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Competitor Analysis: Evaluating Amphenol And Competitors In Electronic Equipment, Instruments & Components Industry

Author: Benzinga Insights | June 19, 2024 11:00am

In today's fast-paced and competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies before making investment decisions. In this article, we will conduct a comprehensive industry comparison, evaluating Amphenol (NYSE:APH) against its key competitors in the Electronic Equipment, Instruments & Components industry. By examining key financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.

Amphenol Background

Amphenol is a global supplier of connectors, sensors, and interconnect systems. Amphenol holds the second-largest connector market share globally and sells into the end markets of automotive, broadband, commercial air, industrial, IT and data communications, military, mobile devices, and mobile networks. Amphenol is diversified geographically, with operations in 40 countries.

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
Amphenol Corp 42.30 9.57 6.71 6.44% $0.8 $1.09 9.49%
Corning Inc 53.82 2.96 2.69 1.84% $0.72 $0.99 -6.39%
Littelfuse Inc 29.57 2.59 2.83 1.96% $0.1 $0.19 -12.2%
Belden Inc 18.86 3.39 1.69 3.21% $0.08 $0.2 -16.53%
Vishay Intertechnology Inc 12.86 1.41 0.95 1.41% $0.1 $0.17 -14.32%
Rogers Corp 33.91 1.83 2.63 0.62% $0.02 $0.07 -12.47%
Knowles Corp 20.20 1.54 2.14 0.24% $0.02 $0.07 36.11%
Bel Fuse Inc 11.82 2.42 1.42 4.62% $0.02 $0.05 -25.68%
M-Tron Industries Inc 21.75 4.51 2.24 7.14% $0.0 $0.0 19.41%
Wetouch Technology Inc 3.10 0.29 0.65 -1.83% $-0.0 $0.0 -6.98%
CPS Technologies Corp 34.20 1.43 0.95 -0.83% $-0.0 $0.0 -16.73%
Average 24.01 2.24 1.82 1.84% $0.11 $0.17 -5.58%

After examining Amphenol, the following trends can be inferred:

  • Notably, the current Price to Earnings ratio for this stock, 42.3, is 1.76x above the industry norm, reflecting a higher valuation relative to the industry.

  • With a Price to Book ratio of 9.57, which is 4.27x the industry average, Amphenol might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.

  • The stock's relatively high Price to Sales ratio of 6.71, surpassing the industry average by 3.69x, may indicate an aspect of overvaluation in terms of sales performance.

  • With a Return on Equity (ROE) of 6.44% that is 4.6% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

  • Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $800 Million, which is 7.27x above the industry average, indicating stronger profitability and robust cash flow generation.

  • The company has higher gross profit of $1.09 Billion, which indicates 6.41x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of 9.49% exceeds the industry average of -5.58%, indicating strong sales performance and market outperformance.

Debt To Equity Ratio

debt to equity

The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared to its equity.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

When evaluating Amphenol alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:

  • Amphenol holds a middle position in terms of the debt-to-equity ratio compared to its top 4 peers.

  • This indicates a balanced financial structure with a moderate level of debt and an appropriate reliance on equity financing with a debt-to-equity ratio of 0.5.

Key Takeaways

For PE, PB, and PS ratios, Amphenol shows high valuation compared to its peers in the Electronic Equipment, Instruments & Components industry. This indicates potential overvaluation. On the other hand, Amphenol's high ROE, EBITDA, gross profit, and revenue growth suggest strong financial performance relative to industry competitors, reflecting positive operational efficiency and growth prospects.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: APH