Sector: Information Technology | Focus: Electronic Components
HQ: Wallingford, Connecticut
Financial Risks
The company faces market risks from fluctuating foreign currency exchange rates and interest rates. Economic slowdowns or recessions in end markets could reduce customer demand. Raw material costs are increasing. Cybersecurity threats, regulatory scrutiny, extreme weather, and political/economic instability in foreign markets pose risks. Acquisitions may not integrate smoothly, leading to impairment of goodwill or other intangible assets. The company's ability to meet financial covenants and access capital markets on favorable terms is uncertain. Tax policies, audits, and litigation also present risks.
Financial Upside
Strong organic growth is anticipated in the communications, interconnect, and harsh environment solutions segments. Acquisitions, including the Carlisle Interconnect Technologies acquisition, are expected to add complementary products and technologies. The company has a new stock repurchase program and increased dividend rates. Access to capital markets through debt financing, including senior notes and commercial paper programs, provides flexibility. The company's operating cash flow is strong, and free cash flow is expected to increase.
