AMPHENOL CORP /DE/ (APH) Stock Analysis
AMPHENOL CORP /DE/ (APH) Stock Analysis
Analysis from 10-Q filed 2025-10-24. Data as of Q4 2025.
Overall Grade: F (Concerning)
AMPHENOL CORP /DE/ faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 22.4% | Above industry average |
| FCF Margin | 19.0% | Strong cash generation |
| Debt/Equity | 1.1x | Moderate leverage |
Investment Thesis: Strong return on invested capital of 22.4% suggests durable competitive advantages and efficient capital allocation.
Explore AMPHENOL CORP /DE/: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: AMPHENOL CORP /DE/ earns 22.4% ROIC, Top 25% in Technology
AMPHENOL CORP /DE/'s trailing-twelve-month ROIC of 22.4% ranks Top 25% in Technology companies (sector median: 5.2%), driven by NOPAT margin of 19.5% combined with asset turnover of 0.9x. Source: 10-Q filed 2025-10-24. Gross margin of 36.9% with operating margin at 25.4% reflects a competitive pricing environment.
| Metric | APH | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 22.4% | Excellent | Above sector median of 5.2% |
| Return on Equity (ROE) | 37.2% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 36.9% | Good | Competitive pricing environment |
| Operating Margin | 25.4% | Excellent | Efficient operations |
Cash Flow: AMPHENOL CORP /DE/ generates $4.4B FCF at 19.0% margin, positive NaN/8 quarters
AMPHENOL CORP /DE/ generated $4.4B in free cash flow (TTM), a 19.0% FCF margin, a margin that ranks Top 50% in Technology. Operating cash flow exceeds net income by 1.3x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-24.
| Metric | APH | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 19.0% | Good | Excellent cash conversion |
| Free Cash Flow (TTM) | $4.4B | Good | Positive cash generation |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: AMPHENOL CORP /DE/ at 1.1x leverage
AMPHENOL CORP /DE/'s debt-to-equity ratio of 1.1x reflects elevated leverage. Total debt of $14.6B offset by $11.4B in cash. Source: 10-Q filed 2025-10-24.
| Metric | APH | Rating | Context |
|---|---|---|---|
| Debt to Equity | 1.1x | Adequate | Moderate leverage |
| Net Cash Position | $-3.1B | Warning | Net debt position |
Valuation: AMPHENOL CORP /DE/ trades at 38.5x earnings
AMPHENOL CORP /DE/ trades at a P/E of 38.5x. Free cash flow yield of 2.7% reflects market expectations for growth.
| Metric | APH | Rating | Context |
|---|---|---|---|
| P/E Ratio | 38.5x | Adequate | Premium valuation |
| EV/Sales | 7.3x | Adequate | Growth premium priced in |
| FCF Yield | 2.7% | Adequate | Lower cash yield |
| Dividend Yield | 0.6% | Adequate | Growth focus over income |
Capital Allocation: AMPHENOL CORP /DE/ returns 1.0% shareholder yield
AMPHENOL CORP /DE/'s total shareholder yield is 1.0% (dividends 0.6% + buybacks 0.4%). Source: 10-Q filed 2025-10-24.
| Metric | APH | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 1.0% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 0.4% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $1.6B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 22.4% | Top 25% | 4.3x above |
| Free Cash Flow Margin | 19.0% | Top 50% | 2.1x above |
| Gross Margin | 36.9% | Bottom 50% | 0.7x below |
| Operating Margin | 25.4% | Top 25% | 5.2x above |
| Return on Equity (ROE) | 37.2% | Top 25% | 7.6x above |
| P/E Ratio | 38.5x | N/A | - |
Financial Scorecard
| Metric | APH | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 22.4% | Excellent | Top 25% of sector (median: 5.2%) |
| Free Cash Flow Margin | 19.0% | Good | Top 50% of sector (median: 9.1%) |
| Gross Margin | 36.9% | Good | Bottom 50% of sector (median: 51.8%) |
| Debt to Equity Ratio | 108.6% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 38.5x | Adequate | High expectations priced in |
| Free Cash Flow Yield | 2.7% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is AMPHENOL CORP /DE/'s Return on Invested Capital (ROIC)?
AMPHENOL CORP /DE/ (APH) has a trailing twelve-month Return on Invested Capital (ROIC) of 22.4%. This compares above the sector median of 5.2%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is AMPHENOL CORP /DE/'s Free Cash Flow Margin?
AMPHENOL CORP /DE/ (APH) has a free cash flow margin of 19.0%, generating $4.4 billion in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is AMPHENOL CORP /DE/ stock overvalued or undervalued?
AMPHENOL CORP /DE/ (APH) trades at a P/E ratio of 38.5x, which is above the sector median of N/A. The EV/Sales multiple is 7.3x. Free cash flow yield is 2.7%, reflecting growth expectations priced into the stock.
Q: Does AMPHENOL CORP /DE/ pay a dividend?
AMPHENOL CORP /DE/ (APH) currently pays a dividend yield of 0.6%. Including share buybacks, the total shareholder yield is 1.0%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: How much debt does AMPHENOL CORP /DE/ have?
AMPHENOL CORP /DE/ (APH) has a debt-to-equity ratio of 1.1x with total debt of $14.6 billion. Net debt position is $3.1 billion.
Q: What is AMPHENOL CORP /DE/'s revenue and earnings growth?
AMPHENOL CORP /DE/ (APH) grew revenue by 51.7% year-over-year. Earnings per share increased by 74.0% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: Is AMPHENOL CORP /DE/ buying back stock?
AMPHENOL CORP /DE/ (APH) repurchased $665.2 million of stock over the trailing twelve months. This represents a buyback yield of 0.4%.
Q: How does AMPHENOL CORP /DE/ compare to competitors in Technology?
Compared to other companies in Technology, AMPHENOL CORP /DE/ (APH) shows: ROIC of 22.4% is above the sector median of 5.2% (Top 16%). FCF margin of 19.0% exceeds the sector median of 9.1% (Top 27% of sector). Gross margin at 36.9% is 15 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with AMPHENOL CORP /DE/?
AMPHENOL CORP /DE/ (APH) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-24. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.