Amphenol Corporation
APH
$128.00
+0.23%
Amphenol Corporation is a global supplier of connectors, sensors, and interconnect systems operating in the Hardware, Equipment & Parts industry. It is defined by its position as the world's second-largest connector manufacturer, with a core narrative built on diversified end-market exposure and a global operational footprint across 40 countries.…
APH
Amphenol Corporation
$128.00
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Investment Opinion: Should I buy APH Today?
Based on a synthesis of strong fundamentals, positive analyst sentiment, and current valuation metrics, the objective assessment for Amphenol (APH) is a Buy. The company demonstrates exceptional operational performance with high margins and returns, and analyst consensus is strongly positive with recent upgrades. While the valuation is not cheap, the forward P/E of 24.5 and a PEG ratio of 0.52 suggest the growth premium may be justified. Investors should be aware of the stock's volatility and high starting multiples.
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APH 12-Month Price Forecast
The analysis leans bullish based on superior fundamentals and growth, but confidence is tempered to 'medium' due to the stock's high volatility, rich absolute valuation, and recent negative price momentum.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Amphenol Corporation's 12-month outlook, with a consensus price target around $166.40 and implied upside of +30.0% versus the current price.
Average Target
$166.40
4 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
4
covering this stock
Price Range
$102 - $166
Analyst target range
Wall Street analyst sentiment is broadly positive, with recent actions from major firms including upgrades and reiterated Buy or Overweight ratings. For instance, Jefferies upgraded the stock to Buy from Hold in March 2026, and Barclays upgraded to Overweight from Equal Weight in January 2026. Other firms like Citigroup, JP Morgan, UBS, and Goldman Sachs maintain Buy or equivalent ratings. Analyst consensus estimates project average EPS of $7.25 and revenue of $44.04 billion.
Bulls vs Bears: APH Investment Factors
Amphenol presents a compelling mix of strong fundamentals and growth against a backdrop of high valuation and recent market weakness. The company's operational excellence and diversified model are clear strengths, but the stock's recent pullback and rich multiples warrant caution. The balance leans positive due to strong analyst support and growth prospects.
Bullish
- Strong Revenue Growth: Q4 2025 revenue grew 49.1% YoY, indicating robust demand.
- High Profitability & Efficiency: Net margin of 18.5% and ROE of 31.8% are excellent.
- Analyst Upgrades & Positive Sentiment: Recent upgrades from Jefferies and Barclays to Buy/Overweight.
- Attractive PEG Ratio: PEG of 0.52 suggests undervaluation relative to growth.
Bearish
- Elevated Valuation Multiples: Trailing P/E of 38.6 is high despite a lower forward P/E.
- Recent Sharp Price Decline: Stock down 13.5% in the past month, underperforming the S&P 500.
- Insider Selling Activity: CEO sale noted in news, potentially signaling valuation concerns.
- Moderate Debt Load: Debt-to-equity of 1.16 introduces financial leverage risk.
APH Technical Analysis
The stock's overall trend over the past six months has been volatile but positive, with a 2.24% gain, significantly outperforming the S&P 500's -2.82% return over the same period. However, the recent trajectory has been sharply negative, with the stock declining 13.49% over the past month, underperforming the broader market's -5.25% drop. The price has retreated substantially from its 52-week high of $167.04, with the current price of $126.35 representing a decline of approximately 24.4% from that peak, though it remains well above the 52-week low of $56.45.
