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1. Company Snapshot

1.a. Company Description

Amphenol Corporation, together with its subsidiaries, primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors in the United States, China, and internationally.It operates through three segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems.The company offers connectors and connector systems, including harsh environment data, power, high-speed, fiber optic, and radio frequency interconnect products; busbars and power distribution systems; and other connectors.


It also provides value-add products, such as backplane interconnect systems, cable assemblies and harnesses, and cable management products; other products comprising flexible and rigid printed circuit boards, hinges, other mechanical, and production related products.In addition, the company offers consumer device, network infrastructure, and other antennas; coaxial, power, and specialty cables; and sensors and sensor-based products.It sells its products through its sales force, independent representatives, and a network of electronics distributors to original equipment manufacturers, electronic manufacturing services companies, original design manufacturers, and service providers in the automotive, broadband communication, commercial aerospace, industrial, information technology and data communication, military, mobile device, and mobile network markets.


Amphenol Corporation was founded in 1932 and is headquartered in Wallingford, Connecticut.

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1.b. Last Insights on APH

Amphenol's recent performance is driven by strong AI tailwinds, defense end-market gains, and the full-quarter impact of the Andrew acquisition. The company's Q2 earnings beat estimates, with sales increasing 57% year-over-year, driven by organic growth in all end markets. Communications sales surged 101% in Q2 2025, fueled by AI-driven demand and a $10.5 billion acquisition boost. With a premium valuation backed by strong order growth, big acquisitions, and upbeat Q3 forecasts, the company's momentum remains solid.

1.c. Company Highlights

2. Amphenol's Q3 2025 Earnings: A Record-Breaking Performance

Amphenol Corporation's third-quarter 2025 results were impressive, with record sales of $6.194 billion, up 53% year-over-year, and record GAAP and adjusted diluted EPS of $0.97 and $0.93, respectively. The company's operating margin reached a record 27.5%, driven by strong operating leverage and modestly offset by the dilutive impact of acquisitions. The actual EPS of $0.93 beat analyst estimates of $0.793, demonstrating the company's strong execution.

Publication Date: Oct -23

📋 Highlights
  • Record Q3 Sales:: Amphenol achieved $6.194 billion in sales, a 53% year-over-year increase, driven by growth in IT Datacom, particularly AI-related products.
  • GAAP & Adjusted EPS Surge:: GAAP EPS reached $0.97 (+102% YoY), and adjusted EPS hit $0.93 (+86% YoY), both record highs with a 27.5% operating margin.
  • Strong Cash Flow & Shareholder Returns:: Generated $1.471 billion in operating cash flow and $1.215 billion in free cash flow, returning $354 million to shareholders via buybacks and a 52% dividend hike.
  • Full-Year Guidance:: Projects $22.66-$22.76 billion in sales (+49-50% YoY) and $3.26-$3.28 adjusted EPS (+72-74% YoY), with IT Datacom and AI-driven markets leading growth.
  • Market Segment Outlook:: Defense and commercial aerospace expected to grow mid-single-digits to high 30s in 2025, while communications networks face a low-teens Q4 decline but exceed 130% annual growth.

Financial Performance

The company's financial performance was robust, with a significant increase in sales and EPS. The GAAP effective tax rate was 23.5%, and the adjusted effective tax rate was 27%. Operating cash flow was $1.471 billion, and free cash flow was $1.215 billion. The company's return on equity (ROE) is 34.63%, indicating strong profitability.

Segment Performance

The company's industrial and communications segments saw significant growth, with a 40% incremental growth in harsh environment and communications. The IT Datacom segment achieved 30% conversion margin sequentially. The company's product complexity is increasing, particularly in AI and next-generation data centers, which presents opportunities for growth and value creation.

Outlook and Guidance

The company expects a mid-single-digit increase in sales in the defense market in the fourth quarter and more than 25% growth for the full year. The industrial market is expected to moderate slightly in the fourth quarter, with full-year sales growth of approximately 20%. The company's guidance assumes current market conditions and constant exchange rates, with expected sales of $6 billion to $6.1 billion and adjusted diluted EPS of $0.89 to $0.91 in the fourth quarter.

