AMETEK INC (AME) Stock Fundamental Analysis
USA - NYSE:AME - US0311001004 - Common Stock
187.87 USD
-0.83 (-0.44%)
187.87 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to AME. AME was compared to 92 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AME was profitable.
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
With an excellent Return On Assets value of 9.42%, AME belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
The Return On Equity of AME (13.84%) is better than 85.87% of its industry peers.
AME has a Return On Invested Capital of 11.25%. This is amongst the best in the industry. AME outperforms 85.87% 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 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.42% | ||
| ROE | 13.84% | ||
| ROIC | 11.25% |
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 20.60%, AME belongs to the top of the industry, outperforming 98.91% of the companies in the same industry.
AME's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.24%, 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 has a better Gross Margin (36.12%) 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 | 26.24% | ||
| PM (TTM) | 20.6% | ||
| GM | 36.12% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AME is still creating some value.
Compared to 1 year ago, AME has about the same amount of shares outstanding.
AME has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AME has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.37 indicates that AME is not in any danger for bankruptcy at the moment.
AME's Altman-Z score of 7.37 is amongst the best of the industry. AME outperforms 91.30% of its industry peers.
The Debt to FCF ratio of AME is 1.15, which is an excellent value as it means it would take AME, only 1.15 years of fcf income to pay off all of its debts.
AME has a better Debt to FCF ratio (1.15) than 92.39% 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.
The Debt to Equity ratio of AME (0.15) is better than 66.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 7.37 |
ROIC/WACC1.33
WACC8.44%
2.3 Liquidity
A Current Ratio of 1.63 indicates that AME should not have too much problems paying its short term obligations.
AME has a Current ratio (1.63) which is comparable to the rest of the industry.
A Quick Ratio of 1.04 indicates that AME should not have too much problems paying its short term obligations.
AME has a Quick ratio (1.04) which is in line with its industry peers.
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 | 1.63 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
AME shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.65%.
The Earnings Per Share has been growing by 10.27% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.28% in the past year.
The Revenue has been growing slightly by 6.12% on average over the past years.
EPS 1Y (TTM)6.65%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%7.23%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%2.49%
3.2 Future
AME is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.08% yearly.
Based on estimates for the next years, AME will show a small growth in Revenue. The Revenue will grow by 7.45% on average per year.
EPS Next Y5.74%
EPS Next 2Y7.25%
EPS Next 3Y7.87%
EPS Next 5Y7.08%
Revenue Next Year3.47%
Revenue Next 2Y5.39%
Revenue Next 3Y5.79%
Revenue Next 5Y7.45%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AME is valuated quite expensively with a Price/Earnings ratio of 26.61.
77.17% 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 27.38. AME is around the same levels.
Based on the Price/Forward Earnings ratio of 23.91, the valuation of AME can be described as rather expensive.
79.35% 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 22.86, AME is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.61 | ||
| Fwd PE | 23.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AME is valued a bit cheaper than 76.09% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AME is valued cheaper than 81.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.77 | ||
| EV/EBITDA | 20.12 |
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)4.64
PEG (5Y)2.59
EPS Next 2Y7.25%
EPS Next 3Y7.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, 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 3.04. AME pays more dividend than 83.70% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, AME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.93%
Div Incr Years5
Div Non Decr Years27
5.3 Sustainability
18.94% 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.
DP18.94%
EPS Next 2Y7.25%
EPS Next 3Y7.87%
187.87
-0.83 (-0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.6%
Inst Owner Change-4.48%
Ins Owners0.32%
Ins Owner Change-1.86%
Market Cap43.39B
Analysts74.55
Price Target210.64 (12.12%)
Short Float %1.13%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.12
Dividend Growth(5Y)14.93%
DP18.94%
Div Incr Years5
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.56%
Min EPS beat(2)2.63%
Max EPS beat(2)4.48%
EPS beat(4)3
Avg EPS beat(4)1.96%
Min EPS beat(4)-0.93%
Max EPS beat(4)4.48%
EPS beat(8)6
Avg EPS beat(8)1.85%
EPS beat(12)10
Avg EPS beat(12)2.43%
EPS beat(16)14
Avg EPS beat(16)3.02%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)1.49%
Revenue beat(4)1
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)1.49%
Revenue beat(8)1
Avg Revenue beat(8)-2.12%
Revenue beat(12)4
Avg Revenue beat(12)-0.99%
Revenue beat(16)7
Avg Revenue beat(16)-0.41%
PT rev (1m)0.93%
PT rev (3m)6.07%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)1.2%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)0.93%
Revenue NQ rev (3m)3.31%
Revenue NY rev (1m)2.6%
Revenue NY rev (3m)2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.61 | ||
| Fwd PE | 23.91 | ||
| P/S | 6.22 | ||
| P/FCF | 25.77 | ||
| P/OCF | 23.92 | ||
| P/B | 4.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.12 |
EPS(TTM)7.06
EY3.76%
EPS(NY)7.86
Fwd EY4.18%
FCF(TTM)7.29
FCFY3.88%
OCF(TTM)7.85
OCFY4.18%
SpS30.22
BVpS44.98
TBVpS-0.93
PEG (NY)4.64
PEG (5Y)2.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.42% | ||
| ROE | 13.84% | ||
| ROCE | 13.67% | ||
| ROIC | 11.25% | ||
| ROICexc | 11.79% | ||
| ROICexgc | 69.31% | ||
| OM | 26.24% | ||
| PM (TTM) | 20.6% | ||
| GM | 36.12% | ||
| FCFM | 24.12% |
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-Score8
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 32.56% | ||
| Cap/Sales | 1.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.28% | ||
| Profit Quality | 117.1% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 7.37 |
F-Score8
WACC8.44%
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)6.65%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%7.23%
EPS Next Y5.74%
EPS Next 2Y7.25%
EPS Next 3Y7.87%
EPS Next 5Y7.08%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%2.49%
Revenue Next Year3.47%
Revenue Next 2Y5.39%
Revenue Next 3Y5.79%
Revenue Next 5Y7.45%
EBIT growth 1Y3.05%
EBIT growth 3Y10.79%
EBIT growth 5Y8.61%
EBIT Next Year26.12%
EBIT Next 3Y13.52%
EBIT Next 5Y11.23%
FCF growth 1Y29.53%
FCF growth 3Y17.47%
FCF growth 5Y10.95%
OCF growth 1Y26.49%
OCF growth 3Y16.37%
OCF growth 5Y10.41%