📊 AME Key Takeaways
Is Ametek Inc./ (AME) a Good Investment?
AMETEK demonstrates strong fundamental profitability with 26.7% operating margins and robust free cash flow generation of $426M (22.1% margin), supported by a conservative balance sheet with minimal leverage. However, net income flatness (0.0% YoY growth) despite 6.6% revenue growth and weak ROE/ROA (3.7%/2.4%) raise concerns about margin sustainability and capital efficiency.
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.
Ametek Inc./ Key Strengths (AME)
- Exceptional operating margin of 26.7% and net margin of 20.7% reflects strong pricing power and operational efficiency in industrial measurement sector
- Strong free cash flow generation of $426M annually with 22.1% FCF margin provides financial flexibility for growth or shareholder returns
- Conservative balance sheet with 0.10x debt/equity ratio and 14.6x interest coverage ratio ensures financial stability
- Solid revenue growth of 6.6% YoY demonstrates market demand and competitive positioning
- 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
- Net income growth stalled at 0.0% YoY despite 6.6% revenue growth indicates margin compression or hidden operational headwinds
- Very low ROE (3.7%) and ROA (2.4%) suggest poor capital deployment and inefficient use of $16.3B asset base
- Quick ratio of 0.72x below 1.0 signals potential short-term liquidity pressure despite adequate current ratio
- Minimal capital expenditure relative to assets may indicate mature business with limited organic growth or underinvestment in future capacity
- 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
- Net income growth trajectory relative to revenue growth - assess whether margin pressure is temporary or structural
- Return on equity and return on assets trends - determine if asset base is being optimized
- Free cash flow conversion sustainability and capital allocation priorities
- Operating margin stability in face of inflationary cost pressures
- 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 22.1% 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./ has mixed fundamental signals 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 |
|---|---|---|---|
| Q1 2026 | $1.7B | $351.8M | $1.52 |
| 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 |
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
❓ Frequently Asked Questions about AME
What is the AI rating for AME?
Ametek Inc./ (AME) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AME's key strengths?
Claude: Exceptional operating margin of 26.7% and net margin of 20.7% reflects strong pricing power and operational efficiency in industrial measurement sector. Strong free cash flow generation of $426M annually with 22.1% FCF margin provides financial flexibility for growth or shareholder returns. 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: Net income growth stalled at 0.0% YoY despite 6.6% revenue growth indicates margin compression or hidden operational headwinds. Very low ROE (3.7%) and ROA (2.4%) suggest poor capital deployment and inefficient use of $16.3B asset base. 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 $1.9B.
Does AME pay dividends?
Ametek Inc./ pays dividends, with $77.8M 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 $1.74.
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 grade reflects both perspectives for balanced insights.
What is AME's fundamental grade?
Based on our AI fundamental analysis in June 2026, Ametek Inc./ has a A grade with 80% 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 3.7% (sector avg: 15%), net margin of 20.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is AME's AI grade for 2026?
Our dual AI analysis gives Ametek Inc./ a combined A grade 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 $451.5M, with capital expenditures of $25.5M. FCF margin is 22.1%.
How does AME compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 20.7% (avg: 10%), ROE 3.7% (avg: 15%), current ratio 1.14 (avg: 1.8).