AMPHENOL CORP-CL A (APH) Stock Fundamental Analysis
NYSE:APH - New York Stock Exchange, Inc. - US0320951017 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to APH. APH was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. APH scores excellent on profitability, but there are some minor concerns on its financial health. APH shows excellent growth, but is valued quite expensive already. These ratings would make APH suitable for growth investing!
1. Profitability
1.1 Basic Checks
APH had positive earnings in the past year.
In the past year APH had a positive cash flow from operations.
In the past 5 years APH has always been profitable.
Each year in the past 5 years APH had a positive operating cash flow.
1.2 Ratios
APH has a better Return On Assets (11.41%) than 92.00% of its industry peers.
The Return On Equity of APH (25.37%) is better than 92.00% of its industry peers.
APH's Return On Invested Capital of 16.06% is amongst the best of the industry. APH outperforms 92.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for APH is significantly above the industry average of 9.30%.
The 3 year average ROIC (15.75%) for APH is below the current ROIC(16.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.41% | ||
| ROE | 25.37% | ||
| ROIC | 16.06% |
ROA(3y)11.79%
ROA(5y)11.2%
ROE(3y)24.99%
ROE(5y)24.51%
ROIC(3y)15.75%
ROIC(5y)14.94%
1.3 Margins
The Profit Margin of APH (15.58%) is better than 92.00% of its industry peers.
APH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.86%, APH belongs to the top of the industry, outperforming 99.20% of the companies in the same industry.
APH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 33.94%, APH is in line with its industry, outperforming 55.20% 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 | 21.86% | ||
| PM (TTM) | 15.58% | ||
| GM | 33.94% |
OM growth 3Y2.56%
OM growth 5Y1.53%
PM growth 3Y2.87%
PM growth 5Y2.55%
GM growth 3Y2.58%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
APH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
APH has more shares outstanding than it did 1 year ago.
APH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, APH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.39 indicates that APH is not in any danger for bankruptcy at the moment.
APH's Altman-Z score of 6.39 is amongst the best of the industry. APH outperforms 82.40% of its industry peers.
The Debt to FCF ratio of APH is 3.23, which is a good value as it means it would take APH, 3.23 years of fcf income to pay off all of its debts.
APH has a Debt to FCF ratio of 3.23. This is in the better half of the industry: APH outperforms 65.60% of its industry peers.
APH has a Debt/Equity ratio of 0.66. This is a neutral value indicating APH is somewhat dependend on debt financing.
The Debt to Equity ratio of APH (0.66) is worse than 80.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 6.39 |
ROIC/WACC1.89
WACC8.48%
2.3 Liquidity
A Current Ratio of 1.99 indicates that APH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.99, APH is in line with its industry, outperforming 43.20% of the companies in the same industry.
A Quick Ratio of 1.36 indicates that APH should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.36, APH is not doing good in the industry: 62.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
APH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.90%, which is quite impressive.
APH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.11% yearly.
APH shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.70%.
The Revenue has been growing by 13.10% on average over the past years. This is quite good.
EPS 1Y (TTM)35.9%
EPS 3Y15.08%
EPS 5Y15.11%
EPS Q2Q%57.5%
Revenue 1Y (TTM)30.7%
Revenue growth 3Y11.86%
Revenue growth 5Y13.1%
Sales Q2Q%47.74%
3.2 Future
The Earnings Per Share is expected to grow by 11.86% on average over the next years. This is quite good.
Based on estimates for the next years, APH will show a quite strong growth in Revenue. The Revenue will grow by 10.21% on average per year.
EPS Next Y22.52%
EPS Next 2Y17.04%
EPS Next 3Y14.54%
EPS Next 5Y11.86%
Revenue Next Year24.41%
Revenue Next 2Y16.12%
Revenue Next 3Y13.1%
Revenue Next 5Y10.21%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
APH is valuated quite expensively with a Price/Earnings ratio of 37.09.
Compared to the rest of the industry, the Price/Earnings ratio of APH is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.85, APH is valued a bit more expensive.
A Price/Forward Earnings ratio of 30.37 indicates a quite expensive valuation of APH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APH is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of APH to the average of the S&P500 Index (20.77), we can say APH is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.09 | ||
| Fwd PE | 30.37 |
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.91 | ||
| EV/EBITDA | 22.58 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of APH may justify a higher PE ratio.
A more expensive valuation may be justified as APH's earnings are expected to grow with 14.54% in the coming years.
PEG (NY)1.65
PEG (5Y)2.45
EPS Next 2Y17.04%
EPS Next 3Y14.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, APH is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.25, APH pays a better dividend. On top of this APH pays more dividend than 85.60% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, APH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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
25.37% of the earnings are spent on dividend by APH. This is a low number and sustainable payout ratio.
