Amphenol Return On Asset vs. Price To Earning

APH Stock  USD 74.21  0.18  0.24%   
Taking into consideration Amphenol's profitability measurements, Amphenol's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Amphenol's ability to earn profits and add value for shareholders. As of now, Amphenol's Price Sales Ratio is increasing as compared to previous years. As of now, Amphenol's Net Income Applicable To Common Shares is increasing as compared to previous years. The Amphenol's current Change To Netincome is estimated to increase to about 102.4 M, while Accumulated Other Comprehensive Income is forecasted to increase to (506.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.360.3253
Significantly Up
Slightly volatile
Operating Profit Margin0.140.2039
Way Down
Pretty Stable
For Amphenol profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Amphenol to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Amphenol utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Amphenol's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Amphenol over time as well as its relative position and ranking within its peers.
  

Amphenol's Revenue Breakdown by Earning Segment

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For more detail on how to invest in Amphenol Stock please use our How to Invest in Amphenol guide.
Is Electronic Equipment, Instruments & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Amphenol. If investors know Amphenol will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Amphenol listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.171
Dividend Share
0.495
Earnings Share
1.74
Revenue Per Share
11.851
Quarterly Revenue Growth
0.262
The market value of Amphenol is measured differently than its book value, which is the value of Amphenol that is recorded on the company's balance sheet. Investors also form their own opinion of Amphenol's value that differs from its market value or its book value, called intrinsic value, which is Amphenol's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Amphenol's market value can be influenced by many factors that don't directly affect Amphenol's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Amphenol's value and its price as these two are different measures arrived at by different means. Investors typically determine if Amphenol is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amphenol's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Amphenol Price To Earning vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Amphenol's current stock value. Our valuation model uses many indicators to compare Amphenol value to that of its competitors to determine the firm's financial worth.
Amphenol is rated second in return on asset category among its peers. It is rated third in price to earning category among its peers reporting about  252.23  of Price To Earning per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Amphenol's earnings, one of the primary drivers of an investment's value.

Amphenol's Earnings Breakdown by Geography

Amphenol Price To Earning vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Amphenol

Return On Asset

 = 

Net Income

Total Assets

 = 
0.11
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Amphenol

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
27.14 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Amphenol Price To Earning Comparison

Amphenol is currently under evaluation in price to earning category among its peers.

Amphenol Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Amphenol, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Amphenol will eventually generate negative long term returns. The profitability progress is the general direction of Amphenol's change in net profit over the period of time. It can combine multiple indicators of Amphenol, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-533.6 M-506.9 M
Operating Income2.6 B2.7 B
Income Before Tax2.5 B2.6 B
Total Other Income Expense Net-104.8 M-99.6 M
Net Income1.9 BB
Income Tax Expense-509.3 M-483.8 M
Net Income Applicable To Common Shares2.2 B2.3 B
Net Income From Continuing Ops1.9 B1.1 B
Non Operating Income Net OtherM5.8 M
Interest Income147.7 M90.8 M
Net Interest Income-141.6 M-148.7 M
Change To Netincome97.5 M102.4 M
Net Income Per Share 1.62  1.70 
Income Quality 1.30  1.43 
Net Income Per E B T 0.79  0.78 

Amphenol Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Amphenol. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Amphenol position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Amphenol's important profitability drivers and their relationship over time.

Use Amphenol in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Amphenol position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amphenol will appreciate offsetting losses from the drop in the long position's value.

Amphenol Pair Trading

Amphenol Pair Trading Analysis

The ability to find closely correlated positions to Amphenol could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Amphenol when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Amphenol - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Amphenol to buy it.
The correlation of Amphenol is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Amphenol moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Amphenol moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Amphenol can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Amphenol position

In addition to having Amphenol in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Compulsion Thematic Idea Now

Compulsion
Compulsion Theme
Companies involved in research, development, and manufacturing of products with compulsion characteristics such as cigarettes, addictive drugs and alcohol. The Compulsion theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Compulsion Theme or any other thematic opportunities.
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When determining whether Amphenol offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Amphenol's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Amphenol Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Amphenol Stock:
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For more detail on how to invest in Amphenol Stock please use our How to Invest in Amphenol guide.
You can also try the CEOs Directory module to screen CEOs from public companies around the world.
To fully project Amphenol's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Amphenol at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Amphenol's income statement, its balance sheet, and the statement of cash flows.
Potential Amphenol investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Amphenol investors may work on each financial statement separately, they are all related. The changes in Amphenol's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Amphenol's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.