Strong Price-to-Earnings (P/E) Ratio
Healthy Price-to-Sales Ratio
Strong Return on Equity
Good Operating Margin
Strong Liquidity Position
Low Debt Levels
Record Financial Performance
Strong Operating Margins
Diverse Market Exposure
Strong Demand for AI Applications
Upcoming Acquisitions
High Price-to-Cash Flow Ratio
Elevated Enterprise Value Ratios
Moderate Net Profit Margin
Moderate Debt-to-Assets Ratio
Potential Market Volatility
Amphenol demonstrates strong business quality through record financial performance, strong operating margins, and a diverse market presence. Future prospects appear positive, particularly with the growth of AI applications and upcoming acquisitions, though there are concerns about market volatility in certain sectors.
Analysis Date: January 22, 2025
Last Updated: March 11, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$77.27
Current Market Price: $56.57
IV/P Ratio: 1.37x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
27.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for APH
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (29.44)
P/B ratio ≤ 1.5 (7.29)
Current ratio ≥ 2.0 (2.37x)
Long-term debt < Net current assets (1.16x)
Margin of safety (27.0%)
APH does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
A return on equity of 26.27% reflects effective management in generating profits from shareholders' equity.
An operating profit margin of 21.20% indicates that the company retains a solid portion of its revenue as operating profit.
The net profit margin of 15.92% is decent but could be improved to enhance overall profitability.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
26.27%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
3.48%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
33.76%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
15.92%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
With a current ratio of 2.37 and a quick ratio of 1.75, the company demonstrates strong short-term liquidity, suggesting it can easily meet its short-term obligations.
A debt-to-equity ratio of 0.70 indicates a relatively low level of debt compared to equity, showing financial stability.
The debt-to-assets ratio of 32.12% suggests a moderate use of leverage, which could be a concern in economic downturns.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.70x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
2.37x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Amphenol reported record sales of $4.318 billion for Q4 2024, which is a 30% increase year-over-year, reflecting strong demand across multiple segments. The full-year sales reached $15.223 billion, up 21% in US dollars, indicating robust revenue growth.
The company achieved a record GAAP operating margin of 22.1% in Q4 2024, with adjusted operating margin reaching 22.4%. This reflects strong operational performance and effective cost management.
Amphenol's diversified market presence across defense, automotive, IT datacom, and industrial sectors mitigates risks associated with economic fluctuations. This is exemplified by strong growth in defense and IT datacom markets, especially related to AI applications.
Amphenol is witnessing significant demand for its products used in AI applications, with expectations for continued growth in this area. The company has a strong position in the IT datacom market, which is critical for AI infrastructure.
The pending acquisition of the Andrew business from CommScope is expected to strengthen Amphenol's position in the global communications market and add valuable technologies and teams.
Concerns remain regarding the European industrial market and its recovery, which could impact overall growth. The automotive market also faces uncertainties, particularly in Europe.