Amphenol’s Diverse Exposure and Strong Execution Provide it With a Growth Runway and a Narrow Moat

We think Amphenol is a differentiated connector supplier, an excellent operator, and an exceptional steward of shareholder capital. Amphenol competes against myriad competitors in the fragmented electrical component industry, but its broad array of diverse end markets allows it to grow the top line even in the midst of an individual market downturn. We also think the firm’s unique ability to effect cost controls gives it the highest operating margins of its peer group, and allows it to quickly bring its numerous acquisitions up to firmwide profitability.