Amphenol logged a -8.2% change during today's morning session, and is now trading at a price of $61.91 per share.
Amphenol returned gains of 40.8% last year, with its stock price reaching a high of $70.84 and a low of $39.34. Over the same period, the stock outperformed the S&P 500 index by 17.0%. More recently, the company's 50-day average price was $65.55. Amphenol Corporation, together with its subsidiaries, primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors in the United States, China, and internationally. Based in Wallingford, CT, the Large-Cap Technology company has 95,000 full time employees. Amphenol has offered a 0.6% dividend yield over the last 12 months.
Growing Revenues but Similar Gross Margins to the Industry Average of 32.03%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $8,202 | $8,225 | $8,599 | $10,876 | $12,623 | $12,555 |
| Gross Margins | 32% | 32% | 31% | 31% | 32% | 33% |
| Net Margins | 15% | 14% | 14% | 15% | 15% | 15% |
| Net Income (M) | $1,205 | $1,155 | $1,203 | $1,591 | $1,902 | $1,928 |
| Net Interest Expense (M) | $102 | $118 | $115 | $116 | $128 | $140 |
| Depreciation & Amort. (M) | $248 | $240 | $253 | $303 | $306 | $314 |
| Diluted Shares (M) | 625 | 616 | 615 | 626 | 621 | 621 |
| Earnings Per Share | $1.93 | $1.88 | $1.96 | $2.54 | $3.06 | $3.11 |
| EPS Growth | n/a | -2.59% | 4.26% | 29.59% | 20.47% | 1.63% |
| Avg. Price | $42.04 | $45.37 | $49.87 | $70.07 | $71.89 | $61.91 |
| P/E Ratio | 21.34 | 23.39 | 24.69 | 26.34 | 22.61 | 19.11 |
| Free Cash Flow (M) | $802 | $1,207 | $1,315 | $1,180 | $1,791 | $2,156 |
| CAPEX (M) | $311 | $295 | $277 | $360 | $384 | $373 |
| EV / EBITDA | 15.74 | 17.52 | 18.67 | 20.92 | 17.58 | 15.07 |
| Total Debt (M) | $6,046 | $6,407 | $7,272 | $9,592 | $9,150 | $7,967 |
| Net Debt / EBITDA | 2.46 | 2.97 | 2.95 | 3.49 | 2.69 | 2.26 |
| Current Ratio | 1.86 | 1.97 | 2.38 | 2.43 | 2.42 | 2.17 |
Amphenol benefits from growing revenues and increasing reinvestment in the business, generally positive cash flows, and an excellent current ratio of 2.17. The company's financial statements show positive EPS growth and healthy leverage levels. Furthermore, Amphenol has similar gross margins to its peers.
Amphenol's Valuation Is in Line With Its Sector Averages:
Amphenol has a trailing twelve month P/E ratio of 39.0, compared to an average of 31.58 for the Technology sector. Based on its EPS guidance of $2.06, the company has a forward P/E ratio of 31.8. The 0.9% compound average growth rate of Amphenol's historical and projected earnings per share yields a PEG ratio of 41.71. This suggests that these shares are overvalued. Furthermore, Amphenol is likely overvalued compared to the book value of its equity, since its P/B ratio of 8.3 is higher than the sector average of 4.11. The company's shares are currently trading 101.8% below their Graham number. Ultimately, Amphenol's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Amphenol Has an Analyst Consensus of Some Upside Potential:
The 16 analysts following Amphenol have set target prices ranging from $60.0 to $82.0 per share, for an average of $73.29 with a buy rating. The company is trading -15.5% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Amphenol has a very low short interest because 1.0% of the company's shares are sold short. Institutions own 96.9% of the company's shares, and the insider ownership rate stands at 0.52%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $9,214,700,597.
