ACM RESEARCH INC-CLASS A (ACMR)
US00108J1097 - Common Stock
We assign a fundamental rating of 5 out of 10 to ACMR. ACMR was compared to 109 industry peers in the Semiconductors & Semiconductor Equipment industry. While ACMR is still in line with the averages on profitability rating, there are concerns on its financial health. ACMR is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
ACMR had positive earnings in the past year.
In the past year ACMR had a positive cash flow from operations.
Each year in the past 5 years ACMR has been profitable.
In the past 5 years ACMR reported 4 times negative operating cash flow.
1.2 Ratios
ACMR has a Return On Assets of 5.10%. This is in the better half of the industry: ACMR outperforms 66.97% of its industry peers.
The Return On Equity of ACMR (10.20%) is better than 68.81% of its industry peers.
With a decent Return On Invested Capital value of 8.32%, ACMR is doing good in the industry, outperforming 74.31% of the companies in the same industry.
ACMR had an Average Return On Invested Capital over the past 3 years of 5.41%. This is significantly below the industry average of 10.71%.
The 3 year average ROIC (5.41%) for ACMR is below the current ROIC(8.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 10.2% | ||
| ROIC | 8.32% |
ROA(3y)3.99%
ROA(5y)5.23%
ROE(3y)7.16%
ROE(5y)10.85%
ROIC(3y)5.41%
ROIC(5y)6.12%
1.3 Margins
ACMR's Profit Margin of 12.26% is fine compared to the rest of the industry. ACMR outperforms 70.64% of its industry peers.
ACMR's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 17.21%, ACMR is doing good in the industry, outperforming 73.39% of the companies in the same industry.
In the last couple of years the Operating Margin of ACMR has grown nicely.
Looking at the Gross Margin, with a value of 49.53%, ACMR is in the better half of the industry, outperforming 64.22% of the companies in the same industry.
In the last couple of years the Gross Margin of ACMR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.21% | ||
| PM (TTM) | 12.26% | ||
| GM | 49.53% |
OM growth 3Y7.77%
OM growth 5Y14.55%
PM growth 3Y4.93%
PM growth 5Y9.41%
GM growth 3Y3.67%
GM growth 5Y1.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACMR is destroying value.
Compared to 1 year ago, ACMR has more shares outstanding
Compared to 5 years ago, ACMR has more shares outstanding
The debt/assets ratio for ACMR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.35 indicates that ACMR is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.35, ACMR is in line with its industry, outperforming 40.37% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that ACMR is not too dependend on debt financing.
The Debt to Equity ratio of ACMR (0.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.35 |
ROIC/WACC0.64
WACC13.05%
2.3 Liquidity
ACMR has a Current Ratio of 2.29. This indicates that ACMR is financially healthy and has no problem in meeting its short term obligations.
ACMR has a Current ratio of 2.29. This is in the lower half of the industry: ACMR underperforms 65.14% of its industry peers.
ACMR has a Quick Ratio of 1.26. This is a normal value and indicates that ACMR is financially healthy and should not expect problems in meeting its short term obligations.
ACMR has a worse Quick ratio (1.26) than 77.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
ACMR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.99%, which is quite impressive.
Measured over the past years, ACMR shows a very strong growth in Earnings Per Share. The EPS has been growing by 55.38% on average per year.
The Revenue has grown by 50.41% in the past year. This is a very strong growth!
The Revenue has been growing by 49.53% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)62.99%
EPS 3Y63.93%
EPS 5Y55.38%
EPS Q2Q%14.58%
Revenue 1Y (TTM)50.41%
Revenue growth 3Y52.71%
Revenue growth 5Y49.53%
Sales Q2Q%40.05%
3.2 Future
The Earnings Per Share is expected to grow by 5.94% on average over the next years.
ACMR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.48% yearly.
EPS Next Y11.78%
EPS Next 2Y9.13%
EPS Next 3Y5.94%
EPS Next 5YN/A
Revenue Next Year35.96%
Revenue Next 2Y28.23%
Revenue Next 3Y23.48%
Revenue Next 5Y21.48%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
ACMR is valuated reasonably with a Price/Earnings ratio of 10.30.
Based on the Price/Earnings ratio, ACMR is valued cheaply inside the industry as 97.25% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 31.73. ACMR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.99, the valuation of ACMR can be described as very reasonable.
93.58% of the companies in the same industry are more expensive than ACMR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.71. ACMR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
93.58% of the companies in the same industry are more expensive than ACMR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ACMR may justify a higher PE ratio.
PEG (NY)0.87
PEG (5Y)0.19
EPS Next 2Y9.13%
EPS Next 3Y5.94%
5. Dividend
5.1 Amount
No dividends for ACMR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ACM RESEARCH INC-CLASS A
NASDAQ:ACMR (10/14/2024, 8:11:41 PM)
After market: 21.4112 +0.08 (+0.38%)21.33
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
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Inst Owners
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Market Cap1.33B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 10.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.87
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 10.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.21% | ||
| PM (TTM) | 12.26% | ||
| GM | 49.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)62.99%
EPS 3Y63.93%
EPS 5Y
EPS Q2Q%
EPS Next Y11.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)50.41%
Revenue growth 3Y52.71%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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