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 $68.69, despite a daily loss of 1.04%, Amphenol Corp has shown a positive trend with an 8.11% increase 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, with a market cap of $82.81 billion and annual sales of $14.23 billion, is a leading global supplier of connectors, sensors, and interconnect systems. The company holds the second-largest market share in the connectors segment globally. Amphenol's diverse operations span 40 countries, targeting industries such as automotive, broadband, and IT, among others. This broad market reach and diversified portfolio underpin its robust financial metrics and growth trajectory.
Financial Strength and Stability
Amphenol Corp's financial strength is evident in its impressive Interest Coverage ratio of 16.34, significantly above the benchmark set by investing legend Benjamin Graham. Additionally, its Altman Z-Score of 6.94 indicates a low probability of financial distress, further highlighted by a strategic Debt-to-Revenue ratio of 0.39.
Profitability and Growth Metrics
Amphenol Corp's profitability is showcased 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, indicating efficient revenue conversion into profit. These factors, combined with a strong Predictability Rank of 5 stars, provide a reliable basis for investor confidence.
Conclusion: A Promising Investment Prospect
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.
