Ametek

AMETEK competes in thousands of narrow applications where precision, reliability and regulatory qualification matter. Once its sensors, analyzers, power supplies, metrology systems or motors are designed into a customer platform, re‑qualification costs, downtime risk and certification hurdles create meaningful switching costs.

In EIG, 2024 operating margins of about 30.7% reflect product differentiation and pricing latitude; EMG’s margins are lower but rising as integration synergies are realized. These economics and the breadth of installed base indicate durable intangible‑asset and switching‑cost moats rather than network effects.

Morningstar’s 2024 upgrade to a wide moat aligns with our view, though we still model moat pressure risks from lower‑cost Asian competitors, open architectures and rapid advances in semiconductor tools.