Amphenol Corporation
Amphenol Corporation Fundamental Analysis
Amphenol Corporation (APH) shows moderate financial fundamentals with a PE ratio of 43.36, profit margin of 18.49%, and ROE of 35.77%. The company generates $23.2B in annual revenue with strong year-over-year growth of 21.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze APH's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAPH demonstrates superior asset utilization.
Valuation Score
WeakAPH trades at a premium to fair value.
Growth Score
ExcellentAPH delivers strong and consistent growth momentum.
Financial Health Score
ModerateAPH shows balanced financial health with some risks.
Profitability Score
ExcellentAPH achieves industry-leading margins.
Key Financial Metrics
Is APH Expensive or Cheap?
P/E Ratio
APH trades at 43.36 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, APH's PEG of 3.79 indicates potential overvaluation.
Price to Book
The market values Amphenol Corporation at 13.80 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.31 times EBITDA. This signals the market has high growth expectations.
How Well Does APH Make Money?
Net Profit Margin
For every $100 in sales, Amphenol Corporation keeps $18.49 as profit after all expenses.
Operating Margin
Core operations generate 25.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $35.77 in profit for every $100 of shareholder equity.
ROA
Amphenol Corporation generates $11.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Amphenol Corporation produces operating cash flow of $5.39B, showing steady but balanced cash generation.
Free Cash Flow
Amphenol Corporation generates strong free cash flow of $4.39B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.57 in free cash annually.
FCF Yield
APH converts 2.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
13.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.36
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How APH Stacks Against Its Sector Peers
| Metric | APH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.36 | 35.19 | Worse (Expensive) |
| ROE | 35.77% | 1155.00% | Weak |
| Net Margin | 18.49% | -127067.00% (disorted) | Strong |
| Debt/Equity | 1.16 | 0.41 | Weak (High Leverage) |
| Current Ratio | 2.98 | 4.71 | Strong Liquidity |
| ROA | 11.78% | -314918.00% (disorted) | Strong |
APH outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Amphenol Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
82.95%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
107.46%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
85.21%
Industry Style: Growth, Innovation, High Beta
High Growth