The Jensen Quality Growth Investment Team Sells Position in Amphenol (APH)
October 2025
Company Overview
Amphenol is a producer of electronic and fiber optic connectors, cables, and interconnect systems. The company was founded in 1932 and is headquartered in Wallingford, Connecticut. With 125,000 employees worldwide, Amphenol is a technology leader serving a broad range of industries, including aerospace, industrial, automotive, technology hardware, and mobile device markets.
Investment Thesis and What Led Us to Sell
Our thesis for Amphenol was based on their business fundamentals’ alignment with the key tenets of the Jensen Quality Growth Strategy’s investment selection process:
- Competitive Advantages: Across all its businesses, Amphenol is an industry leader and benefits from scale advantages relative to all but a handful of competitors.
- Earnings Stability: The company maintains a strong balance sheet and continued dividend distribution to shareholders.
- Valuation: We began reducing the Strategy’s stake in Amphenol shares in mid-2025 when the stock price became elevated relative to multiple valuation metrics. Due to the elevated valuation, we believe there is limited near-term upside potential.
Outlook
Although we believe Amphenol is a quality business and possesses many competitive advantages, our near-term outlook is constrained due to their elevated share price. Longer term, we intend to closely monitor Amphenol and may consider re-adding it to the Strategy should we see improvement in the combination of business fundamentals and stock price valuation.
Strategy holdings are subject to change and should not be considered recommendations to buy or sell any security. Please click here for a listing of the Quality Growth Strategy’s current holdings.
The company discussion is solely intended to illustrate the application of our investment approach and is not to be considered a recommendation by Jensen. The specific security identified is taken from a representative accounts of the Jensen Quality Growth Strategy and does not represent all of the securities purchased and sold for the Strategy. Our views expressed herein are subject to change and should not be construed as a recommendation or offer to buy or sell any security and are not designed or intended as a basis or determination for making any investment decision for any security. Our discussions should not be construed as an indication that an investment in a security has been or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of any security discussed herein.
Certain information contained in this material represents or is based upon forward-looking statements, which can be identified by the use of terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “target,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of a client account may differ materially from those reflected or contemplated in such forward-looking statements.
This information is current as of the date of this material and is subject to change at any time, based on market and other conditions.
Jensen Investment Management, Inc., is an investment adviser registered under the Investment Advisers Act of 1940. Registration with the SEC does not imply any level of skill or training. Although taken from reliable sources, Jensen cannot guarantee the accuracy of the information received from third parties.
© 2025 Jensen Investment Management
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