Ametek Inc/ (NYSE: AME)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0001037868
Market Cap 53.79 Bn
P/B 5.06
P/E 36.34
P/S 7.27
ROIC (Qtr) 12.40
Div Yield % 0.53
Rev 1y % (Qtr) 13.44
Total Debt (Qtr) 2.28 Bn
Debt/Equity (Qtr) 0.21
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About

AMETEK Inc. (AME), a prominent player in the industrial technology sector, is renowned for its design, manufacture, and sale of advanced analytical, test, and measurement instruments, as well as precision motion control solutions, thermal management systems, specialty metals, and electrical interconnects. The company, which was initially incorporated in 1930 under the name American Machine and Metals, Inc., operates in more than 150 countries, providing a diverse range of products and services to various industries. AMETEK's primary business activities...

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Investment thesis

Bull case

  • Strong operating cash flow of 1.80B provides robust 0.79x coverage of total debt 2.28B, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 1.80B provides strong 37.72x coverage of stock compensation 47.77M, indicating sustainable incentive practices.
  • Operating cash flow of 1.80B provides exceptional 22.17x coverage of interest expenses 81.25M, showing strong debt service capability.
  • Robust free cash flow of 1.67B exceeds capital expenditure of 130.05M by 12.85x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 1.80B provides 2.38x coverage of SG&A expenses 757.12M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 1.80B barely covers its investment activities of (1.06B), with a coverage ratio of -1.70, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.80B provides thin coverage of dividend payments of (285.35M) with a -6.31 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 457.95M provide limited coverage of acquisition spending of (933.24M), which is -0.49x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Retained earnings of 12.25B provide limited buffer against comprehensive income items of (399.22M), which is -30.69x, indicating elevated exposure to market risks.
  • Operating cash flow of 1.80B is outpaced by equity issuance of (397.67M) (-4.53 ratio), indicating concerning reliance on equity markets for funding operations.

Segments Breakdown of Revenue (2025)

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.47 2.28
EV to Cash from Ops. EV/CFO 30.98 37.14
EV to Debt EV to Debt 24.45 34.39
EV to EBIT EV/EBIT 29.70 27.71
EV to EBITDA EV/EBITDA 23.92 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF 33.39 133.36
EV to Market Cap EV to Market Cap 1.04 1.04
EV to Revenue EV/Rev 7.54 39.88
Price to Book Value [P/B] P/B 5.06 6.22
Price to Earnings [P/E] P/E 36.34 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 5.19 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 19.30 15.73
Dividend per Basic Share Div per Share (Qtr) 1.24 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 17.09 82.53
Interest Coverage Int. cover (Qtr) 23.13 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -5.88 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 22.45 118.48
Dividend Growth (1y) % Div 1y % (Qtr) 10.71 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 5.26 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 7.89 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) 5.92 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) 8.23 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) 7.90 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) -2.01 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 7.71 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.46 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.15 0.10
Cash Ratio Cash Ratio (Qtr) 0.16 3.01
Current Ratio Curr Ratio (Qtr) 1.06 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.21 0.38
Interest Cover Ratio Int Coverage (Qtr) 23.13 12.34
Times Interest Earned Times Interest Earned (Qtr) 23.13 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 31.10 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) 25.40 -7,413.30
EBT Margin % EBT Margin % (Qtr) 24.30 -9,015.79
Gross Margin % Gross Margin % (Qtr) 36.00 -32.61
Net Profit Margin % Net Margin % (Qtr) 20.00 -7,962.06