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.
Discounted Cash Flow Valuation of Amphenol Corp
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +13.62%.
The trend of Net Margin over the past 5 years is +0.82%.
The average ROA over the past 5 years is +15.09%.
The trend of ROA over the past 5 years is +0.11%.
The average ROE over the past 5 years is +24.14%.
The trend of ROE over the past 5 years is +1.06%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 2.29.
The trend of Debt/FCF over the past 5 years is -0.31.
Graham’s Stability measure stands at 0.85.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +12.48%.
The trend of Revenue growth rate over the past 5 years is +0.66%.
The Earnings CAGR over the past 5 years is +23.94%.
The trend of Earnings growth rate over the past 5 years is +1.92%.
The Equity CAGR over the past 5 years is +11.83%.
The trend of Equity growth rate over the past 5 years is +1.11%.
The FCF CAGR over the past 5 years is +14.31%.
The trend of FCF growth rate over the past 5 years is +1.85%.