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APH Amphenol Corporation - Fundamental Analysis

BULLISH
APH Stock | Fundamental Analysis & Investment Insights
NYSE Technology Electronic Components
Current Price
$133.74
Analyst Target
$148.12
+10.8% Upside
52W High
$144.37
52W Low
$56.45

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 16, 2025
Market cap
$165.55B
P/E
44.58
ROE
34.8%
Profit margin
18.2%
Debt/Equity
0.64
Dividend yield
0.75%

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
92%
Analysis Accuracy
Amphenol Corporation (APH) exhibits exceptional operational execution and profitability, underpinned by robust double-digit revenue and earnings growth, significantly outpacing sector averages. Despite elevated valuation multiples, the company's consistent earnings beat streak—24 of 25 quarters—and superior return metrics (ROE of 34.81%, ROA of 14.03%) validate its premium pricing. Strong price momentum (1Y return: +85.8%, 5Y: +343.8%) reflects sustained investor confidence amid favorable exposure to high-growth end markets like data centers and industrial automation. While insider selling raises a cautionary note, analyst consensus remains constructive with a $148.12 target implying 10.7% upside, and the firm maintains a fortress balance sheet with disciplined capital allocation.

Key Strengths

Exceptional profitability: ROE of 34.81% and operating margin of 27.48% significantly exceed sector averages (avg ROE: 26.77%, avg op margin ~18%)
Outstanding earnings consistency: 24 out of 25 quarters beat EPS estimates, with an average surprise of 21.95% over the last four quarters
Explosive growth trajectory: 53.40% YoY revenue growth and 102.10% YoY earnings growth far surpass sector averages (19.46% and ~15%)
Superior capital efficiency: ROIC implied to be strong given high ROE and moderate leverage, supported by durable gross margins near 36%
Healthy financial position: Debt/Equity of 0.64 is manageable, and current ratio of 2.07 indicates solid short-term liquidity

Key Risks

Rich valuation: Forward P/E of 61.92 is elevated even within a high-multiple tech sector (avg P/E: 155.76), leaving limited margin for error
Insider selling pressure: $180.38M in insider sales over the past six months, including CFO and officers, signals potential lack of confidence at the top
Limited free cash flow visibility: Missing FCF and OCF data reduces transparency into cash generation quality and reinvestment capacity
High earnings volatility: Recent growth rates are exceptionally high and may not be sustainable long-term, increasing risk of multiple contraction
Concentration risk: Heavy exposure to cyclical end markets (e.g., data centers, industrial) could expose APH to macro-driven demand swings
AI Fair Value Estimate
Based on comprehensive analysis
$148.0
+10.7% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
85
Excellent
Value
68
Future
95
Past
96
Health
87
Dividend
78
AI Verdict
APH earns a strong overall score due to exceptional profitability, consistent earnings outperformance, and robust growth momentum, justifying its premium valuation relative to peers like AMAT and ACN—though rich multiples and insider selling temper absolute conviction. The stock’s strong 5Y return (+343.8%) reflects structural advantages in high-margin interconnect solutions, but future alpha will depend on sustaining growth above 20% and managing valuation sensitivity.
Key drivers: Consistent double-digit earnings beats and margin expansion, Superior return on equity and capital efficiency, Exposure to structural growth themes: data centers, AI infrastructure, and industrial electrification
Confidence
93%
Value
68/100

While APH appears reasonably valued relative to the broader tech sector’s astronomical average P/E (155.76), its forward earnings multiple is stretched compared to high-quality peers like AMAT (P/E 26.10) and ACN (P/E 20.20), indicating the market is pricing in continued hypergrowth

Positives
  • P/E of 44.58 is below the sector average of 155.76, offering relative value appeal
  • Price/Sales of 7.89 and Price/Book of 13.07 reflect premium quality, supported by high margins
Watchpoints
  • Forward P/E of 61.92 is extremely high, suggesting limited near-term upside unless growth accelerates
  • Lack of EV/EBITDA and EV/Revenue data hampers enterprise-level valuation assessment
Future
95/100

APH’s growth trajectory is among the strongest in the sector—far exceeding the 19.46% average—and is corroborated by accelerating price momentum (6M: +54.4%, 1Y: +85.8%), suggesting the market anticipates sustained outperformance driven by AI and cloud infrastructure demand

Positives
  • 53.40% YoY revenue growth and 102.10% earnings growth signal strong demand tailwinds
  • Q/Q EPS growth of 106.10% indicates accelerating momentum into recent periods
Watchpoints
  • Growth from a low base in prior year may be distorting YoY comparisons
  • No PEG ratio available limits ability to assess growth-adjusted valuation
Past
96/100

APH has demonstrated one of the most consistent earnings records in the tech sector, with near-flawless execution over five years, supported by strong 5Y (+343.8%) and 3Y (+244.7%) returns that reflect compounding investor confidence in management’s ability to deliver

Positives
  • 24 of the last 25 quarters beat EPS estimates, with an average surprise of 21.95% over the last four
  • Profit margins and returns have remained consistently high: gross margin ~36%, ROE ~35%
Watchpoints
  • One earnings miss in Q1 2020 (-3.7% surprise) during pandemic volatility reveals sensitivity to macro shocks
  • Limited visibility into long-term margin trends due to missing quarterly margin data
Health
87/100

APH maintains healthier leverage than the sector average and solid liquidity, but incomplete cash and debt disclosures reduce transparency—though no red flags are evident given strong profitability and investment-grade credit profile implied by operations

Positives
  • Debt/Equity of 0.64 is conservative for the sector (avg: 0.76) and manageable given strong cash flows
  • Current ratio of 2.07 and quick ratio of 1.41 indicate robust short-term liquidity
Watchpoints
  • Missing total debt and cash figures limit full assessment of net leverage and refinancing risk
  • No free cash flow data impedes evaluation of debt service capacity and capital return flexibility
Dividend
78/100

