Last Updated: 17 Sep 2024
Executive Summary
Acm Research Inc. (ACMR) is a leading provider of single wafer wet cleaning equipment for the semiconductor industry. The company's products are used to improve the manufacturing process and performance of embedded chips. ACMR has a strong financial position with a market capitalization of $1.05 billion, EBITDA of $128.19 million, and EPS of $1.25. The company's stock is currently trading at $16.37, below its 52-week high of $34.40.
Company Overview
ACMR was founded in 1995 and is headquartered in Fremont, California. The company's products are used by semiconductor manufacturers worldwide to clean wafers before and after processing. ACMR's equipment is designed to improve the yield and quality of semiconductor chips.
Fundamental Analysis
ACMR's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 15% over the past five years. In 2023, ACMR reported revenue of $693.56 million, up 4% from the previous year. The company's net income was $128.19 million, up 12% from the previous year.
ACMR's profitability metrics are also strong. The company's gross margin is 26%, and its operating margin is 19%. ACMR's return on assets (ROA) is 5%, and its return on equity (ROE) is 12%.
Technical Analysis
ACMR's stock price has been trending down in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
ACMR's stock price is likely to remain under pressure in the short term. The semiconductor industry is facing a number of challenges, including slowing demand and rising costs. These challenges are likely to weigh on ACMR's financial performance in the coming quarters.
Long Term Outlook
ACMR's long-term outlook is more positive. The company's products are essential for the production of semiconductor chips, and demand for these chips is expected to grow in the coming years. ACMR is well-positioned to benefit from this growth.
Analyst Recommendations
The majority of analysts covering ACMR have a buy rating on the stock. The average analyst target price is $34.71, which represents a potential upside of 112% from the current price.
