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AMETEK Inc AME

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Ametek Pulls Out All the Stops With a Very Strong Opening to the Year; We Raise FVE by 10%

Joshua Aguilar Equity Analyst

Analyst Note

| Joshua Aguilar |

Narrow-moat rated Ametek had an exceptional first quarter and start to its 2021 year. The company blew past analyst estimates and is on pace to easily exceed the cadence implied in management’s prior guide. First-quarter sales rose to $1.22 billion, a 1% increase over the first quarter of 2020 (or a 1% year-over-year increase in organic sales). GAAP operating margins rose 110 basis points year over year to 24.1%, thanks to a near 33% incremental at the segment operating margin level. Both the top line and margins propelled adjusted EPS growth of 5% year on year to $1.07.

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Company Profile

Business Description

Ametek is a diversified industrial conglomerate with about $4.5 billion in sales. The firm operates through two segments: electronic instruments, or EIG, and electromechanical, or EMG. EIG designs and manufactures differentiated and advanced instruments for the process, aerospace, power, and industrial end markets. EMG is a focused, niche supplier of highly engineered automation solutions, thermal management systems, specialty metals, and electrical interconnects, among other products. About half of the firm’s sales are made in the United States. The firm’s asset-light strategy in place for nearly two decades emphasizes growth through acquisitions, new product development through research and development, driving operational efficiencies, and global and market expansion.

Contact
1100 Cassatt Road
Berwyn, PA, 19312-1177
T +1 610 647-2121
Sector Industrials
Industry Specialty Industrial Machinery
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 16,500

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