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Amphenol (APH)
NYSE:APH
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Amphenol
(NYSE:APH)75Outperform
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.
Negative Factors
Industrial and Automotive Sectors
The neutral rating is reiterated due to expected muted trends in industrial and automotive sectors.
Amphenol (APH) vs. S&P 500 (SPY)
Market Cap
$76.36B
Dividend Yield0.87%
Average Volume (3M)8.60M
Price to Earnings (P/E)32.9
Beta (1Y)1.52
Revenue Growth21.25%
EPS Growth24.59%
CountryUS
Employees125,000
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)1.92
Shares Outstanding1,211,081,000
10 Day Avg. Volume8,559,200
30 Day Avg. Volume8,600,555
Financial Highlights & Ratios
PEG Ratio1.34
Price to Book (P/B)N/A
Price to Sales (P/S)5.05
Price to Cash Flow (P/CF)22.70
P/FCF Ratio29.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$87.33Price Target Upside34.96% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Amphenol Business Overview & Revenue Model
Company DescriptionConnecticut-based Amphenol Corp. designs, manufactures, and markets electrical, electronic, and fiber optic connectors. It operates through two segments: Interconnect Products and Assemblies; and Cable Products and Solutions.
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 Financial Statement Overview
Summary
Amphenol shows strong financial performance with a revenue growth rate of 21.3%, robust profitability, and high margins. The balance sheet is solid with low leverage and high ROE, though past debt levels warrant caution. Cash flow is healthy, indicating good cash generation and management.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.85
Very Positive
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.78
Positive
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.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 11.93B | 15.22B | 12.55B | 12.62B | 10.88B | 8.60B | Gross Profit |
| 3.76B | 5.14B | 4.08B | 4.03B | 3.40B | 2.66B | EBIT |
| 2.40B | 3.16B | 2.56B | 2.59B | 2.11B | 1.64B | EBITDA |
| 2.80B | 3.88B | 3.00B | 2.99B | 2.50B | 1.95B | Net Income Common Stockholders |
| 1.79B | 2.42B | 1.93B | 1.90B | 1.59B | 1.20B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.50B | 3.34B | 1.66B | 1.43B | 1.24B | 1.74B | Total Assets |
| 15.38B | 21.44B | 16.53B | 15.33B | 14.68B | 12.33B | Total Debt |
| 4.56B | 6.89B | 4.34B | 4.58B | 4.80B | 3.87B | Net Debt |
| 3.17B | 3.57B | 2.86B | 3.20B | 3.60B | 2.16B | Total Liabilities |
| 8.00B | 11.58B | 8.10B | 8.23B | 8.30B | 6.88B | Stockholders Equity |
| 7.31B | 9.79B | 8.35B | 7.02B | 6.30B | 5.38B |
| Cash Flow | Free Cash Flow | ||||
| 1.38B | 2.81B | 2.16B | 1.79B | 1.18B | 1.32B | Operating Cash Flow |
| 1.72B | 2.81B | 2.53B | 2.17B | 1.54B | 1.59B | Investing Cash Flow |
| -540.10M | -2.65B | -1.39B | -731.10M | -1.89B | -333.50M | Financing Cash Flow |
| -1.20B | 1.73B | -1.01B | -1.20B | -145.20M | -516.60M |
Amphenol Technical Analysis
Negative
64.71
Price Trends
69.75
Negative
70.18
Negative
67.66
Negative
Market Momentum
-1.73
Positive
40.08
Neutral
21.13
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 64.71 is below the 20-day moving average (MA) of 67.83, below the 50-day MA of 69.75, and below the 200-day MA of 67.66, indicating a bearish trend. The MACD of -1.73 indicates Positive momentum. The RSI at 40.08 is Neutral, neither overbought nor oversold. The STOCH value of 21.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 0 New Risks
Amphenol Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $44.17B | 23.63 | 15.02% | 1.76% | -1.09% | -40.55% | |
75 Outperform | $76.36B | 32.87 | 24.75% | 0.87% | 21.25% | 24.59% | |
74 Outperform | $112.18B | 72.13 | 4.43% | 1.63% | -19.28% | -44.00% | |
70 Outperform | $177.37B | 37.50 | 28.25% | 2.73% | -10.72% | -26.60% | |
68 Neutral | $31.27B | 102.52 | 4.71% | 3.12% | -44.31% | -86.74% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
45 Neutral | $1.12B | ― | -40.78% | ― | -48.00% | -227.62% |
* Technology Sector Average
Performance Comparison
APH
Amphenol
64.71
9.92
18.11%
ADI
Analog Devices
