Amphenol Corp. (APH) is a leading designer and manufacturer of electrical, electronic, and fiber-optic connectors and interconnect systems, sensors, and cable. The company sells into a broad array of industries, including the automotive, industrial, communications, military, and mobile device markets.
Amphenol Corp. (APH) is benefiting from a stable industrial end-market and a positive military spending environment. Its efforts in developing high-speed and power products should help the firm gain customers in the IT data communications space. Plus, its growing presence in the commercial aerospace market bodes well.
The company’s balance sheet is solid with $2.4 billion in cash as of the end of the most recent quarter. This compares well with only $526 million in short-term debt. Its current ratio of 2.4 and return on equity of 23.6% are also favorable.
APH has grown earnings an average of 23.9% over the past three years, while analysts forecast 37.5% year over year earnings growth for this quarter. Its stock appears a bit overvalued based on a trailing P/E of 32.74 and a forward P/E of 29.67. The stock has shown mixed performance so far this year as shown in the chart below.
Take a look at the 1-year chart of APH below with added notations…
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