Amphenol Corp., FCFE calculation

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to Amphenol Corporation	1,928,000)	1,902,300)	1,590,800)	1,203,400)	1,155,000)
Net income attributable to noncontrolling interests	17,500)	14,500)	10,700)	9,900)	9,000)
Net noncash charges	441,200)	477,700)	427,600)	409,400)	404,600)
Net change in operating assets and liabilities, excluding effects of acquisitions	142,000)	(219,900)	(505,200)	(30,700)	(66,300)
Net cash provided by operating activities	2,528,700)	2,174,600)	1,523,900)	1,592,000)	1,502,300)
Capital expenditures	(372,800)	(383,800)	(360,400)	(276,800)	(295,000)
Proceeds from disposals of property, plant and equipment	4,000)	5,600)	3,700)	12,700)	7,400)
Proceeds from issuance of senior notes and other long-term debt	354,900)	5,800)	752,100)	942,300)	1,398,800)
Repayments of senior notes and other long-term debt	(15,700)	(10,300)	(912,600)	(404,400)	(1,111,500)
Borrowings under credit facilities	—)	—)	—)	1,567,400)	—)
Repayments under credit facilities	—)	—)	—)	(1,568,100)	—)
Proceeds from short-term borrowings	—)	44,900)	—)	—)	—)
Repayments of short-term borrowings	—)	(44,900)	—)	—)	—)
Borrowings (repayments) under commercial paper programs, net	(632,600)	(159,300)	796,300)	(385,800)	(229,000)
Payment of costs related to debt financing	(2,300)	(400)	(9,300)	(8,700)	(14,900)
Payment of premiums and fees related to early extinguishment of debt	—)	—)	—)	—)	(13,400)
Free cash flow to equity (FCFE)	1,864,200)	1,632,200)	1,793,700)	1,470,600)	1,244,700)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Net Cash Provided by Operating Activities: The net cash provided by operating activities exhibited a generally upward trend over the five-year period. Starting at 1,502,300 thousand US dollars in 2019, the figure increased modestly to 1,592,000 thousand in 2020, then slightly declined to 1,523,900 thousand in 2021. This was followed by a substantial increase to 2,174,600 thousand in 2022 and further growth to 2,528,700 thousand in 2023. These fluctuations suggest periods of operational strength with a significant improvement in cash generation capacity in the latter two years.
Free Cash Flow to Equity (FCFE): The free cash flow to equity showed a consistent positive trajectory throughout the observed period. Beginning at 1,244,700 thousand US dollars in 2019, it increased to 1,470,600 thousand in 2020 and further rose to 1,793,700 thousand in 2021. Although there was a decline to 1,632,200 thousand in 2022, the FCFE rebounded to 1,864,200 thousand in 2023. This pattern indicates an overall enhancement in the cash available to equity shareholders, despite a minor setback in 2022.
Overall Insights: Both operational cash flows and free cash flow to equity displayed upward trends over the five-year span, with some variability in 2021 and 2022. The significant increases in operational cash flows in 2022 and 2023 could suggest improvements in operational efficiency or favourable market conditions. The FCFE's growth pattern, with a temporary dip in 2022, reflects strong cash-generating ability and liquidity available for equity holders, indicating sound financial health and potential for shareholder value creation.

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Amphenol Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	600,603,947
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	1,864,200)
FCFE per share	3.10
Current share price (P)	120.49
Valuation Ratio
P/FCFE	38.82
Benchmarks
P/FCFE, Competitors¹
Apple Inc.	30.31
Arista Networks Inc.	37.02
Cisco Systems Inc.	9.09
Dell Technologies Inc.	153.16
Super Micro Computer Inc.	—
P/FCFE, Sector
Technology Hardware & Equipment	32.13
P/FCFE, Industry
Information Technology	57.55

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Amphenol Corp., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
No. shares of common stock outstanding¹	599,854,853	594,604,514	598,939,773	599,153,422	596,202,310
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	1,864,200)	1,632,200)	1,793,700)	1,470,600)	1,244,700)
FCFE per share³	3.11	2.75	2.99	2.45	2.09
Share price^1, 4	104.26	81.28	79.99	65.66	51.78
Valuation Ratio
P/FCFE⁵	33.55	29.61	26.71	26.75	24.80
Benchmarks
P/FCFE, Competitors⁶
Apple Inc.	30.63	22.26	23.27	24.40	21.64
Arista Networks Inc.	41.51	96.72	42.05	32.99	—
Cisco Systems Inc.	12.84	17.18	21.02	38.82	14.85
Dell Technologies Inc.	9.06	33.54	14.15	5.64	—
Super Micro Computer Inc.	41.38	139.27	13.81	—	7.83
P/FCFE, Sector
Technology Hardware & Equipment	27.42	22.22	22.84	24.15	—
P/FCFE, Industry
Information Technology	33.16	26.84	27.24	23.37	—

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,864,200,000 ÷ 599,854,853 = 3.11

⁴ Closing price as at the filing date of Amphenol Corp. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 104.26 ÷ 3.11 = 33.55

⁶ Click competitor name to see calculations.

Share Price Trend: The share price of the company demonstrated a consistent upward trend over the five-year period, increasing from $51.78 at the end of 2019 to $104.26 at the end of 2023. This represents a significant appreciation, nearly doubling in value, with steady annual increases each year.
Free Cash Flow to Equity (FCFE) per Share: The FCFE per share showed a general growth pattern throughout the period. Starting at $2.09 in 2019, it increased to $2.45 in 2020 and further to $2.99 in 2021. A slight decline occurred in 2022, decreasing to $2.75, before rebounding to $3.11 in 2023, marking the highest value in the examined timeframe.
Price to FCFE (P/FCFE) Ratio: The P/FCFE ratio followed an upward trajectory, rising from 24.8 in 2019 to 33.55 in 2023. The ratio increased moderately from 2019 to 2021 and then experienced a more pronounced increase in 2022 and 2023, indicating that the market's valuation of the company's free cash flow per share became more expensive over time.
Overall Insights: The combination of a steadily rising share price with generally increasing FCFE per share suggests improving cash flow generation capacity of the company. However, the increasing P/FCFE ratio implies that market expectations may have grown faster than the underlying free cash flow per share, potentially reflecting greater investor confidence or anticipated future growth. The slight dip in FCFE per share in 2022, followed by a recovery in 2023, indicates a marginal fluctuation in cash flow but no long-term deterioration.

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Amphenol Corp. (NYSE:APH)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical