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Amphenol (APH)
NYSE:APH

Amphenol (APH) AI Stock Analysis

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AP

Amphenol

(NYSE:APH)

Rating:81Outperform
Price Target:
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
AI Business Growth
Amphenol's AI business is estimated to grow nearly 200%, multiples higher than the related businesses of key customers.
Revenue and Orders
Amphenol managed to calm down investor worries around AI with an earnings report highlighting record orders in excess of $5 billion, helped by AI orders.
Strategic Acquisitions
The acquisition of Lifesync Corp is expected to generate significant sales, providing interconnect products for medical applications.
Negative Factors
Competitive Pressures
Comps are getting increasingly challenging, indicating rising competitive pressures.
Sector Performance
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 (APH) vs. SPDR S&P 500 ETF (SPY)

Amphenol Business Overview & Revenue Model

Company DescriptionAmphenol 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 MoneyAmphenol 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Sales Channel
Revenue by Sales Channel
Analyzes sales through different channels, such as direct sales or distributors, to understand distribution strategy and customer reach.
Chart InsightsAmphenol's revenue from both end customers and distributors has surged significantly in 2024, driven by record sales and strong market demand, particularly in AI-related applications. The earnings call highlights robust growth in the Communications Solutions segment and a successful acquisition strategy, despite challenges in the automotive and European industrial markets. The company's strategic focus on high-demand sectors and acquisitions is fueling this upward trajectory, positioning Amphenol for continued expansion despite some margin pressures from recent acquisitions.
Data provided by:Main Street Data

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
85
Very Positive
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
78
Positive
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
82
Very Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
16.78B15.22B12.55B12.62B10.88B8.60B
Gross Profit
5.69B5.14B4.08B4.03B3.40B2.66B
EBIT
3.57B3.16B2.56B2.59B2.11B1.64B
EBITDA
4.26B3.80B3.00B2.99B2.50B1.95B
Net Income Common Stockholders
2.61B2.42B1.93B1.90B1.59B1.20B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.96B3.34B1.66B1.43B1.24B1.74B
Total Assets
16.72B21.44B16.53B15.33B14.68B12.33B
Total Debt
4.31B6.89B4.34B4.58B4.80B3.87B
Net Debt
2.45B3.57B2.86B3.20B3.60B2.16B
Total Liabilities
7.96B11.58B8.10B8.23B8.30B6.88B
Stockholders Equity
8.68B9.79B8.35B7.02B6.30B5.38B
Cash FlowFree Cash Flow
2.22B2.15B2.16B1.79B1.18B1.32B
Operating Cash Flow
2.98B2.81B2.53B2.17B1.54B1.59B
Investing Cash Flow
-4.98B-2.65B-1.39B-731.10M-1.89B-333.50M
Financing Cash Flow
1.81B1.73B-1.01B-1.20B-145.20M-516.60M

Amphenol Technical Analysis

Technical Analysis Sentiment
Positive
Last Price85.69
Price Trends
50DMA
71.71
Positive
100DMA
70.29
Positive
200DMA
68.79
Positive
Market Momentum
MACD
4.52
Negative
RSI
73.53
Negative
STOCH
86.96
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 85.69 is above the 20-day moving average (MA) of 81.50, above the 50-day MA of 71.71, and above the 200-day MA of 68.79, indicating a bullish trend. The MACD of 4.52 indicates Negative momentum. The RSI at 73.53 is Negative, neither overbought nor oversold. The STOCH value of 86.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APH.

Amphenol Risk Analysis

Amphenol disclosed 22 risk factors in its most recent earnings report. Amphenol reported the most risks in the “Macro & Political” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
The Company is dependent on end market dynamics to sell its products, and some of the Company's end markets are subject to cyclical and at times rapid periods of reduced demand. Q4, 2024

Amphenol Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
APAPH
81
Outperform
$104.52B41.8727.53%0.70%30.70%27.09%
78
Outperform
$28.13B38.1214.30%-1.16%-7.04%
77
Outperform
$39.45B26.9919.04%1.47%18.08%7.28%
TETEL
76
Outperform
$48.30B35.7011.33%1.60%1.23%-58.22%
FTFTV
72
Outperform
$24.68B31.887.70%0.44%0.85%-10.01%
GLGLW
69
Neutral
$41.09B91.814.14%2.33%9.77%-26.50%
60
Neutral
$11.56B10.24-7.04%2.94%7.46%-10.54%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
APH
Amphenol
85.69
19.01
28.51%
GLW
Corning
48.18
12.54
35.19%
GRMN
Garmin
200.74
41.24
25.86%
TEL
TE Connectivity
159.51
11.08
7.46%
KEYS
Keysight Technologies
162.47
14.99
10.16%
FTV
Fortive
70.10
-6.65
-8.66%

