Company Reports

Ametek reported second-quarter sales growth of 15% year over year. It also announced the acquisition of Indicor's instrumentation business on May 6 for around $5 billion, its largest-ever acquisition, which is expected to close in the second half of 2026.

Ametek focuses its mergers and acquisitions sights on targets that hold a leading share within niche, growing markets. It aims to raise the margins of acquired firms by connecting them to its comprehensive suite of prequalified, global suppliers in low-cost regions with expertise in areas such as circuit boards, precision machining, and castings.

Ametek focuses its mergers and acquisitions sights on targets that hold a leading share within niche, growing markets. It aims to raise the margins of acquired firms by connecting them to its comprehensive suite of prequalified, global suppliers in low-cost regions with expertise in areas such as circuit boards, precision machining, and castings.

Ametek reported first-quarter sales growth of 11% year over year. Results were driven by double-digit top-line growth and operating margin expansion in both of its segments, Electronic Instruments Group and Electromechanical Group.

Ametek reported fourth-quarter organic sales growth of 5% year over year. The firm increased its top line 6.6% over the full year, driven by nearly 9% sales growth in its electromechanical group segment.

Ametek focuses its mergers and acquisitions sights on targets that hold a leading share within niche, growing markets. It aims to raise the margins of acquired firms by connecting them to its comprehensive suite of prequalified, global suppliers in low-cost regions with expertise in areas such as circuit boards, precision machining, and castings.

Ametek increased its sales 11%, but with 30 basis points of operating margin contraction, earnings per share compounded 8.8% year over year. Results were driven by double-digit sales growth in both of its segments.

Ametek focuses its mergers and acquisitions firepower on targets that hold a leading share within niche, growing markets. It looks to raise the margins of acquired firms by plugging them into its comprehensive suite of prequalified, global suppliers in low-cost regions with specific sets of expertise such as circuit boards, precision machining, and castings.

Ametek reported 20 basis points of operating margin expansion on flat organic revenue growth to produce earnings per share growth nearing 7% year over year. Management raised its full-year EPS guidance and shares are trading up over 6% the morning of July 31.

Ametek focuses its mergers and acquisitions firepower on targets that hold a leading share within niche, growing markets. It looks to raise the margins of acquired firms by plugging them into its comprehensive suite of prequalified, global suppliers in low-cost regions with specific sets of expertise such as circuit boards, precision machining, and castings.

Ametek reported over 60 basis points of operating margin expansion on flat revenue growth, resulting in 7% EPS growth. Management kept its full-year guidance and shares are trading flat the morning of May 1.

Ametek reported fourth-quarter and full year 2024 earnings on the morning of Feb. 4. Year over year, Ametek's full-year revenue grew 5.2%, its operating margin shrunk 30 basis points, and earnings per share compounded 4.4%. We’ve raised our fair value estimate to $168 from $166 to reflect the time value of money.

Ametek focuses its mergers and acquisitions firepower on targets that hold a leading share within niche, growing markets. It looks to raise the margins of acquired firms by plugging them into its comprehensive suite of prequalified, global suppliers in low-cost regions with specific sets of expertise such as circuit boards, precision machining, and castings.

Ametek focuses its mergers and acquisitions firepower on targets that hold a leading share within niche, growing markets. It looks to raise the margins of acquired firms by plugging them into its comprehensive suite of prequalified, global suppliers in low-cost regions with specific sets of expertise like circuit boards, precision machining, and castings.

We resume coverage of Ametek, a robust collection of niche industrial businesses, and assign the firm a fair value estimate of $166 per share underpinned by a wide economic moat rating. We also assign Ametek an Exemplary Capital Allocation Rating, reflecting its strong balance sheet, stellar investment decisions, and reasonable shareholder distributions.

We will discontinue analyst coverage of Ametek on or about Dec. 21. We provide analyst research and ratings on over 1,500 companies globally and periodically adjust our coverage according to investor interest and staffing.

Following narrow-moat-rated Ametek’s third-quarter results, we lift our fair value estimate to $153 from $149. The fair value raise is partly due to a 50-basis-point lift in our midcycle operating margins and partly due to time value of money. Ametek’s electrical instruments group supported our margin increase, as that business has both reached higher margins and has maintained a higher level of performance than in years past. EIG margins rose 360 basis points to 29.5%, materially exceeding our expectations. Despite a slight consolidated sales miss compared with what we had penciled in, EIG sales were still strong, and volume leverage drove its operating margin expansion. Both M&A and organic sales contributed evenly to EIG’s 8% year-on-year sales rise.

Ametek is a cash compounder that combines premier elements of best-in-class conglomerates. First, like Roper, Ametek prefers allocating capital through acquisitions. Its asset-light model’s firepower focuses on companies that compete on differentiated technology and hold dominant positions in oligopolistic niches. Second, like Danaher and Fortive, the company materially improves its targets’ underlying operating margins. Ametek often reduces the amount targets spend on raw material costs through superior supply chain sourcing. Third, like 3M, Ametek allocates a large quantity of dollars as a percentage of sales to research, development, and engineering (about 5.5% of Ametek's sales). RD&E expenditures allow Ametek to charge a premium for its products relative to the market. They also provide Ametek with greater than inflation pricing power, generally a minimum 50-basis-point spread. Finally, like Idex, Ametek generally focuses its acquisition activities on existing adjacencies. In our view, this focus minimizes the firm’s execution risks.

We see no reason to change our $149 fair value estimate following our review of narrow-moat Ametek's second-quarter results. The quarter was relatively unremarkable, though Ametek did do a bit better on operating margins than we were expecting (by 60 basis points). This helped Ametek produce modestly higher earnings of $1.57 than we hoped to see during the quarter (about a 5% variance). We think there's a bit of sandbagging in management's revised full-year guide. Consequently, we model just above the top end of the adjusted EPS guide at $6.30 versus $6.26 at the top end of the range. We suspect we're simply modeling in a bit more revenue than what the mid-single-digit to high-single-digit revenue full-year guide calls for (we model 9%). Nonetheless, we think the stock remains fairly valued.

Ametek is a cash compounder that combines premier elements of best-in-class conglomerates. First, like Roper, Ametek prefers allocating capital through acquisitions. Its asset-light model’s firepower focuses on companies that compete on differentiated technology and hold dominant positions in oligopolistic niches. Second, like Danaher and Fortive, the company materially improves its targets’ underlying operating margins. Ametek often reduces the amount targets spend on raw material costs through superior supply chain sourcing. Third, like 3M, Ametek allocates a large quantity of dollars as a percentage of sales to research, development, and engineering (about 5.5% of Ametek's sales). RD&E expenditures allow Ametek to charge a premium for its products relative to the market. They also provide Ametek with greater than inflation pricing power, typically a 50-basis-point spread. Finally, like Idex, Ametek generally focuses its acquisition activities on existing adjacencies. In our view, this focus minimizes the firm’s execution risks.