AMETEK Inc (AME, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial performance. With a current share price of $173.66 and a modest daily gain of 0.54%, despite a slight three-month decline of -2.4%, AMETEK Inc demonstrates resilience and potential for future growth. This analysis is further supported by the GF Score, indicating that AMETEK Inc is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have been proven to correlate with long-term stock performance from 2006 to 2021. A higher GF Score typically indicates a higher potential for returns. AMETEK Inc boasts a GF Score of 96 out of 100, reflecting its high potential for outperformance based on its ranks in financial strength (7/10), profitability (9/10), growth (10/10), GF Value (6/10), and momentum (10/10).
Understanding AMETEK Inc's Business
AMETEK Inc, with a market cap of $40.2 billion and annual sales of $6.74 billion, operates through two primary segments: the Electronic Instruments Group (EIG) and the Electromechanical Group (EMG). EIG, the major revenue generator, designs advanced instruments for various markets, while EMG supplies engineered automation solutions and other products. The company's strategy focuses on growth through acquisitions, R&D, operational efficiencies, and market expansion, primarily in the United States.
Financial Strength Breakdown
AMETEK Inc's financial robustness is evident in its impressive Interest Coverage ratio of 17.82 and an Altman Z-Score of 5.9, indicating low risk of financial distress. Additionally, its strategic debt management is reflected in a Debt-to-Revenue ratio of 0.44, showcasing a solid foundation for enduring market fluctuations.
Profitability Rank Breakdown
AMETEK Inc's profitability is highlighted by its increasing Operating Margin, which has grown consistently over the past five years to 25.88% in 2023. This trend, along with a rising Gross Margin now at 36.14%, underscores the company's efficiency in converting revenue into profit. The firm's strong financial health is further affirmed by a high Piotroski F-Score and a Predictability Rank of 5 stars.
Growth Rank Breakdown
AMETEK Inc's commitment to growth is evident in its 3-Year Revenue Growth Rate of 13.2%, outperforming 65.82% of its industry peers. The company's EBITDA has also seen significant growth, with a three-year growth rate of 12.4%, highlighting its ongoing ability to expand and generate increased earnings.
Conclusion
Considering AMETEK Inc's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score distinctly highlights the company's superior position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
