Ametek Inc (AME)
NYSE:AME
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Ametek
(NYSE:AME)
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Rating:80Outperform
Price Target:
$267.00
â–²(13.01% Upside)
Action:Reiterated
Date:05/12/26
AME scores well on financial strength (durable margins, strong cash conversion, and a conservative balance sheet) and is reinforced by upbeat, raised guidance and record order/backlog commentary. The main offsets are premium valuation (high P/E with low yield) and moderate, not extreme, technical momentum, plus execution risk around large, debt-funded M&A.
Positive Factors
Strong cash generation
AMETEK converts a high share of earnings into free cash flow (Q1 conversion 107% with guidance of 110%–115%), providing durable internal funding for R&D, dividends, buybacks and M&A. High cash conversion reduces reliance on external financing and underpins long-term capital allocation flexibility.
Negative Factors
Acquisition reliance for growth
About half of recent top-line growth has come from acquisitions rather than organic demand, making future growth dependent on deal sourcing and successful integration. This raises execution risk and creates variability in sustainable organic revenue momentum over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
AMETEK converts a high share of earnings into free cash flow (Q1 conversion 107% with guidance of 110%–115%), providing durable internal funding for R&D, dividends, buybacks and M&A. High cash conversion reduces reliance on external financing and underpins long-term capital allocation flexibility.
Read all positive factors
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 (AME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.24B
Dividend Yield0.59%
Average Volume (3M)1.24M
Price to Earnings (P/E)30.7
Beta (1Y)0.88
Revenue Growth9.52%
EPS Growth8.37%
CountryUS
Employees21,500
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)6.64
Shares Outstanding229,203,000
10 Day Avg. Volume1,321,539
30 Day Avg. Volume1,242,800
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 Cap1.02
Enterprise Value/Revenue7.03
Enterprise Value/Gross Profit19.23
Enterprise Value/Ebitda23.66
Forecast
1Y Price Target
$255.67Price Target Upside8.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)8.14
Revenue Forecast (FY)$8.01B
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 Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed materially positive operational and financial momentum: record orders and backlog, double-digit reported sales growth, record EBITDA, robust margin expansion, strong free cash flow conversion, and a raised full-year EPS guide. These strengths were balanced against measured cautions — geopolitical uncertainty (small direct exposure but some delayed shipments), reliance on acquisition-related growth (organic sales +5% vs total +11%), amortization from acquisitions, and tougher comps in certain end markets later in the year. Overall, management presented confidence in execution, continued M&A capacity, and a conservative but raised outlook.Positive Updates
Record Orders and Backlog
Orders were a record $2.2 billion, up 23% year-over-year (organic orders +22%), driving a record backlog of $3.87 billion.
Negative Updates
Organic Growth Moderation vs. Reported Growth
While total sales rose 11%, organic sales grew only 5% — indicating that about half of reported top-line growth in the quarter came from acquisitions and FX rather than underlying organic demand.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Orders and Backlog
Orders were a record $2.2 billion, up 23% year-over-year (organic orders +22%), driving a record backlog of $3.87 billion.
Read all positive updates
Company Guidance
AMETEK raised full‑year 2026 diluted EPS guidance to $7.94–$8.14 (up ~7%–10% y/y) from $7.87–$8.07, with overall sales now expected to rise high single digits and organic sales up mid single digits; Q2 sales are anticipated up high single digits with adjusted EPS of $1.96–$2.00 (up ~10%–12% y/y). Management expects corporate G&A ~1.5% of sales, an effective tax rate of 18.5%–19.5%, capital expenditures of ~$160M (~2% of sales), depreciation & amortization of ~ $430M (including ~ $210M of acquisition‑related intangible amortization, ~$0.91/sh), and incremental margins of roughly 35% with core margins up ~50 bps for the year. Segment organic growth guidance: Process low‑ to mid‑single digits, Power mid‑single digits, and Automation/Engineered Solutions mid‑single digits. They plan ~$100M of incremental growth investments, target free‑cash‑flow conversion of ~110%–115% of net income (Q1 FCF conversion was 107%), report gross/net debt‑to‑EBITDA of 0.9x/0.7x with ~$2.2B total debt and ~$481M cash, retain capacity to deploy well over $5B of capital, and continue opportunistic buybacks plus a quarterly dividend of $0.34 (10% increase).Ametek Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.60B | 7.40B | 6.94B | 6.60B | 6.15B | 5.55B |
