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Why NYSE:AME Stands Out as a Quality Stock.

By Mill Chart

Last update: Nov 27, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if AMETEK INC (NYSE:AME) is suited for quality investing. Investors should of course do their own research, but we spotted AMETEK INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • Over the past 5 years, AMETEK INC has experienced impressive revenue growth, with 7.42% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a notable ROIC excluding cash and goodwill at 74.19%, AMETEK INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • The Debt/Free Cash Flow Ratio of AMETEK INC stands at 1.5, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • With a favorable Profit Quality (5-year) ratio of 111.0%, AMETEK INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • With a robust 5-year EBIT growth of 10.4%, AMETEK INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • AMETEK INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

A complete fundamental analysis of NYSE:AME

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

AME gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 87 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 correct valuation and a medium growth rate. These ratings could make AME a good candidate for quality investing.

Check the latest full fundamental report of AME for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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