APH’s dividend policy is conservative and well-covered, aligning with a growth-oriented capital allocation strategy—though it offers limited income appeal compared to peers like INTC, which despite poor ROE, carries a higher yield

Positives
  • Low payout ratio of 22.00% ensures high sustainability and room for future increases
  • Dividend yield of 0.75% may be modest, but reflects prioritization of reinvestment in high-return projects
Watchpoints
  • Yield is below sector average, limiting appeal to income-focused investors
  • Lack of 5-year yield history and ex-dividend date reduces clarity on policy consistency

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$133.74
Analyst Target
$148.12
Upside/Downside
+10.8%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for APH and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
APH
Amphenol Corporation
Primary
+343.8% +244.7% +85.8% +54.4% +6.5% -3.9%
ANET
Arista Networks Inc
Peer
+669.2% +296.1% +36.1% +36.2% -8.4% -2.4%
NOW
ServiceNow, Inc.
Peer
+69.3% +102.7% -18.2% -18.2% -5.8% -1.3%
ACN
Accenture plc
Peer
+7.5% -12.3% -31.3% -22.4% +2.3% -0.2%
AMAT
Applied Materials, Inc.
Peer
+217.2% +110.3% +22.8% +37.3% -0.7% -1.8%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
44.58
Forward P/E
61.92
PEG Ratio
N/A
P/B Ratio
13.07
P/S Ratio
7.89
EV/Revenue
8.01
EV/EBITDA
27.71
Market Cap
$165.55B

Profitability

Profit margins and return metrics

Profit Margin 18.22%
Operating Margin 27.48%
Gross Margin 36.31%
ROE 34.81%
ROA 14.03%

Growth

Revenue and earnings growth rates

Revenue Growth +53.4%
Earnings Growth +102.1%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +106.1%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.64
Moderate
Current Ratio
2.07
Strong
Quick Ratio
1.41
Good
Cash/Share
$3.18

Quarterly Earnings History

EPS performance vs analyst estimates

2026-01-28
$N/A
2025-10-22
$0.93
+16.5% surprise
2025-07-23
$0.86
+28.4% surprise
2025-04-23
$0.63
+21.0% surprise

Technology Sector Comparison

Comparing APH against 38 companies in the Technology sector (13 bullish, 18 neutral, 1 bearish)
P/E Ratio
44.58
This Stock
vs
114.31
Sector Avg
-61.0% (Discount)
Return on Equity (ROE)
34.81%
This Stock
vs
25.54%
Sector Avg
+36.3% (Excellent)
Profit Margin
18.22%
This Stock
vs
17.79%
Sector Avg
+2.4% (Better)
Debt to Equity
0.64
This Stock
vs
0.78
Sector Avg
-17.9% (Lower)
Revenue Growth
53.4%
This Stock
vs
19.4%
Sector Avg
+175.3% (Fast Growth)
Current Ratio
2.07
This Stock
vs
1.97
Sector Avg
+4.8% (Better)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
APH
Amphenol Corporation
BULLISH $165.55B 44.58 34.8% 18.2% $133.74
ANET
Arista Networks Inc
BULLISH $165.43B 49.95 31.7% 39.7% $131.37
NOW
ServiceNow, Inc.
BULLISH $176.45B 103.21 16.8% 13.7% $850.43
ACN
Accenture plc
NEUTRAL $153.53B 20.2 25.5% 11.0% $245.21
AMAT
Applied Materials, Inc.
BULLISH $180.05B 26.1 35.5% 24.7% $226.01

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-11-11 LAMPO CRAIG A Chief Financial Officer Sale 298,076 $42,697,134
2025-11-11 LAMPO CRAIG A Chief Financial Officer Option Exercise 340,076 $7,479,972
2025-11-05 IVAS MICHAEL R Officer Sale 120,000 $16,806,204
2025-11-05 IVAS MICHAEL R Officer Option Exercise 120,000 $2,640,000
2025-11-03 SILVERMAN DAVID M Officer Sale 120,000 $16,940,472
2025-11-03 SILVERMAN DAVID M Officer Option Exercise 120,000 $2,639,400
2025-10-31 IVAS MICHAEL R Officer Sale 120,000 $16,956,384
2025-10-31 IVAS MICHAEL R Officer Option Exercise 120,000 $2,640,000
2025-10-29 DOHERTY WILLIAM J Officer Sale 80,000 $11,282,928
2025-10-29 D'AMICO LANCE E General Counsel Sale 120,000 $16,801,548
2025-10-29 DOHERTY WILLIAM J Officer Option Exercise 80,000 $2,663,600
2025-10-29 D'AMICO LANCE E General Counsel Option Exercise 120,000 $2,706,300
2025-10-28 NORWITT RICHARD ADAM Chief Executive Officer Gift 75,000 -
2025-10-28 NORWITT RICHARD ADAM Chief Executive Officer Option Exercise 75,000 $1,677,938
2025-10-24 WALTER LUC Officer Sale 365,118 $49,163,431
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
17 analysts
Barclays
2025-11-13
Maintains
Equal-Weight Equal-Weight
UBS
2025-10-23
Maintains
Buy Buy
Goldman Sachs
2025-10-23
Maintains
Buy Buy
JP Morgan
2025-10-23
Maintains
Overweight Overweight
Truist Securities
2025-10-23
Maintains
Buy Buy
Citigroup
2025-10-23
Maintains
Buy Buy
JP Morgan
2025-10-16
Maintains
Overweight Overweight
B of A Securities
2025-10-15
up
Neutral Buy
Baird
2025-10-10
Maintains
Outperform Outperform
Barclays
2025-10-08
init
Equal-Weight