AME : NYSE : Industrial Goods
$53.93 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1770200.0
03/28/17 - 4:02 PM ET

Financial Analysis


AMETEK INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged 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 average liquidity. Currently, the Quick Ratio is 1.42 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)972.95987.98
EBITDA ($mil)265.53268.97
EBIT ($mil)212.68229.54
Net Income ($mil)109.11136.84


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)717.26381.01
Total Assets ($mil)7100.676664.53
Total Debt ($mil)2341.571942.12
Equity ($mil)3256.513254.63


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin39.3238.58
EBITDA Margin27.2927.22
Operating Margin21.8623.23
Sales Turnover0.540.6
Return on Assets7.218.86
Return on Equity15.7218.15
Debt Q4 FY16 Q4 FY15
Current Ratio2.091.58
Debt/Capital0.420.37
Interest Expense23.5922.75
Interest Coverage9.0210.09


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)229.38235.52
Div / share0.090.09
EPS0.470.57
Book value / share14.213.82
Institutional Own % n/a n/a
Avg Daily Volume1706250.02403882.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 22.87 for the Electrical Equipment industry and a value on par with the S&P 500 average of 26.33. To use another comparison, its price-to-book ratio of 3.77 indicates a premium versus the S&P 500 average of 2.93 and a discount versus the industry average of 4.34. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, AMETEK INC seems to be trading at a premium 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 24.41 Peers 22.87   AME 16.20 Peers 17.93

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.

 

Average. 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 valuation on par 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 20.10 Peers 20.05   AME 2.06 Peers 2.21

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.

 

Average. 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 trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AME 3.77 Peers 4.34   AME -10.62 Peers -3.16

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 3.19 Peers 2.45   AME -3.38 Peers -6.43

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 significant premium to its industry.

 

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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