AMETEK INC (AME) Stock Fundamental Analysis
USA - NYSE:AME - US0311001004 - Common Stock
196.29 USD
-0.96 (-0.49%)
196.29 USD
0 (0%)
Overall AME gets a fundamental rating of 7 out of 10. We evaluated AME against 91 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 is not valued too expensively and it also shows a decent growth rate. This makes AME very considerable for quality investing!
1. Profitability
1.1 Basic Checks
AME had positive earnings in the past year.
In the past year AME had a positive cash flow from operations.
Each year in the past 5 years AME has been profitable.
Each year in the past 5 years AME had a positive operating cash flow.
1.2 Ratios
AME has a Return On Assets of 9.08%. This is amongst the best in the industry. AME outperforms 89.13% of its industry peers.
AME's Return On Equity of 13.95% is amongst the best of the industry. AME outperforms 84.78% of its industry peers.
AME's Return On Invested Capital of 11.51% is amongst the best of the industry. AME outperforms 85.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AME is in line with the industry average of 10.34%.
| 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
Looking at the Profit Margin, with a value of 20.50%, AME belongs to the top of the industry, outperforming 96.74% of the companies in the same industry.
AME's Profit Margin has improved in the last couple of years.
AME's Operating Margin of 26.43% is amongst the best of the industry. AME outperforms 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 (36.18%) than 82.61% of its industry peers.
AME's Gross Margin has been stable in the last couple of years.
| 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
AME has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
AME has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.70 indicates that AME is not in any danger for bankruptcy at the moment.
The Altman-Z score of AME (6.70) is better than 88.04% of its industry peers.
The Debt to FCF ratio of AME is 1.50, which is an excellent value as it means it would take AME, only 1.50 years of fcf income to pay off all of its debts.
AME has a Debt to FCF ratio of 1.50. This is amongst the best in the industry. AME outperforms 91.30% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that AME is not too dependend on debt financing.
The Debt to Equity ratio of AME (0.14) is better than 68.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 6.7 |
ROIC/WACC1.36
WACC8.45%
2.3 Liquidity
AME has a Current Ratio of 1.16. This is a normal value and indicates that AME is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of AME (1.16) is worse than 67.39% of its industry peers.
A Quick Ratio of 0.72 indicates that AME may have some problems paying its short term obligations.
With a Quick ratio value of 0.72, AME is not doing good in the industry: 68.48% of the companies in the same industry are doing better.
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 | 1.16 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
AME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.79%, which is quite good.
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.
The Revenue has been growing slightly by 3.67% in the past 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)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
The Earnings Per Share is expected to grow by 8.10% on average over the next years. This is quite good.
Based on estimates for the next years, AME will show a small growth in Revenue. The Revenue will grow by 7.72% on average per year.
EPS Next Y7.7%
EPS Next 2Y8.06%
EPS Next 3Y7.56%
EPS Next 5Y8.1%
Revenue Next Year4.05%
Revenue Next 2Y5.78%
Revenue Next 3Y5.67%
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.
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
A Price/Earnings ratio of 26.93 indicates a quite expensive valuation of AME.
Compared to the rest of the industry, the Price/Earnings ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 79.35% of the companies listed in the same industry.
AME is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.61, the valuation of AME can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 72.83% of the companies listed in the same industry.
AME is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.93 | ||
| Fwd PE | 24.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AME is valued a bit cheaper than 77.17% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AME is valued cheaply inside the industry as 81.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.6 | ||
| EV/EBITDA | 20.53 |
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)3.5
PEG (5Y)2.62
EPS Next 2Y8.06%
EPS Next 3Y7.56%
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, AME is not a good candidate for dividend investing.
AME's Dividend Yield is rather good when compared to the industry average which is at 3.16. AME pays more dividend than 83.70% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, AME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
On average, the dividend of AME grows each year by 14.93%, which is quite nice.
AME has been paying a dividend for at least 10 years, so it has 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
19.00% of the earnings are spent on dividend by AME. This is a low number and sustainable payout ratio.
