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1. Company Snapshot

1.a. Company Description

AMETEK, Inc.manufactures and sells electronic instruments and electromechanical devices worldwide.It operates in two segments, Electronic Instruments (EIG) and Electromechanical (EMG).


The company's EIG segment offers advanced instruments for the process, aerospace, power, and industrial markets; process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; and instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets.This segment also provides power quality monitoring and metering devices, uninterruptible power supplies, programmable power equipment, electromagnetic compatibility test equipment, gas turbines, and environmental health and safety market sensors, dashboard instruments for heavy trucks and other vehicles, and instrumentation and controls for the food and beverage industries; and aircraft and engine sensors, monitoring systems, power supplies, fuel and fluid measurement systems, and data acquisition systems for the aerospace industry.Its EMG segment offers engineered electrical connectors and electronics packaging to protect sensitive devices and mission-critical electronics; precision motion control products for data storage, medical devices, business equipment, automation, and other applications; high-purity powdered metals, strips and foils, specialty clad metals, and metal matrix composites; motor-blower systems and heat exchangers for use in thermal management, military, commercial aircraft, and military ground vehicles; and motors for use in commercial appliances, fitness equipment, food and beverage machines, hydraulic pumps, and industrial blowers.


This segment also operates a network of aviation maintenance, repair, and overhaul facilities.In addition, the company offers clinical and educational communication solutions.AMETEK, Inc.


was founded in 1930 and is headquartered in Berwyn, Pennsylvania.

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1.b. Last Insights on AME

AMETEK's recent performance was driven by strong revenue and profit expansion, fueled by strategic acquisitions, including FARO Technologies. The company's Q3 2025 earnings beat estimates, with quarterly earnings of $1.89 per share, surpassing the Zacks Consensus Estimate of $1.76 per share. Its robust financial flexibility and investments in growth sectors like power generation, pharmaceuticals, aerospace & defense, and US reshoring support accelerated growth and margin expansion. AMETEK's acquisition strategy and organic growth prospects position it for continued success. (Source: AMETEK's Q3 2025 Earnings Call Transcript, 2025-10-30)

1.c. Company Highlights

2. AMETEK's Q3 2025 Earnings: A Strong Performance Across the Board

AMETEK delivered outstanding results in Q3 2025, with double-digit growth in sales, orders, operating profit, and diluted earnings per share. Sales reached a record $1.89 billion, up 11% from Q3 2024, driven by organic sales growth of 4%, acquisitions adding 6 points, and a 1-point benefit from foreign currency translation. Operating income was a record $496 million, up 11% over Q3 2024, with margins of 27%, up 90 basis points versus the prior year. Earnings per diluted share were $1.89, up 14% versus Q3 2024, beating analyst estimates of $1.76.

Publication Date: Nov -01

📋 Highlights
  • Record Sales & Orders:: Sales reached $1.89 billion (+11% YoY), orders hit $1.97 billion (+13% YoY), and backlog surged to $3.54 billion.
  • Margin Expansion:: Operating profit rose to $496 million (+11% YoY) with 27% margins (up 90 bps), and EBITDA hit $592 million (31.3% margin, +11% YoY).
  • Electromechanical Strength:: EMG sales reached $646 million (+13% YoY), operating income hit $164 million (+25% YoY), and margins jumped to 25.4% (+250 bps).
  • Guidance Raised:: Full-year EPS guidance now $7.32–$7.37 (+7–8% YoY), Q4 sales expected to rise 10% with EPS $1.90–$1.95 (+2–4% YoY).
  • Acquisition & Margin Growth:: Paragon integration exceeded expectations, driving 35+ EBITDA, and EMG margins are forecasted to reach record levels.

Segment Performance

The Electronic Instruments Group (EIG) sales were a record $1.25 billion, up 10% from Q3 2024, with EIG operating income up 6% versus the prior year. The Electromechanical Group (EMG) had a strong quarter with sales up 13% to a record $646 million, driven by organic sales growth of 12%. EMG's operating income was a record $164 million, up 25% compared to the prior year, with operating margins up sharply to 25.4%.

Guidance and Outlook

The company is increasing its full-year earnings guidance, with diluted earnings per share expected to be in the range of $7.32 to $7.37, up 7% to 8% versus the prior year. For Q4, the company anticipates sales to be up approximately 10%, with earnings in the range of $1.90 to $1.95 per share. The company feels optimistic about 2026, with a controlled cost structure and new product innovation.

Valuation

With a P/E Ratio of 31.75 and an EV/EBITDA of 23.01, the market is pricing in a certain level of growth for AMETEK. The company's ROIC of 10.68% and ROE of 14.0% indicate a strong ability to generate returns on capital. Analysts estimate next year's revenue growth at 7.4%, which is slightly higher than the company's guidance. The Dividend Yield of 0.6% and Free Cash Flow Yield of 3.52% provide a relatively attractive return for investors.

