Amphenol (APH) AI Stock Analysis

• Market Cap: $150.88B
• Dividend Yield: 0.54%
• Average Volume (3M): 8.70M
• Price to Earnings (P/E): 49.7
• Beta (1Y): 1.63
• Revenue Growth: 40.51%
• EPS Growth: 49.81%
• Country: US
• Employees: 125,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.81
• Shares Outstanding: 1,220,921,100
• 10 Day Avg. Volume: 9,256,951
• 30 Day Avg. Volume: 8,698,304
• PEG Ratio: 1.43
• Price to Book (P/B): 8.54
• Price to Sales (P/S): 5.49
• P/FCF Ratio: 38.90
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 6.94
• Enterprise Value/Gross Profit: 19.98
• Enterprise Value/Ebitda: 25.76
• 1Y Price Target: $125.10
• Price Target Upside: 2.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 81 Outperform
• Price Target: $126.00 ▲(3.09% Upside)

Amphenol's strong financial performance and positive earnings call sentiment are the most significant factors driving the high score. The strategic acquisition further supports growth prospects. However, the high P/E ratio and low dividend yield slightly temper the overall score.

Positive Factors

Revenue Growth

Amphenol's significant revenue growth reflects strong market demand and effective execution, enhancing its competitive position and long-term prospects.

Strategic Acquisitions

The acquisition enhances Amphenol's capabilities in IT datacom and communications networks, expected to be accretive to earnings and strengthen market position.

Cash Flow Management

Strong cash flow management supports operational flexibility and strategic investments, ensuring sustained growth and financial health.

Negative Factors

Book-to-Bill Ratio Concerns

A book-to-bill ratio below 1 indicates potential future challenges in maintaining order growth, which could impact future revenue stability.

Equity Financing Concerns

Heavy reliance on equity financing may lead to shareholder dilution, affecting investor returns and financial leverage.

Expected Moderation in IT Datacom Sales

Moderation in IT datacom sales could slow growth momentum, impacting revenue from a key high-growth segment.

Amphenol Business Overview & Revenue Model

Company Description

Amphenol Corporation, together with its subsidiaries, primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors in the United States, China, and internationally. It operates through three segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems. The company offers connectors and connector systems, including harsh environment data, power, high-speed, fiber optic, and radio frequency interconnect products; busbars and power distribution systems; and other connectors. It also provides value-add products, such as backplane interconnect systems, cable assemblies and harnesses, and cable management products; other products comprising flexible and rigid printed circuit boards, hinges, other mechanical, and production related products. In addition, the company offers consumer device, network infrastructure, and other antennas; coaxial, power, and specialty cables; and sensors and sensor-based products. It sells its products through its sales force, independent representatives, and a network of electronics distributors to original equipment manufacturers, electronic manufacturing services companies, original design manufacturers, and service providers in the automotive, broadband communication, commercial aerospace, industrial, information technology and data communication, military, mobile device, and mobile network markets. Amphenol Corporation was founded in 1932 and is headquartered in Wallingford, Connecticut.

How the Company Makes Money

Amphenol generates revenue primarily through the sale of its interconnect products, which include connectors, sensors, and cable assemblies. The company's revenue model is diversified across various sectors, with significant contributions from telecommunications, automotive, and military/aerospace markets. Key revenue streams include direct sales to original equipment manufacturers (OEMs), distribution partners, and end-users. Amphenol also benefits from long-term relationships and contracts with major clients, which provide a steady flow of incoming orders. The company's ability to innovate and adapt its product offerings to meet the evolving needs of its markets, alongside its global manufacturing and distribution capabilities, further enhances its revenue potential.

Amphenol Financial Statement Overview

Summary

Amphenol demonstrates a strong financial position with impressive revenue growth, profitability, and excellent cash flow metrics. The balance sheet is stable, though high equity suggests potential for further financial optimization.

Income Statement

Amphenol's TTM (Trailing-Twelve-Months) data shows a robust financial performance with a Gross Profit Margin of 34.7% and a strong Net Profit Margin of 16.9%. The company has displayed consistent revenue growth, with a notable 23.6% increase in revenue from the previous year. EBIT and EBITDA margins are also impressive at 22.4% and 17.8% respectively, highlighting operational efficiency and profitability.

Balance Sheet

The balance sheet is strong, with a low Debt-to-Equity Ratio of 0.08, indicating prudent financial leverage. The Return on Equity (ROE) is high at 27.6%, showcasing effective use of equity to generate profits. The Equity Ratio is solid at 44.9%, reflecting a stable capital structure. However, the substantial increase in equity suggests potential dilution or heavy reliance on equity financing.

