AMETEK INC (AME)
US0311001004 - Common Stock
We assign a fundamental rating of 6 out of 10 to AME. AME was compared to 87 industry peers in the Electrical Equipment industry. AME scores excellent on profitability, but there are some minor concerns on its financial health. AME has a correct valuation and a medium 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.
AME had positive earnings in each of the past 5 years.
Each year in the past 5 years AME had a positive operating cash flow.
1.2 Ratios
AME has a better Return On Assets (8.74%) than 84.71% of its industry peers.
AME has a better Return On Equity (15.04%) than 84.71% of its industry peers.
The Return On Invested Capital of AME (11.45%) is better than 85.88% of its industry peers.
AME had an Average Return On Invested Capital over the past 3 years of 11.01%. This is in line with the industry average of 10.32%.
The 3 year average ROIC (11.01%) for AME is below the current ROIC(11.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.74% | ||
| ROE | 15.04% | ||
| ROIC | 11.45% |
ROA(3y)8.8%
ROA(5y)8.71%
ROE(3y)14.99%
ROE(5y)15.29%
ROIC(3y)11.01%
ROIC(5y)10.76%
1.3 Margins
Looking at the Profit Margin, with a value of 19.91%, AME belongs to the top of the industry, outperforming 97.65% of the companies in the same industry.
In the last couple of years the Profit Margin of AME has grown nicely.
The Operating Margin of AME (25.88%) is better than 98.82% of its industry peers.
AME's Operating Margin has improved in the last couple of years.
AME's Gross Margin of 36.14% is amongst the best of the industry. AME outperforms 81.18% 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 | 25.88% | ||
| PM (TTM) | 19.91% | ||
| GM | 36.14% |
OM growth 3Y3.11%
OM growth 5Y3.12%
PM growth 3Y1.18%
PM growth 5Y4.4%
GM growth 3Y1.12%
GM growth 5Y-0.55%
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 more shares outstanding
AME has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AME is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.70 indicates that AME is not in any danger for bankruptcy at the moment.
AME's Altman-Z score of 5.70 is amongst the best of the industry. AME outperforms 92.94% of its industry peers.
AME has a debt to FCF ratio of 2.07. This is a good value and a sign of high solvency as AME would need 2.07 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.07, AME belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that AME is not too dependend on debt financing.
The Debt to Equity ratio of AME (0.22) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 5.7 |
ROIC/WACC1.15
WACC9.94%
2.3 Liquidity
A Current Ratio of 0.98 indicates that AME may have some problems paying its short term obligations.
With a Current ratio value of 0.98, AME is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
AME has a Quick Ratio of 0.98. 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's Quick ratio of 0.59 is on the low side compared to the rest of the industry. AME is outperformed by 88.24% 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 | 0.98 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
AME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.32%, 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 14.09% on average per year.
The Revenue has been growing slightly by 7.26% in the past year.
The Revenue has been growing slightly by 6.36% on average over the past years.
EPS 1Y (TTM)12.32%
EPS 3Y17.33%
EPS 5Y14.09%
EPS growth Q2Q10.53%
Revenue 1Y (TTM)7.26%
Revenue growth 3Y13.27%
Revenue growth 5Y6.36%
Revenue growth Q2Q6.47%
3.2 Future
AME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.00% yearly.
Based on estimates for the next years, AME will show a quite strong growth in Revenue. The Revenue will grow by 13.73% on average per year.
EPS Next Y8.28%
EPS Next 2Y8.93%
EPS Next 3Y9.46%
EPS Next 5Y15%
Revenue Next Year12.15%
Revenue Next 2Y8.77%
Revenue Next 3Y8.34%
Revenue Next 5Y13.73%
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 stable.
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 27.93 indicates a quite expensive valuation of AME.
69.41% 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 25.20. AME is around the same levels.
A Price/Forward Earnings ratio of 25.80 indicates a quite expensive valuation of AME.
71.76% of the companies in the same industry are more expensive than AME, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, AME is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.93 | ||
| Fwd PE | 25.8 |
4.2 Price Multiples
67.06% of the companies in the same industry are more expensive than AME, based on the Enterprise Value to EBITDA ratio.
AME's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AME is cheaper than 78.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.77 | ||
| EV/EBITDA | 21.75 |
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)3.37
PEG (5Y)1.98
EPS Next 2Y8.93%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
AME has a yearly dividend return of 0.63%, which is pretty low.
Compared to an average industry Dividend Yield of 2.51, AME pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.63, AME pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
The dividend of AME is nicely growing with an annual growth rate of 12.17%!
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)12.17%
Div Incr Years4
Div Non Decr Years12
5.3 Sustainability
AME pays out 17.54% of its income as dividend. This is a sustainable payout ratio.
The dividend of AME is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.54%
EPS Next 2Y8.93%
EPS Next 3Y9.46%
AMETEK INC
NYSE:AME (4/24/2024, 3:53:19 PM)
After market: 178.22 0 (0%)178.22
-1.63 (-0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap41.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.93 | ||
| Fwd PE | 25.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.37
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.74% | ||
| ROE | 15.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.88% | ||
| PM (TTM) | 19.91% | ||
| GM | 36.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.32%
EPS 3Y17.33%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.26%
Revenue growth 3Y13.27%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y