Ametek (AME) AI Stock Analysis

• Market Cap: $45.99B
• Dividend Yield: 0.62%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 31.5
• Beta (1Y): 0.85
• Revenue Growth: 3.67%
• EPS Growth: 10.44%
• Country: US
• Employees: 21,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.89
• Shares Outstanding: 230,203,870
• 10 Day Avg. Volume: 1,221,415
• 30 Day Avg. Volume: 1,488,173
• PEG Ratio: 6.91
• Price to Book (P/B): 4.32
• Price to Sales (P/S): 6.01
• P/FCF Ratio: 24.50
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 6.40
• Enterprise Value/Gross Profit: 17.69
• Enterprise Value/Ebitda: 21.26
• 1Y Price Target: $223.13
• Price Target Upside: 11.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 7.35
• Revenue Forecast (FY): $7.34B

• Rating: 80 Outperform
• Price Target: $230.00 ▲(15.12% Upside)

Ametek's overall stock score reflects strong financial performance and a positive earnings call, highlighting record sales and increased guidance. Technical analysis supports a bullish trend, though valuation concerns due to a high P/E ratio and modest dividend yield slightly temper the outlook.

Positive Factors

Revenue Growth

Consistent revenue growth highlights Ametek's strong market position and ability to expand its customer base, ensuring long-term business sustainability.

Margin Expansion

Strong margin expansion indicates efficient operations and cost management, enhancing profitability and competitive advantage over time.

Strategic Acquisitions

Successful acquisitions expand product offerings and market reach, supporting long-term growth and innovation capabilities.

Negative Factors

Cash Flow Decline

A decline in cash flow growth could limit reinvestment and flexibility, potentially impacting future expansion and operational resilience.

Challenges in China

Ongoing trade challenges in China may hinder growth in a key market, affecting overall revenue and strategic positioning in Asia.

Process Segment Weakness

Weakness in the Process segment due to trade uncertainties could slow growth and decision-making, impacting segment performance.

Ametek Business Overview & Revenue Model

Company Description

AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices worldwide. It operates in two segments, Electronic Instruments (EIG) and Electromechanical (EMG). The company's EIG segment offers advanced instruments for the process, aerospace, power, and industrial markets; process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; and instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets. This segment also provides power quality monitoring and metering devices, uninterruptible power supplies, programmable power equipment, electromagnetic compatibility test equipment, gas turbines, and environmental health and safety market sensors, dashboard instruments for heavy trucks and other vehicles, and instrumentation and controls for the food and beverage industries; and aircraft and engine sensors, monitoring systems, power supplies, fuel and fluid measurement systems, and data acquisition systems for the aerospace industry. Its EMG segment offers engineered electrical connectors and electronics packaging to protect sensitive devices and mission-critical electronics; precision motion control products for data storage, medical devices, business equipment, automation, and other applications; high-purity powdered metals, strips and foils, specialty clad metals, and metal matrix composites; motor-blower systems and heat exchangers for use in thermal management, military, commercial aircraft, and military ground vehicles; and motors for use in commercial appliances, fitness equipment, food and beverage machines, hydraulic pumps, and industrial blowers. This segment also operates a network of aviation maintenance, repair, and overhaul facilities. In addition, the company offers clinical and educational communication solutions. AMETEK, Inc. was founded in 1930 and is headquartered in Berwyn, Pennsylvania.

How the Company Makes Money

Ametek generates revenue primarily through the sale of its electronic instruments and electromechanical devices. The company operates on a diversified revenue model that includes direct sales to customers, distribution through third-party channels, and long-term contracts with various industries. Key revenue streams include sales from instrumentation products, which are often critical for testing and measuring in various industrial processes, and electromechanical devices used in applications ranging from aerospace to energy generation. Additionally, Ametek benefits from strategic acquisitions that enhance its product offerings and expand its market reach. Partnerships with major industrial players and investments in research and development also contribute to its ability to innovate and maintain a competitive edge, driving consistent revenue growth.

