Ametek (AME) AI Stock Analysis

• Market Cap: $42.71B
• Dividend Yield: 0.64%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 30.5
• Beta (1Y): 0.86
• Revenue Growth: 2.28%
• EPS Growth: 7.94%
• Country: US
• Employees: 21,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.78
• Shares Outstanding: 230,953,960
• 10 Day Avg. Volume: 1,021,364
• 30 Day Avg. Volume: 1,146,918
• PEG Ratio: 6.91
• Price to Book (P/B): 4.32
• Price to Sales (P/S): 6.01
• P/FCF Ratio: 24.50
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 6.23
• Enterprise Value/Gross Profit: 17.24
• Enterprise Value/Ebitda: 20.52
• 1Y Price Target: $209.20
• Price Target Upside: 10.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 75 Outperform
• Price Target: $209.00 ▲(10.47% Upside)

Ametek's overall stock score is driven by strong financial performance and positive earnings call outcomes, including record sales and strategic acquisitions. However, the high P/E ratio and modest dividend yield suggest potential overvaluation, and technical indicators show a neutral trend. Challenges in organic growth and specific market segments also weigh on the score.

Positive Factors

Strategic Acquisitions

The acquisition of FARO Technologies enhances AMETEK's capabilities in precision measurement and expands its presence in the digital reality market, providing long-term growth opportunities and strengthening its competitive position.

Strong Financial Health

Ametek's strong financial health, with low leverage and robust profitability, ensures resilience and ability to invest in growth opportunities, supporting long-term stability and shareholder value.

Innovation and Product Launch

The launch of new products like SPECTROGREEN MS highlights AMETEK's commitment to innovation, driving future growth and maintaining its competitive edge in the market.

Negative Factors

Flat Organic Sales Growth

Flat organic sales growth indicates potential challenges in core business expansion, which could impact long-term revenue growth if not addressed through strategic initiatives.

Sluggish Market Demand

Continued sluggish demand in key market segments like process and analytical markets could hinder revenue growth and margin expansion, affecting long-term profitability.

Challenges in China

Challenges in China, including trade uncertainties, may limit growth opportunities in a significant market, potentially impacting AMETEK's international expansion and revenue diversification.

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 through the sale of its broad portfolio of electronic instruments and electromechanical devices. The key revenue streams include direct sales of instruments and components to original equipment manufacturers (OEMs), industrial customers, and end-users across various sectors. Ametek benefits from a strong aftermarket service business, which provides ongoing support and maintenance for its products, further contributing to its earnings. Additionally, the company forms strategic partnerships and collaborations with industry leaders to expand its market reach and enhance its product offerings, which play a significant role in driving revenue growth. Factors such as technological innovation, a focus on high-margin products, and global market expansion are also crucial to Ametek's financial performance.

Ametek Financial Statement Overview

Summary

Ametek demonstrates strong financial health with consistent revenue growth, high profitability margins, and efficient cash flow management. The low debt-to-equity ratio and strong return on equity further highlight its financial stability. However, a slight decrease in equity suggests a need for cautious financial management.

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	6.98B	6.94B	6.60B	6.15B	5.55B	4.54B
Gross Profit	2.52B	2.48B	2.38B	2.15B	1.91B	1.54B
EBITDA	2.12B	2.16B	2.03B	1.83B	1.60B	1.42B
Net Income	1.44B	1.38B	1.31B	1.16B	990.05M	872.44M
Balance Sheet
Total Assets	15.27B	14.63B	15.02B	12.43B	11.90B	10.36B
Cash, Cash Equivalents and Short-Term Investments	619.71M	374.00M	409.80M	345.39M	346.77M	1.21B
Total Debt	1.94B	2.13B	3.37B	2.56B	2.72B	2.46B
Total Liabilities	4.88B	4.98B	6.29B	4.95B	5.03B	4.41B
Stockholders Equity	10.39B	9.66B	8.73B	7.48B	6.87B	5.95B
Cash Flow
Free Cash Flow	1.68B	1.70B	1.60B	1.01B	1.05B	1.21B
Operating Cash Flow	1.81B	1.83B	1.74B	1.15B	1.16B	1.28B
Investing Cash Flow	-356.99M	-244.81M	-2.38B	-552.76M	-2.06B	61.63M
Financing Cash Flow	-1.26B	-1.60B	697.28M	-575.70M	39.34M	-539.44M

Ametek Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 189.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 189.2 is above the 20-day moving average (MA) of 185.12, above the 50-day MA of 185.79, and above the 200-day MA of 179.28, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 57.55 is Neutral, neither overbought nor oversold. The STOCH value of 80.17 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
AME	75 Outperform	$42.71B	30.51	14.64%	0.64%	2.28%	7.94%
PH	75 Outperform	$93.82B	28.25	27.42%	0.93%	-0.40%	24.40%
EMR	73 Outperform	$73.23B	28.61	10.86%	1.62%	4.78%	59.68%
ITW	72 Outperform	$73.74B	22.59	109.06%	2.37%	-1.40%	11.65%
ROK	72 Outperform	$39.82B	41.55	28.46%	1.47%	-8.23%	-3.29%
ROP	71 Outperform	$54.77B	33.09	8.16%	0.69%	13.59%	6.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Ametek Corporate Events

AMETEK Reports Record Q2 Results, Raises Guidance

AMETEK, Inc. is a global leader in industrial technology solutions, serving various niche markets with a focus on operational excellence, technology innovation, and strategic acquisitions. The company has reported record-breaking financial results for the second quarter of 2025, with sales reaching $1.78 billion, marking a 2.5% increase from the previous year. Operating income rose by 3% to $461.6 million, and adjusted earnings per share increased by 7% to $1.78. The Electronic Instruments Group (EIG) and Electromechanical Group (EMG) both contributed to the strong performance, with EMG achieving record sales and significant margin expansion.

AMETEK Inc. Q2 2025 Earnings Call Highlights

AMETEK Inc. Reports Strong Q2 2025 Performance Amidst Growth Challenges