Valuation

Using the current P/E Ratio of 41.23 and P/S Ratio of 7.51, it appears that the market has priced in significant growth expectations. The company's ROE of 34.63% and ROIC of 18.53% indicate strong profitability. The Dividend Yield is 0.51%, which may not be attractive to income investors. Analysts estimate next year's revenue growth at 13.4%, which may be challenging to achieve given the current valuation.

Growth Opportunities

The company has a strong position in the growing IT Datacom market, particularly in AI-related products. The power market is also a significant opportunity, with the growth of AI data centers and their increasing power consumption. The company's automation capabilities and focus on reasonable, homegrown, and lower-cost automation will help drive growth and profitability.

3. NewsRoom

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Amphenol Corporation $APH Stake Boosted by Edgestream Partners L.P.

Dec -06

Source: defenseworld.net

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William Doherty Sells 80,000 Shares of Amphenol (NYSE:APH) Stock

Dec -04

Source: defenseworld.net

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Amphenol Rises 90% in a Year: Should You Still Buy the Stock in 2026?

Dec -03

Source: zacks.com

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Market Today: Deal Talks, Retail Wins, AI Chips, and Crypto Volatility

Dec -02

Source: gurufocus.com

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BLI Banque de Luxembourg Investments Buys New Shares in Amphenol Corporation $APH

Dec -01

Source: defenseworld.net

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A.I. Bubble Indicators and Opportunities in the "Picks and Shovels"

Nov -30

Source: youtube.com

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Potentially 12%-15% Consistent Income: Monthly Options Series (December 2025)

Nov -30

Source: seekingalpha.com

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Amphenol's Communication Solutions Soar: How High Can Growth Go?

Nov -27

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.60%)

6. Segments

Communications Solutions

Expected Growth: 7.5%

Growing demand for high-speed data transmission and IoT devices drives Amphenol’s Communications Solutions segment, fueled by 5G network deployments and increasing bandwidth requirements.

Interconnect and Sensor Systems

Expected Growth: 8.4%

Increasing demand for high-speed data transmission, proliferation of IoT devices, and autonomous vehicles drive growth in Amphenol’s Interconnect and Sensor Systems segment.

Harsh Environment Solutions

Expected Growth: 10.2%

Growing demand for harsh environment connectors and cables in aerospace, defense, and industrial markets drives growth, with increasing adoption of advanced materials and technologies.

Intersegment

Expected Growth: 4.1%

Amphenol's Intersegment's growth is fueled by increasing demand for high-speed and high-frequency connectivity, growing adoption of 5G and IoT technologies, and strategic acquisitions that expand its product portfolio.

7. Detailed Products

Interconnect Products

Amphenol's interconnect products include connectors, cable assemblies, and adapters used in various industries such as aerospace, defense, automotive, and industrial.

Cable Products

Amphenol's cable products include coaxial cables, fiber optic cables, and hybrid cables used in applications such as broadband, telecommunications, and industrial automation.

Antenna Products

Amphenol's antenna products include antennas, antenna assemblies, and antenna systems used in various industries such as aerospace, defense, and wireless communications.

Sensors and Sensor-Based Products

Amphenol's sensors and sensor-based products include temperature sensors, pressure sensors, and position sensors used in various industries such as aerospace, defense, and industrial automation.

Electromechanical Products

Amphenol's electromechanical products include switches, relays, and contactors used in various industries such as aerospace, defense, and industrial automation.

Fiber Optic Products

Amphenol's fiber optic products include fiber optic connectors, fiber optic cables, and fiber optic assemblies used in various industries such as telecommunications, datacom, and industrial automation.

8. Amphenol Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Amphenol Corporation is medium due to the availability of alternative products from competitors, but the company's strong brand recognition and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Amphenol Corporation due to the company's diverse customer base and the lack of concentration among its customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Amphenol Corporation due to the presence of multiple suppliers, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low for Amphenol Corporation due to the high barriers to entry in the industry, including the need for significant capital investment and technological expertise.

Intensity Of Rivalry

The intensity of rivalry is high for Amphenol Corporation due to the presence of several established competitors in the industry, leading to a highly competitive market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.20%
Debt Cost 4.06%
Equity Weight 65.80%
Equity Cost 10.34%
WACC 8.19%
Leverage 51.97%

11. Quality Control: Amphenol Corporation passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

139.36$

Current Price

139.36$

Potential

-0.00%

Expected Cash-Flows