Ametek Financial Statement Overview

Summary

Ametek demonstrates strong financial health with robust profitability and a solid balance sheet. The company maintains efficient operations and a prudent capital structure. While cash flow metrics show some areas for improvement, particularly in free cash flow growth, the overall financial position remains strong.

Income Statement

Ametek's income statement shows strong profitability with a consistent gross profit margin around 36% and a net profit margin exceeding 20% in the TTM period. Revenue growth has been steady, albeit slowing, with a 2.64% increase in the TTM. EBIT and EBITDA margins are robust, indicating efficient operations. However, the slight deceleration in revenue growth could be a concern if it continues.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.087 in the TTM, suggesting low leverage. Return on equity is healthy at approximately 14%, indicating effective use of equity. The equity ratio is strong, reflecting a stable capital structure. The reduction in total debt over recent periods is a positive sign of financial prudence.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth in the TTM, which could be a concern if it persists. The operating cash flow to net income ratio is moderate, indicating reasonable cash generation relative to net income. The free cash flow to net income ratio remains strong, suggesting good cash conversion efficiency. However, the recent negative growth in free cash flow warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.16B	6.94B	6.60B	6.15B	5.55B	4.54B
Gross Profit	2.59B	2.48B	2.38B	2.15B	1.91B	1.54B
EBITDA	2.16B	2.16B	2.03B	1.83B	1.60B	1.42B
Net Income	1.47B	1.38B	1.31B	1.16B	990.05M	872.44M
Balance Sheet
Total Assets	16.18B	14.63B	15.02B	12.43B	11.90B	10.36B
Cash, Cash Equivalents and Short-Term Investments	439.24M	374.00M	409.80M	345.39M	346.77M	1.21B
Total Debt	2.75B	2.32B	3.37B	2.56B	2.72B	2.46B
Total Liabilities	5.66B	4.98B	6.29B	4.95B	5.03B	4.41B
Stockholders Equity	10.53B	9.66B	8.73B	7.48B	6.87B	5.95B
Cash Flow
Free Cash Flow	1.64B	1.70B	1.60B	1.01B	1.05B	1.21B
Operating Cash Flow	1.77B	1.83B	1.74B	1.15B	1.16B	1.28B
Investing Cash Flow	-1.18B	-244.81M	-2.38B	-552.76M	-2.06B	61.63M
Financing Cash Flow	-550.71M	-1.60B	697.28M	-575.70M	39.34M	-539.44M

Ametek Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 199.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AME, the sentiment is Positive. The current price of 199.8 is above the 20-day moving average (MA) of 195.29, above the 50-day MA of 190.70, and above the 200-day MA of 180.86, indicating a bullish trend. The MACD of 2.03 indicates Negative momentum. The RSI at 62.01 is Neutral, neither overbought nor oversold. The STOCH value of 85.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AME.

Ametek Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AME	80 Outperform	$45.99B	31.52	14.63%	0.62%	3.67%	10.44%
PH	79 Outperform	$111.04B	31.34	27.30%	0.80%	0.22%	26.66%
EMR	75 Outperform	$77.19B	33.96	10.91%	1.56%	2.97%	18.14%
ITW	71 Outperform	$72.44B	24.23	91.71%	2.45%	-0.41%	-10.88%
ROK	71 Outperform	$45.39B	52.74	24.24%	1.31%	0.98%	-7.51%
ROP	71 Outperform	$48.17B	30.86	8.16%	0.74%	13.95%	6.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Ametek Corporate Events

AMETEK Announces Leadership Changes with New Appointments

On November 7, 2025, AMETEK announced the retirement of Thomas M. Montgomery, Senior Vice President, Comptroller, and Principal Accounting Officer, effective January 1, 2026. He will be succeeded by Robert J. Amodei, who has been with AMETEK for 36 years and will assume the role of Senior Vice President, Controller and Principal Accounting Officer. Additionally, Scott M. DelOrefice was appointed as Vice President, Group Controller, Electromechanical Group. These leadership changes underscore AMETEK’s focus on leadership development and the depth of talent within the organization, potentially strengthening its market position and operational efficiency.