AMETEK, Inc.: Current Financial Performance and Analyst Insights
Headquartered in Berwyn, Pennsylvania, AMETEK, Inc. (AME) specializes in manufacturing and selling electronic instruments and electromechanical devices. With a market capitalization of $41.3 billion, AMETEK operates through two primary segments: the Electronic Instruments Group (EIG) and the Electromechanical Group (EMG).
Market Position and Stock Performance
Classified as a “large-cap stock,” AMETEK aligns with firms valued at $10 billion or more, highlighting its significant size and influence within the industrial market. However, despite its robust position, AME shares have fallen by 10.6% from their peak of $198.33 reached on November 25, 2024. Over the last three months, AMETEK has seen a nearly 6% decline, which is slightly more pronounced than the 5.6% dip in the Industrial Select Sector SPDR Fund (XLI) during the same period.
Long-Term Trends
Examining AMETEK’s performance over a longer duration presents a concerning picture. The company’s stock has decreased by 2.5% over the past year, which contrasts sharply with the 6.5% gains of XLI during that time. Additionally, AME has consistently trended below its 50-day moving average since mid-December 2024, indicating a downward momentum.
Financial Results and Analyst Ratings
AMETEK’s financial performance was mixed in its recent Q4 results released on February 4. Despite a notable revenue increase in the EMG segment, the EIG segment experienced a 1.7% decline in sales compared to the previous year. Overall, net sales grew slightly by 1.8% to $1.8 billion, falling short of consensus estimates by 2.8%. Yet, the company maintained a stable cost of sales, contributing to an 11.3% year-over-year growth in adjusted earnings per share (EPS), which reached $1.87, surpassing estimates by 1.6%.
On a positive note, the operating cash flows for the quarter were a record-setting $555 million. Free cash flow stood at $498.3 million, with a remarkable free cash flow to net income conversion rate of 129%.
In comparison, AMETEK’s performance has slightly lagged behind Eaton Corporation plc (ETN), which recorded a 1.9% decline over the same 52-week period.
Analyst Consensus and Future Outlook
Among the 14 analysts tracking AMETEK, the consensus rating has been classified as a “Moderate Buy.” The average price target set at $204.58 indicates a potential upside of 15.4% from current trading levels.
On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data provided are for informational purposes only. For further details, please refer to the Barchart Disclosure Policy here.
The opinions articulated in this article solely represent those of the author and do not necessarily mirror the views of Nasdaq, Inc.
