Amphenol Corp (APH, Financial) is a leading player in the hardware industry, boasting a market capitalization of $52.12 billion. As of July 26, 2023, the company's stock price stands at $87.55, marking a gain of 3.84% for the day and an impressive 8.64% increase over the past four weeks. In this article, we will delve into the company's GF Score of 96/100, a comprehensive performance ranking system developed by GuruFocus. The GF Score evaluates a company's valuation across five key aspects, with a higher score indicating a higher potential for returns.
Financial Strength Analysis
Amphenol Corp's Financial Strength rank stands at 7/10. This metric evaluates the robustness of a company's financial situation, considering factors such as its debt burden, debt to revenue ratio, and Altman Z-Score. Amphenol Corp's interest coverage of 19.18 indicates a low debt burden, while its debt to revenue ratio of 0.36 suggests a healthy financial structure. The company's Altman Z-Score of 5.92 further underscores its financial stability.
Profitability Rank Analysis
The company's Profitability Rank is a perfect 10/10, reflecting its strong profitability. This rank considers factors such as operating margin, Piotroski F-Score, and the consistency of profitability. With an operating margin of 20.68% and a Piotroski F-Score of 8, Amphenol Corp demonstrates robust profitability. The company's consistent profitability over the past decade further bolsters its rank.
Growth Rank Analysis
Amphenol Corp also excels in terms of growth, with a Growth Rank of 10/10. This rank measures a company's growth in terms of revenue and profitability. Amphenol Corp's 5-year revenue growth rate of 11.90% and 3-year revenue growth rate of 15.00% indicate strong growth. The company's 5-year EBITDA growth rate of 11.10% further underscores its growth potential.
GF Value Rank Analysis
The company's GF Value Rank is 5/10, determined by the price-to-GF-Value ratio. This proprietary metric considers historical multiples and an adjustment factor based on a company's past returns and growth, as well as future business performance estimates. Despite its moderate GF Value Rank, Amphenol Corp's strong performance in other areas contributes to its high overall GF Score.
Momentum Rank Analysis
Amphenol Corp's Momentum Rank is 10/10, reflecting strong momentum in its stock price. This rank considers the standardized momentum ratio and other momentum indicators, providing a comprehensive view of the company's momentum.
Competitor Analysis
When compared to its main competitors, TE Connectivity Ltd (TEL, Financial), Corning Inc (GLW, Financial), and Jabil Inc (JBL, Financial), Amphenol Corp holds a competitive edge with its GF Score of 96, compared to 88, 89, and 83 respectively.
Conclusion
In conclusion, Amphenol Corp's high GF Score of 96/100 indicates a strong potential for outperformance. With robust financial strength, profitability, growth, and momentum, the company is well-positioned for future success. Investors should keep a close eye on this hardware industry leader.
