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If You Invested $1000 in Ametek a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Ametek (AME - Free Report) ten years ago? It may not have been easy to hold on to AME for all that time, but if you did, how much would your investment be worth today?
Ametek's Business In-Depth
With that in mind, let's take a look at Ametek's main business drivers.
AMETEK, located in Berwyn, PA, is one of the leading manufacturers of electronic appliances and electromechanical devices. AMETEK has more than 120 operating sites all over the world.
The company operates over 80 sales and service stations in North America, Europe, Asia and South America to support these operations.
AMETEK sells its products globally through two operating groups, the Electronic Instruments Group (“EIG”) and the Electromechanical Group (“EMG”).
Notably, the company generated $5.5 billion revenues in 2021.
The Electronic Instruments Group (“EIG”) (67.9% of total revenue in 2021) specializes in manufacturing instruments employed for monitoring, examining, calibration and display purposes in the aerospace, power and industrial instrumentation markets. The segment is one of the leaders in many of the markets it serves, including airframe and aircraft engine sensors; process and analytical instruments; electric power generation, distribution and transmission instruments; and heavy-vehicle instrument panels.
The Electromechanical Group (“EMG”) (32.1% of total revenue in 2021) produces engineered electrical connectors and electronics packaging for electronic applications in aerospace, defense, medical and industrial markets. In addition, it manufactures advanced technical motor and motion control products used in electronic data storage, medical appliances, company equipment, robotics and many other applications. It is also engaged in the production of precision motion control solutions, specialty metals and alloys; electric motors, blowers and heat exchangers.
The target customers are aerospace and defense industries, commercial and fitness equipment makers, food and beverage machine builders, and manufacturers of hydraulic pumps, industrial blowers and vacuum cleaners.
The company uses a direct sales model for the distribution of its products, which is supplemented by distributors and sales representatives as necessary. Given the scale of operations, the company has a host of competitors, including Agilent Technologies, Emerson Electric and Cognex.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Ametek ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2012 would be worth $3,867.93, or a 286.79% gain, as of December 5, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 187.51% and the price of gold increased 1.91% over the same time frame in comparison.
Going forward, analysts are expecting more upside for AME.
AMETEK’s third quarter results were driven by strong performances of Electronic Instruments Group and Electromechanical Group segments. Notably, benefits from the acquisitions of Magnetrol International, and Crank Software are aiding the Electronic Instruments segment. For 2022, we expect EIG revenue to grow 11.3% from 2021. Further, rising demand for precision motion control solutions is a tailwind for the Electromechanical segment. We expect 2022 EMG revenue to grow 7.5% from 2021. Notably, AMETEK’s proper execution of the four core growth strategies — operational excellence, global market expansion, investments in product development and acquisitions, remains a positive. However, supply-chain disruptions caused by the coronavirus pandemic remain headwinds. High goodwill associated with aggressive acquisition strategy are risks.
The stock is up 6.76% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2022. The consensus estimate has moved up as well.
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If You Invested $1000 in Ametek a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Ametek (AME - Free Report) ten years ago? It may not have been easy to hold on to AME for all that time, but if you did, how much would your investment be worth today?
Ametek's Business In-Depth
With that in mind, let's take a look at Ametek's main business drivers.
AMETEK, located in Berwyn, PA, is one of the leading manufacturers of electronic appliances and electromechanical devices. AMETEK has more than 120 operating sites all over the world.
The company operates over 80 sales and service stations in North America, Europe, Asia and South America to support these operations.
AMETEK sells its products globally through two operating groups, the Electronic Instruments Group (“EIG”) and the Electromechanical Group (“EMG”).
Notably, the company generated $5.5 billion revenues in 2021.
The Electronic Instruments Group (“EIG”) (67.9% of total revenue in 2021) specializes in manufacturing instruments employed for monitoring, examining, calibration and display purposes in the aerospace, power and industrial instrumentation markets. The segment is one of the leaders in many of the markets it serves, including airframe and aircraft engine sensors; process and analytical instruments; electric power generation, distribution and transmission instruments; and heavy-vehicle instrument panels.
The Electromechanical Group (“EMG”) (32.1% of total revenue in 2021) produces engineered electrical connectors and electronics packaging for electronic applications in aerospace, defense, medical and industrial markets. In addition, it manufactures advanced technical motor and motion control products used in electronic data storage, medical appliances, company equipment, robotics and many other applications. It is also engaged in the production of precision motion control solutions, specialty metals and alloys; electric motors, blowers and heat exchangers.
The target customers are aerospace and defense industries, commercial and fitness equipment makers, food and beverage machine builders, and manufacturers of hydraulic pumps, industrial blowers and vacuum cleaners.
The company uses a direct sales model for the distribution of its products, which is supplemented by distributors and sales representatives as necessary. Given the scale of operations, the company has a host of competitors, including Agilent Technologies, Emerson Electric and Cognex.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Ametek ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2012 would be worth $3,867.93, or a 286.79% gain, as of December 5, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 187.51% and the price of gold increased 1.91% over the same time frame in comparison.
Going forward, analysts are expecting more upside for AME.
AMETEK’s third quarter results were driven by strong performances of Electronic Instruments Group and Electromechanical Group segments. Notably, benefits from the acquisitions of Magnetrol International, and Crank Software are aiding the Electronic Instruments segment. For 2022, we expect EIG revenue to grow 11.3% from 2021. Further, rising demand for precision motion control solutions is a tailwind for the Electromechanical segment. We expect 2022 EMG revenue to grow 7.5% from 2021. Notably, AMETEK’s proper execution of the four core growth strategies — operational excellence, global market expansion, investments in product development and acquisitions, remains a positive. However, supply-chain disruptions caused by the coronavirus pandemic remain headwinds. High goodwill associated with aggressive acquisition strategy are risks.
The stock is up 6.76% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2022. The consensus estimate has moved up as well.