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AMPHENOL CORP-CL A (NYSE:APH) – A Quality Stock with Strong Fundamentals

By Mill Chart

Last update: Jun 3, 2025

AMPHENOL CORP-CL A (NYSE:APH) was identified by our Caviar Cruise screen as a potential candidate for quality investors. The company demonstrates strong revenue and profit growth, high returns on capital, and solid financial health—key traits sought by long-term investors. Below, we examine why APH fits the criteria for a quality investment.

AMPHENOL stock chart

Key Strengths of AMPHENOL

  • Revenue and EBIT Growth – APH has delivered a 5-year revenue CAGR of 10.2%, while EBIT growth has been even stronger at 14.8%, indicating improving profitability.
  • High Return on Invested Capital (ROIC) – With an ROIC (excluding cash and goodwill) of 54.8%, the company efficiently generates profits from its capital investments.
  • Strong Free Cash Flow Conversion – APH’s 5-year average profit quality (FCF/Net Income) stands at 95.6%, reflecting reliable cash generation.
  • Manageable Debt – The debt-to-free cash flow ratio of 3.2 suggests the company can repay its obligations in just over three years.

Fundamental Analysis Summary

Our report assigns APH a fundamental rating of 6/10, highlighting its strengths in profitability and growth, though valuation appears stretched. Key takeaways:

  • Profitability (9/10) – High margins (Operating Margin: 21.9%, ROIC: 16.1%) place APH among the top performers in its industry.
  • Growth (7/10) – Revenue and earnings have grown at double-digit rates, with analysts forecasting continued expansion.
  • Financial Health (4/10) – While debt levels are reasonable, liquidity metrics are slightly below industry averages.
  • Valuation (3/10) – The stock trades at a premium (P/E: 42.6), which may limit near-term upside.

Our Caviar Cruise screener lists more quality stocks and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.

AMPHENOL CORP-CL A

NYSE:APH (6/2/2025, 8:04:00 PM)

Premarket: 89.22 -1.14 (-1.26%)

90.36

+0.43 (+0.48%)



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