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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 Corporation's recent performance was driven by robust Q4 earnings, marked by 76% EPS growth and 49% sales surge, fueled by IT datacom strength and strategic acquisitions. The company's record revenue of $6.4 billion, up 49% year-over-year, and adjusted EPS exceeding guidance, underscore its growth momentum. A notable entry point emerged after a post-earnings sell-off, with a high valuation justified by robust growth and strong margins. Additionally, institutional investors, such as Atria Investments Inc, have increased their stakes, buying 25,764 shares, a 27.7% growth.

1.c. Company Highlights

2. Amphenol's Strong 2025 Results Driven by AI Demand and Strategic Acquisitions

Amphenol reported a robust fourth quarter in 2025, with sales reaching $6.4 billion, up 49% in US dollars and 37% organically from the previous year. The company's full-year sales were $23.1 billion, representing a 52% increase in US dollars and 38% organically. GAAP operating income was $1.7 billion, with an operating margin of 26.8%. Adjusted operating margin was 27.5%, a significant 510-basis-point increase from the prior year. Earnings per share (EPS) came in at $0.97, beating estimates of $0.933.

Publication Date: Feb -02

📋 Highlights
  • Record Q4 Sales Growth:: Fourth-quarter sales hit $6.4 billion, reflecting a 49% USD increase and 37% organic growth, driven by robust data center demand from AI investments.
  • Margin Expansion:: GAAP operating margin reached 26.8% in Q4 (up 510 basis points YoY), with adjusted operating margin at 27.5%, a 510-basis-point increase from 2024.
  • Acquisition Impact:: Closing the CCS acquisition added $4.1 billion in projected 2026 sales and is expected to contribute 15¢ to adjusted earnings per share by 2026.
  • Strong IT Datacom Performance:: IT datacom sales surged 110% in Q4 (124% for full-year) due to AI-driven demand, representing 38% of fourth-quarter total sales.
  • Shareholder Returns:: The company returned $373 million to shareholders via share repurchases in Q4, with $1.3 million shares repurchased, alongside a 52% increase in quarterly dividends.

Segment Performance

The IT datacom market was a key driver of growth, with sales increasing by 110% in US dollars in the fourth quarter, driven by strong demand for products used in AI applications. The defense market also saw significant growth, with sales up 44% in US dollars and 29% on an organic basis. The automotive and industrial segments also performed well, with sales growth of 12% and 10%, respectively.

Acquisition and Integration

The company completed the acquisition of CCS, which is expected to add 15¢ to adjusted EPS in 2026. According to Adam Norwitt, "The acquisition of CommScope was a strategic move to expand Amphenol's capabilities." The deal has expanded Amphenol's capabilities in fiber optics and interconnect, allowing it to offer a total solution to customers.

Valuation and Outlook

With a P/E Ratio of 46.07 and an EV/EBITDA of 30.18, the market is pricing in significant growth expectations. Analysts estimate revenue growth of 12.2% for the next year. Given the company's strong track record of execution and its diversified portfolio, it is well-positioned to continue delivering strong results. The company's return on equity (ROE) of 34.63% and return on invested capital (ROIC) of 18.53% also indicate a strong ability to generate returns for shareholders.

Margin Outlook

Craig Lampo mentioned that the company expects normal operating margins throughout the year, with a targeted conversion margin of 30%. The CommScope business is expected to reach the company's average operating margin over time, which will add to the company's operating margin potential.

3. NewsRoom

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Market Today: Amazon Overtakes Walmart; Blue Owl Rattles Credit; FDA Eyes Moderna Flu Shot

Feb -19

Source: gurufocus.com

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REX Shares Launches T-REX 2X FIGR (FGRU) & 2X APH (APHU) ETFs

Feb -18

Source: businesswire.com

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Amphenol Corporation (NYSE:APH) Given Average Recommendation of “Moderate Buy” by Brokerages

Feb -18

Source: defenseworld.net

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Crestwood Advisors Group LLC Trims Stock Position in Amphenol Corporation $APH

Feb -17

Source: defenseworld.net

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Cidel Asset Management Inc. Decreases Position in Amphenol Corporation $APH

Feb -15

Source: defenseworld.net

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Market Today: AI Fears Rattle Stocks; CPI Cools, Rivian Pops

Feb -13

Source: gurufocus.com

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Buy These 5 Dividend Growth Stocks Amid AI Fear Disrupting Market

Feb -13

Source: zacks.com

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50% In Just 5 Stocks: Why I'm Willing To Invest Big In High-Quality

Feb -13

Source: seekingalpha.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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A-Score: 5.6/10

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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

151.04$

Current Price

151.04$

Potential

-0.00%

Expected Cash-Flows