Skip to Content

Company Reports

All Reports

Stock Analyst Note

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.
Stock Analyst Note

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.
Company Report

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.
Stock Analyst Note

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.
Company Report

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.
Stock Analyst Note

Following our review of narrow-moat-rated Ametek’s first-quarter results, we lift our fair value estimate to $149 from $145. Most of the raise is due to time value of money, though some is due to raised guidance. Management raised the midpoint of the full-year 2023 adjusted EPS range to $6.03 from $5.92 previously. We lift our full-year adjusted EPS assumption to $6.16, or 6 cents above the upper end of guidance, but we point out that we bake in unannounced acquisitions, which are an important part of Ametek’s future earning power. If we were to exclude the impact of unannounced M&A, we would agree with management’s assessment.
Company Report

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.
Stock Analyst Note

Narrow-moat-rated Ametek turned in a very solid fourth-quarter earnings report that outpaced our expectations, though nothing materially alters our long-term view. We lift our fair value estimate to $145, in line with the stock price. However, most of our valuation uplift was due to timing of cash flows and time value of money. We did give Ametek a slight 25-basis-point bump at our midcycle margin, however. Ametek's sales came in at $1.626 billion, well ahead of the $1.567 billion we were hoping to see.
Company Report

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.
Stock Analyst Note

Narrow-moat-rated Ametek posted very strong third-quarter earnings that saw management raise both its organic sales and adjusted EPS guide. That said, nothing in its latest results alters our long-term view of the firm. Consequently, while our valuation now incorporates this latest information, we only lift our fair value estimate to $138 from $136 due to time value of money. Said differently, these incremental changes weren’t responsible for the $2 raise.
Company Report

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.
Stock Analyst Note

We see no reason to change our $136 fair value estimate for narrow-moat Ametek following second-quarter results. Revenue of $1.51 billion was below our expectation of $1.57 billion, while adjusted earnings per share of $1.38 came in marginally below our expectation of $1.41. The variance in EPS was due to about 40 basis points less in expected segment operating margins relative to our prior expectations. Nonetheless, segment operating margins still rose nearly 130 basis points year on year to 25.7%, while adjusted EPS still rose 20% year on year. We were directionally correct relative to FactSet consensus on all counts.
Company Report

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.
Stock Analyst Note

Nothing in Ametek’s first-quarter results materially alters our long-term view of the firm, as the firm’s latest results broadly fell in line with our expectations. Management brought down its 2022 sales forecast marginally due to some currency-related headwinds, yet it raised its EPS guide by about 3 cents at the midpoint. These changes were negligible in our model, and therefore we maintain our $136 fair value estimate.
Company Report

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.
Company Report

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.
Stock Analyst Note

After reviewing narrow-moat-rated Ametek’s fourth-quarter and full-year 2021 results, we lift our fair value estimate to $123 per share, from $121 previously. That said, we plan to reassess our assumptions once the firm issues its annual 10-K filing. Our fair value raise was primarily due to time value of money. When we incorporated management’s modestly lower organic guide relative to our prior expectations, those effects were fully offset by a reduction in our assumed long-term, U.S. corporate tax rate.
Company Report

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.
Company Report

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.
Stock Analyst Note

Nothing in narrow-moat rated Ametek’s latest third-quarter results materially alters our long-term view of the firm, though Ametek did slightly outperform our third-quarter expectations. Management did bump up its full-year guide on both the top and bottom lines. For the full year, we were originally above the midpoint of FactSet consensus, when we expected sales of $5.45 billion, segment operating margins of 24.8%, adjusted EPS of $4.68, and free cash flow of $1.34 billion. We now expect sales of $5.51 billion, segment operating margins of 25.0%, adjusted EPS of $4.78, and free cash flow of $1.37 billion. After modest adjustments, we raise our fair value estimate to $121 per share from $120 per share, previously.

Sponsor Center