📊 AME Key Takeaways
Is Ametek Inc./ (AME) a Good Investment?
AMETEK demonstrates exceptional operational excellence with a 25.8% operating margin and strong 20% net margin, indicating superior pricing power and cost control in industrial instrumentation. The company generates robust free cash flow of $1.7B (22.6% FCF margin) with minimal leverage (0.21x debt/equity) and fortress-like interest coverage of 54.2x, providing substantial financial flexibility for growth investments and shareholder returns.
AMETEK shows high-quality industrial fundamentals, with a 25.8% operating margin, 20.0% net margin, and very strong free cash flow generation at 22.6% of revenue. The balance sheet is conservative, with low debt-to-equity and exceptional interest coverage, which supports resilience and acquisition flexibility. The main limitation is that earnings growth has recently been modest, so the case depends on sustaining margin strength and converting revenue growth into stronger profit expansion.
Why Buy Ametek Inc./ Stock? AME Key Strengths
- Outstanding profitability: 25.8% operating margin and 20% net margin significantly exceed industrial peers, demonstrating competitive moat
- Exceptional cash generation: $1.7B free cash flow with 22.6% FCF margin provides substantial capital deployment optionality
- Fortress balance sheet: 0.21x debt/equity ratio with 54.2x interest coverage and $458M cash provides financial stability and acquisition capacity
- Consistent earnings growth: EPS grew 7.9% YoY despite flat net income, indicating improved share economics through buybacks
- Reliable revenue growth: 6.6% YoY revenue increase demonstrates market demand and customer retention in industrial instruments sector
- High and durable profitability, with 25.8% operating margin and 20.0% net margin
- Excellent cash generation, with $1.67B in free cash flow and low capital intensity
- Strong financial health, supported by low leverage and 54.2x interest coverage
AME Stock Risks: Ametek Inc./ Investment Risks
- Tight liquidity position: 1.06x current ratio and 0.67x quick ratio suggest limited working capital buffer for operational disruptions
- Capital intensity concerns: $130.2M capex may understate reinvestment needs for maintaining competitive position in industrial instrumentation
- Modest organic growth: 6.6% revenue growth is respectable but may indicate market maturity or competitive pressures in core segments
- Flat net income despite revenue growth indicates potential margin compression or increased operating expenses requiring monitoring
- Significant insider activity (20 Form 4 filings in 90 days) warrants monitoring for concentration of selling pressure
- Net income was flat year over year despite revenue growth, which may signal slower earnings momentum
- Liquidity is adequate but not especially strong, with a 1.06x current ratio and 0.67x quick ratio
- Growth quality should be monitored to ensure future expansion is not overly dependent on acquisitions or margin support
Key Metrics to Watch
- Operating margin sustainability: Monitor if 25.8% margin can be maintained amid potential input cost inflation
- Free cash flow conversion: Track FCF generation relative to earnings given importance to capital allocation strategy
- Current ratio improvement: Assess working capital management and liquidity position relative to 1.06x current ratio
- Debt/equity trajectory: Monitor if leverage remains disciplined below 0.30x given acquisition activity
- Revenue growth acceleration: Watch for revenue growth inflection above 6.6% indicating market expansion or M&A contribution
- Free cash flow conversion relative to net income
- Operating margin and net income growth versus revenue growth
Ametek Inc./ (AME) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 22.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
AME Profit Margin, ROE & Profitability Analysis
AME vs Industrial Sector: How Ametek Inc./ Compares
How Ametek Inc./ compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ametek Inc./ Stock Overvalued? AME Valuation Analysis 2026
Based on fundamental analysis, Ametek Inc./ appears fundamentally strong relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ametek Inc./ Balance Sheet: AME Debt, Cash & Liquidity
AME Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ametek Inc./'s revenue has shown modest growth of 7% over the 5-year period. The most recent EPS of $5.67 reflects profitable operations.
AME Revenue Growth, EPS Growth & YoY Performance
AME Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.7B | $340.2M | $1.47 |
| Q2 2025 | $1.7B | $337.7M | $1.45 |
| Q1 2025 | $1.7B | $310.9M | $1.34 |
| Q3 2024 | $1.6B | $340.2M | $1.47 |
| Q2 2024 | $1.6B | $324.2M | $1.40 |
| Q1 2024 | $1.6B | $305.7M | $1.32 |
| Q3 2023 | $1.6B | $297.6M | $1.29 |
| Q2 2023 | $1.5B | $282.4M | $1.22 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ametek Inc./ Dividends, Buybacks & Capital Allocation
AME SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ametek Inc./ (CIK: 0001037868)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 25, 2026 | 4 | xslF345X06/wk-form4_1774469370.xml | View → |
| Mar 23, 2026 | 4 | xslF345X06/wk-form4_1774296418.xml | View → |
| Mar 23, 2026 | 4 | xslF345X06/wk-form4_1774270999.xml | View → |
| Mar 23, 2026 | 4 | xslF345X06/wk-form4_1774270540.xml | View → |
| Mar 23, 2026 | 4 | xslF345X06/wk-form4_1774270432.xml | View → |
❓ Frequently Asked Questions about AME
What is the AI rating for AME?
Ametek Inc./ (AME) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 85% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AME's key strengths?
Claude: Outstanding profitability: 25.8% operating margin and 20% net margin significantly exceed industrial peers, demonstrating competitive moat. Exceptional cash generation: $1.7B free cash flow with 22.6% FCF margin provides substantial capital deployment optionality. ChatGPT: High and durable profitability, with 25.8% operating margin and 20.0% net margin. Excellent cash generation, with $1.67B in free cash flow and low capital intensity.
What are the risks of investing in AME?
Claude: Tight liquidity position: 1.06x current ratio and 0.67x quick ratio suggest limited working capital buffer for operational disruptions. Capital intensity concerns: $130.2M capex may understate reinvestment needs for maintaining competitive position in industrial instrumentation. ChatGPT: Net income was flat year over year despite revenue growth, which may signal slower earnings momentum. Liquidity is adequate but not especially strong, with a 1.06x current ratio and 0.67x quick ratio.
What is AME's revenue and growth?
Ametek Inc./ reported revenue of $7.4B.
Does AME pay dividends?
Ametek Inc./ pays dividends, with $285.3M distributed to shareholders in the trailing twelve months.
Where can I find AME SEC filings?
Official SEC filings for Ametek Inc./ (CIK: 0001037868) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AME's EPS?
Ametek Inc./ has a diluted EPS of $6.40.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AME a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Ametek Inc./ has a BUY rating with 85% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AME stock overvalued or undervalued?
Valuation metrics for AME: ROE of 13.9% (sector avg: 15%), net margin of 20.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy AME stock in 2026?
Our dual AI analysis gives Ametek Inc./ a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AME's free cash flow?
Ametek Inc./'s operating cash flow is $1.8B, with capital expenditures of $130.2M. FCF margin is 22.6%.
How does AME compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 20.0% (avg: 10%), ROE 13.9% (avg: 15%), current ratio 1.06 (avg: 1.8).