Beta
1.21
1.21x market volatility
Max Drawdown
-28.3%
Largest decline past year
52-Week Range
$56-$167
Price range past year
Annual Return
+88.5%
Cumulative gain past year
| Period | APH Return | S&P 500 |
|---|---|---|
| 1m | -1.2% | -3.6% |
| 3m | -8.4% | -4.0% |
| 6m | +4.7% | -2.0% |
| 1y | +88.5% | +16.2% |
| ytd | -8.4% | -3.8% |
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APH Fundamental Analysis
Revenue growth has been robust, with Q4 2025 revenue of $6.44 billion representing a 49.12% year-over-year increase. Profitability remains strong, with a net margin of 18.49% for the period, consistent with the company's historical performance. The company maintains a solid financial position with a current ratio of 2.98, indicating strong short-term liquidity, though it carries a moderate debt load with a debt-to-equity ratio of 1.16. Operational efficiency is excellent, as evidenced by a high return on equity of 31.84% and a return on assets of 13.11%, reflecting effective use of shareholder capital and company assets.
Quarterly Revenue
$6.4B
2025-12
Revenue YoY Growth
+0.49%
YoY Comparison
Gross Margin
+0.38%
Latest Quarter
Free Cash Flow
$4.4B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is APH Overvalued?
Given the company's positive net income, the primary valuation metric is the P/E ratio. Amphenol trades at a trailing P/E of 38.55 and a forward P/E of 24.48 based on analyst estimates. The forward P/E suggests a more reasonable valuation relative to near-term earnings growth expectations. The PEG ratio of 0.52, based on trailing metrics, indicates the stock may be undervalued relative to its earnings growth rate, though this metric should be interpreted with caution given the high trailing P/E.
PE
38.6x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 20x~39x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
24.5x
Enterprise Value Multiple
Investment Risk Disclosure
Amphenol's primary risks stem from its valuation and market sensitivity. The stock's high trailing P/E ratio of 38.6, even with a more reasonable forward P/E of 24.5, makes it vulnerable to multiple compression if growth expectations falter. Its beta of 1.21 indicates it is more volatile than the broader market, which is evident in the recent 13.5% monthly decline. The moderate debt-to-equity ratio of 1.16, while manageable, adds financial risk in a rising interest rate environment. Furthermore, news of insider selling, including by the CEO, could signal internal views that the stock is fully valued after its significant run-up over the past year (+92.6%). As a supplier to cyclical industries like automotive, industrial, and communications, Amphenol is exposed to macroeconomic downturns which could rapidly decelerate its impressive 49% revenue growth.
FAQ
Key risks include valuation sensitivity (high P/E of 38.6), exposure to economic cycles in its end-markets like automotive and industrial, and recent insider selling activity. The stock's beta of 1.21 means it is more volatile than the market, which has been apparent in its sharp recent declines. A slowdown in its impressive 49% revenue growth rate could lead to significant multiple compression and price depreciation.
The 12-month outlook is positive with a base case target range of $140-$155, representing a 11-23% upside from the current price of ~$126. This is based on the company hitting analyst consensus EPS of $7.25 and maintaining a forward P/E near 24.5. The bull case (30% probability) sees a run towards $160-$175 on strong execution, while the bear case (15% probability) could see a retest of support near $110-$130 if growth disappoints.
APH's valuation sends mixed signals. Its trailing P/E of 38.6 appears high, suggesting the stock is richly valued. However, its forward P/E of 24.5, based on analyst estimates, is more reasonable. Most notably, the PEG ratio of 0.52 (trailing) indicates the stock may be undervalued relative to its earnings growth rate. The assessment depends on the metric, but growth-adjusted measures lean towards the stock being fairly valued or slightly undervalued.
Based on the data, APH is a good stock to buy for investors seeking growth in the industrial technology sector. The company shows exceptional fundamentals with 49% YoY revenue growth, an 18.5% net margin, and a high ROE of 31.8%. Analyst sentiment is strongly positive with recent upgrades. However, buyers should be prepared for volatility, as evidenced by the recent 13.5% monthly decline, and acknowledge the stock's elevated valuation multiples.
APH is more suitable for a long-term investment horizon. Its business model is built on diversified, long-term growth trends across multiple industries. The stock's high beta and volatility make it challenging for short-term trading. Long-term investors can better weather the cyclicality and benefit from the company's consistent operational excellence and growth, which are key drivers of shareholder value over time.