AMETEK INC/ (AME)

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AI: Overvalued

Price checkAt $254.79, the shares assume unusually strong, sustained growth with little room for error.

The August 14 close is 30.9 times management’s 2026 adjusted earnings forecast of $8.20–$8.30 per share; this measure excludes acquisition-related amortization and costs. On reported earnings of about $6.85 over the latest twelve months, the price is roughly 37 times. Free cash flow—cash left after operations and capital spending—was about $1.83 billion, only a 3.1% yield on the $58.3 billion market value. Even 25 times forecast earnings equals about $206, supporting an Overvalued verdict despite strong momentum.

Big pictureSales and profits have grown steadily, but cash growth has lagged reported earnings.

Revenue rose from $4.54 billion in 2020 to $7.40 billion in 2025, about 10% yearly, while earnings per share climbed from $3.77 to $6.40, about 11% yearly. Operating profit rose from 22.6% of sales to 25.8%, supporting durable earnings. Yet annual free cash flow increased from $1.21 billion to $1.67 billion, only about 7% yearly, and dipped slightly in 2025. The first half of 2026 strengthened, but orders can still weaken when industrial customers reduce investment.

Business strengthHigh profit margins and reliable cash support debt, while buybacks have limited new shares.

At June 2026, debt was $2.04 billion against $495 million of cash, leaving $1.54 billion of net debt—debt minus cash—and less than one year of recent free cash flow. Current assets exceeded near-term liabilities by $568 million. Shares declined from 230.5 million in 2020 to 229.0 million in 2025 despite $48 million of 2025 stock compensation. Company share purchases and dividends consumed $719 million in 2025, comfortably below free cash flow. The pending Indicor purchase will materially reduce this financial cushion.

What could change the storyIndicor could extend growth, but its debt-funded price makes successful integration essential.

Indicor adds about $1.1 billion of annual sales and roughly 50% recurring aftermarket revenue, but AMETEK agreed to pay $5.0 billion, about 14 times earnings before interest, taxes, depreciation, and amortization. Management targets yearly savings and other benefits equal to 10%–12% of sales and expects debt near 2.3 times that earnings measure at closing. The bull case needs those $110–$132 million benefits and continued growth. The bear case is weaker industrial demand or integration slippage while up to $4.0 billion of new term loans raises interest costs.

$254.79 price considered

AI: News

Record quarter, higher outlookStrong sales and raised guidance lifted expectations for near-term earnings growth.

On August 4, 2026, AMETEK reported second-quarter sales of $2.04 billion, up 15%, and adjusted earnings of $2.09 per share, up 17%. It raised its 2026 adjusted earnings forecast to $8.20–$8.30 from $7.94–$8.14. The shares closed 4.2% higher at $254.05 that day. The timing suggests the report influenced trading, but it does not prove the release was the only cause.

Transformational Indicor dealA large debt-funded purchase adds recurring sales but raises integration and balance-sheet risk.

On May 6, 2026, AMETEK agreed to buy Indicor Instrumentation for about $5.0 billion in cash. Indicor produces roughly $1.1 billion of annual sales, about half from recurring aftermarket work; management quoted a purchase price near 14 times operating cash earnings and expected leverage near 2.3 times that measure at closing. AMETEK shares closed 2.9% higher that day, although timing cannot establish causation. On June 9, AMETEK arranged up to $4.0 billion of three- to five-year term loans.

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$7.40B	$6.94B	$6.60B	$6.15B	$5.55B	$4.54B	$5.16B	$4.85B	$4.30B	$3.84B	$3.97B	$4.02B	$3.59B	$3.33B	$2.99B	$2.47B	$2.10B	$2.53B	$2.14B
Research & development	$236.1M	$236.6M	$220.8M	$198.8M	$194.2M	$158.9M	$161.9M	$141.0M	$130.4M	$112.0M	$116.3M	$119.3M	$93.9M	$84.9M	$78.0M	$56.8M	$50.5M	$57.5M	—
Operating income	$1.91B	$1.78B	$1.71B	$1.50B	$1.31B	$1.03B	$1.18B	$1.08B	$903.6M	$791.0M	$907.7M	$898.6M	$815.1M	$745.9M	$635.9M	$482.2M	$366.1M	$432.7M	$386.6M
EBITDAderived	$2.33B	$2.16B	$2.05B	$1.82B	$1.60B	$1.28B	$1.41B	$1.28B	$1.09B	$970.7M	$1.06B	$1.04B	$933.7M	$851.3M	$722.5M	$555.1M	$431.6M	$495.9M	$439.2M
Net income	$1.48B	$1.38B	$1.31B	$1.16B	$990.1M	$872.4M	$861.3M	$777.9M	$681.5M	$512.2M	$590.9M	$584.5M	$517.0M	$459.1M	$384.5M	$283.9M	$205.8M	$247.0M	$228.0M
Basic EPSper diluted share	$6.42	$5.95	$5.70	$5.04	$4.29	$3.80	$3.78	$3.37	$2.96	$2.20	$2.46	$2.39	$2.12	$1.90	$1.60	$1.19	$1.28	$1.55	$2.15
Diluted EPSper diluted share	$6.40	$5.93	$5.67	$5.01	$4.25	$3.77	$3.75	$3.34	$2.94	$2.19	$2.45	$2.37	$2.10	$1.88	$1.58	$1.18	$1.27	$1.53	$2.12

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)23$68.65M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 24, 2026Form 4	AMATO THOMAS ADirector	SellCommon Stock	530	$216.78	$114.9K	4.5K
Dec 22, 2025Form 4	MONTGOMERY THOMAS MSR. VP. - COMPTROLLER	SellCommon Stock	6.4K	$205.05	$1.31M	22.1K
Dec 15, 2025Form 4	Marecic Thomas CPRES. - ELECTRONIC INSTRUMENTS	SellCommon Stock	14.3K	$202.11	$2.89M	42.6K
Dec 12, 2025Form 4	ZAPICO DAVID ACHIEF EXECUTIVE OFFICER	SellCommon Stock · indirect	28.4K	$201.76	$5.73M	0
Nov 25, 2025Form 4	ZAPICO DAVID ACHIEF EXECUTIVE OFFICER	SellCommon Stock	54.8K	$196.86	$10.78M	349.0K

Review ownership filings at SEC.gov ↗

AMETEK INC/ (AME)

Financial charts

Financial statements

Insider buys & sells