Amphenol Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of electrical, electronic, and fiber optic connectors worldwide. It operates through two segments, Interconnect Products and Assemblies, and Cable Products and Solutions. The Interconnect Products and Assemblies segment offers connector and connector systems, including fiber optic, harsh environment, high speed, and radio frequency interconnect products, as well as antennas; power interconnect products, bus bars, and distribution systems; and other connectors. It also provides value-add products, such as backplane interconnect systems, cable assemblies and harnesses, and cable management products; and other products comprising antennas, flexible and rigid printed circuit boards, hinges, molded parts, production-related products, sensors and sensor-based products, and switches. The Cable Products and Solutions segment offers coaxial, power, and specialty cables; cable assemblies; and components comprising combiner/splitter products, connector and connector systems, and fiber optic components. The company sells its products through its sales force, independent representatives, and a network of electronics distributors to original equipment manufacturers, electronic manufacturing services companies, original design manufacturers, and communication network operators in the automotive, broadband communication, commercial aerospace, industrial, information technology and data communication, military, mobile device, and mobile network markets. Amphenol Corporation was founded in 1932 and is headquartered in Wallingford, Connecticut.
Business Analysis of Amphenol
The Industrial Goods & Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Amphenol compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Amphenol to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Amphenol with an interactive chart.
- Revenue Growth: Amphenol reported a revenue growth of 12.9% year-on-year during 2016. Electrical Components & Equipment Industry grew at -3.6% in the same period
- COGS share of Revenues: As a percentage of revenue, Amphenol spent 67.6% of its total revenues on COGS. Electrical Components & Equipment industry average (COGS share of revenue) in the same period was 69.6%
- R&D share of Revenues: Amphenol R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Amphenol spent 12.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Electrical Components & Equipment industry average SG&A spending in the same period was 17.0%
- Inventory share of Revenues: As a percentage of revenue, Amphenol spent 14.8% of its total revenues on Inventories. Electrical Components & Equipment industry average Inventory spending in the same period was 13.3%
- Accounts Payable share of Revenues: As a percentage of revenue, Amphenol invested 10.8% of its total revenues on Accounts Payable (A/P) Electrical Components & Equipment industry average Accounts Payable investment in the same period was 10.1%
- Accounts Receivable share of Revenues: As a percentage of revenue, Amphenol invested 21.5% of its total revenues on Accounts Receivable (A/R). Electrical Components & Equipment industry average Accounts Receivable investment in the same period was 17.8%
- PP&E share of Revenues: As a percentage of revenue, Amphenol invested 11.3% of its total revenues on Property, Plants, and Equipments (PP&E). Electrical Components & Equipment industry average PPE investment in the same period was 16.5%
- Intangibles share of Revenues: As a percentage of revenue, Amphenol invested 66.7% of its total revenues on Intangibles. Electrical Components & Equipment industry average Intangibles investment in the same period was 42.0%
- Net Margins: Amphenol Net Margins in the year 2016 were 13.1%. Electrical Components & Equipment industry average Net Margins in the same period were 7.9%
Sector and Industry Association of Amphenol
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
Amphenol is associated with Industrials Sector Group, Industrial Goods & Services Sector, and Electrical Components & Equipment Industry.
Industrial Goods & Services sector is comprised of the following industries: Industrial Conglomerates; Industrial Machinery; Electrical Components & Equipment; Electronic Equipment & Parts; Containers & Packaging. The definitions for each of the industries is as follows:
- Industrial Conglomerates industry includes Industrial companies engaged in three or more classes of business within the Industrial industry that differ substantially from each other.
- Industrial Machinery industry includes designers, manufacturers, distributors and installers of industrial machinery and factory equipment, such as machine tools, lathes, presses and assembly line equipment. It also includes makers of pollution control equipment, castings, pressings, welded shapes, structural steelwork, compressors, pumps, bearings, elevators and escalators.
- Electrical Components & Equipment industry consists of manufacturers and distributors of electrical parts for finished products, such as printed circuit boards for radios, televisions and other consumer electronics. It also includes makers of cables, wires, ceramics, transistors, electric adapters, fuel cells and security cameras. Manufacturers of Electric motors and generators and mechanical motion control products are also part of this industry.
- Electronic Equipment & Parts industry includes companies offering Manufacturing and Design services for Engineered Components and Products used in different industries. Companies providing Laser-based manufacturing products are part of this industry.
- Containers & Packaging industry includes producers and distributors of cardboard, bags, boxes, cans, drums, bottles, jars and glass used for packaging. Specialty Packaging Products and Pressure-Sensitive Materials producers are also part of this industry.
Industry Ranking of Amphenol
With $6.3 billion revenues, Amphenol ranked number 5 of all the companies in the US Electrical Components & Equipment industry. There were a total of 33 public companies in the US Electrical Components & Equipment industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Electrical Components & Equipment industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.