The dividend of APH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP25.37%
EPS Next 2Y17.04%
EPS Next 3Y14.54%
78.63
+1.68 (+2.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners95.59%
Inst Owner Change0.34%
Ins Owners0.52%
Ins Owner Change-1.88%
Market Cap95.28B
Analysts74.78
Price Target80.61 (2.52%)
Short Float %1.24%
Short Ratio1.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend0.49
Dividend Growth(5Y)1.08%
DP25.37%
Div Incr Years13
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.71%
Min EPS beat(2)8.61%
Max EPS beat(2)20.81%
EPS beat(4)4
Avg EPS beat(4)11.62%
Min EPS beat(4)7.07%
Max EPS beat(4)20.81%
EPS beat(8)8
Avg EPS beat(8)8.75%
EPS beat(12)12
Avg EPS beat(12)7.56%
EPS beat(16)16
Avg EPS beat(16)7.49%
Revenue beat(2)2
Avg Revenue beat(2)8.69%
Min Revenue beat(2)5.39%
Max Revenue beat(2)11.99%
Revenue beat(4)4
Avg Revenue beat(4)6.98%
Min Revenue beat(4)5.12%
Max Revenue beat(4)11.99%
Revenue beat(8)8
Avg Revenue beat(8)5.17%
Revenue beat(12)12
Avg Revenue beat(12)4.58%
Revenue beat(16)16
Avg Revenue beat(16)4.89%
PT rev (1m)-7.06%
PT rev (3m)1.43%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)7.13%
EPS NY rev (1m)-0.78%
EPS NY rev (3m)5.77%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)8.5%
Revenue NY rev (1m)1.49%
Revenue NY rev (3m)6.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.09 | ||
| Fwd PE | 30.37 | ||
| P/S | 5.68 | ||
| P/FCF | 42.91 | ||
| P/OCF | 31.97 | ||
| P/B | 9.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.58 |
EPS(TTM)2.12
EY2.7%
EPS(NY)2.59
Fwd EY3.29%
FCF(TTM)1.83
FCFY2.33%
OCF(TTM)2.46
OCFY3.13%
SpS13.85
BVpS8.5
TBVpS-0.8
PEG (NY)1.65
PEG (5Y)2.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.41% | ||
| ROE | 25.37% | ||
| ROCE | 20.03% | ||
| ROIC | 16.06% | ||
| ROICexc | 17.67% | ||
| ROICexgc | 54.82% | ||
| OM | 21.86% | ||
| PM (TTM) | 15.58% | ||
| GM | 33.94% | ||
| FCFM | 13.23% |
ROA(3y)11.79%
ROA(5y)11.2%
ROE(3y)24.99%
ROE(5y)24.51%
ROIC(3y)15.75%
ROIC(5y)14.94%
ROICexc(3y)18.39%
ROICexc(5y)17.4%
ROICexgc(3y)54.81%
ROICexgc(5y)51.2%
ROCE(3y)19.64%
ROCE(5y)18.64%
ROICexcg growth 3Y8.48%
ROICexcg growth 5Y1.55%
ROICexc growth 3Y5.77%
ROICexc growth 5Y2.06%
OM growth 3Y2.56%
OM growth 5Y1.53%
PM growth 3Y2.87%
PM growth 5Y2.55%
GM growth 3Y2.58%
GM growth 5Y1.2%
F-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.23 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | 107.76% | ||
| Cap/Sales | 4.53% | ||
| Interest Coverage | 18.49 | ||
| Cash Conversion | 68.14% | ||
| Profit Quality | 84.97% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 6.39 |
F-Score5
WACC8.48%
ROIC/WACC1.89
Cap/Depr(3y)101.88%
Cap/Depr(5y)97.32%
Cap/Sales(3y)3.46%
Cap/Sales(5y)3.38%
Profit Quality(3y)98.21%
Profit Quality(5y)95.61%
High Growth Momentum
Growth
EPS 1Y (TTM)35.9%
EPS 3Y15.08%
EPS 5Y15.11%
EPS Q2Q%57.5%
EPS Next Y22.52%
EPS Next 2Y17.04%
EPS Next 3Y14.54%
EPS Next 5Y11.86%
Revenue 1Y (TTM)30.7%
Revenue growth 3Y11.86%
Revenue growth 5Y13.1%
Sales Q2Q%47.74%
Revenue Next Year24.41%
Revenue Next 2Y16.12%
Revenue Next 3Y13.1%
Revenue Next 5Y10.21%
EBIT growth 1Y36.78%
EBIT growth 3Y14.72%
EBIT growth 5Y14.84%
EBIT Next Year55.83%
EBIT Next 3Y22.63%
EBIT Next 5Y15.88%
FCF growth 1Y13.7%
FCF growth 3Y22.14%
FCF growth 5Y12.23%
OCF growth 1Y26.48%
OCF growth 3Y22.26%
OCF growth 5Y13.38%