📊 APH Key Takeaways
Is Amphenol Corp. /DE/ (APH) a Good Investment?
Amphenol demonstrates exceptional operational excellence with industry-leading profitability metrics (36.9% gross margin, 25.4% operating margin, 18.5% net margin) and strong revenue growth of 51.7% YoY, indicating robust demand in its electronic connectors market. The company maintains fortress-like financial health with 2.98x current ratio, substantial free cash flow of $4.4B (19% FCF margin), and extraordinary interest coverage of 154x, providing significant financial flexibility despite elevated leverage.
Amphenol shows high-quality fundamentals with strong profitability, excellent free cash flow generation, and a very healthy liquidity profile. Revenue growth is exceptionally strong, and margins remain robust, but the slight decline in net income despite the sharp top-line increase suggests investors should watch earnings conversion and growth quality closely.
Why Buy Amphenol Corp. /DE/ Stock? APH Key Strengths
- Outstanding gross margin of 36.9% reflects strong pricing power and operational efficiency in competitive electronics market
- Exceptional cash generation with $4.4B free cash flow and 19% FCF margin enables debt service and reinvestment
- Exceptional ROE of 31.8% and ROA of 11.8% demonstrate superior capital efficiency and management execution
- Strong liquidity position with $11.1B cash and 2.98x current ratio provides substantial financial cushion
- Revenue growth of 51.7% YoY indicates strong market demand and successful market penetration
- Strong profitability profile with 36.9% gross margin, 25.4% operating margin, and 18.5% net margin
- Excellent cash generation, with $5.37B in operating cash flow and $4.38B in free cash flow
- Solid financial health supported by $11.13B cash, 2.98x current ratio, and very high 154.0x interest coverage
APH Stock Risks: Amphenol Corp. /DE/ Investment Risks
- Elevated debt/equity ratio of 1.09x with $14.6B long-term debt creates financial leverage risk despite strong coverage ratios
- Net income declined 0.8% YoY despite 51.7% revenue growth, suggesting margin compression or increased expenses that warrant investigation
- Heavy capital expenditure of $996.6M (4.3% of revenue) may impact future free cash flow if revenue growth moderates
- Concentrated sector exposure in electronic connectors creates cyclicality risk dependent on electronics manufacturing demand
- Insider activity shows 7 Form 4 filings in 90 days which warrants monitoring for potential signaling concerns
- Net income declined 0.8% year over year even as revenue rose 51.7%, which may indicate weaker earnings conversion or integration pressure
- Leverage is meaningful, with $14.56B of long-term debt and 1.09x debt-to-equity
- Recent growth may be less durable if it was driven by acquisitions or other non-organic factors rather than sustained core demand
Key Metrics to Watch
- Operating margin trend - monitor for sustainability of 25.4% given revenue scaling
- Net income growth trajectory relative to revenue growth - resolve YoY decline despite strong top-line expansion
- Free cash flow conversion and capital intensity - track ability to maintain $4.4B FCF as capex may increase
- Debt reduction progress and leverage ratio - evaluate management's deleveraging strategy given 1.09x debt/equity
- Gross margin stability - ensure 36.9% margin is sustainable amid potential input cost inflation
- Net income and operating margin progression relative to revenue growth
- Free cash flow conversion and long-term debt levels
Amphenol Corp. /DE/ (APH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.98x current ratio provides a solid financial cushion.
APH Profit Margin, ROE & Profitability Analysis
APH vs Technology Sector: How Amphenol Corp. /DE/ Compares
How Amphenol Corp. /DE/ compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Amphenol Corp. /DE/ Stock Overvalued? APH Valuation Analysis 2026
Based on fundamental analysis, Amphenol Corp. /DE/ has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Amphenol Corp. /DE/ Balance Sheet: APH Debt, Cash & Liquidity
APH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Amphenol Corp. /DE/'s revenue has grown significantly by 112% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.55 reflects profitable operations.
APH Revenue Growth, EPS Growth & YoY Performance
APH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $4.0B | $604.4M | $0.48 |
| Q2 2025 | $3.6B | $524.8M | $0.41 |
| Q1 2025 | $3.3B | $548.7M | $0.44 |
| Q3 2024 | $3.2B | $513.9M | $0.41 |
| Q2 2024 | $3.1B | $460.5M | $0.37 |
| Q1 2024 | $3.0B | $439.2M | $0.71 |
| Q3 2023 | $3.2B | $496.6M | $0.80 |
| Q2 2023 | $3.1B | $460.5M | $0.74 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Amphenol Corp. /DE/ Dividends, Buybacks & Capital Allocation
APH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Amphenol Corp. /DE/ (CIK: 0000820313)
📋 Recent SEC Filings
❓ Frequently Asked Questions about APH
What is the AI rating for APH?
Amphenol Corp. /DE/ (APH) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are APH's key strengths?
Claude: Outstanding gross margin of 36.9% reflects strong pricing power and operational efficiency in competitive electronics market. Exceptional cash generation with $4.4B free cash flow and 19% FCF margin enables debt service and reinvestment. ChatGPT: Strong profitability profile with 36.9% gross margin, 25.4% operating margin, and 18.5% net margin. Excellent cash generation, with $5.37B in operating cash flow and $4.38B in free cash flow.
What are the risks of investing in APH?
Claude: Elevated debt/equity ratio of 1.09x with $14.6B long-term debt creates financial leverage risk despite strong coverage ratios. Net income declined 0.8% YoY despite 51.7% revenue growth, suggesting margin compression or increased expenses that warrant investigation. ChatGPT: Net income declined 0.8% year over year even as revenue rose 51.7%, which may indicate weaker earnings conversion or integration pressure. Leverage is meaningful, with $14.56B of long-term debt and 1.09x debt-to-equity.
What is APH's revenue and growth?
Amphenol Corp. /DE/ reported revenue of $23.1B.
Does APH pay dividends?
Amphenol Corp. /DE/ pays dividends, with $802.2M distributed to shareholders in the trailing twelve months.
Where can I find APH SEC filings?
Official SEC filings for Amphenol Corp. /DE/ (CIK: 0000820313) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is APH's EPS?
Amphenol Corp. /DE/ has a diluted EPS of $3.34.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is APH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Amphenol Corp. /DE/ has a BUY rating with 88% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is APH stock overvalued or undervalued?
Valuation metrics for APH: ROE of 31.8% (sector avg: 22%), net margin of 18.5% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy APH stock in 2026?
Our dual AI analysis gives Amphenol Corp. /DE/ a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is APH's free cash flow?
Amphenol Corp. /DE/'s operating cash flow is $5.4B, with capital expenditures of $996.6M. FCF margin is 19.0%.
How does APH compare to other Technology stocks?
Vs Technology sector averages: Net margin 18.5% (avg: 18%), ROE 31.8% (avg: 22%), current ratio 2.98 (avg: 2.5).
Why is APH's return on equity (ROE) so high?
Amphenol Corp. /DE/ has a return on equity of 31.8%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 18.5% net margin.