AMOT Stock Overview
Allied Motion Technologies Inc., together with its subsidiaries, designs, manufactures, and sells precision and specialty controlled motion components and systems that are used in a range of industries worldwide.
Allied Motion Technologies Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$36.52|
|52 Week High||US$44.70|
|52 Week Low||US$21.14|
|1 Month Change||45.04%|
|3 Month Change||61.52%|
|1 Year Change||15.72%|
|3 Year Change||75.30%|
|5 Year Change||123.96%|
|Change since IPO||2,091.20%|
Recent News & Updates
Capital Allocation Trends At Allied Motion Technologies (NASDAQ:AMOT) Aren't Ideal
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a...
Continuing To Avoid Allied Motion Technologies Inc.
In spite of a significant drop in price, the shares remain relatively expensive in my view. This in spite of relatively poor financial results. While sales have continued to grow, net income is significantly lower. Shareholders are compensated with income, not sales. In spite of the drop in price, the puts I wrote previously have done reasonably well. My experience here offers a general lesson for put writers. I have a multiplicity of motivations for writing on this forum. For instance, I like having access to the collective wisdom of the crowd, as expressed in the comments sections of my articles. Nevermind that some of the “wisdom” expressed by people who follow certain stocks serves as great contraindications. At least as important is the fact that sometimes I get to brag. This is important to me because I’m a very small man. With that admission out of the way, it’s time to write again about Allied Motion Technologies Inc. (AMOT). Since I recommended continuing to avoid the shares, they’re down about 10.3% against a loss of 5.2% for the S&P 500. I need to take a moment to let that sink in. Alright, moving on. The company has reported earnings since I wrote the above piece, so I thought I’d review the name yet again. After all, a stock trading at $28 is, by definition, less risky an investment than when the same stock was trading at $31. I’ll decide whether or not it makes sense to buy based on that financial performance and by looking at the stock as a thing distinct from the underlying business. Finally, I wouldn’t be me if I didn’t spend some time to write about, and brag about the short put trade here. Welcome to the “thesis statement” portion of my article. I write this paragraph near the beginning of each of my articles as a public service to all of you. You’re welcome. You see, some people find bragging like the above tiresome for some reason, so they want to get out before being exposed to too much “Doyle mojo.” I write these so such people won’t completely loathe me. I’d characterise the most recent financial performance here onomatopoeically as “meh.” Sales have grown, which is obviously a positive, but net income has fallen as the capital structure has deteriorated substantially. In spite of this, the shares are not particularly cheaply priced. Thus, I’d recommend continuing to avoid the shares. Lastly, my options trade worked out reasonably well, and I will remain short the October puts with a strike of $25 because I’d be comfortable buying at a net price of $23.75. My experience with these options offers a lesson for new options traders. Options can move rapidly in price, especially if they’re thinly traded. For that reason, never write puts on companies unless you’re comfortable being exercised at the strike price. Those are my thoughts in a nutshell. If you continue to read from here, I don’t want to read any complaints in the comments section about my tiresome bragging or the fact that I spell words like “characterise” in the correct, non-American way. If you read on from here, that’s on you. Financial Snapshot I’d characterise the most recent financial performance as “troublesome.” While revenue and gross profit were ~13% and 11.3% higher than the same period a year ago, net income absolutely collapsed, down over 79% from the year ago period. The same dynamic exists when we compare the latest quarter to the same period in 2019, suggesting a (disturbing) trend. Of course, the reason for the collapse in profits mostly relates to the fact that expenses grew at a faster pace than revenue. For instance, engineering and development were up by about 35%, while amortization of intangibles was up 61%. Additionally, business development expenses ballooned from $19 thousand last year to $848 thousand this year. Finally, the company wasn’t helped by the fact that the income tax situation flipped from a $6 million benefit to a $679 thousand outflow. This prompts me to remind investors of a fact that they sometimes seem to forget. We as owners aren’t compensated with sales. When you own a business, you get whatever’s left over after suppliers, employees, the government etc. are paid. Thus, the fact that the acquisitions I wrote about previously might be driving sales is nice, but it’s not relevant unless rising sales can be translated into rising profits. Put another way, if growing sales doesn’t lead to growing profits, what will? In case you were worried that I wasn’t going to write about the capital structure, fret no further. I have to note that long term debt has obviously ballooned by ~$59 million or 49% relative to the same period a year ago. Cash on the books has collapsed. This obviously increases the level of risk, and I’ll