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Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
13.4%
Sector: -1.4%
Dividend Analysis audit
GROWTH
0.64%
Trailing Yield
$0.64
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
22%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, AMETEK INC/ (AME) receives a "Hold" rating with a composite score of 52.8/100, ranked #1096 out of 4446 stocks. Key factor scores: Quality 50/100, Value 56/100, Momentum 58/100. This is quantitative analysis only — not investment advice.
AMETEK INC/ (AME) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does AMETEK INC/ Do?
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. AMETEK INC/ (AME) is classified as a large-cap stock in the Technology sector, specifically within the Measuring And Control Equipment industry. The company is led by CEO David A. Zapico and employs approximately 19,600 people, headquartered in Philadelphia, Pennsylvania. With a market capitalization of $50.1B, AME is one of the prominent companies in the Technology sector.
AMETEK INC/ (AME) Stock Rating — Hold (April 2026)
As of April 2026, AMETEK INC/ receives a Hold rating with a composite score of 52.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.AME ranks #1,096 out of 4,446 stocks in our coverage universe. Within the Technology sector, AMETEK INC/ ranks #108 of 584 stocks, placing it in the top quartile of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
AME Stock Price and 52-Week Range
AMETEK INC/ (AME) currently trades at $234.91. The stock gained $1.42 (0.6%) in the most recent trading session. The 52-week high for AME is $239.94, which means the stock is currently trading -2.1% from its annual peak. The 52-week low is $145.02, putting the stock 62.0% above its annual trough. Recent trading volume was 966K shares, suggesting relatively thin trading activity.
Is AME Overvalued or Undervalued? — Valuation Analysis
AMETEK INC/ (AME) carries a value factor score of 56/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 35.08x, compared to the Technology sector average of 45.27x — a discount of 23%. The price-to-book ratio stands at 4.69x, versus the sector average of 3.16x. The price-to-sales ratio is 7.01x, compared to 1.06x for the average Technology stock. On an enterprise value basis, AME trades at 23.10x EV/EBITDA, versus 12.79x for the sector. The EV/EBIT multiple is 29.78x.
Overall, AME's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
AMETEK INC/ Profitability — ROE, Margins, and Quality Score
AMETEK INC/ (AME) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 13.4%, compared to the Technology sector average of -1.4%, which is within a healthy range. Return on assets (ROA) comes in at 8.8% versus the sector average of -1.0%.
On a margin basis, AMETEK INC/ reports gross margins of 36.0%, compared to 50.9% for the sector. The operating margin is 26.0% (sector: -0.5%). Net profit margin stands at 20.0%, versus -1.5% for the average Technology stock. Revenue growth is running at 9.1% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
AME Debt, Balance Sheet, and Financial Health
AMETEK INC/ has a debt-to-equity ratio of 21.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.06x, suggesting adequate working capital coverage. Total debt on the balance sheet is $2.28B. Cash and equivalents stand at $439M.
AME has a beta of 0.80, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for AMETEK INC/ is 83/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
AMETEK INC/ Revenue and Earnings History — Quarterly Trend
In TTM 2026, AMETEK INC/ reported revenue of $7.11B and earnings per share (EPS) of $6.42. Net income for the quarter was $1.42B. Gross margin was 36.0%. Operating income came in at $1.85B.
In FY 2025, AMETEK INC/ reported revenue of $7.40B and earnings per share (EPS) of $6.42. Net income for the quarter was $1.48B. Gross margin was 36.0%. Revenue grew 6.6% year-over-year compared to FY 2024. Operating income came in at $1.91B.
In Q3 2025, AMETEK INC/ reported revenue of $1.89B and earnings per share (EPS) of $1.61. Net income for the quarter was $371M. Gross margin was 36.3%. Revenue grew 10.8% year-over-year compared to Q3 2024. Operating income came in at $488M.
