Ametek (AME) AI Stock Analysis

• Market Cap: $54.78B
• Dividend Yield: 0.59%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 37.4
• Beta (1Y): 0.82
• Revenue Growth: 3.67%
• EPS Growth: 10.44%
• Country: US
• Employees: 21,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.01
• Shares Outstanding: 228,977,200
• 10 Day Avg. Volume: 1,022,355
• 30 Day Avg. Volume: 1,345,106
• PEG Ratio: 4.05
• Price to Book (P/B): 4.45
• Price to Sales (P/S): 6.39
• P/FCF Ratio: 28.31
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 7.69
• Enterprise Value/Gross Profit: 21.19
• Enterprise Value/Ebitda: 27.20
• 1Y Price Target: $244.30
• Price Target Upside: 2.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 8.05
• Revenue Forecast (FY): $7.96B

• Rating: 79 Outperform
• Price Target: $268.00 ▲(12.03% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

AME scores well primarily due to strong financial performance (high, durable margins and conservative leverage) and a very positive earnings outlook with record operating momentum and confident 2026 guidance. Technicals add support with a clear uptrend and positive momentum. The main offset is valuation: a high P/E and low dividend yield reduce the overall score by limiting upside if execution softens.

Positive Factors

High, stable margins

AMETEK’s sustained TTM gross (~36%) and net (~20%) margins indicate durable earnings power across cycles. Consistently strong margins support reinvestment, R&D, and shareholder returns, and give the company buffer to absorb cyclical pressure or integration costs while maintaining profitability.

Strong free cash flow generation

Robust free cash flow and exceptionally high conversion (FY ~113%, Q4 132%) provide durable funding for acquisitions, buybacks, dividends and R&D. Management’s guidance of 110–115% conversion and modest capex (~2% of sales) implies persistent cash-generation capacity supporting long-term capital allocation.

Diversified markets and active M&A capacity

Broad end-market exposure, a record backlog and an active, disciplined M&A program plus >$5B deployment capacity give AMETEK structural growth optionality. Diversification across instruments and electromechanical markets reduces single-market risk and supports steady multi-year revenue expansion.

Negative Factors

Acquisition-related margin dilution

Recent deals include lower-margin businesses (e.g., FARO) that dilute reported margins and require restructuring spend. The multi-year path to target margins and integration charges can depress near-term reported profitability and make delivery of margin guidance hinge on successful, sustained operational improvements.

Rising depreciation & acquisition amortization

Elevated D&A and substantial acquisition-related amortization materially increase non-cash charges against GAAP earnings. This compresses reported EPS growth, complicates year-over-year comparatives, and can mask underlying operating performance despite strong cash generation and organic improvement.

Operating cash flow conversion volatility

A sharp drop in operating cash flow coverage signals working-capital timing or conversion variability. If persistent, such volatility could strain near-term liquidity for M&A, dividends or buybacks, and increase reliance on external financing despite strong headline free cash flow.

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

Strong and consistent profitability (TTM gross margin ~36% and net margin ~20%) and steady multi-year revenue growth to $7.40B TTM support a high score. Balance sheet leverage is conservative and improving (debt-to-equity ~0.21). Main watch items are slowing recent growth and weaker near-term cash conversion (operating cash flow coverage down to ~0.43 TTM).

Income Statement

Revenue has grown steadily from $4.54B (2020) to $7.40B in TTM (Trailing-Twelve-Months), though the pace has moderated recently (TTM revenue growth: 3.3%). Profitability is a clear strength: TTM gross margin is ~36.3% and net margin is ~20.0%, both consistently strong across the period, supporting durable earnings power. A minor watch item is that EBITDA margin in TTM (~28.3%) is below the 2023–2024 level (~30–31%), suggesting some incremental cost pressure or mix shift despite continued earnings growth.

Balance Sheet

Leverage is conservative and improving: debt-to-equity is ~0.21 in TTM (Trailing-Twelve-Months), down meaningfully versus 2020–2023 (~0.34–0.41). Equity has expanded alongside assets (TTM equity ~$10.63B; assets ~$16.07B), indicating a stronger capital base over time. Returns remain healthy and stable, with return on equity around ~14–15% across periods. The main risk is that total debt is still sizable in absolute dollars (~$2.28B TTM), which matters more if growth slows or financing costs rise, even though ratios look comfortable.

