AMETEK INC (AME) Stock Fundamental Analysis
NYSE:AME - New York Stock Exchange, Inc. - US0311001004 - Common Stock - Currency: USD
Taking everything into account, AME scores 6 out of 10 in our fundamental rating. AME was compared to 97 industry peers in the Electrical Equipment industry. AME scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AME is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AME was profitable.
AME had a positive operating cash flow in the past year.
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
The Return On Assets of AME (9.41%) is better than 92.78% of its industry peers.
The Return On Equity of AME (14.25%) is better than 87.63% of its industry peers.
With an excellent Return On Invested Capital value of 11.88%, AME belongs to the best of the industry, outperforming 90.72% 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 9.63%.
The last Return On Invested Capital (11.88%) for AME is above the 3 year average (11.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.41% | ||
| ROE | 14.25% | ||
| ROIC | 11.88% |
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
The Profit Margin of AME (19.83%) is better than 98.97% of its industry peers.
In the last couple of years the Profit Margin of AME has grown nicely.
The Operating Margin of AME (26.06%) 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 36.10%. This is amongst the best in the industry. AME outperforms 80.41% 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 | 26.06% | ||
| PM (TTM) | 19.83% | ||
| GM | 36.1% |
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
AME has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, AME has about the same amount of shares outstanding.
Compared to 5 years ago, AME has more shares outstanding
Compared to 1 year ago, AME has an improved debt to assets ratio.
2.2 Solvency
AME has an Altman-Z score of 6.64. This indicates that AME is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.64, AME belongs to the best of the industry, outperforming 93.81% of the companies in the same industry.
The Debt to FCF ratio of AME is 1.22, which is an excellent value as it means it would take AME, only 1.22 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.22, AME belongs to the top of the industry, outperforming 90.72% of the companies in the same industry.
AME has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
AME's Debt to Equity ratio of 0.15 is fine compared to the rest of the industry. AME outperforms 63.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.22 | ||
| Altman-Z | 6.64 |
ROIC/WACC1.4
WACC8.48%
2.3 Liquidity
A Current Ratio of 1.24 indicates that AME should not have too much problems paying its short term obligations.
AME has a worse Current ratio (1.24) than 71.13% of its industry peers.
AME has a Quick Ratio of 1.24. This is a bad value and indicates that AME is not financially healthy enough and could expect problems in meeting its short term obligations.
AME has a worse Quick ratio (0.75) than 69.07% of its industry peers.
AME does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.24 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
AME shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.28%.
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 5.22% in the last year.
AME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.12% yearly.
EPS 1Y (TTM)6.28%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%6.71%
Revenue 1Y (TTM)5.22%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%-0.24%
3.2 Future
AME is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.03% yearly.
The Revenue is expected to grow by 7.39% on average over the next years.
EPS Next Y4.72%
EPS Next 2Y6.63%
EPS Next 3Y7.22%
EPS Next 5Y7.03%
Revenue Next Year1.44%
Revenue Next 2Y3.42%
Revenue Next 3Y4.84%
Revenue Next 5Y7.39%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 24.51, which indicates a rather expensive current valuation of AME.
AME's Price/Earnings ratio is a bit cheaper when compared to the industry. AME is cheaper than 74.23% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.75. AME is around the same levels.
With a Price/Forward Earnings ratio of 21.91, AME is valued on the expensive side.
Based on the Price/Forward Earnings ratio, AME is valued a bit cheaper than 71.13% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.49. AME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.51 | ||
| Fwd PE | 21.91 |
4.2 Price Multiples
AME's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AME is cheaper than 75.26% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AME is valued a bit cheaper than 76.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.07 | ||
| EV/EBITDA | 18.39 |
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)5.19
PEG (5Y)2.39
EPS Next 2Y6.63%
EPS Next 3Y7.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, AME is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.55, AME pays a better dividend. On top of this AME pays more dividend than 84.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, AME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
The dividend of AME is nicely growing with an annual growth rate of 14.93%!
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.
Dividend Growth(5Y)14.93%
Div Incr Years5
Div Non Decr Years27
5.3 Sustainability
AME pays out 18.81% of its income as dividend. This is a sustainable payout ratio.
The dividend of AME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.81%
EPS Next 2Y6.63%
EPS Next 3Y7.22%
NYSE:AME (5/2/2025, 11:11:59 AM)
170.11
+2.85 (+1.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.82%
Inst Owner Change0.81%
Ins Owners0.37%
Ins Owner Change2.43%
Market Cap39.25B
Analysts75.45
Price Target195.6 (14.98%)
Short Float %0.99%
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend1.12
Dividend Growth(5Y)14.93%
DP18.81%
Div Incr Years5
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.37%
Min EPS beat(2)-0.93%
Max EPS beat(2)1.68%
EPS beat(4)2
Avg EPS beat(4)0.65%
Min EPS beat(4)-0.93%
Max EPS beat(4)1.92%
EPS beat(8)6
Avg EPS beat(8)1.87%
EPS beat(12)10
Avg EPS beat(12)2.61%
EPS beat(16)14
Avg EPS beat(16)3.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.61%
Min Revenue beat(2)-4.16%
Max Revenue beat(2)-1.07%
Revenue beat(4)0
Avg Revenue beat(4)-3.07%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)-1.07%
Revenue beat(8)1
Avg Revenue beat(8)-1.86%
Revenue beat(12)4
Avg Revenue beat(12)-0.75%
Revenue beat(16)8
Avg Revenue beat(16)-0.05%
PT rev (1m)-4.88%
PT rev (3m)-3.71%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-4.07%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-3.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.29%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.51 | ||
| Fwd PE | 21.91 | ||
| P/S | 5.66 | ||
| P/FCF | 23.07 | ||
| P/OCF | 21.46 | ||
| P/B | 4.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.39 |
EPS(TTM)6.94
EY4.08%
EPS(NY)7.77
Fwd EY4.56%
FCF(TTM)7.37
FCFY4.34%
OCF(TTM)7.93
OCFY4.66%
SpS30.08
BVpS41.84
TBVpS-3.54
PEG (NY)5.19
PEG (5Y)2.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.41% | ||
| ROE | 14.25% | ||
| ROCE | 14.43% | ||
| ROIC | 11.88% | ||
| ROICexc | 12.24% | ||
| ROICexgc | 88.2% | ||
| OM | 26.06% | ||
| PM (TTM) | 19.83% | ||
| GM | 36.1% | ||
| FCFM | 24.52% |
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%
ROICexcg growth 3Y3.6%
ROICexcg 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-Score8
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.22 | ||
| Debt/EBITDA | 0.65 | ||
| Cap/Depr | 33.19% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 15.88 | ||
| Cash Conversion | 83.44% | ||
| Profit Quality | 123.66% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 6.64 |
F-Score8
WACC8.48%
ROIC/WACC1.4
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)6.28%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%6.71%
EPS Next Y4.72%
EPS Next 2Y6.63%
EPS Next 3Y7.22%
EPS Next 5Y7.03%
Revenue 1Y (TTM)5.22%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%-0.24%
Revenue Next Year1.44%
Revenue Next 2Y3.42%
Revenue Next 3Y4.84%
Revenue Next 5Y7.39%
EBIT growth 1Y5.94%
EBIT growth 3Y10.79%
EBIT growth 5Y8.61%
EBIT Next Year26.83%
EBIT Next 3Y14.35%
EBIT Next 5Y11.17%
FCF growth 1Y6.42%
FCF growth 3Y17.47%
FCF growth 5Y10.95%
OCF growth 1Y5.39%
OCF growth 3Y16.37%
OCF growth 5Y10.41%