September 20, 2017 at 08:40 am EDT
By Jordan Dufee
Share
BUY
Target price hit
Entry price
Target
Stop-loss
Potential
$66.53
$75
$62.3
+12.73%
A strong break-out to the upside has recently been seen in AMETEK, Inc.. The current technical chart pattern could allow for a continuation of the upward dynamic.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The group's activity appears highly profitable thanks to its outperforming net margins.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● Sales forecast by analysts have been recently revised upwards.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The stock is in a well-established, long-term rising trend above the technical support level at 54.15 USD
Weaknesses
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● With an enterprise value anticipated at 3.99 times the sales for the current fiscal year, the company turns out to be overvalued.
● With a 2017 P/E ratio at 26.42 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
AMETEK, Inc. is one of the world's leaders in manufacturing and marketing electronic instruments and electromechanical devices. Net sales break down by family of products as follows:
- electronic instruments (70.1%): instruments and screens for aircrafts cockpits, airborne electronic systems of data surveillance and registering, pressure, temperature and flow sensors for airline companies and aeronautical manufacturers, analysis devices for the medical and research sectors, measurement and surveillance instruments used in the processing industries, instruments and dashboards for heavy trucks and agricultural vehicles, etc.;
- electromechanical devices (29.9%): brushless motors, heat exchangers, connectors, terminals, thermal management subsystems, motors-blowers, etc. primarily for the aeronautic, automotive, medical, computing and defense sectors. The group also provides metal powders and alloys for the manufacturing of electronic components and automotive and aeronautic products.
At the end of 2023, the group had more than 150 production sites worldwide.
Net sales are distributed geographically as follows: United States (52.6%), Asia (20.9%), United Kingdom (3.3%), European Union (14.3%) and others (8.9%).
AMETEK, INC. 
