AME Specialty Industrial Machinery
AMETEK, Inc.
AMETEK is a collection of niche industrial technology businesses: electronic instruments for process analysis, testing, metrology, aerospace, and power (EIG), and electromechanical products such as medical components, precision motion control, specialty metals, and aviation repair (EMG). Its strategy is to buy businesses in adjacent niches and improve them with its operating model — 15 acquisitions with about $1.8 billion of annual sales from 2021 through 2025. FY2025 sales were a record $7.4 billion and diluted EPS $6.40. In 2026 it closed its largest deal yet, a roughly $5.0 billion all-cash purchase of Indicor's instrumentation businesses.
Last updated
Analysis last edited: October 4, 2026 · Financial data fetched: October 4, 2026 14:44 (SEC EDGAR) · Source 10-K filed: February 17, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
Company profile
- Legal name
- AMETEK INC/
- Headquarters
- BERWYN, PA
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: AME
- Industry
- Specialty Industrial Machinery
- CIK
- 1037868
- Website
- https://www.ametek.com/ ↗
Workforce (as of FY2025 year-end)
Employees
22,500
Source: Form 10-K (FY2025) cover page and business description
02
Earnings calendar
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2026
Quarter end: September 2026. In past years, Q3 results were released 30–31 days after quarter end (Oct 30, 2025; Oct 31, 2024; Oct 31, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 30–37 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2026 | Jun 30, 2026 | Aug 4, 2026 (+35 days) | Aug 4, 2026 10-Q (+35 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 30, 2026 (+30 days) | Apr 30, 2026 10-Q (+30 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 3, 2026 (+34 days) | Feb 17, 2026 10-K (+48 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 30, 2025 (+30 days) | Oct 30, 2025 10-Q (+30 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 31, 2025 (+31 days) | Jul 31, 2025 10-Q (+31 days) |
| Q1 FY2025 | Mar 31, 2025 | May 1, 2025 (+31 days) | May 1, 2025 10-Q (+31 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 4, 2025 (+35 days) | Feb 20, 2025 10-K (+51 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 31, 2024 (+31 days) | Oct 31, 2024 10-Q (+31 days) |
| Q2 FY2024 | Jun 30, 2024 | Aug 1, 2024 (+32 days) | Aug 1, 2024 10-Q (+32 days) |
| Q1 FY2024 | Mar 31, 2024 | May 2, 2024 (+32 days) | May 2, 2024 10-Q (+32 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 6, 2024 (+37 days) | Feb 22, 2024 10-K (+53 days) |
| Q3 FY2023 | Sep 30, 2023 | Oct 31, 2023 (+31 days) | Oct 31, 2023 10-Q (+31 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.
03
Flagship products & services
EIG
Process and analytical instruments
Examples: Spectrometers, process analyzers, FARO 3D measurement, Kern precision machining
Measurement and testing for industry and research.
EIG
Aerospace and power instruments
Examples: Airborne data systems, engine sensors, power quality meters, UPS
Built to aerospace and utility specifications.
EMG
Engineered components
Examples: Medical components, motion control, specialty metals, heat exchangers
Niche components for medical, semiconductor, and aerospace makers.
EMG
Aviation MRO
Examples: Maintenance, repair, and overhaul; First Aviation Services (2026)
A global network of repair facilities.
Descriptions are from the FY2025 Form 10-K's Item 1.
04
Recent strategic focus
FY2025 developments from the 10-K, and 2026 deals from 8-Ks.
Indicor Instrumentation
Announced May 6, 2026 and completed August 26, 2026: about $5.0B in cash for businesses with about $1.1B of annual sales.
Source: 8-Ks filed 2026-05-06 and 2026-08-26
2025 acquisitions
FARO Technologies (3D measurement) and Kern Microtechnik (precision machining) for $933M combined.
Source: Form 10-K (FY2025) Item 1
Dividend increase
The quarterly dividend was raised 10% to $0.34 in February 2026.
Source: 8-K filed 2026-02-12
Capex ÷ D&A (FY2025)
0.31x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$130M ÷ $423M = 0.31x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
3.2%
formularesearch & development expense ÷ revenue × 100
e.g.$236M ÷ $7,401M × 100 = 3.2%
M&A spend (5-year total)
$5.68B
Latest year: $933M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $111M in FY2021 to $130M in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
05
Key figures at a glance
FY2021–FY2025, 5 years.
