AMPHENOL CORP-CL A (APH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APH - US0320951017 - Common Stock
145.6 USD
-20.65 (-12.42%)
APH gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 123 industry peers in the Electronic Equipment, Instruments & Components industry. APH has an excellent profitability rating, but there are some minor concerns on its financial health. APH is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make APH a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- In the past year APH was profitable.
- In the past year APH had a positive cash flow from operations.
- Each year in the past 5 years APH has been profitable.
- Each year in the past 5 years APH had a positive operating cash flow.
1.2 Ratios
- APH's Return On Assets of 14.08% is amongst the best of the industry. APH outperforms 93.50% of its industry peers.
- The Return On Equity of APH (30.52%) is better than 92.68% of its industry peers.
- With an excellent Return On Invested Capital value of 19.87%, APH belongs to the best of the industry, outperforming 94.31% of the companies in the same industry.
- APH had an Average Return On Invested Capital over the past 3 years of 15.77%. This is significantly above the industry average of 8.87%.
- The 3 year average ROIC (15.77%) for APH is below the current ROIC(19.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.08% | ||
| ROE | 30.52% | ||
| ROIC | 19.87% |
ROA(3y)11.79%
ROA(5y)11.2%
ROE(3y)24.99%
ROE(5y)24.51%
ROIC(3y)15.77%
ROIC(5y)14.96%
1.3 Margins
- APH has a better Profit Margin (18.22%) than 95.94% of its industry peers.
- APH's Profit Margin has improved in the last couple of years.
- APH has a better Operating Margin (25.01%) than 99.19% of its industry peers.
- APH's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 36.31%, APH is doing good in the industry, outperforming 60.16% of the companies in the same industry.
- In the last couple of years the Gross Margin of APH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.01% | ||
| PM (TTM) | 18.22% | ||
| GM | 36.31% |
OM growth 3Y2.74%
OM growth 5Y1.65%
PM growth 3Y2.87%
PM growth 5Y2.55%
GM growth 3Y2.7%
GM growth 5Y1.27%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so APH is creating value.
- APH has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for APH has been increased compared to 5 years ago.
- The debt/assets ratio for APH is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 10.52 indicates that APH is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 10.52, APH belongs to the best of the industry, outperforming 86.18% of the companies in the same industry.
- APH has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as APH would need 2.27 years to pay back of all of its debts.
- The Debt to FCF ratio of APH (2.27) is better than 73.98% of its industry peers.
- A Debt/Equity ratio of 0.57 indicates that APH is somewhat dependend on debt financing.
- The Debt to Equity ratio of APH (0.57) is worse than 76.42% of its industry peers.
- Although APH does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 10.52 |
ROIC/WACC2.29
WACC8.69%
2.3 Liquidity
- APH has a Current Ratio of 2.07. This indicates that APH is financially healthy and has no problem in meeting its short term obligations.
- APH has a Current ratio of 2.07. This is comparable to the rest of the industry: APH outperforms 41.46% of its industry peers.
- A Quick Ratio of 1.52 indicates that APH should not have too much problems paying its short term obligations.
- APH has a Quick ratio (1.52) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
- APH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.86%, which is quite impressive.
- The Earnings Per Share has been growing by 15.11% on average over the past years. This is quite good.
- APH shows a strong growth in Revenue. In the last year, the Revenue has grown by 47.37%.
- APH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.10% yearly.
EPS 1Y (TTM)66.86%
EPS 3Y15.08%
EPS 5Y15.11%
EPS Q2Q%86%
Revenue 1Y (TTM)47.37%
Revenue growth 3Y11.86%
Revenue growth 5Y13.1%
Sales Q2Q%53.37%
3.2 Future
- APH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.70% yearly.
- Based on estimates for the next years, APH will show a quite strong growth in Revenue. The Revenue will grow by 19.75% on average per year.
EPS Next Y76.9%
EPS Next 2Y50.24%
EPS Next 3Y37.26%
EPS Next 5Y18.7%
Revenue Next Year52.7%
Revenue Next 2Y39.06%
Revenue Next 3Y29.44%
Revenue Next 5Y19.75%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- APH is valuated quite expensively with a Price/Earnings ratio of 49.86.
- APH's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 28.82. APH is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 34.13, APH can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as APH.
- APH's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.86 | ||
| Fwd PE | 34.13 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as APH.
- APH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. APH is cheaper than 61.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.11 | ||
| EV/EBITDA | 34.24 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- APH has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as APH's earnings are expected to grow with 37.26% in the coming years.
PEG (NY)0.65
PEG (5Y)3.3
EPS Next 2Y50.24%
EPS Next 3Y37.26%
5. Dividend
5.1 Amount
- APH has a yearly dividend return of 0.66%, which is pretty low.
- APH's Dividend Yield is rather good when compared to the industry average which is at 0.46. APH pays more dividend than 83.74% of the companies in the same industry.
- With a Dividend Yield of 0.66, APH pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
- The dividend of APH has a limited annual growth rate of 1.08%.
- APH has been paying a dividend for at least 10 years, so it has a reliable track record.
- APH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.08%
Div Incr Years13
Div Non Decr Years19
5.3 Sustainability
- 20.92% of the earnings are spent on dividend by APH. This is a low number and sustainable payout ratio.
- APH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.92%
EPS Next 2Y50.24%
EPS Next 3Y37.26%
AMPHENOL CORP-CL A / APH FAQ
What is the fundamental rating for APH stock?
ChartMill assigns a fundamental rating of 7 / 10 to APH.
What is the valuation status for APH stock?
ChartMill assigns a valuation rating of 5 / 10 to AMPHENOL CORP-CL A (APH). This can be considered as Fairly Valued.
How profitable is AMPHENOL CORP-CL A (APH) stock?
AMPHENOL CORP-CL A (APH) has a profitability rating of 9 / 10.
How financially healthy is AMPHENOL CORP-CL A?
The financial health rating of AMPHENOL CORP-CL A (APH) is 6 / 10.
How sustainable is the dividend of AMPHENOL CORP-CL A (APH) stock?
The dividend rating of AMPHENOL CORP-CL A (APH) is 6 / 10 and the dividend payout ratio is 20.92%.