AME

Industrials

Ametek

Price Chart

Market Data

Financials

XBRL · SEC EDGAR

2007–2025(19yr)

Revenue

Net Income

Free CF

Metric	FY 2007	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$2.1B	$2.5B	$2.1B	$2.5B	$3.0B	$3.3B	$3.6B	$4.0B	$4.0B	$3.8B	$4.3B	$4.8B	$5.2B	$4.5B	$5.5B	$6.2B	$6.6B	$6.9B	$7.4B	+6.6%
Gross Profit	—	—	—	—	—	—	—	$1.4B	$1.4B	$1.3B	$1.4B	$1.7B	$1.8B	$1.5B	$1.9B	$2.1B	$2.4B	$2.5B	$2.7B	+7.7%
Gross Margin	—	—	—	—	—	—	—	33.8%	34.1%	32.7%	33.5%	34.2%	34.7%	34.0%	34.5%	34.9%	36.1%	35.7%	36.0%	+0.4pp
Operating Income	$386.6M	$432.7M	$366.1M	$482.2M	$635.9M	$745.9M	$815.1M	$898.6M	$907.7M	$801.9M	$915.1M	$1.1B	$1.2B	$1.0B	$1.3B	$1.5B	$1.7B	$1.8B	$1.9B	+7.3%
Operating Margin	18.1%	17.1%	17.4%	19.5%	21.3%	22.4%	22.7%	22.3%	22.8%	20.9%	21.3%	22.2%	22.8%	22.6%	23.6%	24.4%	25.9%	25.6%	25.8%	+0.2pp
Net Income	$228.0M	$247.0M	$205.8M	$283.9M	$384.5M	$459.1M	$517.0M	$584.5M	$590.9M	$512.2M	$681.5M	$777.9M	$861.3M	$872.4M	$990.1M	$1.2B	$1.3B	$1.4B	$1.5B	+7.6%
Net Margin	10.7%	9.8%	9.8%	11.5%	12.9%	13.8%	14.4%	14.5%	14.9%	13.3%	15.8%	16.1%	16.7%	19.2%	17.9%	18.9%	19.9%	19.8%	20.0%	+0.2pp
Free Cash Flow	$240.9M	$203.1M	$331.6M	$383.8M	$457.7M	$555.0M	$597.3M	—	—	$693.6M	$758.2M	$843.4M	$1.0B	$1.2B	$1.0B	$1.0B	$1.6B	$1.7B	$1.7B	-1.8%
FCF Margin	11.3%	8.0%	15.8%	15.5%	15.3%	16.6%	16.6%	—	—	18.1%	17.6%	17.4%	19.6%	26.6%	18.9%	16.4%	24.2%	24.5%	22.6%	-1.9pp
EPS (Diluted)	$2.12	$2.30	$1.27	$1.76	$2.37	$1.88	$2.10	$2.37	$2.45	$2.19	$2.94	$3.34	$3.75	$3.77	$4.25	$5.01	$5.67	$5.93	$6.40	+7.9%

Total Debt$2.3B

Cash & Equiv.$458.0M

Net Debt$1.8B

3 min read

1. THE BIG PICTURE

Ametek is less a traditional manufacturer and more a specialized capital allocator that buys its way into niche dominance. By focusing on an "asset-light" production model for highly differentiated electronics, Ametek has achieved elite cash flow conversion that outclasses larger rivals despite carrying a lower-margin product mix.

2. WHERE THE RISKS HIT HARDEST

Ametek’s "Growth Model" is threatened by its own success in deal-making; aggressive acquisitions have inflated goodwill and intangibles to $11.3 billion, representing a staggering 70% of total assets (10-K Item 1A). This balance sheet concentration is directly threatened by the cyclicality of the aerospace and energy sectors. If these niche markets face a prolonged downturn, Ametek could be forced to record non-cash impairment charges that would erase years of reported accounting profits. Furthermore, the "best-cost" global manufacturing strategy is highly sensitive to the trade barriers and currency volatility that affect the 48.2% of net sales generated outside the U.S. (10-K Item 1A).

3. WHAT THE NUMBERS SAY TOGETHER

While Ametek’s 36.0% gross margin is the lowest among its peers—trailing leaders like Emerson and ITW at 52.8%—it is the most efficient at turning those sales into actual cash. Ametek leads the group with a 22.6% Free Cash Flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin (XBRL), suggesting that its "Operational Excellence" initiatives, such as Design for Six Sigma, successfully offset its lower-margin hardware profile. The recent 13% revenue jump in the fourth quarter of 2025 significantly outpaces its trailing twelve-month growth of 6.6%, a surge management attributes to record performance in both the Electronic Instruments and Electromechanical groups (8-K). With net debt at just $1.0 billion against $1.6 billion in annual FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders, Ametek maintains a conservative 0.6x leverage ratio (CAPM analysis), providing the "significant financial flexibility" needed to continue its acquisition-led strategy (8-K).

