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AMETEK Inc AME

Rating as of

Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Ametek Emerges Relatively Unscathed With Strong Third Quarter, Despite Supply Chain Challenges

Joshua Aguilar Senior Analyst

Analyst Note

| Joshua Aguilar |

Nothing in narrow-moat rated Ametek’s latest third-quarter results materially alters our long-term view of the firm, though Ametek did slightly outperform our third-quarter expectations. Management did bump up its full-year guide on both the top and bottom lines. For the full year, we were originally above the midpoint of FactSet consensus, when we expected sales of $5.45 billion, segment operating margins of 24.8%, adjusted EPS of $4.68, and free cash flow of $1.34 billion. We now expect sales of $5.51 billion, segment operating margins of 25.0%, adjusted EPS of $4.78, and free cash flow of $1.37 billion. After modest adjustments, we raise our fair value estimate to $121 per share from $120 per share, previously.

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Company Profile

Business Description

Ametek is a diversified industrial conglomerate with about $4.5 billion in sales. The firm operates through two segments: electronic instruments, or EIG, and electromechanical, or EMG. EIG designs and manufactures differentiated and advanced instruments for the process, aerospace, power, and industrial end markets. EMG is a focused, niche supplier of highly engineered automation solutions, thermal management systems, specialty metals, and electrical interconnects, among other products. About half of the firm’s sales are made in the United States. The firm’s asset-light strategy in place for nearly two decades emphasizes growth through acquisitions, new product development through research and development, driving operational efficiencies, and global and market expansion.

Contact
1100 Cassatt Road
Berwyn, PA, 19312-1177
T +1 610 647-2121
Sector Industrials
Industry Specialty Industrial Machinery
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 16,500

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