NYSE:AME

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has AMETEK's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AME's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.4%

AME

-1.5%

US Electrical

-2.0%

US Market


1 Year Return

-15.4%

AME

-24.8%

US Electrical

-15.1%

US Market

Return vs Industry: AME exceeded the US Electrical industry which returned -24.8% over the past year.

Return vs Market: AME matched the US Market which returned -15.1% over the past year.


Shareholder returns

AMEIndustryMarket
7 Day0.4%-1.5%-2.0%
30 Day-20.0%-26.6%-19.7%
90 Day-29.4%-31.5%-23.2%
1 Year-14.8%-15.4%-23.3%-24.8%-13.4%-15.1%
3 Year34.3%31.7%-6.7%-12.2%10.9%3.7%
5 Year37.8%33.2%4.5%-5.7%28.4%14.4%

Price Volatility Vs. Market

How volatile is AMETEK's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AMETEK undervalued compared to its fair value and its price relative to the market?

6.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AME ($71.29) is trading below our estimate of fair value ($76.29)

Significantly Below Fair Value: AME is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AME is poor value based on its PE Ratio (18.9x) compared to the Electrical industry average (13.7x).

PE vs Market: AME is poor value based on its PE Ratio (18.9x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: AME is poor value based on its PEG Ratio (8x)


Price to Book Ratio

PB vs Industry: AME is overvalued based on its PB Ratio (3.2x) compared to the US Electrical industry average (1.2x).


Next Steps

Future Growth

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

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AME's forecast earnings growth (2.4% per year) is above the savings rate (1.7%).

Earnings vs Market: AME's earnings (2.4% per year) are forecast to grow slower than the US market (13.4% per year).

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

Revenue vs Market: AME's revenue (0.7% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: AME's revenue (0.7% 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 (14.7%).


Next Steps

Past Performance

How has AMETEK performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AME has high quality earnings.

Growing Profit Margin: AME's current net profit margins (16.7%) are higher than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: AME's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: AME's earnings growth over the past year (10.7%) exceeds its 5-year average (9.7% per year).

Earnings vs Industry: AME earnings growth over the past year (10.7%) exceeded the Electrical industry -1.4%.


Return on Equity

High ROE: AME's Return on Equity (16.8%) is considered low.


Next Steps

Financial Health

How is AMETEK's financial position?


Financial Position Analysis

Short Term Liabilities: AME's short term assets ($2.0B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: AME's short term assets ($2.0B) do not cover its long term liabilities ($3.3B).


Debt to Equity History and Analysis

Debt Level: AME's debt to equity ratio (54.1%) is considered high.

Reducing Debt: AME's debt to equity ratio has increased from 52.9% to 54.1% over the past 5 years.

Debt Coverage: AME's debt is well covered by operating cash flow (40.3%).

Interest Coverage: AME's interest payments on its debt are well covered by EBIT (13.6x coverage).


Balance Sheet

Inventory Level: AME has a low level of unsold assets or inventory.

Debt Coverage by Assets: AME's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

1.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AME's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.05%).

High Dividend: AME's dividend (1.01%) is low compared to the top 25% of dividend payers in the US market (5.71%).


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AME's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

7.7yrs

Average management tenure


CEO

Dave Zapico (54yo)

3.92s

Tenure

US$10,176,064

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 ($USD10.18M) is about average for companies of similar size in the US market ($USD11.95M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Zapico
Chairman & CEO3.92yrsUS$10.18m0.091% $14.8m
William Burke
Executive VP & CFO3.92yrsUS$3.58m0.033% $5.3m
John Hardin
President of Electronic Instruments11.75yrsUS$2.10m0.025% $4.2m
Thomas Marecic
President of Electronic Instruments7.08yrsUS$1.85m0.012% $2.0m
Timothy Jones
President of Electromechanical Group14.17yrsUS$2.25m0.018% $2.9m
Thomas Montgomery
Senior VP3.92yrsno data0.011% $1.8m
Kenneth Weirman
Chief Information Officer & VP9.17yrsno datano data
Ronald Oscher
Chief Administrative Officer3.92yrsno data0.013% $2.2m
Kevin Coleman
Vice President of Investor Relations8.25yrsno datano data
Thomas Deeney
Vice President of Corporate Compliance & Auditing15.58yrsno datano data

7.7yrs

Average Tenure

56yo

Average Age

Experienced Management: AME's management team is seasoned and experienced (7.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Zapico
Chairman & CEO3.92yrsUS$10.18m0.091% $14.8m
Dennis Williams
Independent Director13.92yrsUS$276.97k0.013% $2.2m
Elizabeth Varet
Independent Director33.25yrsUS$261.97k0.11% $18.1m
Thomas Amato
Independent Director3.08yrsUS$277.51k0.0042% $692.8k
Steven Kohlhagen
Independent Director13.92yrsUS$261.97k0.024% $3.9m
Ruby Chandy
Independent Director6.92yrsUS$261.97k0.0068% $1.1m
Tod Carpenter
Independent Director0.83yrUS$217.55k0.0016% $263.1k
Gretchen McClain
Independent Director5.58yrsUS$261.97k0.0053% $857.8k
Anthony Conti
Lead Independent Director2.75yrsUS$311.97k0.0084% $1.4m

5.6yrs

Average Tenure

60yo

Average Age

Experienced Board: AME's board of directors are considered experienced (5.6 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

Ownership Breakdown

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


Top Shareholders

Company Information

AMETEK, Inc.'s company bio, 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
  • Market Cap: US$16.339b
  • Shares outstanding: 229.19m
  • 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
AK1BRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 1968
AME *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
A1ME34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices worldwide. It operates through 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. This segment also provides power quality monitoring and metering, uninterruptible power supplies, programmable power equipment, electromagnetic compatibility test equipment, sensors for gas turbines, dashboard instruments for heavy trucks and other vehicles, and instrumentation and controls for the food and beverage industries; and aircraft and engine sensors, monitoring systems, power supplies, fuel and fluid measurement systems, and data acquisition units for the aerospace industry. Its EMG segment offers engineered electrical connectors and electronics packaging for protecting sensitive electronic devices; precision motion control products for data storage, medical devices, business equipment, automation and other applications; high-purity powdered metals, strip and foil, specialty clad metals, and metal matrix composites; motor-blower systems and heat exchangers for use in thermal management, military, commercial aircraft, and military ground vehicles; and motors for use in commercial appliances, fitness equipment, food and beverage machines, hydraulic pumps, and industrial blowers. This segment also operates a network of aviation maintenance, repair, and overhaul facilities. In addition, the company offers clinical and education communication solutions for hospitals, health systems, and educational facilities. AMETEK, Inc. was incorporated in 1930 and is headquartered in Berwyn, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 03:26
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.