APH Financial Analysis

Analysis Date: 1/24/2025

Business Model

Amphenol generates revenue through three main segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems

Revenue Sources

• Harsh Environment Solutions: $1,261.9M (29.2% of Q4 2024 revenue)
• Communications Solutions: $1,928.0M (44.7% of Q4 2024 revenue)
• Interconnect and Sensor Systems: $1,128.0M (26.1% of Q4 2024 revenue)

Income Statement Analysis

• Net sales increased 29.8% year-over-year to $4.3B
• Operating margin improved to 22.1% from 20.7%
• Net income increased 45% year-over-year

Capital Allocation

Company returned nearly $1.3B to shareholders in 2024 through $689.3M in share repurchases and $595.1M in dividends. Additionally, completed two acquisitions (Carlisle Interconnect Technologies and Luetze) and expects to close CommScope's OWN and DAS businesses acquisition in Q1 2025.

Management Commentary

Record fourth quarter sales and Adjusted Diluted EPS, exceeding guidance

Strong profitability with record Adjusted Operating Margin of 22.4% in Q4

Successful execution of acquisition strategy

Overall Sentiment: Very positive with strong execution and outlook

Recommendation

Rating: Buy

Reason for Rating: Strong operational execution, margin expansion, and successful M&A strategy

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/24/2025, 4:42:48 AM