In Q2 2025, AMETEK INC/ reported revenue of $1.78B and earnings per share (EPS) of $1.55. Net income for the quarter was $358M. Gross margin was 35.8%. Revenue grew 2.5% year-over-year compared to Q2 2024. Operating income came in at $462M.
Over the past 8 quarters, AMETEK INC/ has demonstrated a growth trajectory, with revenue expanding from $1.73B to $7.11B. Investors analyzing AME stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
AME Dividend Yield and Income Analysis
AMETEK INC/ (AME) currently pays a dividend yield of 0.6%. At this yield, a $10,000 investment in AME stock would generate approximately $$64.00 in annual dividend income. With a net margin of 20.0%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
AME Momentum and Technical Analysis Profile
AMETEK INC/ (AME) has a momentum factor score of 58/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 29/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 37/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
AME vs Competitors — Technology Sector Ranking and Peer Comparison
Comparing AME against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full AME vs S&P 500 (SPY) comparison to assess how AMETEK INC/ stacks up against the broader market across all factor dimensions.
AME Next Earnings Date
No upcoming earnings date has been announced for AMETEK INC/ (AME) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy AME? — Investment Thesis Summary
AMETEK INC/ presents a balanced picture with arguments on both sides. Low volatility (stability score 83/100) reduces downside risk.
In summary, AMETEK INC/ (AME) earns a Hold rating with a composite score of 52.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on AME stock.
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Institutional Research Dossier
AMETEK INC/ (AME) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on AMETEK (AME). While the company exhibits strong profitability and stability, its relatively high valuation and modest investment score, coupled with a lack of significant short interest, suggest limited near-term upside. The company's diversified business model and consistent execution are positives, but the current price appears to reflect much of this baked-in strength.
AMETEK's strategic focus on acquiring and integrating niche businesses within the electronic instruments and electromechanical sectors has driven consistent growth and profitability. However, the company's free cash flow generation is a concern, and its revenue growth lags the broader technology sector. Investors should monitor the company's ability to improve capital allocation efficiency and accelerate organic growth to justify its premium valuation.
Business Strategy & Overview
AMETEK operates through two primary segments: Electronic Instruments (EIG) and Electromechanical (EMG). The EIG segment focuses on advanced instruments for various industries, including process, aerospace, power, and industrial markets. This segment's strategy revolves around providing specialized solutions and leveraging technological expertise to capture market share in niche applications. The EMG segment offers engineered electrical connectors, precision motion control products, and specialty metals, catering to diverse sectors such as data storage, medical devices, and aerospace. This segment emphasizes product innovation and customized solutions to meet specific customer needs.
A core element of AMETEK's strategy is its disciplined acquisition approach. The company consistently seeks out smaller, high-margin businesses that complement its existing portfolio. These acquisitions are typically integrated into AMETEK's operational framework, allowing for cost synergies and enhanced efficiency. This strategy has enabled AMETEK to expand its product offerings, enter new markets, and strengthen its competitive position.
AMETEK's strategic positioning is centered on providing differentiated products and services in specialized markets. The company avoids direct competition with larger, more commoditized players by focusing on niche applications where its technical expertise and customized solutions provide a competitive edge. This approach allows AMETEK to maintain higher margins and generate consistent profitability.
The company's product pipeline is driven by ongoing investments in research and development. AMETEK continuously innovates to develop new products and enhance existing offerings, ensuring that it remains at the forefront of technological advancements in its target markets. This commitment to innovation is crucial for maintaining its competitive advantage and capturing future growth opportunities.
AMETEK operates within the broader technology sector, specifically the measuring and control equipment industry. This industry is characterized by rapid technological advancements, evolving customer needs, and increasing regulatory requirements. AMETEK's ability to adapt to these changes and provide innovative solutions is critical for its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
9.1%
Sector: 14.2%
-36% VS SCTR
Economic Moat Analysis
AMETEK possesses a narrow economic moat, primarily derived from intangible assets and switching costs. The company's specialized products and technical expertise create a degree of differentiation that is difficult for competitors to replicate. This is particularly evident in the EIG segment, where its advanced instruments and customized solutions cater to specific customer needs in niche markets.
