Amphenol Corp (APH, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Currently trading at $66.98 per share, Amphenol Corp has experienced a daily increase of 2.17%, despite a slight decline of 3.84% 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 from GuruFocus, assessing stocks based on five key valuation aspects. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Amphenol Corp boasts a GF Score of 93, 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: 10/10
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 connector industry, Amphenol Corp serves diverse end markets including automotive, broadband, and IT. With operations across 40 countries, the company boasts a market cap of $80.66 billion and annual sales of $13.39 billion. Its operating margin stands impressively at 21.11%.
Financial Strength Breakdown
Amphenol Corp's financial resilience is evident through its robust balance sheet and strategic capital management. The company's Interest Coverage ratio is a strong 17.34, significantly above the benchmark set by Benjamin Graham. Additionally, its Altman Z-Score of 6.89 and a Debt-to-Revenue ratio of 0.41 further solidify its financial health.
Profitability and Growth Metrics
Amphenol Corp's profitability is highlighted by its increasing Operating Margin and Gross Margin, which have consistently improved over the past five years. The company's Predictability Rank of 5 stars reflects its stable operational performance. Growth is also a strong suit, with a 3-Year Revenue Growth Rate of 13.1%, outperforming 75.79% of its industry peers.
Conclusion
Given Amphenol Corp's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional 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.
