Amphenol Corp (APH, Financial) has recently captured the attention of investors and financial analysts, thanks to its strong financial performance and promising growth prospects. With a current share price of $69.28 and a daily gain of 3.64%, coupled with a three-month change of 5.25%, Amphenol Corp stands out in the market. A detailed analysis, supported by the GF Score, indicates that Amphenol Corp is poised for significant future growth.
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: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently to calculate a comprehensive score ranging from 0 to 100, with 100 indicating the highest potential for outperformance. Amphenol Corp has achieved a remarkable GF Score of 93 out of 100, 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: 9/10
Understanding Amphenol Corp's Business
Amphenol Corp is a leading global supplier of connectors, sensors, and interconnect systems. The company holds the second-largest connector market share worldwide and serves diverse end markets including automotive, broadband, and IT. With a market cap of $83.43 billion and annual sales of $13.39 billion, Amphenol boasts a robust operating margin of 21.11%. Its geographical diversification, with operations in 40 countries, further strengthens its market position.
Financial Strength Breakdown
Amphenol Corp's financial resilience is evident in its impressive Interest Coverage ratio of 17.34 and an Altman Z-Score of 6.99, indicating a strong buffer against financial distress. The company's strategic debt management is reflected in its Debt-to-Revenue ratio of 0.41, showcasing prudent capital structure management.
Profitability and Growth Metrics
Amphenol Corp's profitability is highlighted by its increasing Operating Margin, which has grown consistently over the past five years. The company's Gross Margin also reflects a steady upward trend, demonstrating enhanced efficiency in revenue conversion into profit. Furthermore, Amphenol's commitment to growth is evident from its 13.1% 3-Year Revenue Growth Rate, outperforming 75.85% of its industry peers.
Conclusion
Considering Amphenol Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score underscores the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore more companies with high GF Scores using 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.