229.47
40.90
21.69%
MXL
Maxlinear
13.32
-6.97
-34.35%
MCHP
Microchip
59.64
-26.04
-30.39%
TEL
TE Connectivity
150.78
11.77
8.47%
TXN
Texas Instruments
195.57
28.38
16.97%
Amphenol Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -11.01% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
Amphenol's Q4 2024 earnings call highlighted strong financial performance with record sales, revenue, and operating margins. The company showed significant growth in various segments, particularly Communications Solutions, and maintained a robust acquisition strategy. However, there were challenges in the automotive and European industrial markets, and the dilutive impact of recent acquisitions on margins was noted. Overall, the positives significantly outweighed the challenges, reflecting a strong market position and growth potential.Highlights
Record Sales and Revenue Growth
Amphenol reported record sales of $4.318 billion in Q4 2024, with a 30% increase in U.S. dollars and local currencies and a 20% organic growth compared to Q4 2023. Full year 2024 sales reached $15.223 billion, up 21% in U.S. dollars and local currencies, and 13% organically.
Strong Order Book and Book-to-Bill Ratio
Orders in Q4 2024 were a record $5.14 billion, up 58% from the previous year and 14% sequentially, resulting in a strong book-to-bill ratio of 1.16:1. Full year orders were $16.835 billion, up 37% from 2023, with a book-to-bill ratio of 1.11:1.
Record Operating Margins
Adjusted operating margin for Q4 2024 was a record 22.4%, up 120 basis points year-over-year and 50 basis points sequentially. Full year adjusted operating margin was also a record at 21.7%, up 100 basis points from 2023.
Significant Growth in Communications Solutions Segment
Sales in the Communications Solutions segment increased by 43% in Q4 2024 in U.S. dollars and 42% organically, with a segment operating margin of 26%.
Successful Acquisition Strategy
Completed the acquisition of Carlisle Interconnect Technologies and Lutze, adding over $1 billion in annualized sales. The acquisition of the Andrew businesses from CommScope is expected to close in Q1 2025.
Lowlights
Decline in Automotive Market Sales
Sales in the automotive market were down 3% in Q4 2024 in U.S. dollars and local currencies, primarily due to reduced demand from European customers.
Challenges in European Industrial Market
Organic sales in the industrial market declined by 2% for the full year 2024, with specific weakness in the European sector impacting overall performance.
Dilutive Impact of Acquisitions on Margins
Although acquisitions like CIT have added substantial sales, they remain under the company average margins, creating a dilutive effect on overall conversion margins.
Company Guidance
During the fourth quarter earnings call for Amphenol Corporation, key guidance metrics were provided. The company reported record sales of $4.318 billion for Q4 2024, reflecting a 30% increase in U.S. dollars and local currencies, and a 20% organic growth compared to Q4 2023. The GAAP and adjusted diluted EPS stood at $0.59 and $0.55, respectively. For the full year 2024, sales reached $15.223 billion, marking a 21% increase year-over-year, with organic growth at 13%. Orders for the quarter hit a record $5.14 billion, resulting in a strong book-to-bill ratio of 1.16:1, whereas the full year saw orders totaling $16.835 billion with a book-to-bill ratio of 1.11:1. The GAAP operating income for the quarter was $954 million, with an operating margin of 22.1%, and adjusted operating income was $966 million, yielding a record adjusted operating margin of 22.4%. The guidance for the first quarter of 2025 anticipates sales between $4 billion to $4.1 billion and an adjusted diluted EPS between $0.49 and $0.51, aligning with anticipated growth driven by strong market demand, particularly in AI-related applications.Amphenol Corporate Events
M&A TransactionsBusiness Operations and Strategy
Amphenol Bolsters Market Position with Strategic Acquisitions
Positive
Feb 3, 2025
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.
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.