--- title: "Electronic Components Industry" description: "22 SEC filers are classified under the Standard Industrial Classification codes that describe the electronic components industry." canonical: https://www.getswoopr.com/stocks/industries/information-technology/electronic-components/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Electronic Components Industry ## Direct Answer 22 SEC filers are classified under the Standard Industrial Classification codes that describe the electronic components industry, and their latest annual reports show $115.1 billion of combined revenue and a median operating margin of 5.4%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Electronic component makers produce capacitors, resistors, inductors, sensors and related parts used in nearly all electronic devices. Demand follows device and vehicle production and inventory cycles in the supply chain. The first numbers to compare across companies here are revenue and book-to-bill, gross margin and distribution inventory. ## Key Industry Metrics - **Revenue and book-to-bill**: Sales and the ratio of new orders to shipments. A ratio above one shows orders exceeding shipments and a strengthening cycle, while below one signals falling demand. - **Gross margin**: Revenue left after materials, plant and labor. Component pricing swings with supply and demand, so margins widen in tight markets and narrow when capacity is plentiful. - **Distribution inventory**: Parts held by resellers. High inventory in the channel means future orders may lag consumption, while low levels suggest restocking can lift demand. - **End-market mix**: Sales divided among consumer, auto, industrial and server uses. Auto and industrial tend to be steadier, so mix helps explain how cyclical the business is. - **Capacity utilization**: The share of production lines in use. High utilization supports pricing and profit, and low utilization leaves fixed costs spread across fewer parts. ## Primary Macro Drivers - **Consumer, auto and industrial production**: Phones, vehicles and factory equipment all use these parts, so production in those markets drives revenue and book-to-bill. - **Inventory cycles**: Channel stocking and destocking swings orders above or below end demand, appearing in distribution inventory and book-to-bill. - **Content growth in vehicles and servers**: Electric vehicles and AI servers use many more parts per unit, raising volume and average selling price independent of unit sales. - **Raw material costs**: Metals and ceramics are major costs, so price moves change gross margin unless passed through to customers with a lag. ## Major Risks - **Cyclicality**: Orders swing with device and vehicle production and channel stocking, so revenue can fall sharply; watch book-to-bill and distribution inventory. - **Price competition**: Many suppliers sell similar parts, and buyers can switch, which pressures price in weak periods; watch gross margin and utilization. - **Customer inventory swings**: Customers may hold too much stock and cut orders, creating a gap between sales to channel and end use; watch distributor and customer inventory. - **Concentration in Asia**: Much production sits in one region, so conflict, tariffs or disruptions can interrupt supply; watch plant location mix and sourcing commentary. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Cyclical | | Capital Intensity | Medium | | Regulatory Intensity | Low | | Industry Maturity | Mature | | Geographic Importance | Global | ## Electronic Components Filers in the SEC Record 22 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 3670, 3672, 3678, 3679. Their latest fiscal years end between 2025 and 2026, and together they reported $115.1 billion of revenue. Median revenue growth over the prior year was 5.8%. Median operating margin was 5.4% and median net margin 3.1%. Median total liabilities were 48% of total assets, and 16 of 22 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Jabil Inc](https://www.getswoopr.com/stocks/companies/jabil/) | $29.8 billion | 3.2% | 4.0% | 2.2% | FY 2025 | | [Flex Ltd.](https://www.getswoopr.com/stocks/companies/flex-ltd/) | $27.9 billion | 8.1% | 4.9% | 3.2% | FY 2026 | | [Amphenol Corp](https://www.getswoopr.com/stocks/companies/amphenol/) | $23.1 billion | 51.7% | 25.4% | 18.5% | FY 2025 | | [Vertiv Holdings Co](https://www.getswoopr.com/stocks/companies/vertiv/) | $10.2 billion | 27.7% | 17.9% | 13.0% | FY 2025 | | [Sanmina Corp](https://www.getswoopr.com/stocks/companies/sanmina-corporation/) | $8.1 billion | 7.4% | 4.4% | 3.0% | FY 2025 | | [Hubbell Inc](https://www.getswoopr.com/stocks/companies/hubbell-incorporated/) | $5.8 billion | 3.8% | 20.7% | 15.2% | FY 2025 | | [Ttm Technologies Inc](https://www.getswoopr.com/stocks/companies/ttm-technologies-inc/) | $2.9 billion | 19.0% | 9.1% | 6.1% | FY 2025 | | [Advanced Energy Industries Inc](https://www.getswoopr.com/stocks/companies/advanced-energy-industries-inc/) | $1.8 billion | 21.4% | 9.3% | 8.2% | FY 2025 | The 8 largest of 22 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Electronic Components guide describes how the industry earns money, what to measure and what can go wrong. 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Key performance indicators for the Electronic Components industry include: Revenue and book-to-bill, Gross margin, Distribution inventory, End-market mix, Capacity utilization. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Electronic Components industry? The Electronic Components industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing. What are the biggest risks in the Electronic Components industry? The primary risks for Electronic Components companies include: Cyclicality, Price competition, Customer inventory swings, Concentration in Asia. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).