Ametek Inc
Exchange: NYSESector: IndustrialsIndustry: Specialty Industrial Machinery
AMETEK is a leading global provider of industrial technology solutions serving a diverse set of attractive niche markets with annual sales of approximately $7.5 billion. The AMETEK Growth Model integrates the Four Growth Strategies - Operational Excellence, Technology Innovation, Global and Market Expansion, and Strategic Acquisitions - with a disciplined focus on cash generation and capital deployment. AMETEK's objective is double-digit percentage growth in earnings per share over the business cycle and a superior return on total capital. Founded in 1930, AMETEK has been listed on the NYSE for over 95 years and is a component of the S&P 500.
Did you know?
Pays a 0.57% dividend yield.
Current Price
$218.29
-0.16%GoodMoat Value
$148.56
31.9% overvaluedProfile
Valuation (TTM)
Market Cap$50.25B
P/E33.95
EV$50.82B
P/B4.73
Shares Out230.20M
P/Sales6.79
Revenue$7.40B
EV/EBITDA22.62
Ametek Inc (AME) Stock Analysis
GoodMoat Analysis
Ametek is a high-quality industrial manufacturer with a likely durable moat, but it appears significantly overvalued relative to its estimated intrinsic value. The stock's current price of $213.61 is well above the GoodMoat Target of $137.37, indicating a lack of margin of safety for a value investor.
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Ametek Inc. is a diversified manufacturer of precision industrial instruments and electromechanical devices, serving niche markets in aerospace, power, and industrial automation. Applying the GoodMoat framework, the company likely possesses a strong competitive moat, scoring well on criteria like niche dominance, switching costs, and proprietary technology in its specialized segments. Its financial quality is also solid, with a robust operating margin of 25.8%, a healthy ROE of 13.9%, and a moderate debt level (Debt/Equity of 0.21). However, the primary issue is valuation. The stock trades at a P/E of 33.5x, which is high for a company with 13.4% revenue growth. More critically, the current price of $213.61 is approximately 56% above the GoodMoat Target of $137.37. According to the Decision Framework, this suggests a negative Margin of Safety, placing the stock in the 'Unfavourable' valuation band. While the business itself passes the Moat & Quality Gate, the extreme premium to estimated fair value and the high P/E relative to growth create significant price risk. For a value investor, this discrepancy between business quality and price makes it an interesting case study in valuation discipline, but not a compelling opportunity without a much lower entry point. Analysis based on data as of 2024-05-15.
Market Cap$50.25B
Current Price$218.29
P/E Ratio33.95
Forward P/E—
PEG Ratio9.45
EPS$6.40
Book Value$46.17
P/B Ratio4.73
AME Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 8.5% FCF growth (CAGR)
Cash vs Debt
Net Debt: 1.8B
Revenue
5.2B
FY19
4.5B
FY20
5.5B
FY21
6.2B
FY22
6.6B
FY23
6.9B
FY24
7.4B
FY25
Net Income
861M
FY19
872M
FY20
990M
FY21
1.2B
FY22
1.3B
FY23
1.4B
FY24
1.5B
FY25
AME 52-Week Range
$150.43
$241.08
50-Day MA: $224.32200-Day MA: $198.58
Did you know?
Price sits at 75% of its 52-week range.
Ametek Inc (AME) Financial Summary
Ametek Inc (AME) is a Industrials company in the Specialty Industrial Machinery industry, listed on NYSE. The stock currently trades at $218.29 with a market capitalization of $50.25B.
Key valuation metrics include a P/E ratio of 33.95, price-to-book ratio of 4.73, and EPS of $6.40. The company reports a profit margin of 20.0% and return on equity of 13.9%.
AME Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $50.25B |
| P/E Ratio | 33.95 |
| EPS | $6.40 |
| P/B Ratio | 4.73 |
| P/S Ratio | 6.79 |
| EV/EBITDA | 22.62 |
| Dividend Yield | 0.57% |
| Profit Margin | 20.0% |
| Return on Equity | 13.9% |
| Debt/Equity | 0.21 |
AME Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $5.16B | $861.30M |
| FY20 | $4.54B | $872.44M |
| FY21 | $5.55B | $990.05M |
| FY22 | $6.15B | $1.16B |
| FY23 | $6.60B | $1.31B |
| FY24 | $6.94B | $1.38B |
| FY25 | $7.40B | $1.48B |
Ametek Inc (AME) Valuation
Based on GoodMoat's DCF model, Ametek Inc has a fair value estimate of $148.56. At the current price of $218.29, the stock appears 46.9% overvalued relative to our intrinsic value estimate.
AME Quality Indicators
Ametek Inc maintains a profit margin of 20.0% and an operating margin of 25.8%. Return on equity stands at 13.9%. The current ratio is 1.06. Debt-to-equity ratio is 0.21.
About Ametek Inc
AMETEK is a leading global provider of industrial technology solutions serving a diverse set of attractive niche markets with annual sales of approximately $7.5 billion. The AMETEK Growth Model integrates the Four Growth Strategies - Operational Excellence, Technology Innovation, Global and Market Expansion, and Strategic Acquisitions - with a disciplined focus on cash generation and capital deployment. AMETEK's objective is double-digit percentage growth in earnings per share over the business cycle and a superior return on total capital. Founded in 1930, AMETEK has been listed on the NYSE for over 95 years and is a component of the S&P 500.
AME Free Cash Flow
Ametek Inc generated $1.67B in trailing twelve-month free cash flow, representing an FCF yield of 3.33%. This moderate FCF yield indicates reasonable cash generation.
AME Shares Outstanding
Ametek Inc has 0.23 billion shares outstanding at a share price of $218.29, giving it a market capitalization of $50.25B.
AME Recent Insider Trades
Recent insider transactions at Ametek Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| AMATO THOMAS A | SELL | 530 | $114893.40 |
| MONTGOMERY THOMAS M (SR. VP. - COMPTROLLER) | SELL | 6,388 | $1.31M |
| Marecic Thomas C (PRES. - ELECTRONIC INSTRUMENTS) | SELL | 14,310 | $2.89M |