Cash Flow

Amphenol exhibits exceptional cash flow management with a Free Cash Flow Growth Rate of 31.1%. The Operating Cash Flow to Net Income Ratio is healthy at 1.17, illustrating strong cash earnings. The Free Cash Flow to Net Income Ratio is also robust at 0.89, indicating efficient conversion of earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.82B	15.22B	12.55B	12.62B	10.88B	8.60B
Gross Profit	6.53B	5.14B	4.08B	4.03B	3.40B	2.66B
EBITDA	5.07B	3.80B	3.00B	2.99B	2.50B	1.95B
Net Income	3.18B	2.42B	1.93B	1.90B	1.59B	1.20B
Balance Sheet
Total Assets	25.67B	21.44B	16.53B	15.33B	14.68B	12.33B
Cash, Cash Equivalents and Short-Term Investments	3.23B	3.34B	1.66B	1.43B	1.24B	1.74B
Total Debt	8.06B	7.28B	4.64B	4.87B	5.05B	4.10B
Total Liabilities	14.07B	11.58B	8.10B	8.23B	8.30B	6.88B
Stockholders Equity	11.52B	9.79B	8.35B	7.02B	6.30B	5.38B
Cash Flow
Free Cash Flow	2.82B	2.15B	2.16B	1.79B	1.18B	1.32B
Operating Cash Flow	3.73B	2.81B	2.53B	2.17B	1.54B	1.59B
Investing Cash Flow	-3.42B	-2.65B	-1.39B	-731.10M	-1.89B	-333.50M
Financing Cash Flow	1.60B	1.73B	-1.01B	-1.20B	-145.20M	-516.60M

Amphenol Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 122.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APH, the sentiment is Positive. The current price of 122.22 is above the 20-day moving average (MA) of 120.93, above the 50-day MA of 113.70, and above the 200-day MA of 86.46, indicating a bullish trend. The MACD of 3.12 indicates Positive momentum. The RSI at 59.32 is Neutral, neither overbought nor oversold. The STOCH value of 60.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APH.

Amphenol Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRMN	82 Outperform	$49.61B	31.80	20.73%	1.28%	19.65%	13.58%
APH	81 Outperform	$150.88B	49.73	31.02%	0.54%	40.51%	49.81%
TDY	79 Outperform	$27.30B	32.37	8.72%	―	6.47%	-1.48%
KEYS	74 Outperform	$30.10B	55.23	9.98%	―	4.80%	-39.55%
TEL	72 Outperform	$65.51B	45.77	11.63%	1.23%	4.86%	-56.43%
GLW	71 Outperform	$71.20B	88.00	7.55%	1.34%	14.63%	86.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Amphenol Corporate Events

Amphenol Secures $4 Billion for CommScope Acquisition

On August 22, 2025, Amphenol Corporation secured two unsecured delayed draw term loan credit agreements totaling $4 billion to finance its acquisition of CommScope Holding Company, Inc.’s Connectivity and Cable Solutions business. These loans, which remain undrawn at closing, provide flexible financial support for the acquisition, allowing Amphenol to strengthen its market position in the connectivity and cable solutions sector.

Amphenol Announces Acquisition of CommScope’s CCS Business

On August 4, 2025, Amphenol Corporation announced a definitive agreement to acquire CommScope’s Connectivity and Cable Solutions (CCS) business for $10.5 billion in cash. This acquisition is set to enhance Amphenol’s capabilities in the IT datacom and communications networks markets by adding significant fiber optic interconnect solutions, particularly for artificial intelligence and data center applications. The transaction, expected to close in the first half of 2026, is anticipated to be accretive to Amphenol’s earnings per share in its first full year post-closing and will be financed through cash on hand and debt. The acquisition is expected to generate approximately $3.6 billion in sales and 26% EBITDA margins in 2025, further diversifying Amphenol’s product offerings and strengthening its market position.

Amphenol Issues €600 Million in Senior Notes

On June 16, 2025, Amphenol Corporation issued €600 million in 3.125% Senior Notes due 2032, following a public offering managed by several financial institutions. The proceeds from this issuance, along with those from a prior offering of $750 million in 4.375% Senior Notes due 2028, are intended to repay borrowings under Amphenol’s U.S. commercial paper program and for general corporate purposes, potentially impacting the company’s financial strategy and market positioning.

Amphenol Issues $750M Senior Notes in June 2025

On June 12, 2025, Amphenol Corporation issued $750 million in 4.375% Senior Notes due 2028 through an underwritten public offering. The company also announced the pricing of €600 million in 3.125% Senior Notes due 2032, with the closing expected on June 16, 2025. The proceeds from these offerings will be used to repay borrowings under Amphenol’s U.S. commercial paper program and for general corporate purposes. The issuance of these notes is part of Amphenol’s strategy to manage its debt and financial operations efficiently.

Amphenol Announces €600 Million Senior Notes Pricing

On June 11, 2025, Amphenol Corporation announced the pricing of its €600 million senior notes due 2032, with an interest rate of 3.125% per annum. The closing of this Euro Notes offering is anticipated on June 16, 2025, and the proceeds will be used to repay borrowings and for general corporate purposes. Additionally, on June 9, 2025, Amphenol announced the pricing of $750 million senior notes due 2028, with a 4.375% interest rate, expected to close on June 12, 2025. These offerings are not contingent upon each other, highlighting Amphenol’s strategic financial maneuvers to strengthen its capital structure.

Amphenol Prices $750 Million Senior Notes Offering

On June 9, 2025, Amphenol Corporation announced the pricing of its $750 million senior notes due 2028, with an interest rate of 4.375% per annum. The offering is expected to close on June 12, 2025, subject to customary conditions. The company plans to use the proceeds to repay borrowings under its U.S. commercial paper program and for general corporate purposes. Additionally, Amphenol may offer euro-denominated notes, although the completion of one offering is not contingent on the other. This strategic financial move aims to strengthen Amphenol’s financial flexibility and support its operations across various high-growth markets.