Here's How Much You'd Have If You Invested $1000 in Amphenol a Decade Ago

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Amphenol (APH) ten years ago? It may not have been easy to hold on to APH for all that time, but if you did, how much would your investment be worth today?

Amphenol's Business In-Depth

With that in mind, let's take a look at Amphenol's main business drivers.

Amphenol designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable.

Amphenol’s manufacturing facilities are generally vertically integrated operations from the initial design stage through final design and manufacturing. The company’s manufacturing presence is in more than 30 countries.

Amphenol reported net sales of $10.876 billion in 2021. Interconnect Products & Assemblies accounted for 95.9% of 2021 revenues while the rest came from Cable Products & Solutions.

Effective Jan 1, 2022, Amphenol aligned its businesses into three newly formed reportable business segments: (i) Harsh Environment Solutions, (ii) Communications Solutions and (iii) Interconnect and Sensor Systems.

Harsh Environment Solutions segment designs, manufactures and markets a broad range of ruggedized interconnect products, including connectors and interconnect systems, printed circuits and printed circuit assemblies and other products.

Communications Solutions segment designs, manufactures and markets a broad range of connector and interconnect systems, including high speed, radio frequency, power, fiber optic and other products, together with antennas.

Interconnect and Sensor Systems segment designs, manufactures and markets a broad range of sensors, sensor-based systems, connectors and value-add interconnect systems.

Automotive (20% of 2021 sales), Broadband Communications (4%), Commercial Aerospace (2%), Industrial (25%), Information Technology and Data Communications (21%), Military (11%), Mobile Devices (12%), and Mobile Networks (5%) are the primary end markets served by the company.

Amphenol’s primary competitors include Carlisle, Commscope, Delphi, Sensata, TE Connectivity, 3M, among others.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Amphenol a decade ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in August 2012 would be worth $5,106.11, or a 410.61% gain, as of August 18, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 201.38% and gold's return of 4.87% over the same time frame.

Analysts are forecasting more upside for APH too.

Amphenol’s second-quarter 2022 results benefited from strong growth across its end-markets as well as strong contribution from acquisitions partially offset by unfavorable forex. Both earnings and revenues increased on a year-over-year basis. Operating margin increased year over year despite higher inflation and supply chain challenges. Amphenol expects third-quarter sales to remain robust similar to the reported quarter. The company’s expanding high-technology interconnect, antenna and sensor offerings boosts long-term prospects. Acquisitions are helping Amphenol expand its position across a broad array of technologies and markets. Further, its diversified business model lowers volatility of individual end-markets and geographies. Strong cash flow generating ability is noteworthy. Shares have underperformed the industry year to date.

The stock is up 15.92% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2022. The consensus estimate has moved up as well.
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