Amphenol Corp (APH) stock analysis

P/E below its 5-year median

Amphenol's P/E of 34.6 is below its own 5-year median of 35.8.

P/E above the industry

Amphenol's P/E of 34.6 is above the Electronic Components and Accessories median of 34.6.

EV/EBITDA below its 5-year median

Amphenol's EV/EBITDA of 19.7 is below its 5-year median of 23.3.

P/B above the industry

Amphenol's price-to-book of 11.44 is above the Electronic Components and Accessories median of 3.49.

Trading below fair value

The share price of $79.31 is below our fair value estimate of $85.36.

Margin of safety under 20%

The price is 7.1% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 22.3% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 29.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 55.2% over the last twelve months, against a 5-year average of 28.8% a year.

Growing faster than the industry

Revenue grew 57.6% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance issued

The latest outlook (full year 2026 sales, Oct 28, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 38.8% over the last twelve months, against 35.9% a year earlier.

Return on equity over 15%

Return on equity was 40.0% over the last twelve months and averaged 28.9% over five years.

Return on capital over 10%

Return on invested capital was 27.8%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Amphenol's return on equity of 40.0% is above the Electronic Components and Accessories median of 4.8%.

Earnings grew over 5 years

Net income grew 28.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 18.0% over the last twelve months, against a 5-year average of 15.9%.

Net margin above the industry

Amphenol's net margin of 18.0% is above the Electronic Components and Accessories median of 3.0%.

High debt

Debt is 104% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 71.8% five years ago to 104%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 36.3% of total debt.

Interest well covered

Operating income covers interest expense 12.0 times.

Short-term assets cover short-term debts

Current assets are 1.94 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.93; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Amphenol paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Amphenol yields 0.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 18.9% of net income.

Covered by free cash flow

Dividends take 21.9% of free cash flow.