AME : NYSE : Industrial Goods
$47.04 -0.17 | -0.36%
Today's Range: 46.85 - 47.19
Avg. Daily Volume: 1,484,200
07/28/16 - 11:07 AM ET

Financial Analysis


AMETEK INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. AMETEK INC has weak liquidity. Currently, the Quick Ratio is 0.77 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.00% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)944.4984.06
EBITDA ($mil)248.61272.11
EBIT ($mil)208.52236.85
Net Income ($mil)134.17142.11


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)386.94406.59
Total Assets ($mil)6994.76335.24
Total Debt ($mil)2218.361672.68
Equity ($mil)3296.693263.86


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin38.238.91
EBITDA Margin26.3227.65
Operating Margin22.0824.07
Sales Turnover0.560.64
Return on Assets8.339.24
Return on Equity17.6817.95
Debt Q1 FY16 Q1 FY15
Current Ratio1.291.79
Debt/Capital0.40.34
Interest Expense23.422.69
Interest Coverage8.9110.44


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)233.41241.52
Div / share0.090.09
EPS0.570.59
Book value / share14.1213.51
Institutional Own % n/a n/a
Avg Daily Volume1619856.01522699.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.86 for the Electrical Equipment industry and a discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 3.35 indicates a premium versus the S&P 500 average of 2.81 and a discount versus the industry average of 3.92. The price-to-sales ratio is well above both the S&P 500 average and 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 19.49 Peers 22.86   AME 15.78 Peers 13.32

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

AME is trading at a discount to 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 17.54 Peers 19.70   AME NA Peers 7.93

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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AME 3.35 Peers 3.92   AME 1.67 Peers 1.74

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.

 

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

AME is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AME 2.81 Peers 1.94   AME -2.39 Peers -3.20

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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