Cash Flow

Cash generation is strong and high quality: TTM free cash flow is ~$1.67B and closely tracks net income (free cash flow to net income ~0.94 TTM), which supports flexibility for reinvestment and shareholder returns. Free cash flow has also grown over time (TTM free cash flow growth: 1.8%), albeit at a slower rate recently. A key weakness is volatility in cash conversion versus earnings as shown by the operating cash flow coverage ratio (down to ~0.43 in TTM from ~0.87 in 2024), implying near-term working-capital or timing headwinds even though full-year cash flow remains robust.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.40B	6.94B	6.60B	6.15B	5.55B
Gross Profit	2.69B	2.48B	2.38B	2.15B	1.91B
EBITDA	1.88B	2.16B	2.03B	1.83B	1.60B
Net Income	1.48B	1.38B	1.31B	1.16B	990.05M
Balance Sheet
Total Assets	16.07B	14.63B	15.02B	12.43B	11.90B
Cash, Cash Equivalents and Short-Term Investments	457.95M	374.00M	409.80M	345.39M	346.77M
Total Debt	2.28B	2.32B	3.37B	2.56B	2.72B
Total Liabilities	5.44B	4.98B	6.29B	4.95B	5.03B
Stockholders Equity	10.63B	9.66B	8.73B	7.48B	6.87B
Cash Flow
Free Cash Flow	1.67B	1.70B	1.60B	1.01B	1.05B
Operating Cash Flow	1.80B	1.83B	1.74B	1.15B	1.16B
Investing Cash Flow	-1.06B	-244.81M	-2.38B	-552.76M	-2.06B
Financing Cash Flow	-686.32M	-1.60B	697.28M	-575.70M	39.34M

Ametek Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 239.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 239.22 is above the 20-day moving average (MA) of 232.09, above the 50-day MA of 219.93, and above the 200-day MA of 193.99, indicating a bullish trend. The MACD of 4.75 indicates Positive momentum. The RSI at 66.13 is Neutral, neither overbought nor oversold. The STOCH value of 82.12 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	80 Outperform	$127.38B	36.81	25.79%	0.79%	0.22%	26.66%
AME	79 Outperform	$54.78B	37.38	14.59%	0.59%	3.67%	10.44%
ITW	72 Outperform	$83.76B	27.71	93.75%	2.43%	-0.41%	-10.88%
ROP	70 Outperform	$36.00B	24.63	7.93%	0.73%	13.95%	6.80%
EMR	69 Neutral	$84.77B	36.82	11.31%	1.58%	2.97%	18.14%
ROK	68 Neutral	$45.78B	46.62	27.71%	1.33%	0.98%	-7.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Ametek Corporate Events

Ametek Announces 10% Increase in Quarterly Dividend

On February 12, 2026, AMETEK, Inc. announced that its board approved a 10% increase in the quarterly cash dividend on common stock, raising the payout to $0.34 per share from $0.31, with the first higher dividend payable on March 31, 2026 to shareholders of record as of March 16, 2026. The move lifts the indicated annual dividend rate to $1.36 per share and underscores the company’s strong financial position, robust cash generation, and strategy of balancing capital deployment between strategic acquisitions and steadily rising shareholder returns.

The most recent analyst rating on (AME) stock is a Hold with a $245.00 price target. To see the full list of analyst forecasts on Ametek stock, see the AME Stock Forecast page.

AMETEK Delivers Record 2025 Results and Confident 2026 Outlook

On February 3, 2026, AMETEK reported record results for the fourth quarter and full year 2025, with quarterly sales reaching $2.0 billion, up 13% year-on-year, and adjusted earnings per share rising 7% to $2.01. GAAP and adjusted operating income, operating cash flow, and free cash flow all hit record levels, driving a 132% free cash flow to net income conversion and underscoring strong contributions from organic growth, recent acquisitions, and margin expansion across both the Electronic Instruments Group and Electromechanical Group. For 2025, sales grew 7% to $7.4 billion, while adjusted EPS increased 9% to $7.43, and the company set annual records across sales, profit, margins, EBITDA, and earnings per share. Management highlighted a record backlog, improving end-market conditions, and ample financial flexibility as it entered 2026, and projected mid- to high-single-digit sales growth and a further 6% to 9% increase in adjusted EPS for the year, signaling continued confidence in AMETEK’s acquisition-driven and organically funded growth strategy.

The most recent analyst rating on (AME) stock is a Buy with a $256.00 price target. To see the full list of analyst forecasts on Ametek stock, see the AME Stock Forecast page.