AME : NYSE : Industrial Goods
$50.69 up 0.41 | 0.82%
Today's Range: 50.1875 - 50.67
Avg. Daily Volume: 2352200.0
01/18/17 - 12:39 PM ET

Financial Analysis


AMETEK INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. AMETEK INC has weak liquidity. Currently, the Quick Ratio is 0.86 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.74% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)945.03998.53
EBITDA ($mil)233.15275.33
EBIT ($mil)201.12237.62
Net Income ($mil)130.69156.4


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)445.47328.03
Total Assets ($mil)6977.066644.02
Total Debt ($mil)2154.431917.07
Equity ($mil)3373.23315.27


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin36.6538.8
EBITDA Margin24.6727.57
Operating Margin21.2823.8
Sales Turnover0.550.6
Return on Assets7.739.12
Return on Equity16.018.27
Debt Q3 FY16 Q3 FY15
Current Ratio1.391.72
Debt/Capital0.390.37
Interest Expense23.6123.68
Interest Coverage8.5210.03


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)231.43237.88
Div / share0.090.09
EPS0.560.65
Book value / share14.5813.94
Institutional Own % n/a n/a
Avg Daily Volume2346266.01568693.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.31 for the Electrical Equipment industry and a discount compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 3.46 indicates a premium versus the S&P 500 average of 2.84 and a discount versus the industry average of 4.19. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, AMETEK INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AME 22.03 Peers 24.31   AME 16.44 Peers 13.76

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

AME is trading at a valuation on par with its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AME is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AME 20.59 Peers 21.69   AME NM Peers 2.19

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

AME is trading at a valuation on par with its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AME's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AME 3.46 Peers 4.19   AME -8.40 Peers -6.10

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AME is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, AME is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AME 3.03 Peers 2.55   AME -3.88 Peers -8.51

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AME is trading at a premium to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

AME has a sales growth rate that significantly exceeds its peers.

 

 

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