need to see that heightened risk reflected in the stock price before I get too excited. All of that written, I’m comfortable owning the shares at the right price as I think the risk of bankruptcy is pretty low, and there’s always the chance that the company will work things out and translate higher sales into higher profits. To paraphrase a game show of my youth, I’ll buy if the price is right. Allied Motion Financials (Allied Motion investor relations) Allied Motion Technologies' Stock If you read my stuff regularly, you know that I am of the view that a great business can be a terrible investment if you overpay for it and a mediocre business can be a great investment if you can get it on sale. This highlights my view that the stock and the company are distinct from one another. The company, for instance, takes various inputs, adds value to them, and then sells the results (hopefully) for a profit. The stock, on the other hand, is a traded instrument that reflects the crowd's aggregate belief about the long-term prospects for the company. The crowd changes its views about the company relatively frequently, which is what drives the share price up and down. Added to that is the volatility induced by the crowd's views about stocks in general. "Stocks" become more or less attractive, and the shares of a given company get taken along for the ride. The fact that I write articles on this topic, and the fact that you read them indicates to me that we sometimes (often) don't trust that the crowd's current view is correct. In my view, the only way to earn a sustainable profit in the stock market is by finding where the market is incorrect about a company's long-term future prospects and exploiting that inaccuracy by buying or selling. I'm also of the view that there's a strong negative correlation between price paid and subsequent returns. The higher the price paid, the lower will be the subsequent returns. In order to buy at these cheap prices, you need to buy when the crowd is feeling particularly down in the dumps about a given name. So, in a nutshell, cheap wins. If you read my stuff regularly, you know that I measure the relative cheapness of a stock in a few ways ranging from the simple to the more complex. On the simple side, I like to look at the ratio of price to some measure of economic value, like earnings, sales, free cash, and the like. To refresh your memory of an idea expressed in the previous paragraph: cheaper wins. I want to see a company trading at a discount to both the overall market, and the company's own history. In case you forget the valuation the stock was trading at in my previous article, I’ll remind you now. I’ll do this for two reasons. First, and most importantly, reminding you of my previous call on this name gives me yet another chance to brag. Second, it allows us to consider the current valuation in context. Previously, I decided to eschew the shares when they were trading at a PE of ~18.5. Fast forward to today and they’re actually more expensive on this basis per the following: AMOT data by YCharts Obviously this is a consequence of the fact that earnings have collapsed, so an argument could be made to suggest that we should "cut the company some slack." The problem with this view is that, again, we're compensated by earnings and not sales. Unless and until the company demonstrates the capacity to turn growing sales into growing profits, I'm of the view that we should not cut any slack. Additionally, while I'll admit that the shares are trading on the low side on a price to sales basis per the following chart, they're certainly not extraordinarily cheap. AMOT data by YCharts
|AMOT||US Electrical||US Market|
Return vs Industry: AMOT exceeded the US Electrical industry which returned -11.5% over the past year.
Return vs Market: AMOT exceeded the US Market which returned -8.4% over the past year.
|AMOT Average Weekly Movement||6.3%|
|Electrical Industry Average Movement||11.2%|
|Market Average Movement||7.6%|
|10% most volatile stocks in US Market||17.1%|
|10% least volatile stocks in US Market||3.1%|
Stable Share Price: AMOT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: AMOT's weekly volatility (6%) has been stable over the past year.
About the Company
Allied Motion Technologies Inc., together with its subsidiaries, designs, manufactures, and sells precision and specialty controlled motion components and systems that are used in a range of industries worldwide. The company offers brush and brushless DC motors, brushless servo and torque motors, coreless DC motors, integrated brushless motor-drives, gearmotors, gearing, modular digital servo drives, motion controllers, optical encoders, active, and passive filters. It also provides electronic power steering, drive-by-wire applications, drive systems and pumps, automated and remotely guided power steering, and HVAC systems, and construction and agricultural equipment.
Allied Motion Technologies Fundamentals Summary
|AMOT fundamental statistics|
Is AMOT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|AMOT income statement (TTM)|
|Cost of Revenue||US$304.00m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.91|
|Net Profit Margin||3.34%|
How did AMOT perform over the long term?See historical performance and comparison
0.3%Current Dividend Yield
Is AMOT undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 0/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for AMOT?
