April 17, 2025 a 11:31 am
AME: Dividend Analysis - AMETEK, Inc.
AMETEK, Inc. presents an intriguing dividend portfolio through its long-standing history of payouts and consistent growth potential. With over four decades of uninterrupted dividend history, this entity stands out for its remarkable dividend stability, coupled with a compelling growth trajectory observed over the last three and five years. Despite the modest dividend yield, it maintains appealing growth rates, signifying advantageous prospects for dividend investors.
📊 Overview
AMETEK, Inc., operating in the [sector], has maintained its credibility with stable dividend yields, suggesting resilience even in varying market climates.
| Metric | Details |
|---|---|
| Sector | Manufacturing |
| Dividend yield | 0.65 % |
| Current dividend per share | 1.12 USD |
| Dividend history | 42 years |
| Last cut or suspension | None |
🗣️ Dividend History
Examining the dividend history provides insights into the company's commitment to returning value to shareholders. AMETEK, Inc.'s unwavering 42-year history solidifies its reputation as a steadfast dividend payer, essential for long-term income-focused investors.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.31 |
| 2024 | 1.12 |
| 2023 | 1.00 |
| 2022 | 0.88 |
| 2021 | 0.80 |
📈 Dividend Growth
Understanding dividend growth offers crucial insight into the prospects of dividends keeping pace with inflation, essential to maintaining purchasing power over time.
| Time | Growth |
|---|---|
| 3 years | 11.87 % |
| 5 years | 14.87 % |
The average dividend growth is 14.87 % over 5 years. This shows moderate but steady dividend growth.
💰 Payout Ratio
The payout ratio evaluates the sustainability of dividend payments and their potential impact on future growth or reinvestment opportunities.
| Key Figure | Ratio |
|---|---|
| EPS-based | 18.86 % |
| Free cash flow-based | 15.17 % |
The EPS-based payout ratio of 18.86 % alongside an FCF-based ratio of 15.17 % suggests ample room for dividend growth and indicates a disciplined reinvestment strategy.
🔍 Cashflow & Capital Efficiency
Analyzing cash flow metrics exposes efficiencies in capital allocation, crucial for assessing financial health and strategic execution prowess.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.08% | 4.21% | 3.12% |
| Earnings Yield | 3.30% | 3.45% | 3.58% |
| CAPEX to Operating Cash Flow | 6.95% | 7.85% | 12.09% |
| Stock-based Compensation to Revenue | 0.69% | 0.70% | 0.77% |
| Free Cash Flow / Operating Cash Flow Ratio | 93.05% | 92.15% | 87.91% |
The figures illustrate a robust cash flow structure, underpinning sustainable reinvestment strategies and prudent capital allocation practices.
🛡️ Balance Sheet & Leverage Analysis
Assessment of balance sheet strength and leverage is vital for understanding the company’s financial resilience amidst macroeconomic shifts.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.22 | 0.39 | 0.32 |
| Debt-to-Assets | 0.14 | 0.22 | 0.19 |
| Debt-to-Capital | 0.18 | 0.28 | 0.24 |
| Net Debt to EBITDA | 0.79 | 1.46 | 1.11 |
| Current Ratio | 1.24 | — | 1.62 |
| Quick Ratio | 0.75 | — | 0.95 |
| Financial Leverage | 1.52 | 1.72 | 1.66 |
The strong liquidity and leverage ratios reinforce AMETEK, Inc.'s financial stability, minimizing risks during economic pressures.
🌟 Fundamental Strength & Profitability
Profitability ratios reflect the company’s efficiency in asset utilization and profit maximization capabilities.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 14.25% | 15.04% | 15.51% |
| Return on Assets | 9.41% | 8.74% | 9.33% |
| Net Margin | 19.83% | 19.91% | 18.85% |
| EBIT Margin | 25.56% | 25.59% | 24.58% |
| EBITDA Margin | 31.08% | 30.71% | 29.77% |
| Gross Margin | 35.68% | 36.14% | 34.87% |
| Research & Development to Revenue | 0% | 0% | 0% |
AMETEK, Inc.’s impressive profitability and asset utilization metrics indicate a high-efficiency operational model, leading to shareholder value enhancements.
📉 Price Development
✅ Dividend Scoring System
| Category | Score | Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 35/40
🏆 Rating
AMETEK, Inc. remains a compelling dividend choice with its remarkable stability and credible growth trends. Investors seeking reliable dividend income with underlying prospects for consistent growth would find security and value in adding this stock to their portfolio.