NYSE:AME

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Mediocre balance sheet with questionable track record.


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


Market Performance


7 Day Return

-0.2%

AME

2.0%

US Electrical

0.4%

US Market


1 Year Return

25.1%

AME

3.7%

US Electrical

6.9%

US Market

Return vs Industry: AME exceeded the US Electrical industry which returned 3.7% over the past year.

Return vs Market: AME exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

AMEIndustryMarket
7 Day-0.2%2.0%0.4%
30 Day-1.9%0.2%-1.2%
90 Day-0.4%2.6%-0.4%
1 Year26.0%25.1%6.0%3.7%9.3%6.9%
3 Year99.2%95.2%41.7%33.3%45.8%36.4%
5 Year78.1%72.1%36.9%23.2%62.9%45.1%

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?

24.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: AME ($88.35) is trading above our estimate of fair value ($77.79)

Significantly Undervalued: AME is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AME is poor value based on its PE Ratio (24.6x) compared to the Electrical industry average (14.9x).

PE vs Market: AME is poor value based on its PE Ratio (24.6x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: AME is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: AME is overvalued based on its PB Ratio (4.3x) compared to the US Electrical industry average (1.6x).


Next Steps

Future Growth

How is AMETEK forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AME's forecast earnings growth (6.8% per year) is above the savings rate (2.7%).

Earnings vs Market: AME's earnings (6.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: AME's revenue (3.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: AME's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: AME's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has AMETEK performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AME's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: AME's earnings growth over the past year (7.2%) is below its 5-year average (8% per year).

Earnings vs Industry: AME earnings growth over the past year (7.2%) underperformed the Electrical industry 16.3%.


Return on Equity

High ROE: AME's Return on Equity (17.6%) is considered low.


Return on Assets

ROA vs Industry: AME has a higher Return on Assets than the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: AME's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is AMETEK's financial position?


Financial Position Analysis

Short Term Liabilities: AME's short term assets ($2.1B) exceeds its short term liabilities ($978.6M)

Long Term Liabilities: AME's short term assets (2.1B) do not cover its long term liabilities (3.4B)


Debt to Equity History and Analysis

Debt Level: AME's debt to equity ratio (52.9%) is considered high

Reducing Debt: AME's debt to equity ratio has increased from 46.8% to 52.9% over the past 5 years.

Debt Coverage: AME's debt is well covered by operating cash flow (40%).

Interest Coverage: AME's interest payments on its debt are well covered by EBIT (14x 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 0.9x debt).


Next Steps

Dividend

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

0.63%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years0.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AME's dividend (0.63%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AME's dividend (0.63%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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

What is the CEO of AMETEK's salary, the management and board of directors tenure and is there insider trading?

8.2yrs

Average management tenure


CEO

Dave Zapico (54yo)

3.4yrs

Tenure

US$8,762,155

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 ($USD8.76M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

8.2yrs

Average Tenure

56yo

Average Age

Experienced Management: AME's management team is seasoned and experienced (8.2 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

60yo

Average Age

Experienced Board: AME's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$342,76029 Aug 19
Elizabeth Varet
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$86.19
SellUS$169,80017 Jun 19
Elizabeth Varet
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$84.90
SellUS$257,40013 Jun 19
Elizabeth Varet
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$85.80
SellUS$149,58113 May 19
Thomas Amato
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,790
Max PriceUS$83.57
SellUS$290,50001 Apr 19
Thomas Marecic
EntityIndividual
Role
Senior Key Executive
President of Electronic Instruments
Shares3,500
Max PriceUS$83.00
SellUS$411,00029 Mar 19
Timothy Jones
EntityIndividual
Role
Senior Key Executive
President of Electromechanical Group
Shares5,000
Max PriceUS$82.20
SellUS$319,85712 Mar 19
Elizabeth Varet
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$80.44
SellUS$159,50001 Mar 19
Elizabeth Varet
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$79.75
SellUS$237,01414 Feb 19
Thomas Marecic
EntityIndividual
Role
Senior Key Executive
President of Electronic Instruments
Shares3,000
Max PriceUS$79.00
BuyUS$146,29013 Nov 18
Thomas Amato
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$73.14

Ownership Breakdown


Management Team

  • Kevin Coleman

    Vice President of Investor Relations

    • Tenure: 7.8yrs
  • Robert Feit (56yo)

    Senior VP

    • Tenure: 12.5yrs
  • Dave Zapico (54yo)

    Chairman & CEO

    • Tenure: 3.4yrs
    • Compensation: US$8.76m
  • Wes Hardin (54yo)

    President of Electronic Instruments

    • Tenure: 11.3yrs
    • Compensation: US$1.96m
  • Thomas Deeney

    Vice President of Corporate Compliance & Auditing

    • Tenure: 15.1yrs
  • Tom Marecic (57yo)

    President of Electronic Instruments

    • Tenure: 6.6yrs
    • Compensation: US$1.78m
  • Timothy Jones (62yo)

    President of Electromechanical Group

    • Tenure: 13.7yrs
    • Compensation: US$1.87m
  • Bill Burke (57yo)

    Executive VP & CFO

    • Tenure: 3.4yrs
    • Compensation: US$3.00m
  • Ron Oscher (51yo)

    Chief Administrative Officer

    • Tenure: 3.4yrs
  • Ken Weirman

    Chief Information Officer & VP

    • Tenure: 8.7yrs

Board Members

  • Dennis Williams (73yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$247.75k
  • Elizabeth Varet (75yo)

    Independent Director

    • Tenure: 32.8yrs
    • Compensation: US$232.75k
  • Tom Amato (56yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$241.44k
  • Dave Zapico (54yo)

    Chairman & CEO

    • Tenure: 3.4yrs
    • Compensation: US$8.76m
  • Steve Kohlhagen (71yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$232.75k
  • Ruby Chandy (57yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$232.75k
  • Tod Carpenter (60yo)

    Director

    • Tenure: 0.3yrs
  • Gretchen McClain (57yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$232.75k
  • Tony Conti (70yo)

    Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$282.75k

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$20.174b
  • Shares outstanding: 228.35m
  • Website: https://www.ametek.com

Number of Employees


Location

  • AMETEK, Inc.
  • 1100 Cassatt Road
  • Berwyn
  • Pennsylvania
  • 19312
  • 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

Biography

AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices worldwide. The company’s Electronic Instruments segment offers advanced instruments for the process, aerospace, powe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:31
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.