AMETEK INC (AME) Stock Fundamental Analysis
NYSE:AME - New York Stock Exchange, Inc. - US0311001004 - Common Stock - Currency: USD
AME gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 95 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.
In the past year AME had a positive cash flow from operations.
In the past 5 years AME has always been profitable.
In the past 5 years AME always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.52%, AME belongs to the top of the industry, outperforming 91.58% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.21%, AME belongs to the top of the industry, outperforming 85.26% of the companies in the same industry.
AME has a better Return On Invested Capital (11.58%) than 86.32% of its industry peers.
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 10.11%.
The last Return On Invested Capital (11.58%) for AME is above the 3 year average (11.54%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 20.43%, AME belongs to the top of the industry, outperforming 98.95% of the companies in the same industry.
In the last couple of years the Profit Margin of AME has grown nicely.
AME's Operating Margin of 26.20% is amongst the best of the industry. AME outperforms 100.00% of its industry peers.
AME's Operating Margin has improved in the last couple of years.
AME has a better Gross Margin (36.18%) than 82.11% of its industry peers.
AME's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, AME has about the same amount of shares outstanding.
The number of shares outstanding for AME has been increased compared to 5 years ago.
AME has a better debt/assets ratio than last year.
2.2 Solvency
AME has an Altman-Z score of 7.05. This indicates that AME is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.05, AME belongs to the best of the industry, outperforming 93.68% 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 has a Debt to FCF ratio of 1.13. This is amongst the best in the industry. AME outperforms 92.63% 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.
AME has a Debt to Equity ratio of 0.15. This is in the better half of the industry: AME outperforms 65.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 7.05 |
ROIC/WACC1.33
WACC8.73%
2.3 Liquidity
A Current Ratio of 1.41 indicates that AME should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.41, AME is doing worse than 60.00% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that AME may have some problems paying its short term obligations.
AME has a Quick ratio of 0.86. This is in the lower half of the industry: AME underperforms 60.00% 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 | 1.41 | ||
| 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.
Looking at the last year, AME shows a small growth in Revenue. The Revenue has grown by 2.98% in the last year.
The Revenue has been growing slightly by 6.12% on average over the past years.
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
The Earnings Per Share is expected to grow by 7.03% on average over the next years.
Based on estimates for the next years, AME will show a small growth in Revenue. The Revenue will grow by 7.39% on average per year.
EPS Next Y4.5%
EPS Next 2Y5.93%
EPS Next 3Y6.54%
EPS Next 5Y7.03%
Revenue Next Year0.49%
Revenue Next 2Y2.56%
Revenue Next 3Y4%
Revenue Next 5Y7.39%
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 25.94, the valuation of AME can be described as expensive.
73.68% of the companies in the same industry are more expensive than AME, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AME to the average of the S&P500 Index (26.17), we can say AME is valued inline with the index average.
AME is valuated rather expensively with a Price/Forward Earnings ratio of 23.49.
Based on the Price/Forward Earnings ratio, AME is valued a bit cheaper than 75.79% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AME to the average of the S&P500 Index (22.10), we can say AME is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 23.49 |
4.2 Price Multiples
74.74% of the companies in the same industry are more expensive than AME, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 76.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.26 | ||
| EV/EBITDA | 19.4 |
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)5.77
PEG (5Y)2.53
EPS Next 2Y5.93%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
AME has a yearly dividend return of 0.70%, which is pretty low.
Compared to an average industry Dividend Yield of 4.64, AME pays a better dividend. On top of this AME pays more dividend than 84.21% of the companies listed in the same industry.
With a Dividend Yield of 0.70, AME pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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
AME pays out 18.74% of its income as dividend. This is a sustainable payout ratio.
AME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.74%
EPS Next 2Y5.93%
EPS Next 3Y6.54%
NYSE:AME (5/29/2025, 3:53:54 PM)
180.045
+1.07 (+0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.82%
Inst Owner Change1.3%
Ins Owners0.37%
Ins Owner Change2.43%
Market Cap41.57B
Analysts75.45
Price Target196.89 (9.36%)
Short Float %1.01%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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)-4.25%
PT rev (3m)-4.25%
EPS NQ rev (1m)-3.91%
EPS NQ rev (3m)-3.87%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.91%
Revenue NQ rev (1m)-2.34%
Revenue NQ rev (3m)-2.34%
Revenue NY rev (1m)-0.93%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 23.49 | ||
| P/S | 5.99 | ||
| P/FCF | 24.26 | ||
| P/OCF | 22.64 | ||
| P/B | 4.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.4 |
EPS(TTM)6.94
EY3.85%
EPS(NY)7.66
Fwd EY4.26%
FCF(TTM)7.42
FCFY4.12%
OCF(TTM)7.95
OCFY4.42%
SpS30.05
BVpS43.18
TBVpS-2.5
PEG (NY)5.77
PEG (5Y)2.53
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 | 7.05 |
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 Y4.5%
EPS Next 2Y5.93%
EPS Next 3Y6.54%
EPS Next 5Y7.03%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%-0.24%
Revenue Next Year0.49%
Revenue Next 2Y2.56%
Revenue Next 3Y4%
Revenue Next 5Y7.39%
EBIT growth 1Y3.94%
EBIT growth 3Y10.79%
EBIT growth 5Y8.61%
EBIT Next Year24.7%
EBIT Next 3Y12.31%
EBIT Next 5Y11.17%
FCF growth 1Y42.57%
FCF growth 3Y17.47%
FCF growth 5Y10.95%
OCF growth 1Y37.58%
OCF growth 3Y16.37%
OCF growth 5Y10.41%