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Why AMPHENOL CORP-CL A (NYSE:APH) qualifies as a quality stock.

By Mill Chart

Last update: Dec 5, 2023

In this article we will dive into AMPHENOL CORP-CL A (NYSE:APH) as a possible candidate for quality investing. Investors should always do their own research, but we noticed AMPHENOL CORP-CL A showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NYSE:APH may be interesting for quality investors.

  • AMPHENOL CORP-CL A has demonstrated significant revenue growth over the past 5 years, with a 12.48% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • The ROIC excluding cash and goodwill of AMPHENOL CORP-CL A stands at 53.05%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • With a favorable Debt/Free Cash Flow Ratio of 2.11, AMPHENOL CORP-CL A showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a favorable Profit Quality (5-year) ratio of 89.74%, AMPHENOL CORP-CL A showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • AMPHENOL CORP-CL A has experienced impressive EBIT growth over the past 5 years, with 12.74% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • AMPHENOL CORP-CL A has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to APH. APH was compared to 126 industry peers in the Electronic Equipment, Instruments & Components industry. APH gets an excellent profitability rating and is at the same time showing great financial health properties. APH is quite expensive at the moment. It does show a decent growth rate.

Check the latest full fundamental report of APH for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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