Amphenol (APH) AI Stock Analysis

• Market Cap: $80.20B
• Dividend Yield: 0.91%
• Average Volume (3M): 9.34M
• Price to Earnings (P/E): 34.5
• Beta (1Y): 1.49
• Revenue Growth: 21.25%
• EPS Growth: 24.59%
• Country: US
• Employees: 125,000
• Sector: Technology
• Sector Strength: 40
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.92
• Shares Outstanding: 1,211,783,300
• 10 Day Avg. Volume: 10,534,167
• 30 Day Avg. Volume: 9,341,728
• PEG Ratio: 1.40
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.30
• Price to Cash Flow (P/CF): 23.80
• P/FCF Ratio: 31.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $82.33
• Price Target Upside: 28.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Amphenol demonstrates strong financial performance with robust growth and profitability. The technical analysis provides mixed signals, and the valuation suggests a potentially overvalued stock. The positive earnings call and strategic acquisitions signal future growth potential. The overall score reflects these strengths, balanced by valuation concerns.

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, forecast for 2025 revenue growth is +21% y/y.

Negative Factors

Sector Trends

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

Technological Displacement

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's financial performance is strong, driven by robust revenue growth, high profitability margins, and efficient cash flow management. The balance sheet shows low leverage with a solid equity base, though cautious debt management is advised. Overall, the company is financially stable and competitive.

Income Statement

Amphenol demonstrates robust financial performance with a significant revenue growth rate of approximately 21.3% from the previous year. The company maintains strong profitability, evidenced by a gross profit margin of 33.8% and a net profit margin of 15.9% for the TTM. EBIT and EBITDA margins are also healthy at 21.2% and 23.9%, respectively. The consistent growth and high margins indicate strong operational efficiency and market position.

Balance Sheet

The balance sheet reflects a solid financial structure with a low debt-to-equity ratio of 0.04, indicating minimal leverage and a strong equity base. The return on equity (ROE) is impressive at 24.8%, showcasing effective utilization of shareholders' funds to generate profits. The equity ratio stands at 45.7%, further highlighting financial stability. However, the relatively high total debt in previous years suggests the need for cautious debt management.

Cash Flow

Amphenol's cash flow analysis reveals a healthy operating cash flow to net income ratio of 1.16, indicating effective cash generation from operations. The free cash flow growth rate appears stable, with a marginal decrease compared to the previous year. The free cash flow to net income ratio of 0.89 suggests efficient cash flow management, though continued monitoring of capital expenditures is advised.

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
3.88B	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
2.81B	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: Negative
• Last Price: 64.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APH, the sentiment is Negative. The current price of 64.13 is below the 20-day moving average (MA) of 65.22, below the 50-day MA of 66.21, and below the 200-day MA of 67.20, indicating a bearish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 35.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APH.

Amphenol Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRMN	81 Outperform	$37.08B	26.39	19.00%	1.56%	20.44%	9.05%
APH	76 Outperform	$80.20B	34.50	26.73%	0.91%	21.25%	24.59%
FTV	73 Outperform	$23.06B	28.70	8.12%	0.51%	2.75%	-2.90%
TEL	71 Outperform	$39.94B	21.37	15.02%	2.13%	-1.09%	-40.55%
KEYS	66 Neutral	$24.63B	40.81	12.22%	―	-6.07%	-35.80%
GLW	63 Neutral	$37.06B	74.29	4.55%	2.59%	4.21%	-13.56%
Sector *	57 Neutral	$20.24B	9.51	-13.28%	2.72%	5.43%	-24.54%

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.