AMETEK INC (AME) Stock Fundamental Analysis
USA - NYSE:AME - US0311001004 - Common Stock
187.14 USD
-2.06 (-1.09%)
187.14 USD
0 (0%)
Overall AME gets a fundamental rating of 7 out of 10. We evaluated AME against 92 industry peers in the Electrical Equipment industry. AME has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
AME had a positive operating cash flow in the past year.
Each year in the past 5 years AME has been profitable.
In the past 5 years AME always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AME (9.42%) is better than 90.22% of its industry peers.
Looking at the Return On Equity, with a value of 13.84%, AME belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
AME's Return On Invested Capital of 11.25% is amongst the best of the industry. AME outperforms 85.87% 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 10.23%.
| 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
AME has a better Profit Margin (20.60%) than 98.91% 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 26.24%, 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.
The number of shares outstanding for AME remains at a similar level compared to 1 year ago.
Compared to 5 years ago, AME has more shares outstanding
Compared to 1 year ago, AME has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.39 indicates that AME is not in any danger for bankruptcy at the moment.
AME has a better Altman-Z score (7.39) than 89.13% 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's Debt to FCF ratio of 1.15 is amongst the best of the industry. AME outperforms 92.39% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that AME is not too dependend on debt financing.
The Debt to Equity ratio of AME (0.15) is better than 68.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 7.39 |
ROIC/WACC1.35
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.63 indicates that AME should not have too much problems paying its short term obligations.
With a Current ratio value of 1.63, AME perfoms like the industry average, outperforming 45.65% of the companies in the same industry.
AME has a Quick Ratio of 1.04. This is a normal value and indicates that AME is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.04, AME is in line with its industry, outperforming 51.09% of the companies in the same industry.
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 | 1.63 | ||
| 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.
AME shows a small growth in Revenue. In the last year, the Revenue has grown by 2.28%.
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
Based on estimates for the next years, AME will show a small growth in Earnings Per Share. The EPS will grow by 7.08% on average per year.
The Revenue is expected to grow by 7.45% on average over the next years.
EPS Next Y6.04%
EPS Next 2Y7.4%
EPS Next 3Y7.87%
EPS Next 5Y7.08%
Revenue Next Year3.52%
Revenue Next 2Y5.39%
Revenue Next 3Y5.59%
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.
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
With a Price/Earnings ratio of 26.51, AME can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of AME indicates a somewhat cheap valuation: AME is cheaper than 79.35% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.91. AME is around the same levels.
AME is valuated rather expensively with a Price/Forward Earnings ratio of 23.75.
AME's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AME is cheaper than 76.09% of the companies in the same industry.
AME is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.51 | ||
| Fwd PE | 23.75 |
4.2 Price Multiples
76.09% of the companies in the same industry are more expensive than AME, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AME is valued cheaper than 84.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.67 | ||
| EV/EBITDA | 20.17 |
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)4.39
PEG (5Y)2.58
EPS Next 2Y7.4%
EPS Next 3Y7.87%
5. Dividend
5.1 Amount
AME has a yearly dividend return of 0.67%, which is pretty low.
Compared to an average industry Dividend Yield of 3.09, AME pays a better dividend. On top of this AME pays more dividend than 83.70% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, AME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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.
AME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.94%
EPS Next 2Y7.4%
EPS Next 3Y7.87%
187.14
-2.06 (-1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.84%
Inst Owner Change0.01%
Ins Owners0.3%
Ins Owner Change-3.6%
Market Cap43.22B
Revenue(TTM)6.98B
Net Income(TTM)1.44B
Analysts74.78
Price Target210.64 (12.56%)
Short Float %1.01%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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%
PT rev (3m)5.25%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-0.3%
EPS NY rev (1m)0.29%
EPS NY rev (3m)1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.43%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.51 | ||
| Fwd PE | 23.75 | ||
| P/S | 6.19 | ||
| P/FCF | 25.67 | ||
| P/OCF | 23.83 | ||
| P/B | 4.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.17 |
EPS(TTM)7.06
EY3.77%
EPS(NY)7.88
Fwd EY4.21%
FCF(TTM)7.29
FCFY3.9%
OCF(TTM)7.85
OCFY4.2%
SpS30.22
BVpS44.98
TBVpS-0.93
PEG (NY)4.39
PEG (5Y)2.58
Graham Number84.53
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%
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-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 | 7.39 |
F-Score8
WACC8.35%
ROIC/WACC1.35
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 Y6.04%
EPS Next 2Y7.4%
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 Year3.52%
Revenue Next 2Y5.39%
Revenue Next 3Y5.59%
Revenue Next 5Y7.45%
EBIT growth 1Y3.05%
EBIT growth 3Y10.79%
EBIT growth 5Y8.61%
EBIT Next Year27.05%
EBIT Next 3Y14.08%
EBIT Next 5Y11.24%
FCF growth 1Y29.53%
FCF growth 3Y17.47%
FCF growth 5Y10.95%
OCF growth 1Y26.49%
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 26.51 and the Price/Book (PB) ratio is 4.16.
What is the earnings growth outlook for AMETEK INC?
The Earnings per Share (EPS) of AMETEK INC (AME) is expected to grow by 6.04% in the next year.