AMETEK INC (AK1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AK1 - US0311001004 - Common Stock
188.22 EUR
+2.32 (+1.25%)
We assign a fundamental rating of 6 out of 10 to AK1. AK1 was compared to 73 industry peers in the Electrical Equipment industry. AK1 gets an excellent profitability rating and is at the same time showing great financial health properties. AK1 has a correct valuation and a medium growth rate. With these ratings, AK1 could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- AK1 had positive earnings in the past year.
- AK1 had a positive operating cash flow in the past year.
- AK1 had positive earnings in each of the past 5 years.
- Each year in the past 5 years AK1 had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 9.08%, AK1 belongs to the best of the industry, outperforming 89.04% of the companies in the same industry.
- AK1's Return On Equity of 13.95% is fine compared to the rest of the industry. AK1 outperforms 72.60% of its industry peers.
- AK1 has a Return On Invested Capital of 11.51%. This is amongst the best in the industry. AK1 outperforms 86.30% of its industry peers.
- AK1 had an Average Return On Invested Capital over the past 3 years of 11.54%. This is in line with the industry average of 9.58%.
| 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
- With an excellent Profit Margin value of 20.50%, AK1 belongs to the best of the industry, outperforming 98.63% of the companies in the same industry.
- AK1's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 26.43%, AK1 belongs to the top of the industry, outperforming 98.63% of the companies in the same industry.
- In the last couple of years the Operating Margin of AK1 has grown nicely.
- With a Gross Margin value of 36.18%, AK1 perfoms like the industry average, outperforming 50.68% of the companies in the same industry.
- In the last couple of years the Gross Margin of AK1 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AK1 is creating some value.
- Compared to 1 year ago, AK1 has about the same amount of shares outstanding.
- AK1 has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for AK1 has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.34 indicates that AK1 is not in any danger for bankruptcy at the moment.
- The Altman-Z score of AK1 (7.34) is better than 93.15% of its industry peers.
- AK1 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.
- Looking at the Debt to FCF ratio, with a value of 1.50, AK1 belongs to the top of the industry, outperforming 89.04% of the companies in the same industry.
- AK1 has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- AK1 has a Debt to Equity ratio of 0.14. This is in the better half of the industry: AK1 outperforms 79.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 7.34 |
ROIC/WACC1.34
WACC8.59%
2.3 Liquidity
- A Current Ratio of 1.16 indicates that AK1 should not have too much problems paying its short term obligations.
- AK1's Current ratio of 1.16 is on the low side compared to the rest of the industry. AK1 is outperformed by 71.23% of its industry peers.
- A Quick Ratio of 0.72 indicates that AK1 may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.72, AK1 is doing worse than 67.12% of the companies in the same industry.
- The current and quick ratio evaluation for AK1 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
- The Earnings Per Share has grown by an nice 9.79% over the past year.
- Measured over the past years, AK1 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.27% on average per year.
- The Revenue has been growing slightly by 3.67% in the past year.
- Measured over the past years, AK1 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
- Based on estimates for the next years, AK1 will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.10% on average per year.
- AK1 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 Year4.76%
Revenue Next 2Y6.18%
Revenue Next 3Y6%
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.
- 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
- With a Price/Earnings ratio of 30.21, AK1 can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, AK1 is valued a bit cheaper than 67.12% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. AK1 is around the same levels.
- The Price/Forward Earnings ratio is 27.40, which means the current valuation is very expensive for AK1.
- AK1's Price/Forward Earnings ratio is in line with the industry average.
- AK1 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.21 | ||
| Fwd PE | 27.4 |
4.2 Price Multiples
- AK1's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, AK1 is valued a bit cheaper than 65.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.88 | ||
| EV/EBITDA | 23.12 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of AK1 may justify a higher PE ratio.
PEG (NY)3.54
PEG (5Y)2.94
EPS Next 2Y8.5%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
- AK1 has a yearly dividend return of 0.58%, which is pretty low.
- AK1's Dividend Yield is a higher than the industry average which is at 0.82.
- With a Dividend Yield of 0.58, AK1 pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
- On average, the dividend of AK1 grows each year by 14.93%, which is quite nice.
Dividend Growth(5Y)14.93%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 19.00% of the earnings are spent on dividend by AK1. This is a low number and sustainable payout ratio.
- AK1'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%
AMETEK INC / AK1.DE FAQ
Can you provide the ChartMill fundamental rating for AMETEK INC?
ChartMill assigns a fundamental rating of 6 / 10 to AK1.DE.
Can you provide the valuation status for AMETEK INC?
ChartMill assigns a valuation rating of 4 / 10 to AMETEK INC (AK1.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for AMETEK INC?
AMETEK INC (AK1.DE) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for AK1 stock?
The Earnings per Share (EPS) of AMETEK INC (AK1.DE) is expected to grow by 8.54% in the next year.
Can you provide the dividend sustainability for AK1 stock?
The dividend rating of AMETEK INC (AK1.DE) is 4 / 10 and the dividend payout ratio is 19%.