Amphenol (APH) AI Stock Analysis

• Market Cap: $97.57B
• Dividend Yield: 0.75%
• Average Volume (3M): 9.29M
• Price to Earnings (P/E): 39.1
• Beta (1Y): 1.61
• Revenue Growth: 30.70%
• EPS Growth: 27.09%
• Country: US
• Employees: 125,000
• Sector: Technology
• Sector Strength: 67
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.63
• Shares Outstanding: 1,209,599,100
• 10 Day Avg. Volume: 9,659,355
• 30 Day Avg. Volume: 9,285,155
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 17.24
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $83.63
• Price Target Upside: 4.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Amphenol's strong financial performance, robust earnings call, and positive technical indicators support a solid stock score. The company's strategic acquisitions and diversified market presence further enhance its outlook. However, the high P/E ratio suggests potential overvaluation risks, offsetting some of the strengths.

Positive Factors

Acquisitions

The acquisition of Lifesync Corp is expected to generate significant sales, providing interconnect products for medical applications.

AI growth

Strong AI growth continued to contribute significantly to outperformance, with IT & Datacom tracked to a robust growth driven by AI-related demand.

Revenue growth

Led by the modestly stronger momentum across the cyclical end-markets and better momentum in AI revenues to start the year, we now forecast 2025 revenue growth for +21% y/y.

Negative Factors

Competitive challenges

Comps are getting increasingly challenging.

Market trends

The neutral rating is reiterated due to expected muted trends in industrial and automotive sectors.

Technological risks

Analyst expects near-term trends to be muted in industrial & auto offset by strength in IT datacom where there continues to be risk of technological displacement.

Amphenol Business Overview & Revenue Model

Company Description

Amphenol Corporation (APH) is a leading global provider of advanced technology interconnect, sensor, and antenna solutions. The company operates across various sectors including automotive, broadband communications, commercial aerospace, industrial, information technology and data communications, military, mobile devices, and mobile networks. Amphenol's core products include connectors, cable assemblies, sensors, and antennas, which are critical components used in a wide range of electronic devices and systems.

How the Company Makes Money

Amphenol makes money through the design, manufacture, and sale of high-performance interconnect and sensor products across diverse end markets. The company's revenue model is primarily driven by the sale of its products to original equipment manufacturers (OEMs), contract manufacturers, and distributors worldwide. Key revenue streams include sales within the automotive, broadband communications, and industrial sectors, which account for significant portions of its overall earnings. Amphenol also leverages strategic partnerships and acquisitions to expand its product offerings and market reach, contributing to its financial performance. The company's focus on innovation and customization allows it to meet specific customer needs, maintaining its competitive edge and sustaining revenue growth.

Amphenol Financial Statement Overview

Summary

Amphenol presents a robust financial profile with strong revenue growth, profitability, and efficient cash flow management. The balance sheet is healthy with low leverage and high returns on equity, though future flexibility could be constrained by low debt. Overall, the company is well-positioned in its industry with effective capital management and sustained growth trajectory.

Income Statement

Amphenol's income statement indicates strong profitability with a consistent increase in revenue and net income over the years. The TTM data shows a gross profit margin of 33.93% and a net profit margin of 15.57%, which are solid figures in the industry. EBIT and EBITDA margins are also healthy at 21.26% and 23.90% respectively. The revenue growth rate from the previous year is 10.19%, pointing to robust business expansion.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.034, indicating low financial leverage. The return on equity is impressive at 25.37%, suggesting efficient use of equity capital. The equity ratio stands at 44.97%, showcasing a stable financial structure. Despite the strong equity position, the low debt levels could imply limited financial flexibility.

Cash Flow

Amphenol's cash flow statement reveals strong cash generation capabilities. The operating cash flow to net income ratio is 1.14, and the free cash flow to net income ratio is 0.85, indicating efficient conversion of earnings to cash. However, the free cash flow growth rate has declined, which could be a point of concern if it continues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.22B	12.55B	12.62B	10.88B	8.60B
	Gross Profit
5.14B	4.08B	4.03B	3.40B	2.66B
	EBIT
3.16B	2.56B	2.59B	2.11B	1.64B
	EBITDA
3.80B	3.00B	2.99B	2.50B	1.95B
	Net Income Common Stockholders
2.42B	1.93B	1.90B	1.59B	1.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.34B	1.66B	1.43B	1.24B	1.74B
	Total Assets
21.44B	16.53B	15.33B	14.68B	12.33B
	Total Debt
6.89B	4.34B	4.58B	4.80B	3.87B
	Net Debt
3.57B	2.86B	3.20B	3.60B	2.16B
	Total Liabilities
11.58B	8.10B	8.23B	8.30B	6.88B
	Stockholders Equity
9.79B	8.35B	7.02B	6.30B	5.38B
Cash Flow		Free Cash Flow
2.15B	2.16B	1.79B	1.18B	1.32B
	Operating Cash Flow
2.81B	2.53B	2.17B	1.54B	1.59B
	Investing Cash Flow
-2.65B	-1.39B	-731.10M	-1.89B	-333.50M
	Financing Cash Flow
1.73B	-1.01B	-1.20B	-145.20M	-516.60M

Amphenol Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 79.71 is above the 20-day moving average (MA) of 70.89, above the 50-day MA of 67.14, and above the 200-day MA of 67.59, indicating a bullish trend. The MACD of 3.90 indicates Negative momentum. The RSI at 70.94 is Negative, neither overbought nor oversold. The STOCH value of 92.37 is Negative, 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
APH	81 Outperform	$97.57B	39.09	27.53%	0.75%	30.70%	27.09%
GRMN	76 Outperform	$36.93B	25.26	19.04%	1.56%	18.08%	7.28%
TEL	76 Outperform	$44.05B	32.84	11.33%	1.74%	1.23%	-58.22%
FTV	72 Outperform	$22.96B	29.66	7.70%	0.47%	0.85%	-10.01%
KEYS	71 Outperform	$25.32B	41.96	12.22%	―	-6.07%	-35.80%
GLW	69 Neutral	$39.21B	87.56	4.14%	2.47%	9.77%	-26.50%
Sector *	60 Neutral	$10.93B	10.46	-6.70%	2.99%	7.54%	-12.22%

Amphenol Corporate Events

Amphenol Bolsters Market Position with Strategic Acquisitions

On February 3, 2025, Amphenol Corporation announced the completion of its acquisition of CommScope’s Outdoor Wireless Networks and Distributed Antenna Systems businesses. This acquisition is expected to add $1.3 billion in sales for 2025 and increase Amphenol’s earnings per share by $0.06, excluding acquisition-related expenses. Additionally, Amphenol acquired Lifesync Corporation, a provider of interconnect products for medical applications, which will be part of its Harsh Environment Solutions Segment. These strategic acquisitions are aimed at enhancing Amphenol’s technological capabilities in communications networks and medical applications, potentially strengthening its market position and benefiting stakeholders.