Let's now take a look at another Giverny Capital big position: Ametek (AME). That stock represents about 7,1% of the fund, which is a lot.
It's surely a great stock, huh?
I'm sure most people don't know about this one, just like LKQ.
That business is a manufacturer of electronic instruments and electromechanical devices for many industries (defense, aerospace, medical, oil & gas, etc).
I'll use the same metrics as I did with LKQ.
Beta: 1,16, so there's more volatility here than on the market.
As we can see below, the growth is very steady:
2011 EPS: 1,58$
2012 EPS: 1,88$
2013 EPS: 2,10$
2014 EPS: 2,37$
2015 EPS: 2,45$
2016 EPS: 2,30$
EPS growth from 2011 to 2016: 45% (OK, but not so good)
I don't know why the EPS decreased from 2014 to 2016. Maybe they did some acquisition? I don't really care because (SPOILER ALERT) the rest of the analysis shows that it's not such an interesting stock.Why dig when you don't have a great feeling of ecstasy?
Actual ROE: 16
Average ROE last 5 years: 19
Debt VS earnings: About 7 times (medium debt level)
Shares: A little dilution and a little buyback here and there. So, at the moment, the number of shares is about the same as in 2011.
Sales growth last year: -5%
EPS growth last year: -13%
No momentum here.
Actual PE: 22
Forward PE: 21
Average PE last 5 years: 22
On an historical basis, the actual price is normal.
Honeywell performance last 5 years: 121%
Siemens performance last 5 years: 21%
AME performance last 5 years: 78%
I don't really like that Ametek stock. The historical performance has been only OK. The actual PE and the forward PE aren't appealing. There's no momentum in recent earnings. There's no interesting buybacks.
I wouldn't buy that one.