AMETEK INC (AME) Stock Fundamental Analysis
NYSE:AME - US0311001004 - Common Stock
185.57 USD
-1.38 (-0.74%)
185.57 USD
0 (0%)
Taking everything into account, AME scores 7 out of 10 in our fundamental rating. AME was compared to 93 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making AME a very profitable company, without any liquidiy or solvency issues. AME has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AME was profitable.
AME had a positive operating cash flow in the past year.
AME had positive earnings in each of the past 5 years.
AME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.42%, AME belongs to the best of the industry, outperforming 91.40% of the companies in the same industry.
AME's Return On Equity of 13.84% is amongst the best of the industry. AME outperforms 86.02% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.25%, AME belongs to the top of the industry, outperforming 86.02% of the companies in the same industry.
AME had an Average Return On Invested Capital over the past 3 years of 11.54%. This is in line with the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.42% | ||
| ROE | 13.84% | ||
| ROIC | 11.25% |
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 has a Profit Margin of 20.60%. This is amongst the best in the industry. AME outperforms 98.92% of its industry peers.
AME's Profit Margin has improved in the last couple of years.
AME has a better Operating Margin (26.24%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of AME has grown nicely.
AME has a better Gross Margin (36.12%) than 82.80% of its industry peers.
AME's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.24% | ||
| PM (TTM) | 20.6% | ||
| GM | 36.12% |
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), AME is creating some value.
The number of shares outstanding for AME remains at a similar level compared to 1 year ago.
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
An Altman-Z score of 7.32 indicates that AME is not in any danger for bankruptcy at the moment.
AME has a better Altman-Z score (7.32) than 92.47% of its industry peers.
The Debt to FCF ratio of AME is 1.15, which is an excellent value as it means it would take AME, only 1.15 years of fcf income to pay off all of its debts.
AME's Debt to FCF ratio of 1.15 is amongst the best of the industry. AME outperforms 92.47% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that AME is not too dependend on debt financing.
AME's Debt to Equity ratio of 0.15 is fine compared to the rest of the industry. AME outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 7.32 |
ROIC/WACC1.31
WACC8.58%
2.3 Liquidity
AME has a Current Ratio of 1.63. This is a normal value and indicates that AME is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.63, AME is in line with its industry, outperforming 44.09% of the companies in the same industry.
A Quick Ratio of 1.04 indicates that AME should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.04, AME is in line with its industry, outperforming 50.54% of the companies in the same industry.
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 | 1.63 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
AME shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.65%.
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.
AME shows a small growth in Revenue. In the last year, the Revenue has grown by 2.28%.
Measured over the past years, AME shows a small growth in Revenue. The Revenue has been growing by 6.12% on average per year.
EPS 1Y (TTM)6.65%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%7.23%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%2.49%
3.2 Future
Based on estimates for the next years, AME will show a small growth in Earnings Per Share. The EPS will grow by 7.08% on average per year.
The Revenue is expected to grow by 7.45% on average over the next years.
EPS Next Y5.74%
EPS Next 2Y7.25%
EPS Next 3Y7.87%
EPS Next 5Y7.08%
Revenue Next Year3.22%
Revenue Next 2Y5.36%
Revenue Next 3Y5.79%
Revenue Next 5Y7.45%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.28, the valuation of AME can be described as expensive.
Based on the Price/Earnings ratio, AME is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
AME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.03.
A Price/Forward Earnings ratio of 23.62 indicates a rather expensive valuation of AME.
Based on the Price/Forward Earnings ratio, AME is valued a bit cheaper than 77.42% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, AME is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.28 | ||
| Fwd PE | 23.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AME is valued a bit cheaper than the industry average as 76.34% of the companies are valued more expensively.
AME's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AME is cheaper than 81.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.46 | ||
| EV/EBITDA | 19.94 |
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 AME may justify a higher PE ratio.
PEG (NY)4.58
PEG (5Y)2.56
EPS Next 2Y7.25%
EPS Next 3Y7.87%
5. Dividend
5.1 Amount
AME has a yearly dividend return of 0.68%, which is pretty low.
Compared to an average industry Dividend Yield of 3.49, AME pays a better dividend. On top of this AME pays more dividend than 83.87% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, AME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of AME is nicely growing with an annual growth rate of 14.93%!
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
18.94% of the earnings are spent on dividend by AME. This is a low number and sustainable payout ratio.
AME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.94%
EPS Next 2Y7.25%
EPS Next 3Y7.87%
185.57
-1.38 (-0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.6%
Inst Owner Change-4.48%
Ins Owners0.32%
Ins Owner Change1.24%
Market Cap42.86B
Analysts74.55
Price Target209.58 (12.94%)
Short Float %0.98%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.12
Dividend Growth(5Y)14.93%
DP18.94%
Div Incr Years5
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.56%
Min EPS beat(2)2.63%
Max EPS beat(2)4.48%
EPS beat(4)3
Avg EPS beat(4)1.96%
Min EPS beat(4)-0.93%
Max EPS beat(4)4.48%
EPS beat(8)6
Avg EPS beat(8)1.85%
EPS beat(12)10
Avg EPS beat(12)2.43%
EPS beat(16)14
Avg EPS beat(16)3.02%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)1.49%
Revenue beat(4)1
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)1.49%
Revenue beat(8)1
Avg Revenue beat(8)-2.12%
Revenue beat(12)4
Avg Revenue beat(12)-0.99%
Revenue beat(16)7
Avg Revenue beat(16)-0.41%
PT rev (1m)4.72%
PT rev (3m)6.45%
EPS NQ rev (1m)-1.13%
EPS NQ rev (3m)-2.06%
EPS NY rev (1m)1.2%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)2.29%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)2.73%
Revenue NY rev (3m)2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.28 | ||
| Fwd PE | 23.62 | ||
| P/S | 6.14 | ||
| P/FCF | 25.46 | ||
| P/OCF | 23.63 | ||
| P/B | 4.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.94 |
EPS(TTM)7.06
EY3.8%
EPS(NY)7.86
Fwd EY4.23%
FCF(TTM)7.29
FCFY3.93%
OCF(TTM)7.85
OCFY4.23%
SpS30.22
BVpS44.98
TBVpS-0.93
PEG (NY)4.58
PEG (5Y)2.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.42% | ||
| ROE | 13.84% | ||
| ROCE | 13.67% | ||
| ROIC | 11.25% | ||
| ROICexc | 11.79% | ||
| ROICexgc | 69.31% | ||
| OM | 26.24% | ||
| PM (TTM) | 20.6% | ||
| GM | 36.12% | ||
| FCFM | 24.12% |
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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 32.56% | ||
| Cap/Sales | 1.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.28% | ||
| Profit Quality | 117.1% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 7.32 |
F-Score8
WACC8.58%
ROIC/WACC1.31
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)6.65%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%7.23%
EPS Next Y5.74%
EPS Next 2Y7.25%
EPS Next 3Y7.87%
EPS Next 5Y7.08%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%2.49%
Revenue Next Year3.22%
Revenue Next 2Y5.36%
Revenue Next 3Y5.79%
Revenue Next 5Y7.45%
EBIT growth 1Y3.05%
EBIT growth 3Y10.79%
EBIT growth 5Y8.61%
EBIT Next Year26.12%
EBIT Next 3Y13.52%
EBIT Next 5Y11.23%
FCF growth 1Y29.53%
FCF growth 3Y17.47%
FCF growth 5Y10.95%
OCF growth 1Y26.49%
OCF growth 3Y16.37%
OCF growth 5Y10.41%