# AMETEK (AME) Sector: Electronic instruments and electromechanical devices | Field | Value | |---|---| | Price | $238.31 | | Market cap | $55B | | Intrinsic value source | Analysts | | Data as of | 2026-11-11 | | Next earnings | 2027-02-03 (estimate) | Analysts: Leaning bullish Picks: Research only Discount category: Pricey ## In short Investors pay a high multiple for AMETEK's record of steady growth from niche products and acquisitions, and the $5.0 billion Indicor purchase must now add to earnings while debt falls. ## Themes and gap - Themes: High debt (leverage), Tariffs and trade (trade-tariffs), Interest rates (interest-rates) - Gap type: Can close (closable) - Why: The Q4 2026 report and the 2027 guidance in early February 2027 show whether Indicor Instrumentation adds to EPS and whether debt falls. ## About AMETEK, Inc. (AMETEK) makes electronic instruments and electromechanical devices for niche markets. Its Electronic Instruments Group (EIG) makes analytical, test and measurement instruments for aerospace, medical, power, energy, research and industrial customers. Its Electromechanical Group (EMG) makes medical components and devices, automation products, thermal management systems, specialty metals and electrical interconnects, and it repairs and overhauls aircraft parts. In Q3 2026, sales were $2,220 million: $1,442 million from EIG and $778 million from EMG. Sales were $7.4 billion in 2025. AMETEK grows with its own products and by buying businesses. On August 26, 2026, it completed the purchase of a group of instrumentation businesses from Indicor, LLC (Indicor Instrumentation) for $5.0 billion in cash. The shares trade on the New York Stock Exchange. The head office is in Berwyn, Pennsylvania. David A. Zapico is Chairman and Chief Executive Officer. ## Thesis Investors pay a high multiple of earnings for AMETEK because it has grown its earnings for many years with niche products and many acquisitions. In Q3 2026, sales grew 17%, organic sales grew 10%, orders grew 34.7% and the backlog reached a record $4,540.5 million. The purchase of Indicor Instrumentation for $5.0 billion is the largest in AMETEK's history, and it increased total debt to $6,669.4 million at September 30, 2026. For this price to hold, three things must be true. Indicor Instrumentation must reach AMETEK's margins and give the planned savings of 10% to 12% of its sales. Organic growth must continue when the strong orders of 2026 become sales. And AMETEK must reduce debt fast with its free cash flow, so that it can buy more businesses. The Q4 2026 report with the 2027 guidance, expected in early February 2027, is the next test. A weak industrial economy can lower orders and the multiple. ## Checkpoints - Nov 3, 2026: Q3 2026 results: organic growth and orders. Status: Passed. Watch: Organic sales growth of 5% or more and a raised EPS outlook pass; a lower outlook fails. Outcome: Organic sales grew 10%, orders grew 34.7%, and AMETEK raised its 2026 adjusted EPS outlook to $8.53 to $8.57. - Feb 2027 (estimate): Q4 2026 results and the 2027 guidance. Status: Pending. Watch: 2026 adjusted EPS of $8.53 or more and 2027 guidance for double-digit EPS growth pass; guidance for EPS growth below 8% fails. - Aug 2027 (estimate): Q2 2027 results: Indicor margins and debt. Status: Pending. Watch: An adjusted operating margin near 27% with Indicor Instrumentation included and lower net debt than at September 30, 2026 pass; a lower margin fails. ## Balance sheet - Cash: $666M - Debt: $6.7B - Net debt: $6.0B - Undrawn credit line: $2.2B, to June 2031 - Debt due within 12 months: $640M AMETEK funds itself with cash flow, term loans, a revolving credit facility, commercial paper and senior notes. At September 30, 2026, cash and cash equivalents were $666.2 million, and total debt was $6,669.4 million, so net debt was $6,003.2 million. Debt includes $4.0 billion of term loans in three parts, which mature three, four and five years after the purchase of Indicor Instrumentation, and $306.0 million of commercial paper. The revolving credit facility of $3.5 billion runs to June 9, 2031, and $2,168.1 million of it was available. In Q3 2026, AMETEK repaid $100.0 million of 3.83% senior notes at maturity. Net debt was 33.9% of capital, against 14.7% at December 31, 2025. EBITDA was $1,921.7 million and free cash flow was $1,405.2 million in the first nine months of 2026. At October 29, 2026, there were 229,317,998 shares. The quarterly dividend is $0.34 per share. As of 2026-09-30. Sources: - https://www.sec.gov/Archives/edgar/data/1037868/000103786826000196/ame-20260930.htm - https://www.sec.gov/Archives/edgar/data/1037868/000103786826000194/ametek8kexhibit99111032026.htm - https://www.sec.gov/Archives/edgar/data/1037868/000103786826000166/ame-20260609.htm ## Dividends - Dividend yield: 0.6% (last 12 months, at the current price) - Paid per share, last 12 months: $1.33 (4 payments) - Current annual rate: $1.36 ($0.34 x 4 a year) - Payout ratio: 19% of the earnings of the last fiscal year (the year ended 2025-12-31) - Latest ex-dividend date: 2026-09-15, $0.34 per share - Growth from 2020 to 2025: 11.5% a year - Growth from 2015 to 2025: 13.2% a year Dividends per share by year: 2016: $0.36, 2017: $0.36, 2018: $0.56, 2019: $0.56, 2020: $0.72, 2021: $0.80, 2022: $0.88, 2023: $1.00, 2024: $1.12, 2025: $1.24. Source: company filings and market data, read on 2026-11-10. ## Recent events - 2026-11-06: Gretchen W. McClain resigned from the AMETEK Board of Directors for personal reasons. - 2026-11-03: AMETEK reported Q3 2026 results. Sales rose 17% to a record $2,220 million, with organic growth of 10%, and adjusted EPS rose 17% to $2.21. Orders rose 34.7% to $2,650.6 million. AMETEK raised its 2026 adjusted EPS guidance to $8.53 to $8.57, from $8.20 to $8.30. - 2026-08-26: AMETEK completed the purchase of Indicor Instrumentation for $5.0 billion in cash. It expects these businesses to add about $350 million to its 2026 sales. It borrowed $4.0 billion under a new term loan for the purchase. - 2026-08-04: AMETEK reported Q2 2026 results. Sales rose 15% to a record $2.04 billion, and adjusted EPS rose 17% to $2.09. Orders grew 28%. - 2026-05-26: AMETEK completed the purchase of First Aviation Services, which repairs and overhauls defense and aviation parts and has annual sales of about $80 million. - 2026-05-06: AMETEK agreed to buy Indicor Instrumentation for about $5.0 billion in cash, about 14 times EBITDA. These businesses have about $1.1 billion of annual sales, and about 50% of their revenue comes from the aftermarket. - 2026-04-30: AMETEK reported Q1 2026 results. Sales rose 11% to $1.93 billion, and adjusted EPS rose 13% to $1.97. Orders rose 23% to a record. - 2026-02-12: AMETEK increased its quarterly dividend by 10%, to $0.34 per share. - 2026-02-03: AMETEK reported 2025 results. Sales rose 7% to $7.4 billion, and adjusted EPS rose 9% to $7.43. It gave first 2026 guidance for adjusted EPS of $7.87 to $8.07. ## Latest news and filings - Last earnings: 2026-11-03 (8-K: https://www.sec.gov/Archives/edgar/data/1037868/000103786826000194/) - Next earnings: 2027-02-03 (expected; the company has not confirmed it) | Filed | Form | Headline | Period end | XBRL document | Link | | --- | --- | --- | --- | --- | --- | | 2026-11-06 | 8-K | Change of directors or officers | | ame-20261106 | https://www.sec.gov/Archives/edgar/data/1037868/000103786826000199/ame-20261106.htm | | 2026-11-03 | 10-Q | Quarterly report for the period ended Sep 30, 2026 | 2026-09-30 | ame-20260930 | https://www.sec.gov/Archives/edgar/data/1037868/000103786826000196/ame-20260930.htm | | 2026-11-03 | 8-K | Earnings release | | ame-20261103 | https://www.sec.gov/Archives/edgar/data/1037868/000103786826000194/ | | 2026-08-26 | 8-K | Other company news | | ame-20260826 | https://www.sec.gov/Archives/edgar/data/1037868/000103786826000191/ame-20260826.htm | | 2026-08-11 | 8-K | Other company news | | ame-20260807 | https://www.sec.gov/Archives/edgar/data/1037868/000103786826000183/ame-20260807.htm | | 2026-08-04 | 10-Q | Quarterly report for the period ended Jun 30, 2026 | 2026-06-30 | ame-20260630 | https://www.sec.gov/Archives/edgar/data/1037868/000103786826000175/ame-20260630.htm | | 2026-08-04 | 8-K | Earnings release | | ame-20260804 | https://www.sec.gov/Archives/edgar/data/1037868/000103786826000173/ | | 2026-06-12 | 8-K | New material agreement and New debt or financial obligation | | ame-20260609 | https://www.sec.gov/Archives/edgar/data/1037868/000103786826000166/ame-20260609.htm | | 2026-05-26 | 8-K | Other company news | | ame-20260526 | https://www.sec.gov/Archives/edgar/data/1037868/000103786826000163/ame-20260526.htm | | 2026-05-11 | 8-K | Shareholder vote results | | ame-20260507 | https://www.sec.gov/Archives/edgar/data/1037868/000103786826000157/ame-20260507.htm | Every filing on SEC EDGAR (CIK 1037868): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001037868&type=&dateb=&owner=include&count=40 ## Risks - Medium: The purchase of Indicor Instrumentation for $5.0 billion is the largest in AMETEK's history. If the integration is slow or the savings are smaller than planned, the return on this money can be low. - Medium: Total debt rose to $6,669.4 million at September 30, 2026, from $2,283.3 million at December 31, 2025. The term loans and the credit facility have variable interest rates, and interest expense rose 76.9% in Q3 2026. - Medium: AMETEK sells to industrial, aerospace, semiconductor, energy, medical and research customers. A weak economy can lower orders. Orders grew very fast in 2026, so growth can slow when this cycle ends. - Low: Tariffs and trade disputes can increase costs and lower demand. AMETEK says that it uses prices and changes to its supply chains to reduce the effect. - Low: AMETEK sells in many countries. A stronger U.S. dollar lowers sales and profit from other countries. ## Links - Page: https://picks.utilarium.app/company/AME/ - History of changes: https://picks.utilarium.app/company/AME/history/ - JSON with full history: https://picks.utilarium.app/data/company/AME.json > Picks is a personal record of stock picks. It gives general opinions about stocks, including a "Top pick" label. They are not tailored to your needs, goals or risk tolerance. Kevin is not a registered adviser and relies on the general-advice exemption in Canadian securities law (NI 31-103 s.8.25). Do your own research, or ask a registered adviser. Kevin may hold any stock on this site. Prices, intrinsic values and ratings can be delayed or wrong; check the original source. Full disclaimer: /disclaimer/.