AMETEK Inc (AME) stock analysis

P/E above its 5-year median

Ametek's P/E of 35.0 is above its own 5-year median of 29.9.

P/E below the industry

Ametek's P/E of 35.0 is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 36.5.

EV/EBITDA above its 5-year median

Ametek's EV/EBITDA of 23.0 is above its 5-year median of 20.1.

P/B above the industry

Ametek's price-to-book of 4.88 is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 3.17.

Trading above fair value

The share price of $239.69 is above our fair value estimate of $200.87.

Margin of safety under 20%

The price is 19.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 6.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 8.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 9.6% over the last twelve months, against a 5-year average of 11.2% a year.

Growing faster than the industry

Revenue grew 12.7% over the last twelve months; the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median is 8.4%.

Guidance raised

Ametek raised its 2026 Adjusted earnings per diluted share outlook on Aug 4, 2026.

Gross margin improving

Gross margin was 36.4% over the last twelve months, against 36.1% a year earlier.

Return on equity under 15%

Return on equity was 14.6% over the last twelve months and averaged 15.5% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 13.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Ametek's return on equity of 14.6% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 1.1%.

Earnings grew over 5 years

Net income grew 11.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 20.0% over the last twelve months, against a 5-year average of 19.3%.

Net margin above the industry

Ametek's net margin of 20.0% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of -1.3%.

Low debt

Debt is 18.1% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 40.6% five years ago to 18.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 96.3% of total debt.

Interest well covered

Operating income covers interest expense 21.1 times.

Short-term assets cover short-term debts

Current assets are 1.21 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 8.19; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Ametek paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Ametek yields 0.6%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 18.9% of net income.

Covered by free cash flow

Dividends take 16.3% of free cash flow.