XVARY Composite Score
86
/ 100
Above Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
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What it is
AMETEK sells the instruments and devices factories, labs, and aircraft operators need when failure is expensive.
How it gets paid
Last year Ametek made $7.4B in revenue.
Why it's growing
Revenue grew 6.6% last year. Record operating income and free cash flow on ~11% revenue growth— execution.
What just happened
Q3 2025 revenue $1.89B with EPS about $1.60 — in line with expectations in the notes below.
At a Glance
A balance sheet — strong enough to weather a downturn
95/100 earnings predictability — you can trust these numbers
32.2x trailing p/e — you're paying up for this one
0.6% dividend yield — cash in your pocket every quarter
16.0% return on capital — solid for diversified industrial hardware
XVARY composite: 86/100 — above average
What They Do
AMETEK sells the instruments and devices factories, labs, and aircraft operators need when failure is expensive.
AMETEK wins because your customers buy tools they cannot afford to have fail mid-shift. Electronic Instruments produced 71% of 2024 sales and 69% of operating income, while companywide operating margin hit 30.0%. Switching costs (changing suppliers after systems are installed) → painful retraining and requalification → AMETEK gets paid for reliability, not novelty.
How They Make Money
$7.4B
annual revenue · their business grew +6.6% last year
total revenue
$7.4B
+6.6%
The Products That Matter
Builds and sells mission-critical equipment
Precision instruments and electromechanical systems
$7.4B revenue · 21.2% net margin
this $7.4B business grew 6.6% last year and still kept a 21.2% net margin. snapshot data does not break the mix out further, which tells you something too: you are buying the full portfolio, not one star product.
premium industrial math
Key Numbers
3%
debt of capital
Long-term debt is just 3% of capital. Plain English: the balance sheet is light on leverage. So what: management has room when the cycle gets ugly.
30.0%
operating margin
Operating margin → profit after running the business → so what: AMETEK keeps $0.30 from each sales dollar before interest and taxes.
16.0%
return on capital
Return on capital → profit generated from the money tied up in the business → so what: this is a real compounding machine, not just a busy factory.
95
price stability
Price stability is 95 out of 100. So what: this stock has behaved more like a steady grinder than a drama series.
Financial Health
A
Strength
- balance sheet grade A — very strong financial position
- risk rank 1 — safer than 95% of stocks
- price stability 95 / 100
- long-term debt $1.5B (3% of capital)
- net profit margin 19.5% — keeps 20 cents of every dollar in revenue
- return on equity 20% — $0.20 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total Return vs. Market
You invested $10000 in AME 3 years ago → it's now worth $15210.
The index would have given you $13920.
source: institutional data · total return
What Just Happened
solid quarter
Q3 2025 revenue $1.89B (~+11% vs. prior year) with EPS about $1.60— in line with expectations in the notes below.
Management cited margin strength, cost discipline, and record operating income and free cash flow. EPS rose from $1.47 a year earlier to ~$1.60— the old $2.01 / $1.73 / 16.18% beat trio was inconsistent with that Q3 narrative and was removed.
$1.89B
Q3 revenue
~$1.60
Q3 EPS
~11%
Q3 revenue vs. prior year
the number that mattered
Record operating income and free cash flow on ~11% revenue growth— execution, not a one-off EPS surprise headline.
-
Ametek delivered another strong quarter as 2025 progresses.
-
Third-quarter revenues reached $1.89 billion, up about 11% vs. prior year and ahead of our estimate, while earnings of $1.60 per share came in right around expectations.
-
Results reflected continued margin strength and solid execution across both operating segments.
-
Operating income and free cash flow reached record levels, supported by disciplined cost controls and a favorable product mix.
-
Backlog remained elevated at roughly $3.5 billion, providing visibility into the new year.
source: company earnings report, 2026
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What Could Go Wrong
The #1 risk is an order slowdown across aerospace, power, and industrial instrumentation.
Med
Order slowdown
your $7.4B revenue base still depends on customers spending on capital equipment and specialty components. if orders soften, 6.6% growth does not fade gracefully — it just stops.
slower volume would pressure earnings and force investors to rethink a 32.2x multiple on an industrial name.
Med
Margin slip below 20%
a 21.2% net margin and 20.0% quarterly margin are doing a lot of valuation work here. pricing pressure, weaker mix, or cost inflation would show up fast.
if margins spend time below 20%, the stock starts looking less like a quality compounder and more like a normal industrial with an abnormal price tag.
Med
Acquisition execution
AME has a long reputation for disciplined dealmaking. That is a strength until a bad deal tests it. With about $8B of revenue expected in 2026, you do not need a giant mistake for it to show up in the numbers.
if acquired growth adds revenue but drags on margins, the market will care less about scale and more about whether management is paying too much for it.
with the stock at 32.2x trailing earnings, you need steady growth and 20%+ margins. if one cracks, sentiment gets tested. if both crack, the multiple is next.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Event
Next earnings report
watch for Q1 2026 results, typically released in late April. this stock does not need fireworks. it needs the machine to stay smooth.
Trend
The 6.6% growth line
if revenue growth stays around 6.6% on a $7.4B base, the compounding story still works. flat growth would make the premium look stretched.
Metric
The 20% margin line
above it, the thesis holds. below it, you have to ask why an industrial with ordinary profitability deserves an extraordinary multiple.
Risk
Backlog and order commentary
management cited a $3.5B backlog. watch whether that number keeps rebuilding or starts getting worked down without enough fresh orders behind it.
Analyst Rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak: they like it, but they are not calling for mania.
risk profile
safest 5%
stability score 1 — lower risk of a permanent capital loss than almost any stock in the coverage set.
chart momentum
average
technical score 3 — the chart is acting normal. no euphoric breakout, no obvious damage.
earnings predictability
95 / 100
management tends to deliver what the street expects. that matters more when the stock trades at 32.2x trailing earnings.
Source: institutional data
Institutional Activity
institutions have been net buying for 3 consecutive quarters — 499 buyers vs. 407 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
Source: institutional data
Price Targets
3-5 year target range
$172
$284
$206
Current price
$228
Target midpoint · +11% from current · 3-5yr high: $270 (+30% · 8% ann'l return)
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