What changed
$AME — WATCHLIST 📊
AMETEK, Inc. manufactures and sells electronic instruments (EIG) and electromechanical (EMG) devices in the United States and internationally.
🎯 Q1 FY26 | Rev $2B | EPS $1.97 vs $1.90 🟢 | Margin 28.2%
💡 Consensus sees Ametek as a steady compounder, but underappreciates the sustainability of 28%+ operating margins and the potential for accretive M&A to drive double-digit EPS growth beyond what is priced in at 27x forward earnings.
📉 Reward/Risk: 2.5:1
🏢 Business Quality: 8/10 - Extremely well-run diversified industrial with strong competitive moats, consistent free cash flow generation, and disciplined capital allocation.
📊 Valuation: fair - Relative to peers (Roper, Danaher), AME trades at a discount on P/E (27x vs 30x+), EV/EBITDA (22x vs 25x), and FCF yield (3.3% vs 2.5-3%).
Also in play: $HURN $KFY $RHI