Ametek (AME) AI Stock Analysis

• Market Cap: $41.53B
• Dividend Yield: 0.69%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.90
• Revenue Growth: 2.98%
• EPS Growth: 7.29%
• Country: US
• Employees: 21,500
• Sector: Industrials
• Sector Strength: 88
• Industry: Industrial - Machinery
• EPS (TTM): 1.75
• Shares Outstanding: 230,878,980
• 10 Day Avg. Volume: 1,294,102
• 30 Day Avg. Volume: 1,218,960
• PEG Ratio: 1.59
• Price to Book (P/B): 4.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.83
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 1.24
• Enterprise Value/Gross Profit: 13.63
• Enterprise Value/Ebitda: 4.03
• 1Y Price Target: $192.00
• Price Target Upside: 6.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 79 Outperform
• Price Target: $196.00 ▲(8.35%Upside)

Ametek's overall score reflects its strong financial fundamentals, consistent growth, and strategic initiatives like acquisitions. While the earnings call and corporate events highlight positive prospects, the valuation and technical analysis suggest caution with potential overvaluation and mixed market momentum. The company is well-positioned for long-term growth but faces challenges in specific markets and valuation metrics.

Positive Factors

Customer Relations

The company's flywheel is driven by its closeness to customers, which allows it to solve challenges through research and development and mergers and acquisitions.

Execution Prowess

AME's execution prowess is evident through consistent margin expansion and successful mergers and acquisitions, allowing it to grow EBITDA at a near 10% compound annual growth rate since 2019.

Macro Environment Positioning

AME is well positioned in the current macroeconomic environment where growth concerns are mounting, with the ability to defend margins.

Negative Factors

International Revenue Risk

Approximately 50% of AME's revenue comes from international markets, which could be negatively impacted by U.S. protectionism.

Organic Growth Concerns

There is concern that Consensus is setting a high bar on organic growth, modeling 5% in 2025-27, which is roughly twice the historical growth rate.

Tariff Impact

The discussed tariffs imply a significant annualized financial headwind that isn't already incorporated into guidance.

Ametek Business Overview & Revenue Model

Company Description

Ametek, Inc. (NYSE: AME) is a leading global manufacturer of electronic instruments and electromechanical devices. Founded in 1930 and headquartered in Berwyn, Pennsylvania, the company operates through two main business segments: Electronic Instruments Group (EIG) and Electromechanical Group (EMG). Ametek's core products and services include advanced monitoring, testing, calibration instruments, and precision electromechanical devices, catering to a diverse array of industries such as aerospace, power, and industrial markets.

How the Company Makes Money

Ametek generates revenue through the design, manufacture, and distribution of its broad range of electronic instruments and electromechanical devices. The Electronic Instruments Group (EIG) segment contributes significantly to the company's revenue by providing instruments for process control, analytical measurement, and aerospace. This segment benefits from continuous demand for high-precision and reliable equipment. The Electromechanical Group (EMG) focuses on producing precision motion control and specialty motors, serving industries such as aerospace, defense, and medical devices. Ametek's revenue model is bolstered by its strategy of acquiring complementary businesses to expand its product offerings and market reach, alongside fostering long-term relationships with key clients and partners in various sectors.

Ametek Financial Statement Overview

Summary

Ametek shows strong financial health with consistent revenue growth, profitability, and efficient cash flow management. The company's low leverage and strong return on equity highlight its financial stability and effective capital management. However, a slight decrease in equity suggests a need for ongoing financial vigilance.

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
6.94B	6.94B	6.60B	6.15B	5.55B	4.54B
	Gross Profit
2.51B	2.48B	2.38B	2.15B	1.91B	1.54B
	EBIT
1.82B	1.78B	1.71B	1.50B	1.31B	1.03B
	EBITDA
2.10B	2.16B	2.03B	1.83B	1.60B	1.42B
	Net Income Common Stockholders
1.42B	1.38B	1.31B	1.16B	990.05M	872.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
399.00M	374.00M	409.80M	345.39M	346.77M	1.21B
	Total Assets
14.88B	14.63B	15.02B	12.43B	11.90B	10.36B
	Total Debt
1.93B	2.08B	3.37B	2.39B	2.54B	2.41B
	Net Debt
1.53B	1.71B	2.96B	2.04B	2.20B	1.20B
	Total Liabilities
4.91B	4.98B	6.29B	4.95B	5.03B	4.41B
	Stockholders Equity
9.97B	9.66B	8.73B	7.48B	6.87B	5.95B
Cash Flow		Free Cash Flow
1.71B	1.70B	1.60B	1.01B	1.05B	1.21B
	Operating Cash Flow
1.84B	1.83B	1.74B	1.15B	1.16B	1.28B
	Investing Cash Flow
-349.11M	-244.81M	-2.38B	-552.76M	-2.06B	61.63M
	Financing Cash Flow
-1.46B	-1.60B	697.28M	-575.70M	39.34M	-539.44M

Ametek Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 180.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 180.9 is above the 20-day moving average (MA) of 179.17, above the 50-day MA of 170.50, and above the 200-day MA of 177.03, indicating a bullish trend. The MACD of 1.79 indicates Positive momentum. The RSI at 60.43 is Neutral, neither overbought nor oversold. The STOCH value of 77.08 is Neutral, 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	79 Outperform	$41.53B	29.46	14.96%	0.69%	2.98%	7.29%
ITW	79 Outperform	$72.96B	21.92	107.62%	2.41%	-1.85%	12.04%
PH	76 Outperform	$85.73B	25.82	27.16%	1.07%	-0.23%	22.41%
IR	74 Outperform	$34.17B	41.87	8.09%	0.09%	5.27%	0.61%
EMR	73 Outperform	$71.40B	30.30	9.82%	1.66%	6.49%	24.14%
ROK	68 Neutral	$36.66B	40.95	25.86%	1.61%	-11.19%	-22.50%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%

Ametek Corporate Events

Ametek Holds Annual Stockholders Meeting, Elects Board Members

On May 7, 2025, Ametek, Inc. held its Annual Meeting of Stockholders where key decisions were made, including the election of Dean Seavers and David A. Zapico to the Board of Directors for terms expiring in 2028. Additionally, stockholders approved the executive compensation on an advisory basis and ratified Ernst & Young LLP as the independent registered public accounting firm for the year ending December 31, 2025. These decisions reflect continued confidence in the company’s leadership and financial oversight, potentially impacting its strategic direction and stakeholder relations.

AMETEK to Acquire FARO Technologies for $920 Million

On May 6, 2025, AMETEK announced a definitive agreement to acquire FARO Technologies for $44 per share in cash, valuing FARO at approximately $920 million. This acquisition, approved by both companies’ boards, is expected to enhance AMETEK’s Ultra Precision Technologies division by expanding its presence in growth markets and complementing its existing Creaform business. The transaction, subject to customary conditions and regulatory approvals, is anticipated to close in the second half of 2025, potentially accelerating growth and offering new opportunities for stakeholders.