Other financial metrics that can be useful for relative valuation.
|What is AMOT's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does AMOT's PE Ratio compare to its peers?
|AMOT PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
PLPC Preformed Line Products
THR Thermon Group Holdings
POWL Powell Industries
LYTS LSI Industries
AMOT Allied Motion Technologies
Price-To-Earnings vs Peers: AMOT is expensive based on its Price-To-Earnings Ratio (39.9x) compared to the peer average (22.5x).
Price to Earnings Ratio vs Industry
How does AMOT's PE Ratio compare vs other companies in the US Electrical Industry?
Price-To-Earnings vs Industry: AMOT is expensive based on its Price-To-Earnings Ratio (39.9x) compared to the US Electrical industry average (22.8x)
Price to Earnings Ratio vs Fair Ratio
What is AMOT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||39.9x|
|Fair PE Ratio||31.8x|
Price-To-Earnings vs Fair Ratio: AMOT is expensive based on its Price-To-Earnings Ratio (39.9x) compared to the estimated Fair Price-To-Earnings Ratio (31.8x).
Share Price vs Fair Value
What is the Fair Price of AMOT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: AMOT ($36.52) is trading above our estimate of fair value ($1.65)
Significantly Below Fair Value: AMOT is trading above our estimate of fair value.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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How is Allied Motion Technologies forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AMOT's forecast earnings growth (42.6% per year) is above the savings rate (1.9%).
Earnings vs Market: AMOT's earnings (42.6% per year) are forecast to grow faster than the US market (14.4% per year).
High Growth Earnings: AMOT's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AMOT's revenue (12.1% per year) is forecast to grow faster than the US market (7.8% per year).
High Growth Revenue: AMOT's revenue (12.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if AMOT's Return on Equity is forecast to be high in 3 years time
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How has Allied Motion Technologies performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AMOT has high quality earnings.
Growing Profit Margin: AMOT's current net profit margins (3.3%) are lower than last year (6%).
Past Earnings Growth Analysis
Earnings Trend: AMOT's earnings have grown by 15.1% per year over the past 5 years.
Accelerating Growth: AMOT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AMOT had negative earnings growth (-37.2%) over the past year, making it difficult to compare to the Electrical industry average (24.8%).
Return on Equity
High ROE: AMOT's Return on Equity (7.3%) is considered low.
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How is Allied Motion Technologies's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: AMOT's short term assets ($222.3M) exceed its short term liabilities ($93.4M).
Long Term Liabilities: AMOT's short term assets ($222.3M) do not cover its long term liabilities ($281.4M).
Debt to Equity History and Analysis
Debt Level: AMOT's net debt to equity ratio (94.8%) is considered high.
Reducing Debt: AMOT's debt to equity ratio has increased from 80.8% to 109.1% over the past 5 years.
Debt Coverage: AMOT's debt is not well covered by operating cash flow (3.9%).
Interest Coverage: AMOT's interest payments on its debt are well covered by EBIT (6.7x coverage).
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What is Allied Motion Technologies's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AMOT's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: AMOT's dividend (0.27%) is low compared to the top 25% of dividend payers in the US market (3.97%).
Stability and Growth of Payments
Stable Dividend: AMOT is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: AMOT is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Earnings Payout to Shareholders
Earnings Coverage: AMOT is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: AMOT is paying a dividend but the company has no free cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dick Warzala (69 yo)
Mr. Richard S. Warzala, also known as Dick, has been the Chief Executive Officer of Allied Motion Technologies Inc. at Allied Motion Canada Inc. since May 12, 2009 and its President since jointed it in May...
CEO Compensation Analysis
Compensation vs Market: Dick's total compensation ($USD3.91M) is above average for companies of similar size in the US market ($USD2.59M).
Compensation vs Earnings: Dick's compensation has been consistent with company performance over the past year.
Experienced Management: AMOT's management team is considered experienced (2.1 years average tenure).
Experienced Board: AMOT's board of directors are considered experienced (8.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.6%.
Allied Motion Technologies Inc.'s employee growth, exchange listings and data sources
- Name: Allied Motion Technologies Inc.
- Ticker: AMOT
- Exchange: NasdaqGM
- Founded: 1962
- Industry: Electrical Components and Equipment
- Sector: Capital Goods
- Implied Market Cap: US$583.526m
- Shares outstanding: 15.98m
- Website: https://www.alliedmotion.com
Number of Employees
- Allied Motion Technologies Inc.
- 495 Commerce Drive
- Suite 3
- New York
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/19 00:00|
|End of Day Share Price||2022/08/19 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.