APH – Market expectations are for Uniform ROA to fade materially, but management is confident about their earnings quality, mobile devices, and long-term prospects

• Amphenol Corporation (APH:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 19.7x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their earnings quality, the mobile device market, and long-term prospects
  
  

• Specifically, management is confident that their operating margins and cash flow performance are a strong reflection of the quality of their earnings and that they are excited about their acquisition of a small sensor business in India. In addition, they are confident the mobile device market will drive value for the firm in the future and that their strength built in 2019 will result to superior performance in the long-term