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 decent growth rate and is not valued too expensively. These ratings could make AME a good candidate for quality investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

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.
The Average Return On Invested Capital over the past 3 years 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

AME's Profit Margin of 20.50% is amongst the best of the industry. AME outperforms 96.70% of its industry peers.
In the last couple of years the Profit Margin of AME has grown nicely.
The Operating Margin of AME (26.43%) is better than 100.00% of its industry peers.
AME's Operating Margin has improved in the last couple of years.
AME has a Gross Margin of 36.18%. This is amongst the best in the industry. AME outperforms 80.22% of its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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

An Altman-Z score of 7.28 indicates that AME is not in any danger for bankruptcy at the moment.
AME has a better Altman-Z score (7.28) 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.
With an excellent Debt to FCF ratio value of 1.50, AME belongs to the best 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 71.43% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.14
Debt/FCF	1.5
Altman-Z	7.28

ROIC/WACC1.34

WACC8.61%

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.
AME has a worse Quick ratio (0.72) 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

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WACC

Debt/Equity

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Altman-Z score

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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.
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

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.
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

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 30.28 indicates a quite expensive valuation of AME.
Based on the Price/Earnings ratio, AME is valued a bit cheaper than 75.82% of the companies in the same industry.
AME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 27.33, the valuation of AME can be described as expensive.
72.53% of the companies in the same industry are more expensive than AME, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, AME is valued at the same level.

		Industry Rank	Sector Rank
PE	30.28
Fwd PE	27.33

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AME is valued a bit cheaper than 76.92% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 79.12% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	30.94
EV/EBITDA	22.91

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)3.4

PEG (5Y)2.95

EPS Next 2Y8.74%

EPS Next 3Y8.07%

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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 1.81.

		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%

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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 30.28 and the Price/Book (PB) ratio is 4.83.

What is the financial health of AMETEK INC (AME) stock?

The financial health rating of AMETEK INC (AME) is 7 / 10.