Ametek (AME) AI Stock Analysis

• Market Cap: $44.35B
• Dividend Yield: 0.62%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 30.2
• Beta (1Y): 0.86
• Revenue Growth: 2.28%
• EPS Growth: 7.94%
• Country: US
• Employees: 21,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.78
• Shares Outstanding: 230,953,960
• 10 Day Avg. Volume: 1,018,170
• 30 Day Avg. Volume: 1,276,311
• 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: 0.98
• Enterprise Value/Revenue: 6.23
• Enterprise Value/Gross Profit: 17.24
• Enterprise Value/Ebitda: 20.52
• 1Y Price Target: $207.08
• Price Target Upside: 9.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 78 Outperform
• Price Target: $211.00 ▲(11.09% Upside)

Ametek's overall stock score of 78 reflects its strong financial performance and positive earnings call sentiment, which are the most significant factors. The technical analysis supports a moderately bullish outlook, although valuation concerns and challenges in organic growth temper the score.

Positive Factors

Strategic Acquisitions

The acquisition of FARO Technologies enhances AMETEK's capabilities in precision measurement and expands its presence in the digital reality market, providing long-term growth opportunities and strengthening its competitive position.

Strong Financial Health

Ametek's strong financial health, with low leverage and robust profitability, ensures resilience and ability to invest in growth opportunities, supporting long-term stability and shareholder value.

Innovation and Product Launch

The launch of new products like SPECTROGREEN MS highlights AMETEK's commitment to innovation, driving future growth and maintaining its competitive edge in the market.

Negative Factors

Flat Organic Sales Growth

Flat organic sales growth indicates potential challenges in core business expansion, which could impact long-term revenue growth if not addressed through strategic initiatives.

Sluggish Market Demand

Continued sluggish demand in key market segments like process and analytical markets could hinder revenue growth and margin expansion, affecting long-term profitability.

Challenges in China

Challenges in China, including trade uncertainties, may limit growth opportunities in a significant market, potentially impacting AMETEK's international expansion and revenue diversification.

Ametek Business Overview & Revenue Model

Company Description

Ametek, Inc. (AME) is a leading global manufacturer of electronic instruments and electromechanical devices, serving a diverse range of markets including aerospace, power, and industrial. The company operates through two primary segments: Electronic Instruments Group (EIG) and Electromechanical Group (EMG). Ametek's core products include precision measurement instruments, analytical instruments, and sophisticated sensors, as well as advanced motors and automation components, all designed to enhance operational efficiency and performance in various applications.

How the Company Makes Money

Ametek generates revenue through the sale of its broad portfolio of electronic instruments and electromechanical devices. The key revenue streams include direct sales of instruments and components to original equipment manufacturers (OEMs), industrial customers, and end-users across various sectors. Ametek benefits from a strong aftermarket service business, which provides ongoing support and maintenance for its products, further contributing to its earnings. Additionally, the company forms strategic partnerships and collaborations with industry leaders to expand its market reach and enhance its product offerings, which play a significant role in driving revenue growth. Factors such as technological innovation, a focus on high-margin products, and global market expansion are also crucial to Ametek's financial performance.

Ametek Financial Statement Overview

Summary

Ametek demonstrates strong financial health with consistent revenue growth, high profitability margins, and efficient cash flow management. The low debt-to-equity ratio and strong return on equity further highlight its financial stability. However, a slight decrease in equity suggests a need for cautious financial management.

Income Statement

Ametek has demonstrated strong financial performance with a consistent increase in total revenue over the years, highlighted by a TTM gross profit margin of 52.14% and a net profit margin of 20.42%. The company's EBIT and EBITDA margins are robust, at 26.19% and 30.23% respectively for TTM, indicating efficiency in converting revenue into profit. The revenue growth rate is healthy, with a 5.84% increase from 2023 to 2024, showcasing a positive growth trajectory.

Balance Sheet

Ametek's balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.05 in TTM, indicating low leverage. The return on equity is strong at 14.21%, showing effective use of equity to generate profit. The equity ratio of 67.03% indicates a robust equity base relative to total assets, contributing to financial stability. However, the slight decrease in stockholders' equity from the previous year suggests a need for cautious financial management.

Cash Flow

Ametek's cash flow performance is impressive, with a strong free cash flow to net income ratio of 1.21, indicating efficient cash generation relative to profits. The operating cash flow to net income ratio is 1.30, highlighting effective cash management. The free cash flow growth rate of 0.70% from 2023 to 2024, though moderate, is stable, demonstrating resilience in cash flow generation despite fluctuations in capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.98B	6.94B	6.60B	6.15B	5.55B	4.54B
Gross Profit	2.52B	2.48B	2.38B	2.15B	1.91B	1.54B
EBITDA	2.12B	2.16B	2.03B	1.83B	1.60B	1.42B
Net Income	1.44B	1.38B	1.31B	1.16B	990.05M	872.44M
Balance Sheet
Total Assets	15.27B	14.63B	15.02B	12.43B	11.90B	10.36B
Cash, Cash Equivalents and Short-Term Investments	619.71M	374.00M	409.80M	345.39M	346.77M	1.21B
Total Debt	1.94B	2.13B	3.37B	2.56B	2.72B	2.46B
Total Liabilities	4.88B	4.98B	6.29B	4.95B	5.03B	4.41B
Stockholders Equity	10.39B	9.66B	8.73B	7.48B	6.87B	5.95B
Cash Flow
Free Cash Flow	1.68B	1.70B	1.60B	1.01B	1.05B	1.21B
Operating Cash Flow	1.81B	1.83B	1.74B	1.15B	1.16B	1.28B
Investing Cash Flow	-356.99M	-244.81M	-2.38B	-552.76M	-2.06B	61.63M
Financing Cash Flow	-1.26B	-1.60B	697.28M	-575.70M	39.34M	-539.44M

Ametek Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 189.93
• 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 189.93 is above the 20-day moving average (MA) of 186.17, above the 50-day MA of 183.29, and above the 200-day MA of 179.72, indicating a bullish trend. The MACD of 1.80 indicates Negative momentum. The RSI at 59.70 is Neutral, neither overbought nor oversold. The STOCH value of 82.11 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
PH	79 Outperform	$97.50B	28.22	27.42%	0.90%	-0.40%	24.40%
AME	78 Outperform	$44.35B	30.22	14.64%	0.62%	2.28%	7.94%
EMR	73 Outperform	$77.37B	29.53	10.86%	1.56%	4.78%	59.68%
ROK	73 Outperform	$39.41B	41.13	28.46%	1.49%	-8.23%	-3.29%
ITW	73 Outperform	$77.65B	23.04	109.06%	2.28%	-1.40%	11.65%
ROP	71 Outperform	$55.68B	36.36	8.15%	0.63%	13.59%	6.52%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%

Ametek Corporate Events

AMETEK Completes Acquisition of FARO Technologies

On July 21, 2025, AMETEK, Inc. announced the completion of its acquisition of FARO Technologies for approximately $920 million. This strategic acquisition enhances AMETEK’s capabilities in precision measurement and expands its presence in attractive market segments, as FARO is a leader in 3D metrology and digital reality solutions. FARO will now be part of AMETEK’s Ultra Precision Technologies Division, contributing its expertise in 3D measurement and imaging solutions to serve a diverse range of end markets.