NYSE:AME

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Proven 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

AME

4.6%

US Electrical

-0.04%

US Market


1 Year Return

19.1%

AME

29.2%

US Electrical

17.1%

US Market

Return vs Industry: AME underperformed the US Electrical industry which returned 27.1% over the past year.

Return vs Market: AME exceeded the US Market which returned 16.8% over the past year.


Shareholder returns

AMEIndustryMarket
7 Day2.9%4.6%-0.04%
30 Day12.2%16.1%5.1%
90 Day26.0%36.1%19.5%
1 Year20.0%19.1%31.7%29.2%19.6%17.1%
3 Year60.5%57.3%40.5%32.8%42.5%33.3%
5 Year81.7%75.5%36.9%26.6%75.1%56.2%

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?

11.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AME ($99.25) is trading below our estimate of fair value ($111.56)

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 (25.6x) compared to the US Electrical industry average (23.6x).

PE vs Market: AME is poor value based on its PE Ratio (25.6x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: AME is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: AME is overvalued based on its PB Ratio (4.2x) compared to the US Electrical industry average (2.5x).


Next Steps

Future Growth

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

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AME's forecast earnings growth (9% per year) is above the savings rate (2.2%).

Earnings vs Market: AME's earnings (9% per year) are forecast to grow slower than the US market (24% per year).

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

Revenue vs Market: AME's revenue (8.7% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: AME's revenue (8.7% 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 (16%).


Next Steps

Past Performance

How has AMETEK performed over the past 5 years?

11.6%

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 (16.3%).


Past Earnings Growth Analysis

Earnings Trend: AME's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: AME's earnings growth over the past year (8%) is below its 5-year average (11.6% per year).

Earnings vs Industry: AME earnings growth over the past year (8%) exceeded the Electrical industry -20.9%.


Return on Equity

High ROE: AME's Return on Equity (16.2%) is considered low.


Next Steps

Financial Health

How is AMETEK's financial position?


Financial Position Analysis

Short Term Liabilities: AME's short term assets ($2.5B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: AME's short term assets ($2.5B) do not cover its long term liabilities ($3.8B).


Debt to Equity History and Analysis

Debt Level: AME's debt to equity ratio (52.3%) is considered high.

Reducing Debt: AME's debt to equity ratio has increased from 48.4% to 52.3% over the past 5 years.

Debt Coverage: AME's debt is well covered by operating cash flow (43.8%).

Interest Coverage: AME's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet


Next Steps

Dividend

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

0.73%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: AME's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: AME's dividend (0.73%) is low compared to the top 25% of dividend payers in the US market (4.29%).


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?

9.0yrs

Average management tenure


CEO

Dave Zapico (55 yo)

4.25yrs

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 ($USD10.18M) is about average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Zapico
Chairman & CEO4.25yrsUS$10.18m0.084%
$ 19.2m
William Burke
Executive VP & CFO4.25yrsUS$3.58m0.032%
$ 7.2m
John Hardin
President of Electronic Instruments12.08yrsUS$2.10m0.024%
$ 5.5m
Thomas Marecic
President of Electronic Instruments7.42yrsUS$1.85m0.012%
$ 2.7m
Timothy Jones
President of Electromechanical Group14.5yrsUS$2.25m0.0032%
$ 729.3k
Thomas Montgomery
Senior VP4.25yrsno data0.011%
$ 2.5m
Kenneth Weirman
Chief Information Officer & VP9.5yrsno datano data
Ronald Oscher
Chief Administrative Officer4.25yrsno data0.013%
$ 3.0m
Kevin Coleman
Vice President of Investor Relations8.58yrsno datano data
Thomas Deeney
Vice President of Corporate Compliance & Auditing15.92yrsno datano data
Robert Feit
Senior VP13.33yrsno datano data
William Eginton
Senior Vice President of Corporate Development15.92yrsno data0.022%
$ 4.9m

9.0yrs

Average Tenure

57yo

Average Age

Experienced Management: AME's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Zapico
Chairman & CEO4.25yrsUS$10.18m0.084%
$ 19.2m
Dennis Williams
Independent Director14.25yrsUS$276.97k0.013%
$ 3.0m
Elizabeth Varet
Independent Director33.58yrsUS$261.97k0.11%
$ 25.2m
Thomas Amato
Independent Director3.42yrsUS$277.51k0.0038%
$ 868.3k
Steven Kohlhagen
Independent Director14.25yrsUS$261.97k0.024%
$ 5.5m
Ruby Chandy
Independent Director7.25yrsUS$261.97k0.0068%
$ 1.6m
Tod Carpenter
Independent Director1.17yrsUS$217.55k0.0016%
$ 366.9k
Gretchen McClain
Independent Director5.92yrsUS$261.97k0.0052%
$ 1.2m
Anthony Conti
Lead Independent Director3.08yrsUS$311.97k0.010%
$ 2.3m

5.9yrs

Average Tenure

61yo

Average Age

Experienced Board: AME's board of directors are considered experienced (5.9 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$22.791b
  • Shares outstanding: 229.63m
  • 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

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 00:00
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
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.