Switching costs also contribute to AMETEK's moat. In many of its target markets, customers rely on AMETEK's products for critical applications, making them hesitant to switch to alternative suppliers due to the potential for disruption and the cost of retraining. This creates a degree of customer stickiness that provides AMETEK with a competitive advantage.
However, the moat is not wide due to the relatively fragmented nature of the measuring and control equipment industry. While AMETEK holds leading positions in certain niche markets, it faces competition from a variety of players, including larger, more diversified companies and smaller, specialized firms. This limits AMETEK's pricing power and its ability to generate consistently high returns on invested capital.
Furthermore, the rapid pace of technological change in the industry poses a threat to AMETEK's moat. New technologies and disruptive innovations could erode the company's competitive advantage if it fails to adapt and innovate quickly enough. This requires ongoing investments in research and development and a proactive approach to identifying and addressing emerging threats.
The company's acquisition strategy, while contributing to growth, also presents a challenge to moat expansion. Integrating acquired businesses and maintaining their competitive advantages requires careful management and execution. Failure to effectively integrate acquisitions could dilute AMETEK's overall moat and negatively impact its financial performance.
Ultimately, AMETEK's narrow moat provides a degree of protection against competition, but it is not insurmountable. The company must continue to innovate, invest in its intangible assets, and maintain strong customer relationships to defend its competitive position and generate sustainable long-term growth.
Financial Health & Profitability
AMETEK's financial health is generally sound, characterized by consistent profitability and a stable balance sheet. The company has demonstrated a track record of revenue growth, with revenue increasing from $6.60 billion in FY2023 to $7.40 billion in FY2025. However, the revenue growth rate of 9.1% lags the broader technology sector's 14.0% growth, indicating potential areas for improvement.
The company's margins are strong, with a gross margin of 36.0% and an operating margin of 26.0%. These margins are significantly higher than the sector averages of 51.2% and -0.5%, respectively, highlighting AMETEK's ability to generate profits from its operations. The net margin of 20.0% is also substantially higher than the sector average of -1.5%, further demonstrating the company's superior profitability.
AMETEK's return on equity (ROE) of 13.4% is positive and compares favorably to the sector average of -1.5%. This indicates that the company is effectively utilizing shareholder equity to generate profits. However, the company's free cash flow (FCF) of $596.56 million is relatively low compared to its net income of $1.48 billion, suggesting potential inefficiencies in cash flow management. The absence of FCF data in the quarterly history makes it difficult to assess trends and potential improvements.
The company's balance sheet is moderately leveraged, with total debt of $2.28 billion and total cash of $439.24 million. The debt-to-equity ratio of 21.00 is lower than the sector average of 43.00, indicating a relatively conservative capital structure. The current ratio of 1.06 suggests that the company has sufficient liquid assets to cover its short-term liabilities.
Analyzing the quarterly financial history reveals consistent revenue and net income growth over the past several quarters. However, the gross margin has remained relatively stable, while the operating margin has fluctuated slightly. This suggests that the company's profitability is primarily driven by revenue growth rather than significant improvements in cost efficiency.
Overall, AMETEK's financial health is strong, characterized by consistent profitability, a stable balance sheet, and a track record of revenue growth. However, the company's relatively low free cash flow and lagging revenue growth compared to the sector warrant attention. Investors should monitor the company's ability to improve cash flow generation and accelerate organic growth to justify its premium valuation.
Valuation Assessment
AMETEK's valuation is a key consideration in our Hold rating. The company's price-to-earnings (P/E) ratio of 32.6x is lower than the sector average of 45.3x, which might initially suggest undervaluation. However, this comparison is misleading as the sector average is skewed by companies with negative earnings. A more appropriate comparison would be to AMETEK's historical P/E and its peers.
