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Why NYSE:AME provides a good dividend, while having solid fundamentals.

By Mill Chart

Last update: Mar 6, 2024

AMETEK INC (NYSE:AME) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:AME demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Unpacking NYSE:AME's Dividend Rating

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:AME has been assigned a 7 for dividend:

  • Compared to an average industry Dividend Yield of 2.31, AME pays a better dividend. On top of this AME pays more dividend than 82.35% of the companies listed in the same industry.
  • The dividend of AME is nicely growing with an annual growth rate of 12.17%!
  • AME has been paying a dividend for at least 10 years, so it has a reliable track record.
  • AME has not decreased their dividend for at least 10 years, which is a reliable track record.
  • AME pays out 17.54% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of AME is growing, but earnings are growing more, so the dividend growth is sustainable.

How We Gauge Health for NYSE:AME

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:AME, the assigned 5 reflects its health status:

  • An Altman-Z score of 5.69 indicates that AME is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.69, AME belongs to the top of the industry, outperforming 90.59% of the companies in the same industry.
  • The Debt to FCF ratio of AME is 2.07, which is a good value as it means it would take AME, 2.07 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.07, AME belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
  • A Debt/Equity ratio of 0.22 indicates that AME is not too dependend on debt financing.
  • 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.

Evaluating Profitability: NYSE:AME

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:AME, the assigned 9 is noteworthy for profitability:

  • AME has a better Return On Assets (8.74%) than 83.53% of its industry peers.
  • AME has a better Return On Equity (15.04%) than 83.53% of its industry peers.
  • The Return On Invested Capital of AME (11.45%) is better than 84.71% of its industry peers.
  • The last Return On Invested Capital (11.45%) for AME is above the 3 year average (11.01%), which is a sign of increasing profitability.
  • Looking at the Profit Margin, with a value of 19.91%, AME belongs to the top of the industry, outperforming 97.65% of the companies in the same industry.
  • AME's Profit Margin has improved in the last couple of years.
  • AME has a Operating Margin of 25.88%. This is amongst the best in the industry. AME outperforms 98.82% of its industry peers.
  • In the last couple of years the Operating Margin of AME has grown nicely.
  • AME's Gross Margin of 36.14% is amongst the best of the industry. AME outperforms 85.88% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Our latest full fundamental report of AME contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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AMETEK INC

NYSE:AME (5/24/2024, 7:13:43 PM)

After market: 173.66 0 (0%)

173.66

+0.94 (+0.54%)

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