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AME

AMETEK NYSE:AME Stock Report

Last Price

US$114.43

Market Cap

US$26.3b

7D

-3.8%

1Y

-11.7%

Updated

24 Sep, 2022

Data

Company Financials +
AME fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends0/6

AME Stock Overview

AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices worldwide.

AMETEK Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AMETEK
Historical stock prices
Current Share PriceUS$114.43
52 Week HighUS$148.07
52 Week LowUS$106.17
Beta1.26
1 Month Change-10.12%
3 Month Change0.82%
1 Year Change-11.71%
3 Year Change25.24%
5 Year Change73.27%
Change since IPO5,674.98%

Recent News & Updates

Sep 05
Should You Be Adding AMETEK (NYSE:AME) To Your Watchlist Today?

Should You Be Adding AMETEK (NYSE:AME) To Your Watchlist Today?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Sep 03

Ametek: A Great Compounder, But Not At A Great Price

Summary Ametek is a well-run, diversified industrial company. The Ametek Growth Model is a good framework for long term compounding. Shares are currently a little too expensive for me to start a position. Thesis Ametek is a globally diversified manufacturer of high-tech industrial products with more than 50% of sales originating outside of the US. The company is a proven serial acquirer with sound capital allocation and long-term-oriented management. I believe that the company is of high quality, but shares aren't cheap. Diversified revenue Ametek has two main segments: Electronic Instruments Group ('EIG') accounts for the majority of the revenue with $3.8b in FY 21. In the latest quarter the segment grow by 10% and operating income grew by 17%. 30% of EIG is from the Aerospace and power instrumentation segment, 70% is Process and analytics instruments. Electromechanical Group ('EMG') generated $1.8b in FY 21. In the last latest quarter, the segment grew 7% and operating income grew 11%. 28% of EMG is in the Aerospace segment, with Automation and Engineered solutions accounting for 72%. Both segments are highly profitable at a 25% operating margin and globally diversified with 50% of revenues in the US and 25% each in Europe and Asia. Highly optimized lean business Ametek has seen a massive increase in margins over the last decade growing EBITDA margins from 21 to 29% and Net income margins from 9 to 18%, while only increasing gross margins slightly from 32 to 34%. Ametek spends around 5.5% of revenue on R&D and another 2% on capital expenditures, making the company a capital-light company. Operating efficiency is a core value for Ametek, valuing efficiency frameworks like Six Sigma and Kaizen. Ametek Margins (Koyfin) Ametek Growth Model Ametek developed its Growth model to showcase its strategy. The model is divided into six parts, starting with operational excellence, which we already talked about. New product development is an important part as well: Ametek has a Vitality Index of 26% (new products as a percentage of sales), which is pretty impressive given the 5.5% of sales the company invests into R&D. We already talked about their diversification in different segments and regions, which is the third part. The fourth part is cash flow generation and Ametek generates a lot of it. In 2021 the company managed a 106% cash flow conversion and it has a track record of high FCF per share growth over the years. The last 2 parts are a disciplined capital deployment and strategic acquisitions, which I will talk about in the next segment. Ametek growth model (Ametek IR) Disciplined Capital Deployment A disciplined capital deployment is a core part of Ametek's growth model and over the last decade, the company deployed over $10 billion, with the vast majority (74%) flowing into strategic acquisitions. I'll go into more depth about these acquisitions and the buybacks the company does to see if they really are opportunistic. The company also has a lot of liquidity and isn't highly leveraged with current liquidity of $350 million and a 1.3x net debt/EBITDA. Ametek Capital deployment (Ametek IR) Acquisition strategy Ametek aims to acquire businesses in niches where the company already operates or in adjacent niches. This allows for synergies between the existing team and the product base the company has and is a type of acquisition with a much lower risk level. Ametek sources deals with the following five evaluation criteria: Technically differentiated products and solutions Operational synergies Year 3 ROIC 10%+, IRR 15%, Year 1 EPS accretive Attractive end market dynamics Strong management teams and solid culture fit

Aug 24
Is AMETEK (NYSE:AME) Using Too Much Debt?

Is AMETEK (NYSE:AME) Using Too Much Debt?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

AMEUS ElectricalUS Market
7D-3.8%-7.1%-5.2%
1Y-11.7%-24.2%-23.1%

Return vs Industry: AME exceeded the US Electrical industry which returned -24.2% over the past year.

