS(NY)7.97
Fwd EY4.12%
FCF(TTM)7.11
FCFY3.68%
OCF(TTM)7.65
OCFY3.96%
SpS31.02
BVpS45.58
TBVpS-3.91
PEG (NY)3.44
PEG (5Y)2.58
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 | 6.65 |
F-Score7
WACC8.45%
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 26.52 and the Price/Book (PB) ratio is 4.24.
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.