The company's EV/EBITDA ratio of 5.4x is significantly lower than the sector average of 13.0x. This suggests that AMETEK is undervalued relative to its earnings before interest, taxes, depreciation, and amortization. However, it's crucial to consider that AMETEK operates with significantly higher operating margins (26.0%) compared to the sector (-0.5%), justifying a lower multiple.
The free cash flow (FCF) yield, which is calculated by dividing free cash flow by market capitalization, is relatively low for AMETEK. This indicates that the company is not generating a significant amount of cash relative to its market value. This is a concern, as FCF is a key driver of long-term shareholder value.
Considering AMETEK's growth prospects, the current valuation appears to be fair. While the company has demonstrated consistent revenue and earnings growth, its growth rate is not exceptional compared to other technology companies. The market seems to be pricing in AMETEK's stability and consistent execution, but not necessarily anticipating significant acceleration in growth.
A discounted cash flow (DCF) analysis would be necessary to determine a more precise intrinsic value. However, based on the available data, it appears that AMETEK is trading at a premium to its intrinsic value, reflecting its strong profitability and stability. This premium valuation limits the potential for near-term upside, supporting our Hold rating.
In summary, while AMETEK's valuation metrics may appear attractive compared to the sector averages, a closer examination reveals that the company is fairly valued, considering its growth prospects and financial performance. The relatively low free cash flow yield and the lack of significant growth catalysts suggest that the stock is unlikely to experience substantial appreciation in the near term.
Risk & Uncertainty
Several risks and uncertainties could impact AMETEK's future performance. One significant risk is the potential for economic slowdown. AMETEK's business is sensitive to macroeconomic conditions, and a recession or slowdown in global economic growth could negatively impact demand for its products and services. This is particularly relevant for its industrial and aerospace segments, which are highly cyclical.
Another risk is the company's reliance on acquisitions for growth. While AMETEK has a proven track record of successfully integrating acquisitions, there is always a risk that future acquisitions may not perform as expected. Integration challenges, cultural differences, and unexpected costs could negatively impact the company's financial performance.
Competition is also a significant risk. AMETEK operates in a competitive industry, and it faces competition from a variety of players, including larger, more diversified companies and smaller, specialized firms. Increased competition could lead to pricing pressure and reduced market share, negatively impacting the company's profitability.
Technological obsolescence is another risk. The technology sector is characterized by rapid innovation, and AMETEK must continuously invest in research and development to remain competitive. Failure to adapt to new technologies and changing customer needs could render its products obsolete and negatively impact its long-term growth prospects.
Finally, regulatory risks could also impact AMETEK's business. The company operates in a variety of regulated industries, and changes in regulations could increase compliance costs and negatively impact its profitability. This is particularly relevant for its aerospace and environmental health and safety segments, which are subject to stringent regulations.
Bulls Say / Bears Say
The Bull Case
BULL VIEWAMETEK's consistent execution and disciplined acquisition strategy will continue to drive steady revenue and earnings growth, justifying its premium valuation.
BULL VIEWThe company's diversified business model and focus on niche markets provide resilience against economic downturns and competitive pressures, ensuring long-term stability.
BULL VIEWAMETEK's strong margins and efficient operations will lead to increased free cash flow generation, enhancing shareholder value through dividends and share repurchases.
The Bear Case
BEAR VIEWAMETEK's revenue growth lags the broader technology sector, indicating a lack of organic growth and over-reliance on acquisitions for expansion.
BEAR VIEWThe company's relatively low free cash flow generation and high valuation make it vulnerable to a market correction or a slowdown in economic growth.
BEAR VIEWIncreased competition and technological obsolescence could erode AMETEK's competitive advantage and negatively impact its long-term profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score AME and 4,400+ other equities.
AMETEK INC/ exhibits a 167% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
8.8%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
36.0%
Sector: 50.9%
Operating Margin
Core business profitability
26.0%
Sector: -0.5%
Net Margin
Bottom-line profitability
20.0%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $64 annually in dividends at the current trailing rate.