Return vs Market: AME exceeded the US Market which returned -23.1% over the past year.

Price Volatility

Is AME's price volatile compared to industry and market?
AME volatility
AME Average Weekly Movement3.2%
Electrical Industry Average Movement10.7%
Market Average Movement6.9%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.8%

Stable Share Price: AME is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AME's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193018,500Dave Zapicohttps://www.ametek.com

AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices worldwide. It operates in two segments, Electronic Instruments (EIG) and Electromechanical (EMG). The company’s EIG segment offers advanced instruments for the process, aerospace, power, and industrial markets; process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; and instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets.

AMETEK Fundamentals Summary

How do AMETEK's earnings and revenue compare to its market cap?
AME fundamental statistics
Market CapUS$26.27b
Earnings (TTM)US$1.09b
Revenue (TTM)US$5.92b

24.0x

P/E Ratio

4.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AME income statement (TTM)
RevenueUS$5.92b
Cost of RevenueUS$3.87b
Gross ProfitUS$2.05b
Other ExpensesUS$954.74m
EarningsUS$1.09b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.77
Gross Margin34.62%
Net Profit Margin18.49%
Debt/Equity Ratio36.0%

How did AME perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

18%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is AME undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AME?

Other financial metrics that can be useful for relative valuation.

AME key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.8x
Enterprise Value/EBITDA16.6x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

How does AME's PE Ratio compare to its peers?

AME PE Ratio vs Peers
The above table shows the PE ratio for AME vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.4x
ROK Rockwell Automation
37.9x14.9%US$25.4b
EMR Emerson Electric
13.8x3.2%US$43.7b
ETN Eaton
23.1x9.2%US$53.4b
HUBB Hubbell
26.9x8.8%US$11.8b
AME AMETEK
24x13.5%US$26.3b

Price-To-Earnings vs Peers: AME is good value based on its Price-To-Earnings Ratio (24x) compared to the peer average (25.4x).


Price to Earnings Ratio vs Industry

How does AME's PE Ratio compare vs other companies in the US Electrical Industry?

Price-To-Earnings vs Industry: AME is expensive based on its Price-To-Earnings Ratio (24x) compared to the US Electrical industry average (19.4x)


Price to Earnings Ratio vs Fair Ratio

What is AME'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.

AME PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24x
Fair PE Ratio23.9x

Price-To-Earnings vs Fair Ratio: AME is expensive based on its Price-To-Earnings Ratio (24x) compared to the estimated Fair Price-To-Earnings Ratio (23.9x).


Share Price vs Fair Value

What is the Fair Price of AME when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AME ($114.43) is trading below our estimate of fair value ($240.13)

Significantly Below Fair Value: AME is trading below fair value by more than 20%.


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 more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is AMETEK forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


13.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AME's forecast earnings growth (13.5% per year) is above the savings rate (1.9%).

Earnings vs Market: AME's earnings (13.5% per year) are forecast to grow slower than the US market (14.7% per year).

High Growth Earnings: AME's earnings are forecast to grow, but not significantly.

Revenue vs Market: AME's revenue (10.4% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: AME's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AME's Return on Equity is forecast to be low in 3 years time (17.1%).


Discover growth companies

Past Performance

How has AMETEK performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


9.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AME has high quality earnings.

Growing Profit Margin: AME's current net profit margins (18.5%) are higher than last year (17.8%).


Past Earnings Growth Analysis

Earnings Trend: AME's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: AME's earnings growth over the past year (24.8%) exceeds its 5-year average (9.6% per year).

Earnings vs Industry: AME earnings growth over the past year (24.8%) underperformed the Electrical industry 27.4%.


Return on Equity

High ROE: AME's Return on Equity (15.7%) is considered low.


Discover strong past performing companies

Financial Health

How is AMETEK's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AME's short term assets ($2.4B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: AME's short term assets ($2.4B) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: AME's net debt to equity ratio (31%) is considered satisfactory.

Reducing Debt: AME's debt to equity ratio has reduced from 66.8% to 36% over the past 5 years.

Debt Coverage: AME's debt is well covered by operating cash flow (41%).

Interest Coverage: AME's interest payments on its debt are well covered by EBIT (17.9x coverage).


