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).

The analysis of cash flow metrics from 2019 to 2023 reveals a general upward trajectory in both operating cash generation and the cash available to equity holders. While both metrics expanded over the five-year period, their growth patterns diverged significantly between 2021 and 2022.

Net Cash Provided by Operating Activities: Operating cash flow demonstrated consistent growth, increasing from 1,502,300 thousand US$ in 2019 to 2,528,700 thousand US$ in 2023. A period of relative stability occurred between 2019 and 2021, followed by a substantial acceleration in 2022, where cash provided by operations rose by approximately 42.7% over the previous year. This growth momentum continued into 2023, marking a total five-year increase of approximately 68.3%.
Free Cash Flow to Equity (FCFE): FCFE grew from 1,244,700 thousand US$ in 2019 to 1,864,200 thousand US$ in 2023, though the progression was non-linear. A strong upward trend was observed through 2021, reaching a peak of 1,793,700 thousand US$. However, 2022 saw a contraction to 1,632,200 thousand US$, representing a decline of approximately 9% despite the simultaneous surge in operating cash flow. Recovery occurred in 2023, with FCFE rising to its highest recorded level in the period.
Comparative Cash Flow Dynamics: A notable divergence is observed in 2021, where FCFE exceeded net cash provided by operating activities. This indicates that the company likely engaged in significant net borrowing or asset divestitures during that fiscal year to boost equity cash flow. Conversely, in 2022, operating cash flow increased sharply while FCFE decreased, suggesting a period of heightened capital expenditures or significant debt repayments that absorbed a larger portion of the operating surplus.

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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.	54.30
Arista Networks Inc.	61.01
Cisco Systems Inc.	29.74
Dell Technologies Inc.	22.67
Lumentum Holdings Inc.	509.38
Super Micro Computer Inc.	—
P/FCFE, Sector
Technology Hardware & Equipment	53.09
P/FCFE, Industry
Information Technology	81.75

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	—
Arista Networks Inc.	41.51	96.72	42.05	—	—
Cisco Systems Inc.	12.84	17.18	21.02	—	—
Dell Technologies Inc.	9.06	33.54	14.15	—	—
Lumentum Holdings Inc.	6.92	5.06	9.31	—	—
Super Micro Computer Inc.	41.38	139.27	13.81	—	—
P/FCFE, Sector
Technology Hardware & Equipment	27.33	22.05	22.76	—	—
P/FCFE, Industry
Information Technology	33.12	26.68	27.39	—	—

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.

The financial performance from 2019 to 2023 demonstrates a consistent expansion in market valuation alongside a general upward trajectory in per-share cash flow generation.

Share Price Performance: The share price exhibited a continuous upward trend, rising from 51.78 US$ in 2019 to 104.26 US$ by the end of 2023. A notable acceleration in price appreciation occurred between 2022 and 2023, during which the price increased by approximately 28%.
Free Cash Flow to Equity (FCFE) per Share: FCFE per share grew from 2.09 US$ in 2019 to 3.11 US$ in 2023. While the five-year trend is positive, a temporary decline was observed in 2022, where the value dropped to 2.75 US$ from 2.99 US$ in 2021, before rebounding in the final year of the period.
Price to FCFE (P/FCFE) Ratio Trends: The P/FCFE ratio climbed from 24.80 in 2019 to 33.55 in 2023. The ratio remained relatively stable between 2020 and 2021 at approximately 26.7, but experienced a sharp increase in 2022 and 2023. This expansion indicates that the market price has grown at a faster rate than the underlying free cash flow to equity, suggesting an increase in the valuation multiple attributed to the company's cash flow.

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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