Business Momentum

The company reported a strong quarter with momentum across many regions, except for China, which was impacted by export issues and tariff renegotiations. The order pattern throughout the quarter was solid, with September being the strongest month. The Process Industries segment showed improvement, with orders trending up, except in China. The Industrial & Power business saw better organic growth, driven by the Power side, particularly in backup power systems and microgrids.

M&A and Integration

The acquisition of Paragon is progressing well, with organic sales performance and order growth exceeding expectations. The integration of FARO is also going well, with the company meeting its top-line and bottom-line commitments. The M&A pipeline remains strong, with a focus on high-quality deals and disciplined returns on capital.

3. NewsRoom

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Scottie Resources President Dr. Thomas Mumford Awarded AME'S 2025 H.H. "Spud" Huestis Award for Excellence in Mineral Exploration

Dec -04

Source: newsfilecorp.com

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Top 3D Printing Stocks to Build Steady Portfolio Gains

Dec -01

Source: zacks.com

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Ametek (AME) Upgraded to Buy: Here's What You Should Know

Nov -25

Source: zacks.com

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AMETEK Releases 2025 Sustainability Report

Nov -11

Source: prnewswire.com

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AMETEK Declares Quarterly Dividend

Nov -07

Source: prnewswire.com

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AMETEK Appoints Robert J. Amodei Senior Vice President, Controller and Scott M.

Nov -07

Source: prnewswire.com

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AMETEK, Inc. (AME) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Ametek (AME) Reports Q3 Earnings: What Key Metrics Have to Say

Oct -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

EIG

Expected Growth: 3.0%

EIG's growth is driven by AMETEK's strategic acquisitions, expanding industrial and medical markets, and increasing demand for precision motion control and automation. Strong performance in medical imaging and industrial manufacturing segments contribute to 3.0% growth, fueled by innovative product offerings and operational efficiencies.

EMG

Expected Growth: 3.0%

EMG's growth of 3.0% is driven by increased demand for precision motion control and electric motor products in industrial and medical markets, AMETEK's strategic acquisitions, and organic growth from new product launches and expanded customer relationships.

7. Detailed Products

Process and Analytical Instruments

AMETEK's Process and Analytical Instruments segment offers a range of instruments and systems for the oil and gas, petrochemical, pharmaceutical, and semiconductor industries.

Electromechanical Components

AMETEK's Electromechanical Components segment provides a variety of components, including connectors, switches, and relays, for the aerospace, defense, and industrial markets.

Electronic Instruments

AMETEK's Electronic Instruments segment offers a range of instruments and systems for the aerospace, defense, and industrial markets, including avionics, navigation, and test and measurement systems.

Motors and Meters

AMETEK's Motors and Meters segment provides a range of motors, pumps, and meters for the industrial, aerospace, and defense markets.

Interconnects, Cables, and Assembly

AMETEK's Interconnects, Cables, and Assembly segment offers a range of interconnects, cables, and assemblies for the aerospace, defense, and industrial markets.

8. AMETEK, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

AMETEK, Inc. operates in a niche market with specialized products, reducing the threat of substitutes. However, the company's products are not entirely unique, and some customers may find alternative solutions.

Bargaining Power Of Customers

AMETEK, Inc. has a diverse customer base, reducing the bargaining power of individual customers. The company's products are often critical components in its customers' systems, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

AMETEK, Inc. relies on a network of suppliers for raw materials and components. While the company has some bargaining power due to its size, suppliers may still have some negotiating power, particularly for specialized components.

Threat Of New Entrants

The barriers to entry in AMETEK, Inc.'s markets are relatively high, due to the need for specialized expertise and significant capital investments. New entrants would face significant challenges in competing with established players like AMETEK, Inc.

Intensity Of Rivalry

The markets in which AMETEK, Inc. operates are highly competitive, with several established players competing for market share. The company must continually innovate and improve its products to maintain its competitive position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.51%
Debt Cost 3.95%
Equity Weight 72.49%
Equity Cost 10.02%
WACC 8.35%
Leverage 37.95%

11. Quality Control: AMETEK, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AMETEK

A-Score: 5.4/10

Value: 1.7

Growth: 6.1

Quality: 8.1

Yield: 1.0

Momentum: 6.0

Volatility: 9.3

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Xylem

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Value: 1.8

Growth: 5.7

Quality: 6.7

Yield: 2.0

Momentum: 6.0

Volatility: 9.0

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A-Score: 5.1/10

Value: 0.0

Growth: 6.8

Quality: 6.7

Yield: 0.0

Momentum: 9.5

Volatility: 7.7

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Roper Technologies

A-Score: 5.0/10

Value: 2.6

Growth: 5.7

Quality: 7.4

Yield: 1.0

Momentum: 3.0

Volatility: 10.0

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Otis

A-Score: 4.9/10

Value: 4.4

Growth: 4.4

Quality: 5.7

Yield: 3.0

Momentum: 3.0

Volatility: 9.0

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Ingersoll Rand

A-Score: 4.3/10

Value: 1.8

Growth: 7.6

Quality: 6.6

Yield: 0.0

Momentum: 2.5

Volatility: 7.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

199.8$

Current Price

199.8$

Potential

-0.00%

Expected Cash-Flows