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Valens Research

APH - Embedded Expectations Analysis - 2019 05 20

Amphenol Corporation (APH:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 22.5x Uniform P/E. However, even at these levels, the market has bearish expectations for the firm, and management has concerns about mobile device demand, the integration of acquisitions, and their ability to drive network improvements for their customers.

Specifically, management may be concerned about volatility and reduced demand in the mobile devices market, the impact of product architecture changes, and the progress of the integration of SSI and interconnect enclosure acquisitions. In addition, they may lack confidence in their ability to sustain organic mobile network sales growth and maintain operating margins. Finally, they may be exaggerating their positioning across aircraft platforms, and concerned about car market growth opportunities and their ability to drive equipment and network performance improvements for their customers.
Underlying
Amphenol Corporation Class A

Amphenol is a designer, manufacturer and marketer of electrical, electronic and fiber optic connectors and interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed cable. The company's segments are: Interconnect Products and Assemblies, which designs, manufactures and markets a range of connector and connector systems, and other products, including antennas and sensors, used in a range of applications in a set of end markets; and Cable Products and Solutions, which designs, manufactures and markets cable, products and components for use primarily in the broadband communications and information technology markets as well as certain applications in other markets.

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Valens Research
Valens Research

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