Revenue (FY2025)
$7.4B
As reported in the 10-K
Revenue CAGR (4 years)
+7.5%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($7,401M ÷ $5,547M) ^ (1÷4) − 1 = 7.5%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
25.8%▲favorable
+2.2pt vs. 4 years ago
formulaoperating income ÷ revenue × 100
e.g.$1,910M ÷ $7,401M × 100 = 25.8%
ROE (FY2025)
14.6%▲favorable
5-year average: 15.3%
As reported in the 10-K
P/B (FY2025 end)
4.42x
formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)
e.g.32.1x × $6.40 ÷ $46.41 = 4.42x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
21.1x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($47,483M + $2,283M − $458M) ÷ ($1,910M + $423M) = 21.1x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +7.5% a year over 4 years (strong growth)
From $5.55B in FY2021 to $7.4B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 23.6% → 25.8%
How much operating profit is left per $100 of revenue. It moved +2.2 points over 4 years — pricing power, cost control, and product mix all show up here.
- ▲
Equity ratio is 66.2% (a high level of financial stability)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 5 of 5 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 15.3% over 5 years (latest: 14.6%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
06
Business model
Electronic Instruments Group (EIG)
Process and analytical instruments (70% of segment sales) — analyzers, spectrometers, sensors, metrology, and materials testing — and aerospace and power instrumentation (30%) — airborne data systems, engine sensors, power monitoring, and uninterruptible power supplies.
01 what it draws on
Inputs & resources
- About 12,800 employees
- R&D in niche measurement technologies
- Acquired businesses such as FARO and Kern
02 what it does
Activities
- Designing and making specialized instruments
03 who it serves
Customers
- Pharmaceutical, semiconductor, power, oil and gas, research, and aerospace customers
04 how money comes in
How it earns
- Instrument sales, software, service, and aftermarket parts
Electronic Instruments Group (EIG): how it makes money
- Sales $4.92B and operating income $1.45B (29.4% margin) in FY2025.
- 52% of EIG sales were outside the U.S.
- The five largest customers were about 4% of EIG sales.
Electromechanical Group (EMG)
Medical components and devices, precision motion control, thermal management, specialty metals, electrical interconnects, motors, and a global network of aviation maintenance, repair, and overhaul (MRO) facilities.
01 what it draws on
Inputs & resources
- About 9,400 employees
- Specialty metal and component manufacturing
02 what it does
Activities
- Making engineered components
- Repairing and overhauling aircraft components
03 who it serves
Customers
- Medical device, semiconductor, aerospace and defense, and industrial makers; airlines
04 how money comes in
How it earns
- Component sales and MRO services
Electromechanical Group (EMG): how it makes money
- Sales $2.48B and operating income $579M (23.3% margin, up from 20.0%) in FY2025.
- 42% of EMG sales were outside the U.S.
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Electronic Instruments (EIG)
4,919 (66%)profit 1,447 · margin 29.4%
Electromechanical (EMG)
2,482 (34%)profit 579 · margin 23.3%
Source: Form 10-K (FY2025) — MD&A, segment results Profit is segment operating income before corporate expenses; consolidated operating income was $1.91B.
07
Where it earns
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 52% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
3,831 (52%)Asia
1,489 (20%)European Union
1,090 (15%)United Kingdom
262 (4%)Other countries
730 (10%)
Source: Form 10-K (FY2025) — Note on segment and geographic information International sales include $2.04B of U.S. export sales.
08
Contract structure
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
AMETEK sells instruments, components, and services order by order to a very broad base of industrial, medical, and aerospace customers; no single customer is large. Orders and backlog both hit records in 2025.
Products and services
FY2025 sales $7.4B
Typical term: Order-based; backlog of unfilled orders $3.58B at year-end 2025
Orders were a record $7.58B, up 11.3%.
Source: Form 10-K (FY2025) — MD&A
09
Customers & suppliers
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
A broad base of industrial, process, pharmaceutical, semiconductor, medical, power, and aerospace customers worldwide.
Named by the company
No customer is named.
What the filings disclose
- In EIG, the five largest customers were about 4% of 2025 sales, and no customer exceeded 2%. (Form 10-K (FY2025), Item 1)
Suppliers
Metals, electronic components, and other materials for manufacturing; the 10-K excerpts reviewed don't name suppliers.
