AMETEK INC (AME) Stock Fundamental Analysis
NYSE:AME - New York Stock Exchange, Inc. - US0311001004 - Common Stock - Currency: USD
Taking everything into account, AME scores 7 out of 10 in our fundamental rating. AME was compared to 94 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
AME had positive earnings in the past year.
AME had a positive operating cash flow in the past year.
In the past 5 years AME has always been profitable.
AME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.52%, AME belongs to the top of the industry, outperforming 92.55% of the companies in the same industry.
The Return On Equity of AME (14.21%) is better than 86.17% of its industry peers.
With an excellent Return On Invested Capital value of 11.58%, AME belongs to the best of the industry, outperforming 85.11% 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 9.89%.
The 3 year average ROIC (11.54%) for AME is below the current ROIC(11.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.52% | ||
| ROE | 14.21% | ||
| ROIC | 11.58% |
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 better Profit Margin (20.43%) than 98.94% of its industry peers.
AME's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.20%, AME belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AME's Operating Margin has improved in the last couple of years.
The Gross Margin of AME (36.18%) is better than 84.04% 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 | 26.2% | ||
| PM (TTM) | 20.43% | ||
| 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), AME is creating some value.
AME has about the same amout of shares outstanding than it did 1 year ago.
AME has more shares outstanding than it did 5 years ago.
AME has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.11 indicates that AME is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.11, AME belongs to the best of the industry, outperforming 92.55% of the companies in the same industry.
The Debt to FCF ratio of AME is 1.13, which is an excellent value as it means it would take AME, only 1.13 years of fcf income to pay off all of its debts.
AME's Debt to FCF ratio of 1.13 is amongst the best of the industry. AME outperforms 92.55% of its industry peers.
AME has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.15, AME is doing good in the industry, outperforming 67.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 7.11 |
ROIC/WACC1.33
WACC8.73%
2.3 Liquidity
AME has a Current Ratio of 1.41. This is a normal value and indicates that AME is financially healthy and should not expect problems in meeting its short term obligations.
AME has a Current ratio (1.41) which is comparable to the rest of the industry.
A Quick Ratio of 0.86 indicates that AME may have some problems paying its short term obligations.
AME has a Quick ratio (0.86) which is in line with 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 | 1.41 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.28% over the past year.
The Earnings Per Share has been growing by 10.27% on average over the past years. This is quite good.
AME shows a small growth in Revenue. In the last year, the Revenue has grown by 2.98%.
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)2.98%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%-0.24%
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 6.67% on average per year.
Based on estimates for the next years, AME will show a small growth in Revenue. The Revenue will grow by 7.02% on average per year.
EPS Next Y4.49%
EPS Next 2Y5.89%
EPS Next 3Y6.54%
EPS Next 5Y6.67%
Revenue Next Year0.48%
Revenue Next 2Y2.72%
Revenue Next 3Y4.05%
Revenue Next 5Y7.02%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.08 indicates a quite expensive valuation of AME.
76.60% of the companies in the same industry are more expensive than AME, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. AME is around the same levels.
Based on the Price/Forward Earnings ratio of 23.63, the valuation of AME can be described as rather expensive.
74.47% of the companies in the same industry are more expensive than AME, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. AME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.08 | ||
| Fwd PE | 23.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AME is valued a bit cheaper than the industry average as 75.53% 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 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.38 | ||
| EV/EBITDA | 19.61 |
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)5.81
PEG (5Y)2.54
EPS Next 2Y5.89%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, AME is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.28, AME pays a better dividend. On top of this AME pays more dividend than 84.04% of the companies listed in the same industry.
With a Dividend Yield of 0.68, AME pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
On average, the dividend of AME grows each year by 14.93%, which is quite nice.
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
AME pays out 18.74% 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.
DP18.74%
EPS Next 2Y5.89%
EPS Next 3Y6.54%
180.97
-0.47 (-0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.64%
Inst Owner Change0.01%
Ins Owners0.32%
Ins Owner Change2.43%
Market Cap41.78B
Analysts75.45
Price Target198.59 (9.74%)
Short Float %1.01%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.12
Dividend Growth(5Y)14.93%
DP18.74%
Div Incr Years5
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.85%
Min EPS beat(2)-0.93%
Max EPS beat(2)2.63%
EPS beat(4)2
Avg EPS beat(4)0.83%
Min EPS beat(4)-0.93%
Max EPS beat(4)2.63%
EPS beat(8)6
Avg EPS beat(8)1.65%
EPS beat(12)10
Avg EPS beat(12)2.55%
EPS beat(16)14
Avg EPS beat(16)2.94%
Revenue beat(2)0
Avg Revenue beat(2)-2.9%
Min Revenue beat(2)-4.16%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)-1.07%
Revenue beat(8)0
Avg Revenue beat(8)-2.39%
Revenue beat(12)4
Avg Revenue beat(12)-0.82%
Revenue beat(16)7
Avg Revenue beat(16)-0.33%
PT rev (1m)0%
PT rev (3m)-3.43%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-4.1%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-2.51%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.08 | ||
| Fwd PE | 23.63 | ||
| P/S | 6.02 | ||
| P/FCF | 24.38 | ||
| P/OCF | 22.76 | ||
| P/B | 4.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.61 |
EPS(TTM)6.94
EY3.83%
EPS(NY)7.66
Fwd EY4.23%
FCF(TTM)7.42
FCFY4.1%
OCF(TTM)7.95
OCFY4.39%
SpS30.05
BVpS43.18
TBVpS-2.5
PEG (NY)5.81
PEG (5Y)2.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.52% | ||
| ROE | 14.21% | ||
| ROCE | 14.07% | ||
| ROIC | 11.58% | ||
| ROICexc | 11.95% | ||
| ROICexgc | 76% | ||
| OM | 26.2% | ||
| PM (TTM) | 20.43% | ||
| GM | 36.18% | ||
| FCFM | 24.7% |
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-Score9
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 31.3% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.14% | ||
| Profit Quality | 120.94% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 7.11 |
F-Score9
WACC8.73%
ROIC/WACC1.33
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 Y4.49%
EPS Next 2Y5.89%
EPS Next 3Y6.54%
EPS Next 5Y6.67%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%-0.24%
Revenue Next Year0.48%
Revenue Next 2Y2.72%
Revenue Next 3Y4.05%
Revenue Next 5Y7.02%
EBIT growth 1Y3.94%
EBIT growth 3Y10.79%
EBIT growth 5Y8.61%
EBIT Next Year24.7%
EBIT Next 3Y12.31%
EBIT Next 5Y10.8%
FCF growth 1Y42.57%
FCF growth 3Y17.47%
FCF growth 5Y10.95%
OCF growth 1Y37.58%
OCF growth 3Y16.37%
OCF growth 5Y10.41%