| Gross Profit | 2.78B | 2.69B | 2.48B | 2.38B | 2.15B | 1.91B |
| EBITDA | 2.26B | 1.88B | 2.16B | 2.03B | 1.83B | 1.60B |
| Net Income | 1.53B | 1.48B | 1.38B | 1.31B | 1.16B | 990.05M |
Balance Sheet | ||||||
| Total Assets | 16.31B | 16.07B | 14.63B | 15.02B | 12.43B | 11.90B |
| Cash, Cash Equivalents and Short-Term Investments | 481.25M | 457.95M | 374.00M | 409.80M | 345.39M | 346.77M |
| Total Debt | 2.18B | 2.28B | 2.32B | 3.37B | 2.56B | 2.72B |
| Total Liabilities | 5.39B | 5.44B | 4.98B | 6.29B | 4.95B | 5.03B |
| Stockholders Equity | 10.92B | 10.63B | 9.66B | 8.73B | 7.48B | 6.87B |
Cash Flow | ||||||
| Free Cash Flow | 1.70B | 1.67B | 1.70B | 1.60B | 1.01B | 1.05B |
| Operating Cash Flow | 1.84B | 1.80B | 1.83B | 1.74B | 1.15B | 1.16B |
| Investing Cash Flow | -1.17B | -1.06B | -244.81M | -2.38B | -552.76M | -2.06B |
| Financing Cash Flow | -596.59M | -686.32M | -1.60B | 697.28M | -575.70M | 39.34M |
Ametek Technical Analysis
Neutral
236.26
Price Trends
225.44
Positive
223.98
Positive
206.75
Positive
Market Momentum
0.47
Positive
43.50
Neutral
11.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AME, the sentiment is Neutral. The current price of 236.26 is above the 20-day moving average (MA) of 232.08, above the 50-day MA of 225.44, and above the 200-day MA of 206.75, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 43.50 is Neutral, neither overbought nor oversold. The STOCH value of 11.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $52.24B | 30.72 | 14.39% | 0.59% | 9.52% | 8.37% | |
77 Outperform | $108.78B | 31.24 | 24.69% | 0.79% | 6.03% | 4.26% | |
77 Outperform | $49.93B | 28.74 | 30.25% | 1.33% | 10.45% | 21.30% | |
74 Outperform | $32.38B | 18.13 | 8.75% | 0.73% | 12.07% | 15.20% | |
71 Outperform | $74.52B | 29.72 | 12.11% | 1.58% | 4.03% | 3.51% | |
70 Outperform | $71.26B | 24.43 | 97.38% | 2.43% | 2.90% | -5.25% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
AME
Ametek
225.66
44.96
24.88%
EMR
Emerson Electric Company
132.22
14.55
12.37%
ITW
Illinois Tool Works
249.46
3.96
1.61%
PH
Parker Hannifin
858.43
185.00
27.47%
ROK
Rockwell Automation
436.36
132.46
43.59%
ROP
Roper Technologies
331.01
-245.00
-42.53%
Ametek Corporate Events
Executive/Board ChangesShareholder Meetings
Ametek Shareholders Approve Directors, Executive Pay and Auditor
Positive
May 11, 2026
At its Annual Meeting of Stockholders held on May 7, 2026, Ametek shareholders elected three directors — Thomas A. Amato, Anthony J. Conti, and Gretchen W. McClain — to terms expiring in 2029, while the remaining five board members con...
Executive/Board Changes
Ametek Appoints Nick Stanage to Board of Directors
Positive
May 8, 2026
AMETEK, Inc., a global industrial technology company focused on specialized niche markets, integrates operational excellence, innovation, geographic and market expansion, and strategic acquisitions to drive growth. With approximately $7.5 billion ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Ametek to Acquire Indicor Instrumentation in $5 Billion Deal
Positive
May 6, 2026
On May 6, 2026, AMETEK, Inc. announced a definitive agreement to acquire Indicor Instrumentation, a $1.1 billion‑revenue portfolio of businesses that design and manufacture mission-critical solutions for demanding industrial and scientific a...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Ametek Posts Record Q1 Results, Raises 2026 Outlook
Positive
Apr 30, 2026
On April 30, 2026, industrial technology group AMETEK reported record first-quarter 2026 results, with sales up 11% year on year to $1.93 billion and adjusted earnings per share rising 13% to $1.97. The company highlighted strong organic growth, c...
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...
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.