Named by the company
None named in the 10-K or the company’s press releases.
10
Competitors & peers
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
AMETEK's 10-K says numerous companies compete in each process and analytical instrument market on product quality, performance, and innovation, and that EMG competes with a number of companies in each market on innovation, performance, and price, plus alternative materials. No company is named.
Competitors named in the 10-K
AMETEK's 10-K doesn't name competitors.
Peer group the company chose
Compensation benchmarking peer group (as revised August 2025), from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Chosen for similar industry classification and comparable market capitalization, revenue, assets, and employees. In August 2025 Motorola Solutions and Vertiv were added, and Hubbell, Mettler-Toledo, Snap-on, and Teledyne were removed.
- Agilent Technologiessite ↗
- TE Connectivitysite ↗
- Doversite ↗
- IDEXsite ↗
- Otis Worldwidesite ↗
- Emersonsite ↗
- Illinois Tool Workssite ↗
- Parker-Hannifinsite ↗
- TransDigmsite ↗
- Fortivesite ↗
- Ingersoll Randsite ↗
- Rockwell Automationsite ↗
- Xylemsite ↗
- Howmet Aerospacesite ↗
- Keysight Technologiessite ↗
- Motorola Solutionssite ↗
- Vertivsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
11
M&A history
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
Acquisitions are central to AMETEK's growth model; it seeks businesses in adjacent niches with complementary products and technologies.
Cash spent on acquisitions, FY2021–FY2025: $5.68B
Aug 2026
Indicor Instrumentation (from Indicor, LLC)
About $5.0B cash
Older deal, core to today's businessInstrumentation businesses for industrial and scientific applications, with about $1.1B of annual sales and recurring revenue from consumables, services, and aftermarket.
- Stated purpose (company)
- AMETEK said it adds differentiated technologies and strong market positions, with value from integration into its operating model; the businesses join EIG and EMG.
Source: Form 8-K (filed 2026-05-06), press release · Form 8-K (filed 2026-08-26)
May 2026
First Aviation Services
Not disclosed in the 8-K
Defense and aviation MRO services and related proprietary components.
- Stated purpose (company)
- Not stated in the 8-K.
Source: Form 8-K (filed 2026-05-26)
Jul 2025
FARO Technologies
Part of $933.2M paid for two 2025 acquisitions
3D measurement and imaging solutions.
- Stated purpose (company)
- Expands and enhances AMETEK's ultra precision technologies business.
Source: Form 10-K (FY2025) — Item 1
Jan 2025
Kern Microtechnik
Part of $933.2M paid for two 2025 acquisitions
High-precision machining and optical inspection.
- Stated purpose (company)
- Complements AMETEK's ultra precision technologies business.
Source: Form 10-K (FY2025) — Item 1
Figures as disclosed in the FY2025 10-K and 2026 8-Ks.
12
Five years of financials
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|
| Income statement ($M) | |||||
| Revenue | 5,547 | 6,151 | 6,597 | 6,941 | 7,401 |
| Operating income | 1,309 | 1,501 | 1,707 | 1,780 | 1,910 |
| Pretax income | 1,223 | 1,429 | 1,606 | 1,662 | 1,798 |
| Net income (attributable) | 990 | 1,160 | 1,313 | 1,376 | 1,480 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 10.9% | 7.3% | 5.2% | 6.6% |
| Operating margincalcoperating income ÷ revenue × 100 | 23.6% | 24.4% | 25.9% | 25.6% | 25.8% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 17.9% | 18.9% | 19.9% | 19.8% | 20.0% |
| Balance sheet ($M) | |||||
| Total assets | 11,898 | 12,431 | 15,024 | 14,631 | 16,068 |
| Total equity | 6,872 | 7,477 | 8,730 | 9,655 | 10,629 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 2,544 | 2,385 | 3,313 | 2,080 | 2,283 |
| Equity ratio | 57.8% | 60.1% | 58.1% | 66.0% | 66.2% |
| ROE | 14.4% | 16.2% | 16.2% | 15.0% | 14.6% |
| Cash flow ($M) | |||||
| Operating CF | 1,160 | 1,149 | 1,735 | 1,829 | 1,802 |
| Investing CF | -2,056 | -553 | -2,376 | -245 | -1,063 |
| Financing CF | 39 | -576 | 697 | -1,602 | -686 |
| Free cash flowcalccash flow from operations − capital expenditures | 1,050 | 1,010 | 1,599 | 1,702 | 1,672 |
| Cash and equivalents | 347 | 345 | 410 | 374 | 458 |
| Per share & other | |||||
| EPS ($) | 4.25 | 5.01 | 5.67 | 5.93 | 6.40 |
| BVPS ($) | 29.66 | 32.49 | 37.81 | 41.85 | 46.41 |
| Dividend per share ($) | 0.80 | 0.88 | 1.00 | 1.12 | 1.24 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 18.8% | 17.6% | 17.6% | 18.9% | 19.4% |
| P/E (x) | 34.6 | 27.9 | 29.1 | 30.4 | 32.1 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 22.8 | 18.9 | 20.1 | 20.1 | 21.1 |
| P/B (x)calcP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share) | 4.96 | 4.30 | 4.36 | 4.31 | 4.42 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
13
Is ROIC above WACC?
