AMETEK INC (AME) Stock Fundamental Analysis
USA - NYSE:AME - US0311001004 - Common Stock
198.97 USD
-3.14 (-1.55%)
AME gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 92 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
In the past year AME was profitable.
AME had a positive operating cash flow in the past year.
AME had positive earnings in each of the past 5 years.
In the past 5 years AME always reported a positive cash flow from operatings.
1.2 Ratios
AME's Return On Assets of 9.08% is amongst the best of the industry. AME outperforms 89.13% of its industry peers.
AME has a better Return On Equity (13.95%) than 84.78% of its industry peers.
The Return On Invested Capital of AME (11.51%) is better than 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 10.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.08% | ||
| ROE | 13.95% | ||
| ROIC | 11.51% |
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 20.50%, AME belongs to the top of the industry, outperforming 97.83% 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 26.43%, 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.
Looking at the Gross Margin, with a value of 36.18%, AME belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
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 | 26.43% | ||
| PM (TTM) | 20.5% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AME is still creating some value.
The number of shares outstanding for AME remains at a similar level compared to 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
AME has an Altman-Z score of 6.84. This indicates that AME is financially healthy and has little risk of bankruptcy at the moment.
AME's Altman-Z score of 6.84 is amongst the best of the industry. AME outperforms 88.04% of its industry peers.
AME has a debt to FCF ratio of 1.50. This is a very positive value and a sign of high solvency as it would only need 1.50 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.50, AME belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that AME is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.14, AME is doing good in the industry, outperforming 68.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 6.84 |
ROIC/WACC1.36
WACC8.46%
2.3 Liquidity
AME has a Current Ratio of 1.16. 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 of 1.16. This is in the lower half of the industry: AME underperforms 67.39% of its industry peers.
AME has a Quick Ratio of 1.16. This is a bad value and indicates that AME is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AME (0.72) is worse than 68.48% 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 | 1.16 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.79% over the past year.
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 3.67% in the past year.
The Revenue has been growing slightly by 6.12% on average over the past years.
EPS 1Y (TTM)9.79%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%13.86%
Revenue 1Y (TTM)3.67%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%10.77%
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 Y7.7%
EPS Next 2Y8.06%
EPS Next 3Y7.56%
EPS Next 5Y7.08%
Revenue Next Year4.05%
Revenue Next 2Y5.78%
Revenue Next 3Y5.67%
Revenue Next 5Y7.45%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 27.29, which means the current valuation is very expensive for AME.
79.35% 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 26.11. AME is around the same levels.
A Price/Forward Earnings ratio of 24.95 indicates a rather expensive valuation of AME.
Based on the Price/Forward Earnings ratio, AME is valued a bit cheaper than 73.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.55. AME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.29 | ||
| Fwd PE | 24.95 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AME indicates a rather cheap valuation: AME is cheaper than 83.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.98 | ||
| EV/EBITDA | 21.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AME does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of AME may justify a higher PE ratio.
PEG (NY)3.54
PEG (5Y)2.66
EPS Next 2Y8.06%
EPS Next 3Y7.56%
5. Dividend
5.1 Amount
AME has a yearly dividend return of 0.61%, which is pretty low.
Compared to an average industry Dividend Yield of 3.00, AME pays a better dividend. On top of this AME pays more dividend than 83.70% of the companies listed in the same industry.
With a Dividend Yield of 0.61, AME pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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
19.00% 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.
DP19%
EPS Next 2Y8.06%
EPS Next 3Y7.56%
NYSE:AME (11/3/2025, 12:49:56 PM)
198.97
-3.14 (-1.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.84%
Inst Owner Change-0.66%
Ins Owners0.3%
Ins Owner Change-3.6%
Market Cap45.95B
Revenue(TTM)7.16B
Net Income(TTM)1.47B
Analysts74.78
Price Target211.5 (6.3%)
Short Float %1.15%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend1.12
Dividend Growth(5Y)14.93%
DP19%
Div Incr Years5
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.42%
Min EPS beat(2)4.48%
Max EPS beat(2)6.35%
EPS beat(4)3
Avg EPS beat(4)3.13%
Min EPS beat(4)-0.93%
Max EPS beat(4)6.35%
EPS beat(8)6
Avg EPS beat(8)2.26%
EPS beat(12)10
Avg EPS beat(12)2.57%
EPS beat(16)14
Avg EPS beat(16)3.07%
Revenue beat(2)2
Avg Revenue beat(2)2.17%
Min Revenue beat(2)1.49%
Max Revenue beat(2)2.86%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)2.86%
Revenue beat(8)2
Avg Revenue beat(8)-1.37%
Revenue beat(12)4
Avg Revenue beat(12)-0.89%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)0.41%
PT rev (3m)5.68%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-0.62%
EPS NY rev (1m)0.1%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)2.74%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.29 | ||
| Fwd PE | 24.95 | ||
| P/S | 6.41 | ||
| P/FCF | 27.98 | ||
| P/OCF | 26 | ||
| P/B | 4.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.11 |
EPS(TTM)7.29
EY3.66%
EPS(NY)7.97
Fwd EY4.01%
FCF(TTM)7.11
FCFY3.57%
OCF(TTM)7.65
OCFY3.85%
SpS31.02
BVpS45.58
TBVpS-3.91
PEG (NY)3.54
PEG (5Y)2.66
Graham Number86.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.08% | ||
| ROE | 13.95% | ||
| ROCE | 13.99% | ||
| ROIC | 11.51% | ||
| ROICexc | 11.9% | ||
| ROICexgc | 93.74% | ||
| OM | 26.43% | ||
| PM (TTM) | 20.5% | ||
| GM | 36.18% | ||
| FCFM | 22.93% |
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%
ROICexgc growth 3Y3.6%
ROICexgc 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-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.5 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 30.26% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.63% | ||
| Profit Quality | 111.83% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 6.84 |
F-Score7
WACC8.46%
ROIC/WACC1.36
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)9.79%
EPS 3Y12.09%
EPS 5Y10.27%
EPS Q2Q%13.86%
EPS Next Y7.7%
EPS Next 2Y8.06%
EPS Next 3Y7.56%
EPS Next 5Y7.08%
Revenue 1Y (TTM)3.67%
Revenue growth 3Y7.76%
Revenue growth 5Y6.12%
Sales Q2Q%10.77%
Revenue Next Year4.05%
Revenue Next 2Y5.78%
Revenue Next 3Y5.67%
Revenue Next 5Y7.45%
EBIT growth 1Y6.1%
EBIT growth 3Y10.79%
EBIT growth 5Y8.61%
EBIT Next Year27.05%
EBIT Next 3Y14.08%
EBIT Next 5Y11.24%
FCF growth 1Y13.68%
FCF growth 3Y17.47%
FCF growth 5Y10.95%
OCF growth 1Y11.9%
OCF growth 3Y16.37%
OCF growth 5Y10.41%
AMETEK INC / AME FAQ
What is the fundamental rating for AME stock?
ChartMill assigns a fundamental rating of 7 / 10 to AME.
What is the valuation status for AME stock?
ChartMill assigns a valuation rating of 5 / 10 to AMETEK INC (AME). This can be considered as Fairly Valued.
What is the profitability of AME stock?
AMETEK INC (AME) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for AME stock?
The Price/Earnings (PE) ratio for AMETEK INC (AME) is 27.29 and the Price/Book (PB) ratio is 4.37.
What is the earnings growth outlook for AMETEK INC?
The Earnings per Share (EPS) of AMETEK INC (AME) is expected to grow by 7.7% in the next year.