Amphenol Corp (APH, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With a current share price of $63.25, Amphenol Corp has experienced a daily gain of 1.01%, despite a slight decline of -0.95% over the past three months. A detailed analysis, supported by the GF Score, positions Amphenol Corp for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have been proven to correlate strongly 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 is a leading global supplier of connectors, sensors, and interconnect systems. Holding the second-largest market share in the connectors industry, Amphenol serves diverse end markets including automotive, broadband, and IT. With operations across 40 countries, the company boasts a market cap of $76.17 billion and annual sales of $13.39 billion. Its operating margin stands impressively at 21.11%.
Financial Strength Breakdown
Amphenol Corp's financial robustness is evident through its Financial Strength rating. The company's Interest Coverage ratio is a solid 17.34, significantly above the benchmark set by investing legend Benjamin Graham. Additionally, its Altman Z-Score of 6.67 indicates low risk of 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, supported by a consistent increase in Operating Margin over the past five years, reaching 20.66% in 2023. The company's Gross Margin also improved to 32.53% in 2023, reflecting enhanced efficiency. Its Predictability Rank of 5 stars indicates reliable operational performance.
Amphenol's growth is equally impressive, with a 3-Year Revenue Growth Rate of 13.1%, outperforming 75.53% of its industry peers. The company's EBITDA growth further underscores its expansion capabilities.
Conclusion
Considering Amphenol Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the 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.
