AMETEK INC (AME) Stock Fundamental Analysis
NYSE:AME - New York Stock Exchange, Inc. - US0311001004 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to AME. AME was compared to 94 industry peers in the Electrical Equipment industry. AME gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
Each year in the past 5 years AME has been profitable.
AME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AME has a Return On Assets of 9.52%. This is amongst the best in the industry. AME outperforms 92.55% of its industry peers.
The Return On Equity of AME (14.21%) is better than 86.17% of its industry peers.
The Return On Invested Capital of AME (11.58%) is better than 86.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AME is in line with the industry average of 9.87%.
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
The Profit Margin of AME (20.43%) is better 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.
In the last couple of years the Operating Margin of AME has grown nicely.
AME's Gross Margin of 36.18% is amongst the best of the industry. AME outperforms 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
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.
The number of shares outstanding for AME has been increased compared to 5 years ago.
The debt/assets ratio for AME has been reduced compared to a year ago.
2.2 Solvency
AME has an Altman-Z score of 7.02. This indicates that AME is financially healthy and has little risk of bankruptcy at the moment.
AME has a Altman-Z score of 7.02. This is amongst the best in the industry. AME outperforms 91.49% of its industry peers.
AME has a debt to FCF ratio of 1.13. This is a very positive value and a sign of high solvency as it would only need 1.13 years to pay back of all of its debts.
The Debt to FCF ratio of AME (1.13) is better than 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.
AME has a Debt to Equity ratio of 0.15. This is in the better half of the industry: AME outperforms 67.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 7.02 |
ROIC/WACC1.16
WACC9.95%
2.3 Liquidity
A Current Ratio of 1.41 indicates that AME should not have too much problems paying its short term obligations.
AME's Current ratio of 1.41 is in line compared to the rest of the industry. AME outperforms 40.43% of its industry peers.
AME has a Quick Ratio of 1.41. 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 Quick ratio (0.86) which is comparable to the rest of the 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 | 1.41 | ||
| Quick Ratio | 0.86 |
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%.
AME shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.27% yearly.
The Revenue has been growing slightly by 2.98% 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)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 Y4.5%
EPS Next 2Y5.93%
EPS Next 3Y6.54%
EPS Next 5Y6.67%
Revenue Next Year0.51%
Revenue Next 2Y2.56%
Revenue Next 3Y4%
Revenue Next 5Y7.02%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.45, AME can be considered very expensive at the moment.
Based on the Price/Earnings ratio, AME is valued a bit cheaper than 75.53% of the companies in the same industry.
AME is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.05, which indicates a rather expensive current valuation of AME.
Based on the Price/Forward Earnings ratio, AME is valued a bit cheaper than 73.40% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, AME is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.45 | ||
| Fwd PE | 23.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AME is valued a bit cheaper than 74.47% of the companies in the same industry.
AME's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AME is cheaper than 79.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.8 | ||
| EV/EBITDA | 19.28 |
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)5.66
PEG (5Y)2.48
EPS Next 2Y5.93%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
AME has a yearly dividend return of 0.69%, which is pretty low.
AME's Dividend Yield is rather good when compared to the industry average which is at 4.39. AME pays more dividend than 84.04% of the companies in the same industry.
With a Dividend Yield of 0.69, AME pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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 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
18.74% 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.
DP18.74%
EPS Next 2Y5.93%
EPS Next 3Y6.54%
NYSE:AME (6/20/2025, 1:45:09 PM)
176.65
-1.11 (-0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.64%
Inst Owner Change1.28%
Ins Owners0.32%
Ins Owner Change2.43%
Market Cap40.78B
Analysts75.45
Price Target198.59 (12.42%)
Short Float %1.26%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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)0.86%
PT rev (3m)-3.43%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-3.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.91%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-2.28%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.45 | ||
| Fwd PE | 23.05 | ||
| P/S | 5.88 | ||
| P/FCF | 23.8 | ||
| P/OCF | 22.21 | ||
| P/B | 4.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.28 |
EPS(TTM)6.94
EY3.93%
EPS(NY)7.66
Fwd EY4.34%
FCF(TTM)7.42
FCFY4.2%
OCF(TTM)7.95
OCFY4.5%
SpS30.05
BVpS43.18
TBVpS-2.5
PEG (NY)5.66
PEG (5Y)2.48
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 | 7.02 |
F-Score9
WACC9.95%
ROIC/WACC1.16
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 5Y6.67%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%-0.24%
Revenue Next Year0.51%
Revenue Next 2Y2.56%
Revenue Next 3Y4%
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%