AMETEK, Inc. (AME) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lumentum Holdings, Inc.

SolarEdge Technologies, Inc.

Hubbell, Inc.

Acuity Brands, Inc.

AMETEK, Inc.

Belden, Inc.

EnerSys

Generac Holdings, Inc.

Eaton Corp. Plc

Encore Wire Corp. (Delaware)

Atkore, Inc.

Why is AMETEK, Inc. ?

High Management Efficiency with a high ROCE of 15.26%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.06 times

Flat results in Jun 25

ROCE(HY) Lowest at 14.64%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.86 times

With ROCE of 15.72%, it has a very attractive valuation with a 4.26 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 2.52%, its profits have risen by 7.5% ; the PEG ratio of the company is 4.4

Underperformed the market in the last 1 year

The stock has generated a return of 2.52% in the last 1 year, much lower than market (S&P 500) returns of 12.94%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to AMETEK, Inc. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is AMETEK, Inc. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

AMETEK, Inc.

2.16%

0.66

22.84%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.80%

EBIT Growth (5y)

10.70%

EBIT to Interest (avg)

17.04

Debt to EBITDA (avg)

1.06

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

0.59

Tax Ratio

17.35%

Dividend Payout Ratio

18.90%

Pledged Shares

Institutional Holding

91.65%

ROCE (avg)

15.26%

ROE (avg)

14.52%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.78

EV to EBIT

27.09

EV to EBITDA

22.29

EV to Capital Employed

4.26

EV to Sales

7.10

PEG Ratio

4.40

Dividend Yield

55.69%

ROCE (Latest)

15.72%

ROE (Latest)

14.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,813.82 MM

INTEREST COVERAGE RATIO(Q)

Highest at 3,377.39

DIVIDEND PER SHARE(HY)

Highest at USD 6.05

RAW MATERIAL COST(Y)

Fallen by -14.49% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 15.2 %

NET SALES(Q)

Highest at USD 1,778.06 MM

OPERATING PROFIT(Q)

Highest at USD 569.33 MM

-3What is not working for the Company

ROCE(HY)

Lowest at 14.64%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.86 times

Here's what is working for AMETEK, Inc.

Interest Coverage Ratio

Highest at 3,377.39 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at USD 1,813.82 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 6.05 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 1,778.06 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 569.33 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Debt-Equity Ratio

Lowest at 15.2 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -14.49% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 107.7 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for AMETEK, Inc.

Inventory Turnover Ratio

Lowest at 3.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio