Amphenol Corporation revenue growth accelerated from 0.29% in FY2019 to 4.5% in FY2020
01/27/2021 • About Amphenol Corporation (
$APH) • By InTwits
Amphenol Corporation reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Amphenol Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's a lot of higher than industry average of 3.0%.
- CAPEX is quite volatile: $419m in FY2020, $394m in FY2019, $267m in FY2018, $178m in FY2017, $204m in FY2016
- The company has highly profitable business model: ROIC is 18.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.1x while industry average is -0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 4.5%. Revenue growth showed acceleration in FY20Q4 - it increased 12.8% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.7 pp from 15.2% to 9.5% in FY2020. During FY2016-FY2020 EBITDA Margin topped in FY2019 at 24.7%.
Gross Margin decreased slightly on 0.82 pp from 31.8% to 31.0% in FY2020. During the last 5 years Gross Margin topped in FY2017 at 32.9% and was declining since that time. SG&A as a % of Revenue increased on 2.8 pp from 9.0% to 11.8% in FY2020. During FY2016-FY2020 SG&A as a % of Revenue bottomed in FY2019 at 9.0%.
Net Income margin showed almost no change in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 3.2%. The company showed almost no change in CAPEX/Revenue from FY2017 to FY2020. It's average CAPEX/Revenue for the last three years was 3.5%. During FY2016-FY2020 CAPEX as a % of Revenue topped in FY2018 at 3.8% and was declining since that time.
Return on investment
The company operates at high and attractive ROE (24.3%) while ROIC is a bit lower (18.0%). ROIC decreased slightly on 1.4 pp from 19.4% to 18.0% in FY2020. ROE decreased on 2.8 pp from 27.0% to 24.3% in FY2020. During the last 5 years ROIC topped in FY2018 at 21.1% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 2.0x. Net Debt / EBITDA dropped on 0.3x from 1.4x to 1.1x in FY2020. Debt increased slightly on 1.6% while cash surged on 91.0%.
Amphenol Corporation has no short term refinancing risk: cash is higher than short term debt (739.0%).
Valuation and dividends
Amphenol Corporation's trades at EV/EBITDA 20.4x and P/E 31.2x.
Management team
Richard Adam Norwitt is a Amphenol Corporation's CEO. Richard Adam Norwitt has spent 13 years with the company. Amphenol Corporation's CFO Craig A Lampo has spent 5 years with the company.
Financial and operational results
Amphenol Corporation ($APH) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 6,286 | 7,011 | 8,202 | 8,225 | 8,599 | 4.5% |
| Gross Profit | 2,040 | 2,310 | 2,655 | 2,616 | 2,664 | 1.8% |
| SG&A | 632 | 685 | 739 | 737 | 1,014 | 37.6% |
| EBITDA | 1,422 | 1,654 | 1,987 | 2,029 | 1,947 | -4.1% |
| EBIT | 1,205 | 1,428 | 1,687 | | | |
| Interest expence | 73 | 92 | 102 | | | |
| Tax | 309 | 692 | 372 | | | |
| Net Income | 823 | 651 | 1,205 | 1,155 | 1,203 | 4.2% |
| Stock Based Compensation | 3 | 50 | 56 | | | |
Balance Sheet
|
|---|
| Cash | 1,035 | 1,719 | 1,279 | 891 | 1,702 | 91.0% |
| Accounts Receivable | 1,349 | 1,599 | 1,792 | | | |
| Inventory | 929 | 1,107 | 1,234 | | | |
| Accounts Payable | 678 | 876 | 891 | | | |
| Short Term Debt | 375 | 1 | 764 | 457 | 230 | -49.6% |
| Long Term Debt | 2,636 | 3,542 | 2,806 | 3,349 | 3,636 | 8.6% |
Cash flow
|
|---|
| Capex | 191 | 227 | 311 | 295 | 277 | -6.2% |
| Dividends | 173 | 205 | 254 | | | |
| Acquisitions | 1,305 | 266 | 159 | | | |
Ratios
|
|---|
| Revenue growth | 12.9% | 11.5% | 17.0% | 0.3% | 4.5% | |
| EBITDA growth | 11.4% | 16.3% | 20.1% | 2.1% | -4.1% | |
|
|---|
| Gross Margin | 32.5% | 32.9% | 32.4% | 31.8% | 31.0% | -0.8% |
| EBITDA Margin | 22.6% | 23.6% | 24.2% | 24.7% | 22.6% | -2.0% |
| EBIT Margin | 19.2% | 20.4% | 20.6% | | |
| SG&A, % of revenue | 10.1% | 9.8% | 9.0% | 9.0% | 11.8% | 2.8% |
| SBC, % of revenue | 0.1% | 0.7% | 0.7% | | |
| Net Income Margin | 13.1% | 9.3% | 14.7% | 14.0% | 14.0% | -0.0% |
| CAPEX, % of revenue | 3.0% | 3.2% | 3.8% | 3.6% | 3.2% | -0.4% |
|
|---|
| ROIC | 18.3% | 19.2% | 21.1% | 19.4% | 18.0% | -1.4% |
| ROE | 23.8% | 17.0% | 30.1% | 27.0% | 24.3% | -2.8% |
| Net Debt/EBITDA | 1.4x | 1.1x | 1.2x | 1.4x | 1.1x | -0.3x |
| Interest expence / Average debt | 2.4% | 2.8% | 2.9% | | | |
People
|
|---|
| Insider ownership | 0.5% | 0.5% | 0.5% | | | |
| Employees | 62,000 | 70,000 | 73,600 | | | |
| Revenue/Employee, th. $ | 101 | 100 | 111 | | | |
Amphenol Corporation ($APH) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1,862 | 1,988 | 2,323 | 2,426 | | -4.9% | -1.4% | 10.6% | 12.8% |
| EBITDA | 389 | 429 | 550 | 579 | | -19.9% | -14.5% | 8.0% | 8.8% |
| Net Income | 242 | 258 | 347 | 357 | | -9.5% | -10.6% | 23.7% | 12.0% |
Balance Sheet
|
|---|
| Cash | 2,372 | 1,288 | 1,421 | 1,702 | | 144.6% | 31.2% | 46.5% | 91.0% |
| Short Term Debt | 501 | 2 | 229 | 230 | | 629.1% | -99.5% | -49.9% | -49.6% |
| Long Term Debt | 4,592 | 3,764 | 3,586 | 3,636 | | 25.0% | 2.0% | -2.5% | 8.6% |
Ratios
|
|---|
| Gross Margin | 30.1% | 30.4% | 31.6% | 31.6% | | -2.0% | -1.8% | 0.1% | 0.0% |
| EBITDA Margin | 20.9% | 21.6% | 23.7% | 23.8% | | -3.9% | -3.3% | -0.6% | -0.9% |
| Net Income Margin | 13.0% | 13.0% | 14.9% | 14.7% | | -0.7% | -1.3% | 1.6% | -0.1% |
Peers in Electronic Components
Below we provide Amphenol Corporation benchmarking against other companies in Electronic Components industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cavitation Technologies Inc ($CVAT) | - | -40.9% | 22.6% | -16.3% | 52.6% |
| IEH Corp ($IEHC) | - | 4.0% | 16.6% | 21.0% | 13.2% |
| Corning Incorporated ($GLW) | - | 7.7% | 11.6% | 1.9% | -1.7% |
| CPS Technologies Corp. ($CPSH) | - | -5.0% | 48.0% | -0.5% | -2.8% |
| Littelfuse, Inc. ($LFUS) | - | 15.7% | 40.7% | -12.5% | -3.9% |
| |
|---|
| Median (12 companies) | -10.4% | 7.7% | 14.1% | -4.3% | -5.8% |
|---|
| Amphenol Corporation ($APH) | - | 11.5% | 17.0% | 0.3% | 4.5% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cavitation Technologies Inc ($CVAT) | 93.2% | 93.5% | 90.6% | 93.7% | 97.6% |
| Dolby Laboratories ($DLB) | 89.4% | 89.1% | 87.9% | 87.0% | 87.4% |
| Airgain, Inc. ($AIRG) | 44.4% | 47.1% | 43.7% | 45.4% | 46.6% |
| Rogers Corporation ($ROG) | 38.0% | 38.8% | 35.4% | 35.0% | 36.4% |
| Belden Inc ($BDC) | 41.6% | 39.1% | 39.0% | 37.2% | 35.6% |
| |
|---|
| Median (12 companies) | 33.7% | 38.3% | 37.6% | 36.6% | 35.1% |
|---|
| Amphenol Corporation ($APH) | 32.5% | 32.9% | 32.4% | 31.8% | 31.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dolby Laboratories ($DLB) | 30.9% | 30.8% | 25.1% | 27.6% | 28.7% |
| Littelfuse, Inc. ($LFUS) | 17.4% | 23.0% | 19.1% | 19.5% | 18.5% |
| Corning Incorporated ($GLW) | 27.9% | 27.3% | 25.4% | 25.7% | 18.0% |
| Rogers Corporation ($ROG) | 18.5% | 21.3% | 18.5% | 18.1% | 17.7% |
| Vishay Intertechnology, Inc. ($VSH) | 15.4% | 18.7% | 21.3% | 16.8% | 16.0% |
| |
|---|
| Median (12 companies) | 13.6% | 8.7% | 9.3% | 16.9% | 14.4% |
|---|
| Amphenol Corporation ($APH) | 22.6% | 23.6% | 24.2% | 24.7% | 22.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Corning Incorporated ($GLW) | 12.0% | 17.8% | 19.9% | 17.2% | 12.2% |
| Dolby Laboratories ($DLB) | 9.8% | 9.2% | 6.9% | 7.8% | 5.7% |
| Rogers Corporation ($ROG) | 2.8% | 3.3% | 5.4% | 5.7% | 5.0% |
| Vishay Intertechnology, Inc. ($VSH) | 5.8% | 6.6% | 7.6% | 5.9% | 4.9% |
| Belden Inc ($BDC) | 2.3% | 2.7% | 3.8% | 5.2% | 4.8% |
| |
|---|
| Median (12 companies) | 3.4% | 5.1% | 4.1% | 5.0% | 4.0% |
|---|
| Amphenol Corporation ($APH) | 3.0% | 3.2% | 3.8% | 3.6% | 3.2% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| CPS Technologies Corp. ($CPSH) | -10.8% | -19.4% | -11.9% | -9.3% | 13.8% |
| IEH Corp ($IEHC) | 24.2% | 19.2% | 26.1% | 36.6% | 12.8% |
| Vishay Intertechnology, Inc. ($VSH) | 9.8% | 18.4% | 27.8% | 13.2% | 9.9% |
| Dolby Laboratories ($DLB) | 12.2% | 12.0% | 8.4% | 11.4% | 9.6% |
| Littelfuse, Inc. ($LFUS) | 11.7% | 15.8% | 12.1% | 8.5% | 6.9% |
| |
|---|
| Median (12 companies) | 4.7% | 6.0% | 7.8% | 7.9% | 6.4% |
|---|
| Amphenol Corporation ($APH) | 18.3% | 19.2% | 21.1% | 19.4% | 18.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Belden Inc ($BDC) | 2.1x | 2.6x | 2.3x | 3.1x | 4.6x |
| Corning Incorporated ($GLW) | -0.5x | 0.3x | 1.3x | 2.1x | 2.6x |
| Bel Fuse Inc. ($BELFA) | - | 1.4x | 1.3x | 3.7x | 1.1x |
| Knowles Corporation ($KN) | 2.0x | 1.0x | 0.7x | 0.9x | 0.6x |
| Littelfuse, Inc. ($LFUS) | 1.0x | 0.2x | 0.6x | 0.6x | 0.1x |
| |
|---|
| Median (11 companies) | -0.5x | -0.3x | 0.5x | 0.6x | 0.0x |
|---|
| Amphenol Corporation ($APH) | 1.4x | 1.1x | 1.2x | 1.4x | 1.1x |
