Ametek (AME) AI Stock Analysis

• Market Cap: $42.68B
• Dividend Yield: 0.64%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 29.8
• Beta (1Y): 0.89
• Revenue Growth: 2.28%
• EPS Growth: 7.94%
• Country: US
• Employees: 21,500
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 1.78
• Shares Outstanding: 230,878,980
• 10 Day Avg. Volume: 1,403,589
• 30 Day Avg. Volume: 1,350,661
• PEG Ratio: 18.19
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.90
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 16.92
• Enterprise Value/Ebitda: 5.00
• 1Y Price Target: $200.60
• Price Target Upside: 8.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: $211.00 ▲(14.15%Upside)

Ametek's overall stock score of 78 reflects strong financial performance and strategic corporate actions, particularly the acquisition of FARO Technologies. While the company exhibits solid technical indicators and raised guidance, its relatively high valuation may constrain immediate upside potential. The earnings call highlighted operational strengths but noted challenges in organic sales growth, underscoring the need for continued strategic focus.

Positive Factors

Acquisition

Ametek closed on its acquisition of FARO Technologies, a leader in 3D measurement and imaging, which enhances its 3D measurement platform.

Financial Performance

The acquisition of FARO is anticipated to drive earnings per share accretion, contributing positively to future financial performance.

Negative Factors

Growth Expectations

There is concern that Consensus is setting a high bar on organic growth, modeling 5% which is roughly double the historical rate and above the forecast.

Revenue Impact

AME faces a tough challenge with approximately 50% of revenue coming from international markets, which may be impacted by U.S. protectionism.

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 demonstrates 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. There is, however, a slight decrease in equity that 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
EBITDA	2.10B	2.16B	2.03B	1.83B	1.60B	1.42B
Net Income	1.42B	1.38B	1.31B	1.16B	990.05M	872.44M
Balance Sheet
Total Assets	14.88B	14.63B	15.02B	12.43B	11.90B	10.36B
Cash, Cash Equivalents and Short-Term Investments	399.00M	374.00M	409.80M	345.39M	346.77M	1.21B
Total Debt	2.17B	2.08B	3.37B	2.39B	2.54B	2.41B
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: 184.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 184.85 is above the 20-day moving average (MA) of 180.02, above the 50-day MA of 179.22, and above the 200-day MA of 178.76, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 61.24 is Neutral, neither overbought nor oversold. The STOCH value of 44.10 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	78 Outperform	$42.68B	29.81	14.64%	0.64%	2.28%	7.94%
PH	77 Outperform	$93.90B	28.29	27.16%	0.91%	-0.23%	22.41%
IR	74 Outperform	$34.15B	41.84	8.09%	0.09%	5.27%	0.61%
ITW	73 Outperform	$76.03B	22.77	109.06%	2.34%	-1.40%	11.65%
EMR	69 Neutral	$83.03B	35.23	9.82%	1.45%	6.49%	24.14%
ROK	69 Neutral	$39.89B	44.56	25.86%	1.47%	-11.19%	-22.50%
Sector *	65 Neutral	$10.84B	16.29	5.52%	2.09%	3.14%	-29.96%

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.

The most recent analyst rating on (AME) stock is a Buy with a $190.00 price target. To see the full list of analyst forecasts on Ametek stock, see the AME Stock Forecast page.

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.