Amphenol Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q1-2025)
|
% Change Since: 30.33%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
Amphenol Corporation delivered a strong performance in Q1 2025 with record sales and operating margins, driven by robust growth in the IT datacom and defense markets. Despite challenges in the commercial aerospace and automotive sectors, the company's diversification and successful acquisitions bolster its market position. However, potential impacts from tariffs and continued struggles in the factory automation market pose risks.
Q1-2025 Updates
Positive Updates
Record Sales and Growth
Amphenol Corporation achieved record sales of $4,811 million in Q1 2025, up 48% in U.S. dollars and 33% organically compared to Q1 2024. Orders reached a record $5,292 million, up 58% from the prior year.
Strong Operating Margins
The company reported a record adjusted operating margin of 23.5%, up 250 basis points from the prior year quarter, driven by strong operating leverage.
Acquisition of Andrew and LifeSync
Amphenol completed the acquisition of the Andrew Business from CommScope and LifeSync, expanding its portfolio and contributing to expected earnings accretion.
IT Datacom Market Performance
Amphenol's IT datacom market sales grew by 133% year-over-year and 34% sequentially, driven by demand for AI-related products.
Defense Market Growth
Sales in the defense market grew 21% year-over-year, driven by broad-based growth across all segments and geographies.
Negative Updates
Commercial Aerospace Market Challenges
Sales in the commercial aerospace market declined 3% organically from the prior year, impacted by moderation in procurement volumes from jetliner customers.
Flat Automotive Market
Automotive sales were slightly down by 2% year-over-year, with growth in North America and Asia more than offset by declines in Europe.
Factory Automation Market Struggles
The factory automation segment within the industrial market continued to face challenges, particularly in Europe, where demand remained uncertain.
Potential Tariff Impacts
The company faces potential impacts from tariffs, which could exert pressure on pricing and margins in upcoming quarters.
Company Guidance
During the First Quarter 2025 earnings call for Amphenol Corporation, the company provided robust financial guidance, reflecting strong performance across various metrics. The company reported record sales of $4,811 million, marking a 48% increase in U.S. dollars and 33% organic growth compared to the prior year. Orders reached a record $5,292 million, resulting in a book-to-bill ratio of 1.1 to 1. GAAP operating income was $1,025 million with a GAAP operating margin of 21.3%, while adjusted operating income was $1,130 million, leading to a record adjusted operating margin of 23.5%. The adjusted diluted EPS increased by 58% to $0.63. Operating cash flow was $765 million, and free cash flow was $580 million. The company also repurchased 2.7 million shares of common stock, returning approximately $380 million to shareholders. For the second quarter, Amphenol expects sales between $4,900 million and $5 billion, with an adjusted diluted EPS range of $0.64 to $0.66, indicating a year-over-year growth of 36% to 39% in sales and 45% to 50% in adjusted EPS.

Amphenol Corporate Events

Executive/Board ChangesShareholder Meetings
Amphenol Increases Authorized Shares to 5 Billion
Neutral
May 16, 2025

On May 15, 2025, Amphenol Corporation’s stockholders approved an amendment to increase the number of authorized shares of Class A Common Stock from 2 billion to 5 billion. This amendment became effective upon filing with the Secretary of State of Delaware on the same day. During the annual meeting, stockholders also elected directors, ratified Deloitte & Touche LLP as independent accountants, approved executive compensation, and rejected a proposal for special shareholder meeting improvements.

The most recent analyst rating on (APH) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Amphenol stock, see the APH Stock Forecast page.

Executive/Board Changes
Amphenol Appoints New Principal Accounting Officer
Neutral
May 14, 2025

On May 8, 2025, Amphenol Corporation appointed Michael R. Ivas as the principal accounting officer, succeeding Craig A. Lampo, who remains the Chief Financial Officer. Mr. Ivas, who has been with the company since 2001, brings extensive experience from his previous roles within Amphenol and his earlier career at PricewaterhouseCoopers, enhancing the company’s financial leadership.

The most recent analyst rating on (APH) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Amphenol stock, see the APH Stock Forecast page.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.