Now trading at a price of $152.56, AMETEK has moved -0.2% so far today.
AMETEK returned gains of 29.0% last year, with its stock price reaching a high of $164.75 and a low of $110.87. Over the same period, the stock outperformed the S&P 500 index by 12.0%. More recently, the company's 50-day average price was $157.26. AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices in North America, Europe, Asia, and South America. Based in Berwyn, PA, the large-cap Industrials company has 19,600 full time employees. AMETEK has offered a 0.6% dividend yield over the last 12 months.
The Business Has Operating Margins Consistently Higher Than the 13.8% industry Average:
| 2018-02-22 | 2019-02-21 | 2020-02-20 | 2021-02-18 | 2022-02-22 | 2023-02-21 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $4,300 | $4,846 | $5,159 | $4,540 | $5,547 | $6,151 |
| Gross Margins | 33.0% | 34.0% | 35.0% | 34.0% | 34.0% | 35.0% |
| Operating Margins | 21% | 22% | 23% | 23% | 24% | 24% |
| Net Margins | 16.0% | 16.0% | 17.0% | 19.0% | 18.0% | 19.0% |
| Net Income (MM) | $681 | $778 | $861 | $872 | $990 | $1,160 |
| Net Interest Expense (MM) | -$98 | -$82 | -$88 | -$86 | -$80 | -$83 |
| Depreciation & Amort. (MM) | -$183 | -$199 | -$234 | -$255 | -$292 | -$319 |
| Earnings Per Share | $2.94 | $3.34 | $3.75 | $3.77 | $4.25 | $5.01 |
| EPS Growth | n/a | 13.61% | 12.28% | 0.53% | 12.73% | 17.88% |
| Diluted Shares (MM) | 232 | 233 | 229 | 231 | 233 | 232 |
| Free Cash Flow (MM) | $902 | $1,005 | $1,205 | $1,346 | $1,269 | $1,277 |
| Capital Expenditures (MM) | -$69 | -$80 | -$91 | -$65 | -$108 | -$127 |
| Net Current Assets (MM) | -$1,834 | -$2,584 | -$2,703 | -$1,886 | -$2,898 | -$2,427 |
| Long Term Debt (MM) | $1,866 | $2,274 | $2,271 | $2,281 | $2,229 | $2,159 |
| Net Debt / EBITDA | 1.41 | 1.79 | 1.68 | 0.94 | 1.37 | 1.12 |
AMETEK has strong margins with a stable trend, a strong EPS growth trend, and healthy leverage. However, the firm has slimmer gross margins than its peers. Finally, we note that AMETEK has weak revenue growth and a flat capital expenditure trend, irregular cash flows, and a decent current ratio.
AMETEK's Valuation Is in Line With Its Sector Averages:
AMETEK has a trailing twelve month P/E ratio of 29.4, compared to an average of 20.49 for the Industrials sector. Based on its EPS guidance of $6.71, the company has a forward P/E ratio of 23.4. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 10.5%. On this basis, the company's PEG ratio is 2.82, which suggests that it is overpriced. Furthermore, AMETEK is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.36 is higher than the sector average of 3.78. The company's shares are currently trading 152.9% above their Graham number.
There's an Analyst Consensus of Some Upside Potential for AMETEK:
The 13 analysts following AMETEK have set target prices ranging from $156.0 to $195.0 per share, for an average of $174.54 with a buy rating. As of April 2023, the company is trading -9.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.
AMETEK has a very low short interest because 0.8% of the company's shares are sold short. Institutions own 89.1% of the company's shares, and the insider ownership rate stands at 0.35%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $3,913,319,090.
