Our stock screener has spotted AMPHENOL CORP-CL A (NYSE:APH) as a good dividend stock with solid fundamentals. NYSE:APH shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.
Understanding NYSE:APH's Dividend Score
ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:APH was assigned a score of 7 for dividend:
Compared to an average industry Dividend Yield of 1.75, APH pays a better dividend. On top of this APH pays more dividend than 91.27% of the companies listed in the same industry.
On average, the dividend of APH grows each year by 14.83%, which is quite nice.
APH has paid a dividend for at least 10 years, which is a reliable track record.
APH has not decreased their dividend for at least 10 years, which is a reliable track record.
APH pays out 24.90% of its income as dividend. This is a sustainable payout ratio.
How do we evaluate the Health for NYSE:APH?
ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:APH, the assigned 7 for health provides valuable insights:
APH has an Altman-Z score of 5.13. This indicates that APH is financially healthy and has little risk of bankruptcy at the moment.
APH's Altman-Z score of 5.13 is fine compared to the rest of the industry. APH outperforms 76.19% of its industry peers.
The Debt to FCF ratio of APH is 1.94, which is an excellent value as it means it would take APH, only 1.94 years of fcf income to pay off all of its debts.
APH has a better Debt to FCF ratio (1.94) than 71.43% of its industry peers.
APH has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
Even though the debt/equity ratio score it not favorable for APH, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
APH has a Current Ratio of 2.06. This indicates that APH is financially healthy and has no problem in meeting its short term obligations.
Profitability Insights: NYSE:APH
ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:APH was assigned a score of 8 for profitability:
With an excellent Return On Assets value of 12.18%, APH belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.47%, APH belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
APH has a better Return On Invested Capital (15.82%) than 92.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for APH is significantly above the industry average of 9.11%.
The 3 year average ROIC (15.12%) for APH is below the current ROIC(15.82%), indicating increased profibility in the last year.
APH has a Profit Margin of 15.87%. This is amongst the best in the industry. APH outperforms 97.62% of its industry peers.
APH has a better Operating Margin (20.89%) than 98.41% of its industry peers.
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.