Thinking of Investing in AME? What Our Analysts Know.

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.