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
12.2%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$1,910M × (1 − 21%) ÷ $12,324M × 100 = 12.2%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
8.62%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $47.48B ÷ ($47.48B + $2.28B) = 95.4%
e.g.Debt weight: $2.28B ÷ ($47.48B + $2.28B) = 4.6%
e.g.WACC: 8.9% × 95.4% + 3.6% × (1 − 21%) × 4.6% = 8.62%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
WACC 8.62% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4%
- β
- 0.89 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 8.89%
- Cost of debt
- 3.56%
- Effective tax rate
- 21%
- Capital structure (equity : debt)
- 95% : 5%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 8.62%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.
Initial β: 0.89 (price-derived adjusted beta. Raw β 0.83, R² 0.33, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.835 + 0.33 = 0.890
termsβ (beta)
Period 2024-04-05–2026-10-02, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.4.0% + 0.89 × 5.5% = 8.9%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulaP/E × net income ≈ period-end share price × shares outstanding (= market cap)
termsP/E · Net income (attributable to the company) · Market capitalization · Market value of equity
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
14
What the price implies (DCF)
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (FY2025)
5.2%
Perpetual FCF growth: g = r − FCF ÷ EV = 8.6% − 3.4%
Past FCF growth (FY2021–FY2025)
+12.3%
Compound annual rate, 4 years
Past revenue growth (FY2021–FY2025)
+7.5%
Compound annual rate, 4 years
Inputs (FY2025): free cash flow $1.67B (operating CF − capex); enterprise value $49.31B = market cap $47.48B + debt $2.28B − cash and short-term investments $458M; r = WACC of 8.6% using this page’s default assumptions (β 0.89, risk-free 4.0%, market premium 5.5%).
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$49.16B
FCF $1.67B ÷ (8.6% − 5.2%)
Theoretical ÷ actual enterprise value
1.00x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 6.6% | 7.6% | 8.6% | 9.6% | 10.6% |
|---|---|---|---|---|---|
| 0% | 0.51x | 0.45x | 0.39x | 0.35x | 0.32x |
| 2% | 0.74x | 0.61x | 0.51x | 0.45x | 0.39x |
| 4% | 1.30x | 0.94x | 0.74x | 0.61x | 0.51x |
| 6% | 5.65x | 2.12x | 1.30x | 0.94x | 0.74x |
| 8% | — | — | 5.65x | 2.12x | 1.30x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap and enterprise value use the fiscal year-end price, not today’s.
15
Earnings quality
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.21x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -2.1%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 106%
Most profit comes from core operations.
- ✓
Days sales outstanding: 55 → 55 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaperiod-end receivables ÷ revenue × 365
formulaperiod-end inventory ÷ revenue × 365
termsInventory · Revenue (net sales)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$1,802M ÷ $1,480M = 1.22x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$1,910M ÷ $1,798M × 100 = 106%
termsOperating income · Income before income taxes (pretax income)
formulaperiod-end receivables ÷ revenue × 365
e.g.$1,119M ÷ $7,401M × 365 = 55 days
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Strengths & weaknesses
Strengths
1. Repeatable acquisition model
15 acquisitions with about $1.8B of annual sales from 2021 to 2025, integrated through the AMETEK Growth Model.
Evidence: Form 10-K (FY2025) Item 1
2. High margins in niche markets
EIG earns a 29.4% operating margin and EMG 23.3%; AMETEK describes many of its products as technologically superior in niche markets.
