Amphenol Corp (APH, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial position. Despite a slight daily loss of 0.37% and a three-month decline of 2.35%, the company's stock price stands at $62.14. A detailed analysis, supported by the GF Score, indicates that Amphenol Corp is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Amphenol Corp boasts a GF Score of 92, signaling strong future performance potential.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 6/10
Understanding Amphenol Corp's Business
Amphenol Corp, with a market cap of $74.83 billion and annual sales of $13.39 billion, is a leading global supplier of connectors, sensors, and interconnect systems. The company holds the second-largest market share in the connector industry globally. Amphenol's diverse operations span 40 countries, targeting markets such as automotive, broadband, commercial air, and more. This geographical and market diversification underpins its robust operational framework.
Financial Strength and Stability
Amphenol Corp's financial resilience is evident in its Financial Strength rating. The company's Interest Coverage ratio stands at an impressive 17.34, significantly above the benchmark set by investing legend Benjamin Graham. Additionally, its Altman Z-Score of 6.47 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.41 showcases prudent debt management.
Profitability and Growth Metrics
Amphenol Corp's Profitability Rank is outstanding, reflecting its superior ability to generate profits. The company's Operating Margin has consistently improved over the past five years, reaching 20.66% in 2023. This trend is mirrored in its Gross Margin, which has also seen a steady increase, indicating enhanced efficiency in revenue conversion into profit.
Ranked highly in Growth, Amphenol Corp's 3-Year Revenue Growth Rate of 13.1% outperforms 75.58% of its industry peers. The company's EBITDA growth further underscores its robust growth trajectory.
Conclusion: A Strong Contender for Market Outperformance
Considering Amphenol Corp's impressive financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for robust investment opportunities may find Amphenol Corp an attractive option.
For more insights into companies with strong GF Scores, GuruFocus Premium members can explore our exclusive GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
