Ametek (AME)
NYSE:AME
Top Page
Ametek
(NYSE:AME)
Select Model
Select Model
Rating:79Outperform
Price Target:
$240.00
â–²(11.96% Upside)
Action:ReiteratedDate: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
Cash generation and conversion
Sustained FCF near $1.7B and near‑par conversion to net income indicate durable internal funding for capex, R&D, dividends, buybacks and M&A. This level of cash generation underpins capital allocation flexibility and reduces reliance on external financing over the next several quarters.
Negative Factors
Acquisition-related margin dilution & integration risk
M&A is a core growth lever but lower initial margins and multi‑year integration timelines can depress reported margins and cash conversion. Execution risk on cost takeouts and cultural/operational integration could constrain margin expansion and earnings visibility over the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation and conversion
Sustained FCF near $1.7B and near‑par conversion to net income indicate durable internal funding for capex, R&D, dividends, buybacks and M&A. This level of cash generation underpins capital allocation flexibility and reduces reliance on external financing over the next several quarters.
Read all positive factors
Ametek (AME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$49.08B
Dividend Yield0.59%
Average Volume (3M)1.42M
Price to Earnings (P/E)32.0
Beta (1Y)0.86
Revenue Growth3.67%
EPS Growth10.44%
CountryUS
Employees21,500
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.01
Shares Outstanding228,977,200
10 Day Avg. Volume1,295,229
30 Day Avg. Volume1,415,822
Financial Highlights & Ratios
PEG Ratio4.05
Price to Book (P/B)4.45
Price to Sales (P/S)6.39
P/FCF Ratio28.31
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue7.01
Enterprise Value/Gross Profit19.33
Enterprise Value/Ebitda24.81
Forecast
1Y Price Target
$246.00Price Target Upside14.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)8.06
Revenue Forecast (FY)$7.97B
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 th...
How the Company Makes Money
AMETEK makes money primarily by selling highly engineered instruments, components, and systems through its two operating segments. (1) Electronic Instruments Group (EIG): Revenue is largely generated from sales of advanced electronic instruments u...
Ametek Key Performance Indicators (KPIs)
Any
Revenue by Product
Shows how much revenue each product line generates, highlighting which products are driving growth and which may need strategic adjustments.
Shows how much revenue each product line generates, highlighting which products are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyAmetek Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call was strongly positive: management reported multiple quarterly and annual records (sales, orders, operating income, EBITDA, EPS, and cash flow), improving margins, robust free cash flow and a record backlog, and they provided constructive 2026 guidance (high-single-digit top-line, mid-single-digit organic growth, and EPS +6–9%). Challenges are manageable and largely relate to integration and near-term dilution from recent acquisitions (notably FARO), higher amortization and an elevated tax rate, plus some end-market variability earlier in the year. Given the scale of record results, strong cash conversion, disciplined capital allocation and an active M&A pipeline, the positive operational and financial momentum outweigh the integration- and tax-related headwinds.Positive Updates
Record Quarterly and Annual Financial Results
Q4 sales reached a record $2.0B, up 13% year-over-year; full-year 2025 sales were $7.4B, up 7% versus 2024. The company established records for sales, orders, operating income, EBITDA, diluted EPS, operating cash flow and free cash flow in the quarter and set annual records for sales, operating income, operating margin, EBITDA and diluted EPS.
Negative Updates
Acquisition-Related Margin Dilution and Integration Costs
Recent acquisitions (notably FARO and other add-ons) are lower-margin businesses creating near-term reported-margin dilution; FARO currently at mid‑teens EBITDA margin with one-time restructuring/integration charges of ~$17.6M and management projecting multiple years to reach target margins (~30%).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Annual Financial Results
Q4 sales reached a record $2.0B, up 13% year-over-year; full-year 2025 sales were $7.4B, up 7% versus 2024. The company established records for sales, orders, operating income, EBITDA, diluted EPS, operating cash flow and free cash flow in the quarter and set annual records for sales, operating income, operating margin, EBITDA and diluted EPS.
Read all positive updates
Company Guidance
AMETEK guided 2026 to overall sales up to high-single-digits with organic sales up low- to mid-single-digits, diluted EPS of $7.87–$8.07 (up ~6%–9% YoY), and Q1 sales ~+10% with adjusted Q1 EPS $1.90–$1.95 (up ~6%–9%); the company expects ~30 basis points of margin expansion for the year with reported incremental margins targeted near 35%, an effective tax rate of 18.5%–19.5%, G&A ≈1.5% of sales, other operating expenses roughly in line with 2025, capex ≈$160M (~2% of sales), depreciation & amortization ≈$430M (including ~$210M of after‑tax acquisition‑related intangible amortization, ≈$0.91/sh), free cash flow conversion of 110%–115% of net income, a $100M incremental investment program, and financial capacity to deploy >$5B while maintaining investment‑grade (year‑end gross debt/EBITDA ~1.0x; net ~0.8x).Ametek Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
80
Positive
| 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
Positive
214.36
Price Trends
224.24
Negative
212.90
Positive
198.17
Positive
Market Momentum
-4.11
Positive
44.83
Neutral
22.76
Neutral
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 214.36 is below the 20-day moving average (MA) of 216.94, below the 50-day MA of 224.24, and above the 200-day MA of 198.17, indicating a neutral trend. The MACD of -4.11 indicates Positive momentum. The RSI at 44.83 is Neutral, neither overbought nor oversold. The STOCH value of 22.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AME.
Ametek Risk Analysis
Ametek disclosed 18 risk factors in its most recent earnings report. Ametek reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ametek Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $112.99B | 32.82 | 25.65% | 0.79% | 0.22% | 26.66% | |
79 Outperform | $49.08B | 31.97 | 14.26% | 0.59% | 3.67% | 10.44% | |
72 Outperform | $75.02B | 23.48 | 95.18% | 2.43% | -0.41% | -10.88% | |
71 Outperform | $36.42B | 31.06 | 7.81% | 0.73% | 13.95% | 6.80% | |
69 Neutral | $73.67B | 30.81 | 11.61% | 1.58% | 2.97% | 18.14% | |
68 Neutral | $40.32B | 35.94 | 27.69% | 1.33% | 0.98% | -7.51% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
AME
Ametek
214.36
42.76
24.92%
EMR
Emerson Electric Company
131.02
21.31
19.42%
ITW
Illinois Tool Works
260.29
14.09
5.72%
PH
Parker Hannifin
895.24
272.02
43.65%
ROK
Rockwell Automation
358.88
101.96
39.68%
ROP
Roper Technologies
353.86
-232.62
-39.66%
Ametek Corporate Events
Business Operations and StrategyDividends
Ametek Announces 10% Increase in Quarterly Dividend
Positive
Feb 12, 2026
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 share...
Business Operations and StrategyFinancial Disclosures
AMETEK Delivers Record 2025 Results and Confident 2026 Outlook
Positive
Feb 3, 2026
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,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.