AME Stock Overview
AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$114.43|
|52 Week High||US$148.07|
|52 Week Low||US$106.17|
|1 Month Change||-10.12%|
|3 Month Change||0.82%|
|1 Year Change||-11.71%|
|3 Year Change||25.24%|
|5 Year Change||73.27%|
|Change since IPO||5,674.98%|
Recent News & Updates
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...
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
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...
|AME||US Electrical||US Market|
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.
|AME Average Weekly Movement||3.2%|
|Electrical Industry Average Movement||10.7%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.9%|
|10% least volatile stocks in US Market||2.8%|
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
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
|AME fundamental statistics|
Is AME overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|AME income statement (TTM)|
|Cost of Revenue||US$3.87b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||4.77|
|Net Profit Margin||18.49%|
How did AME perform over the long term?See historical performance and comparison
0.8%Current Dividend Yield
Is AME undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is AME's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does AME's PE Ratio compare to its peers?
|AME PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
ROK Rockwell Automation
EMR Emerson Electric
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.
|Current PE Ratio||24x|
|Fair PE Ratio||23.9x|
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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How is AMETEK forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Future Growth Score2/6
Future Growth Score 2/6
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: 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%).
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How has AMETEK performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
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.
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How is AMETEK's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
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 ($3.4B).
Debt to Equity History and Analysis
Debt Level: AME's net debt to equity ratio (31%) is considered satisfactory.
Reducing Debt: AME's debt to equity ratio has reduced from 66.8% to 36% over the past 5 years.
Debt Coverage: AME's debt is well covered by operating cash flow (41%).
Interest Coverage: AME's interest payments on its debt are well covered by EBIT (17.9x coverage).
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What is AMETEK current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AME's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).
High Dividend: AME's dividend (0.77%) is low compared to the top 25% of dividend payers in the US market (4.57%).
Stability and Growth of Payments
Stable Dividend: AME is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: AME is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Earnings Payout to Shareholders
Earnings Coverage: AME is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: AME is not paying a notable dividend for the US market.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dave Zapico (57 yo)
Mr. David A. Zapico, also known as Dave, is Chief Executive Officer and President of AMETEK Specialty Metal Products Inc. He has been Chief Executive Officer at AMETEK, Inc. since May 5, 2016. He has been...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($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.
Experienced Management: AME's management team is seasoned and experienced (7.9 years average tenure).
Experienced Board: AME's board of directors are considered experienced (5.5 years average tenure).
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
|08 Sep 22||SellUS$383,614||Alan Batkin||Individual||3,100||US$124.13|
|10 Aug 22||SellUS$380,439||Alan Batkin||Individual||3,000||US$126.81|
|28 Mar 22||SellUS$81,814||Thomas Amato||Individual||615||US$133.03|
|28 Feb 22||SellUS$517,135||Alan Batkin||Individual||4,000||US$129.91|
|02 Dec 21||SellUS$415,560||Alan Batkin||Individual||3,000||US$139.29|
|16 Nov 21||SellUS$710,578||Thomas Montgomery||Individual||5,000||US$142.12|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
AMETEK, Inc.'s employee growth, exchange listings and data sources
- 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
- AMETEK, Inc.
- 1100 Cassatt Road
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AME||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1968|
|AK1||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|0HF7||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
|AME *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jan 1968|
|A1ME34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 2 REPR 1 COM||BR||BRL||Jan 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/24 00:00|
|End of Day Share Price||2022/09/23 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.