Now trading at a price of $167.02, AMETEK has moved -3.8% so far today.
AMETEK returned gains of 7.5% last year, with its stock price reaching a high of $186.33 and a low of $136.89. Over the same period, the stock underperformed the S&P 500 index by -16.2%. The company's 50-day average price was $172.89. AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices in the North America, Europe, Asia, and South America, and internationally. Based in Berwyn, PA, the Large-Cap Industrials company has 21,500 full time employees. AMETEK has offered a 0.6% dividend yield over the last 12 months.
Growing Revenues but Not Enough Current Assets to Cover Current Liabilities:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $4,846 | $5,159 | $4,540 | $5,547 | $6,151 | $6,597 |
| Operating Margins | 22% | 23% | 23% | 24% | 24% | 26% |
| Net Margins | 16% | 17% | 19% | 18% | 19% | 20% |
| Net Income (M) | $778 | $861 | $872 | $990 | $1,160 | $1,313 |
| Net Interest Expense (M) | $82 | $88 | $86 | $80 | $83 | $82 |
| Depreciation & Amort. (M) | $199 | $234 | $255 | $292 | $319 | $338 |
| Diluted Shares (M) | 233 | 229 | 231 | 233 | 232 | 232 |
| Earnings Per Share | $3.34 | $3.75 | $3.77 | $4.25 | $5.01 | $5.67 |
| EPS Growth | n/a | 12.28% | 0.53% | 12.73% | 17.88% | 13.17% |
| Avg. Price | $72.0 | $83.93 | $94.02 | $129.78 | $126.19 | $167.02 |
| P/E Ratio | 21.36 | 22.2 | 24.74 | 30.25 | 25.04 | 29.3 |
| Free Cash Flow (M) | $843 | $1,012 | $1,207 | $1,050 | $1,010 | $1,599 |
| CAPEX (M) | $82 | $102 | $74 | $111 | $139 | $136 |
| EV / EBITDA | 15.13 | 15.54 | 17.83 | 20.26 | 17.31 | 20.9 |
| Total Debt (M) | $2,992 | $3,266 | $2,546 | $2,859 | $2,611 | $4,731 |
| Net Debt / EBITDA | 2.07 | 2.04 | 1.04 | 1.57 | 1.24 | 2.11 |
| Current Ratio | 1.46 | 1.42 | 2.34 | 1.36 | 1.62 | 0.98 |
AMETEK benefits from growing revenues and increasing reinvestment in the business, strong operating margins with a stable trend, and generally positive cash flows. The company's financial statements show positive EPS growth and healthy leverage levels. However, the firm has not enough current assets to cover current liabilities because its current ratio is 0.98.
an Increase in Expected Earnings Improves Value but Its Shares Are Expensive:
AMETEK has a trailing twelve month P/E ratio of 30.3, compared to an average of 25.4 for the Industrials sector. Based on its EPS guidance of $7.47, the company has a forward P/E ratio of 23.1. The 12.2% compound average growth rate of AMETEK's historical and projected earnings per share yields a PEG ratio of 2.49. This suggests that these shares are overvalued. Furthermore, AMETEK is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.31 is higher than the sector average of 3.23. The company's shares are currently trading 140.8% below 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 $165.0 to $216.0 per share, for an average of $190.85 with a buy rating. The company is trading -12.5% 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 1.3% of the company's shares are sold short. Institutions own 89.0% of the company's shares, and the insider ownership rate stands at 0.45%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $4,282,341,634.