The dividend of AME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19%
EPS Next 2Y8.06%
EPS Next 3Y7.56%
196.29
-0.96 (-0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.84%
Inst Owner Change-0.94%
Ins Owners0.3%
Ins Owner Change-3.6%
Market Cap45.33B
Revenue(TTM)7.16B
Net Income(TTM)1.47B
Analysts74.78
Price Target211.5 (7.75%)
Short Float %1.15%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly Dividend1.12
Dividend Growth(5Y)14.93%
DP19%
Div Incr Years5
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.42%
Min EPS beat(2)4.48%
Max EPS beat(2)6.35%
EPS beat(4)3
Avg EPS beat(4)3.13%
Min EPS beat(4)-0.93%
Max EPS beat(4)6.35%
EPS beat(8)6
Avg EPS beat(8)2.26%
EPS beat(12)10
Avg EPS beat(12)2.57%
EPS beat(16)14
Avg EPS beat(16)3.07%
Revenue beat(2)2
Avg Revenue beat(2)2.17%
Min Revenue beat(2)1.49%
Max Revenue beat(2)2.86%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)2.86%
Revenue beat(8)2
Avg Revenue beat(8)-1.37%
Revenue beat(12)4
Avg Revenue beat(12)-0.89%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)0.41%
PT rev (3m)1.34%
EPS NQ rev (1m)2.58%
EPS NQ rev (3m)2.76%
EPS NY rev (1m)1.57%
EPS NY rev (3m)3.07%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)1.56%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)3.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.93 | ||
| Fwd PE | 24.61 | ||
| P/S | 6.33 | ||
| P/FCF | 27.6 | ||
| P/OCF | 25.65 | ||
| P/B | 4.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.53 |
EPS(TTM)7.29
EY3.71%
EPS(NY)7.97
Fwd EY4.06%
FCF(TTM)7.11
FCFY3.62%
OCF(TTM)7.65
OCFY3.9%
SpS31.02
BVpS45.58
TBVpS-3.91
PEG (NY)3.5
PEG (5Y)2.62
Graham Number86.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.08% | ||
| ROE | 13.95% | ||
| ROCE | 13.99% | ||
| ROIC | 11.51% | ||
| ROICexc | 11.9% | ||
| ROICexgc | 93.74% | ||
| OM | 26.43% | ||
| PM (TTM) | 20.5% | ||
| GM | 36.18% | ||
| FCFM | 22.93% |
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%
ROICexgc growth 3Y3.6%
ROICexgc 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-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 30.26% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.63% | ||
| Profit Quality | 111.83% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 6.7 |
F-Score7
WACC8.45%
ROIC/WACC1.36
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)9.79%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%13.86%
EPS Next Y7.7%
EPS Next 2Y8.06%
EPS Next 3Y7.56%
EPS Next 5Y8.1%
Revenue 1Y (TTM)3.67%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%10.77%
Revenue Next Year4.05%
Revenue Next 2Y5.78%
Revenue Next 3Y5.67%
Revenue Next 5Y7.72%
EBIT growth 1Y6.1%
EBIT growth 3Y10.79%
EBIT growth 5Y8.61%
EBIT Next Year27.05%
EBIT Next 3Y14.08%
EBIT Next 5Y12.18%
FCF growth 1Y13.68%
FCF growth 3Y17.47%
FCF growth 5Y10.95%
OCF growth 1Y11.9%
OCF growth 3Y16.37%
OCF growth 5Y10.41%
AMETEK INC / AME FAQ
What is the fundamental rating for AME stock?
ChartMill assigns a fundamental rating of 7 / 10 to AME.
What is the valuation status for AME stock?
ChartMill assigns a valuation rating of 5 / 10 to AMETEK INC (AME). This can be considered as Fairly Valued.
What is the profitability of AME stock?
AMETEK INC (AME) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for AME stock?
The Price/Earnings (PE) ratio for AMETEK INC (AME) is 26.93 and the Price/Book (PB) ratio is 4.31.
What is the earnings growth outlook for AMETEK INC?
The Earnings per Share (EPS) of AMETEK INC (AME) is expected to grow by 7.7% in the next year.