4. IS IT WORTH IT AT THIS PRICE?

At 26.1x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Ametek is valued exactly in line with the peer median (Yahoo Finance). At this level, the market is pricing in approximately 6.2% long-term growth (CAPM analysis). This expectation appears grounded in reality: Ametek is currently delivering 6.6% revenue growth—the highest in its peer group—and management is guiding for earnings growth of up to 9% in 2026 (8-K). However, the justification for this valuation rests on Ametek's ability to protect its 20% net margin. If supply chain constraints for critical base metals or steel components drive up costs in the Electromechanical segment, the justified multiple would likely contract toward the 19.7x level seen in slower-growth scenarios (CAPM analysis).

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin (currently 22.6%) begins to compress toward the peer average of ~14%, signaling that the "asset-light" model is losing its efficiency edge.
Cautious if Ametek records a significant impairment charge on its $11.3 billion goodwill balance, suggesting it overpaid for recent acquisitions like FARO Technologies.
Constructive if international sales (48.2% of total) grow despite currency headwinds, proving that Ametek's "differentiated" niche products provide genuine pricing power.

6. BOTTOM LINE

Structural Advantage: Elite cash flow generation driven by a lean, asset-light manufacturing platform and a proven ability to integrate high-margin acquisitions in specialized niche markets.

Bottom Line: Ametek is a premier industrial compounder that justifies its peer-median valuation through superior growth and disciplined capital allocation.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Market Cyclicality: Ametek’s growth is tied to capital spending budgets in the aerospace, defense, oil and gas, process instrumentation, and power markets. Because these industries are cyclical, downturns or shifts in government funding can lead to lower-than-expected growth and diminished demand for products (10-K Item 1A).
International Operations: With 48.2% of 2025 net sales generated outside the U.S., Ametek faces risks from trade barriers, tariffs, and foreign exchange volatility. A stronger U.S. dollar increases the effective price of products sold overseas, potentially forcing price reductions or reducing sales volume (10-K Item 1A).
Acquisition Integration: Ametek’s growth strategy relies on strategic acquisitions. Failure to integrate management, technological, and operational processes—or the loss of key employees and customers from acquired firms—could result in unforeseen operating difficulties and wasted financial resources (10-K Item 1A).
Goodwill Impairment: As of December 31, 2025, goodwill and other intangible assets totaled $11,299.2 million, representing 70% of total assets. If operating performance at reporting units falls significantly, Ametek could be forced to record a non-cash charge to operating income (10-K Item 1A).
Supply Chain Disruptions: Ametek relies on a limited number of suppliers for base metals, steel components, and semiconductor chips. Natural disasters, pandemics, or geopolitical conflicts that shut down facilities or supply chains could delay shipments and increase operating costs (10-K Item 1A).

2. Company-Specific Risks

Operational Excellence Execution: Ametek’s competitiveness depends on complex production and procurement initiatives. Failure to properly execute these programs may result in a failure to realize projected cost savings, directly impacting the efficiency of operations (10-K Item 1A).
Technological Obsolescence: Future success requires continuous investment in research and development to maintain technological advantages. There is no assurance that Ametek will successfully develop new products or that emerging standards will not render existing products obsolete (10-K Item 1A).
Cybersecurity and Data Integrity: Ametek relies on third-party managed IT systems to process orders, billing, and shipping. A breach could result in the theft of intellectual property, defective products, or liability under privacy laws, with insurance coverage potentially insufficient to cover the resulting damages (10-K Item 1A).

3. Regulatory/Legal Risks

Environmental Liability: Ametek has been named a potentially responsible party at several sites subject to government-mandated clean-ups. Under the Comprehensive Environmental Response, Compensation and Liability Act, Ametek faces joint and several liability for clean-up costs regardless of fault (10-K Item 1A).
Anti-Bribery Compliance: Operating in regions with varying degrees of governmental corruption exposes Ametek to risks under the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. Improper conduct by employees or agents could lead to civil or criminal investigations and significant legal fees (10-K Item 1A).
Export Control Laws: Ametek must comply with complex import/export and economic sanctions regulations. Failure to obtain necessary licenses or comply with trade restrictions can result in monetary penalties, business disruptions, and limitations on the ability to trade (10-K Item 1A).

4. Financial Impact Map

Cyclical Market Downturn → Quarterly Sales and Profits → Dependent on volume and timing of orders which are difficult to forecast. International Economic/Currency Factors → Consolidated Net Sales → 48.2% of sales are international; U.S. dollar strength impacts reported value of foreign assets and sales. Acquisition Integration Failure → Operating Income → Requires additional financial resources and management attention, potentially failing to produce expected benefits. Goodwill/Intangible Asset Impairment → Operating Income → $11,299.2 million in goodwill/intangibles (70% of total assets) subject to non-cash impairment charges. Debt Covenant Breach → Debt Facilities → Covenants restrict ability to incur debt, pay dividends, or make capital expenditures; default could lead to immediate repayment of all outstanding amounts.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Feb 2026	Dec 2025
8-K	Feb 2026	—
10-Q	Oct 2025	Sep 2025
14A	Mar 2025	—