Balance Sheet


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Dividend

What is AMETEK current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.77%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AME's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: AME's dividend (0.77%) is low compared to the top 25% of dividend payers in the US market (4.57%).


Stability and Growth of Payments

Stable Dividend: AME is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: AME 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: AME is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: AME is not paying a notable dividend for the US market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.9yrs

Average management tenure


CEO

Dave Zapico (57 yo)

6.33yrs

Tenure

US$12,919,431

Compensation

Mr. David A. Zapico, also known as Dave, is Chief Executive Officer and President of AMETEK Specialty Metal Products Inc. He has been Chief Executive Officer at AMETEK, Inc. since May 5, 2016. He has been...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD12.92M) is about average for companies of similar size in the US market ($USD13.05M).

Compensation vs Earnings: Dave's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: AME's management team is seasoned and experienced (7.9 years average tenure).


Board Members

Experienced Board: AME's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AME insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NYSE:AME Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
08 Sep 22SellUS$383,614Alan BatkinIndividual3,100US$124.13
10 Aug 22SellUS$380,439Alan BatkinIndividual3,000US$126.81
28 Mar 22SellUS$81,814Thomas AmatoIndividual615US$133.03
28 Feb 22SellUS$517,135Alan BatkinIndividual4,000US$129.91
02 Dec 21SellUS$415,560Alan BatkinIndividual3,000US$139.29
16 Nov 21SellUS$710,578Thomas MontgomeryIndividual5,000US$142.12

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 53.4% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.81%
The Vanguard Group, Inc.
24,820,530$2.8b0.86%0.07%
6.71%
BlackRock, Inc.
15,416,054$1.8b-1.8%0.04%
3.89%
State Street Global Advisors, Inc.
8,940,695$1.0b-1.91%0.06%
3.57%
Massachusetts Financial Services Company
8,197,694$938.1m4.83%0.24%
2.34%
Capital Research and Management Company
5,363,844$613.8m-0.35%0.04%
2.12%
AllianceBernstein L.P.
4,863,277$556.5m1.7%0.23%
2.05%
FMR LLC
4,712,356$539.2m-34.74%0.05%
2.04%
Alecta Pensionsförsäkring, ömsesidigt
4,684,365$536.0m1.3%1.61%
1.93%
Geode Capital Management, LLC
4,438,149$507.9m1.97%0.07%
1.91%
J.P. Morgan Asset Management, Inc.
4,385,211$501.8m0.97%0.09%
1.51%
Boston Partners Global Investors, Inc.
3,462,277$396.2m0.92%0.33%
1.4%
Mawer Investment Management Ltd.
3,209,434$367.3m-2.74%1.01%
1.23%
Champlain Investment Partners, LLC
2,822,960$323.0m-1.55%2.14%
1.23%
Eaton Vance Management
2,814,283$322.0m1.64%0.12%
1.16%
Flossbach von Storch AG
2,673,392$305.9m19.6%0.8%
1.14%
BNY Mellon Asset Management
2,622,820$300.1m3.83%0.07%
1.09%
American Century Investment Management Inc
2,499,692$286.0m-34.85%0.21%
1.05%
Columbia Management Investment Advisers, LLC
2,413,743$276.2m-13.02%0.08%
1%
Norges Bank Investment Management
2,285,707$261.6m0%0.04%
0.99%
Northern Trust Global Investments
2,261,873$258.8m0.59%0.05%
0.88%
Harding Loevner LP
2,023,250$231.5m-2.21%0.69%
0.88%
EdgePoint Investment Group Inc.
2,014,750$230.5m16.29%1.35%
0.86%
GAMCO Investors, Inc.
1,979,616$226.5m-1.02%0.97%
0.82%
Wellington Management Group LLP
1,887,066$215.9m-8.14%0.04%
0.78%
AustralianSuper Pty. Ltd.
1,802,025$206.2m-17.02%0.8%

Company Information

AMETEK, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: AMETEK, Inc.
  • Ticker: AME
  • Exchange: NYSE
  • Founded: 1930
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Implied Market Cap: US$26.271b
  • Shares outstanding: 229.58m
  • Website: https://www.ametek.com

Number of Employees


Location

  • AMETEK, Inc.
  • 1100 Cassatt Road
  • Berwyn
  • Pennsylvania
  • 19312-1177
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
AK1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0HF7LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
AME *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
A1ME34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.