Evidence: Form 10-K (FY2025) Item 1 and MD&A
3. No customer concentration
In EIG, the five largest customers were about 4% of sales and no customer exceeded 2%.
Evidence: Form 10-K (FY2025) Item 1
4. Steady growth
Sales rose every year from $5.55B (FY2021) to $7.40B (FY2025), and diluted EPS from $4.25 to $6.40.
Evidence: SEC EDGAR XBRL
Weaknesses
1. Acquisitions dilute margins at first
Recent acquisitions cut EIG's operating margin by about 100 basis points in 2025.
Evidence: Form 10-K (FY2025) MD&A
2. More debt for Indicor
The ~$5.0B Indicor deal was funded with borrowings under the credit facility and new debt, and AMETEK raised its commercial paper program to $3.5B.
Evidence: 8-Ks filed 2026-05-06 and 2026-08-11
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What draws investors to it
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
32.1x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
0.60%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
19%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
3.5%
(Operating CF − capex) ÷ market cap
1. Compounding through acquisitions
AMETEK targets double-digit EPS growth over the cycle by buying and improving niche businesses; record sales, earnings, orders, and backlog in 2025.
- What has to hold
- It keeps finding good targets at sensible prices and integrating them.
- The other side
- Larger deals like Indicor raise debt and integration risk, and acquisitions dilute margins at first.
Evidence: Form 10-K (FY2025) Item 1 and MD&A
2. Rising dividend
The quarterly dividend rose every year — from $0.20 in 2021 to $0.34 in 2026.
- What has to hold
- Cash flow keeps growing.
- The other side
- AMETEK's primary capital priority is acquisitions, so the dividend is a small part of how it deploys cash.
Evidence: SEC EDGAR XBRL; 8-K filed 2026-02-12
Annual dividends per share are the quarterly rate × 4. P/E and FCF yield use the FY2025 year-end share price.
18
Resilience
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
0.4x
$458M vs. $1.21B
Interest coverage (operating income ÷ interest expense)
23.5x
$1.91B vs. $81M
Free cash flow ÷ dividends paid
5.9x
$1.67B vs. $285M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | No decline in the record | — |
Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Diverse niches
Many small niche businesses across instruments and components spread exposure to any single market.
Source: Form 10-K (FY2025), Item 1
Cash generation
AMETEK describes an asset-light model with strong cash flow; operating cash flow was $1.80B in 2025 against capex of $130M.
Source: Form 10-K (FY2025), Item 1; SEC EDGAR XBRL
Record backlog
Backlog of unfilled orders was a record $3.58B at year-end 2025.
Source: Form 10-K (FY2025), MD&A
Higher leverage after Indicor
The ~$5.0B Indicor purchase was funded with debt.
Source: 8-K filed 2026-05-06
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Risks (including geopolitical)
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).
Geopolitical risk highlights
- [3]International exposure
- 1Governance & quality
Integrating a large acquisition
- Company disclosure (summarized from the 10-K)
- Indicor (about $1.1B of annual sales) is AMETEK's largest deal and will be split between EIG and EMG.
- Company’s stated mitigation
- AMETEK's operating model and track record of acquisitions.
- This site’s assessment
- Impact Med / Likelihood Med
- 2Demand & macro
Industrial cycles
- Company disclosure (summarized from the 10-K)
- Demand depends on capital spending in process industries, semiconductors, aerospace, and power.
- Company’s stated mitigation
- Exposure to many different niche markets.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Geopolitical
International exposure
- Company disclosure (summarized from the 10-K)
- About half of sales are outside the U.S., with Asia the largest international region.
- Company’s stated mitigation
- Global operations in many countries.
- This site’s assessment
- Impact Med / Likelihood Med
- 4FX & interest rates
Debt-funded growth
- Company disclosure (summarized from the 10-K)
- Debt covenants restrict additional borrowing, and higher debt after Indicor raises interest costs.
- Company’s stated mitigation
- Strong operating cash flow.
- This site’s assessment
- Impact Low / Likelihood Med
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What to watch going forward
- Integration and margins of Indicor Instrumentation.
- Debt reduction after the Indicor financing.
- Organic sales growth in EIG.
- Pace of further acquisitions.
21
Source documents
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 4, 2026 · Financial data fetched: October 4, 2026 14:44 (SEC EDGAR) · Source 10-K filed: February 17, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent AMETEK, Inc.’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.